New financial year starts, these 7 rules related to tax changing from today

New financial year starts, these 7 rules related to tax changing from today

Today begins the new financial 12 months. In the new financial year, many tax guidelines have changed. It is important to understand these changed rules. The new tax gadget has additionally come into force from today.

The new finance (2020-2021) 12 months has started from today. The new tax machine has also come into pressure in the new fiscal 12 months. Apart from this, there have been modifications in many tax rates, which is important to understand. The government has additionally made it clean with the aid of liberating the press release that the financial yr is not going ahead. In fact, on March 30, the information came that the government has decided to increase the economic year.

1. The new tax system has also come into pressure for this financial yr. The new device does not provide for deduction and exemption. There might be no tax on earnings up to five lakh. In the new system, 10% on earnings up to five-7.five lakh, 15% on earnings as much as 7.5-10 lakh, 20% on profits up to 10-12.5 lakh, 25% up to 12.five-15 lakh and 30% tax on incomes above 15 lakh. Will apply.

2. Income tax might be levied on the income of the dividend issued by way of the mutual fund and the domestic agency in the new financial 12 months. This means that the income made after April 1 will be treated as your income and might be taxed primarily based at the tax slab. There turned into no tax on the dividend up to ten lakh in the monetary yr 2019-20.

3. The definition of NRI (Non Resident Indian) has additionally modified in the new economic yr. According to the final thought of Budget 2020, a non-resident India may be taken into consideration as Resident Indian (not Ordinary Resident) if its taxable income exceeds 1.five million, remains in India for more than 120 days in that financial yr and last four financial years. In one year or more.

4. If his taxable income does not exceed 15 lakhs, then he could be taken into consideration resident Indian only if he has been in India for more than 181 days in that monetary year. If much less than that, he may be considered as NRI.

5.Good information for those who've now not taken home mortgage for affordable house until now. If someone takes a home loan for an affordable residence in this monetary 12 months, then you'll be able to declare the deduction until 31 March 2021 under phase 80EE. The ultimate date before changed into 31 March 2020. According to the vintage rule, if someone takes a domestic loan for a assets of much less than forty five lakhs, then you can actually claim deduction up to 1.five lakh on interest. However, the mortgage must have been finished on or before 31 March 2020. This exemption is similarly to the exemption up to two lakhs already available beneath phase 24.

6. Relief has been given in this economic 12 months on Employee Stock Ownership Plan (ESOPs). Under the trade in tax rules, the tax on ESOPs can be paid whilst leaving the company, at the same time as promoting shares or after five years, whichever is earlier.

7. According to the announcement of the budget, if the contribution of the Employer to Employee Provident Fund (EPF) and National Pension Scheme (NPS) in the new economic yr is extra than 7.five lakhs, the amount might be taxed. Employee will must pay tax.

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