The new financial year 2020-21 has started from today. Also, some new Income Tax rules are going into effect from 1 April 2020.
new Delhi: Today i.e. April 1, the new financial year 2020-21 has started. The financial year 2019-20 has ended on 31 March. With the beginning of the new financial year, many new rules are coming into existence. At this time, lockdown is going on throughout the country to prevent the spread of corona virus. In such a situation, the government has extended several important deadlines from 31 March to 30 June. Which includes many important things including PAN-Aadhaar linking, income tax returns, validity of required documents, deadline for submission of Goods and Services Tax (GST) returns. In the Budget 2020, some changes have been made in the Income Tax rules which will come into effect from 1 April 2020. It is very important for you to know about these rules related to income tax being effective from April. So let’s know about them in detail ….
From 1 April 2020, the new tax slab will be applicable. This was announced in the Budget 2020. However, the old tax slab will also remain in effect. With which people will have the option to choose one in both options. According to the new tax rates announced in the budget, no tax has been imposed on the annual income up to Rs 2.50 lakh. While there is a provision of 5 percent tax on the annual income from 2.5 lakh to 5 lakh. At the same time, there is a provision of 10 percent tax on annual income of less than 7.5 lakh rupees. There is a provision of 15 percent tax on annual income of more than 7.5 lakh and less than 10 lakh. There is a provision of 20 percent tax on annual income above 10 lakh and below 12.5 lakh. Above 12.5 lakh and less than 15 lakh annual income will have to pay 25 percent tax. At the same time, 30 percent tax will have to be paid on annual income above 15 lakh.
According to the new rule announced in Budget 2020, DDT has been abolished on the dividend paid by companies and Mutual Funds. Now those who get this tax dividend will have to pay. These are the new tax rules effective from April.
– If the contribution of the employer in NPS, EPF and pension fund exceeds Rs 7.5 lakh in a year, then it will be taxable for the employee. This change in the income tax rules will be applicable in both new and old tax slabs.
The government has given a big relief to the general public by extending the tax benefit deadline on the interest of housing loan. People can take advantage of this till 31 March 2021. People buying home for the first time will get the benefit of this. People who are buying their house for the first time and its price is up to 45 lakh rupees. They will be able to take advantage of it.
-The government has provided relief to the employees of Startup in this budget 2020. Now after 5 years tax liability will be incurred on ESOP. Tax rules have been simplified.
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Deadline of these important works was ending today, now news of this great relief