How Much Is The 2020 Standard Deduction?

Is there any standard deduction for FY 2020 21?

Therefore, the taxpayer can claim a standard deduction of Rs.

40,000* or the amount of pension, whichever is less.

*Increased to Rs 50,000 for FY 2019-2020(AY 2020-21) through the Interim Budget 2019..

Is 80c removed in 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … However, all without deductions.

How can I save tax on FY 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

What are the exemptions for income tax 2020?

Salaried taxpayers who opt for the new regime will have to forgo the standard deduction as well as the exemptions under chapter VI-A, including the HRA, investments under Section 80C, medical insurance premium and even the leave travel allowance which is tax free if claimed once in a block of two years.

How do you calculate income tax for the financial year 2020 21?

At this point, the income which is still chargeable to tax is Rs 7,90,000. From point 4, Rs 2.5 lakh (Rs 10 lakh minus Rs 7.5 lakh) will be taxed at 15 per cent and the tax liability is Rs 37,500….S. No.Income slabsIncome tax rate (%)6Between Rs 12,50,001and Rs 15 lakh25%7Above Rs 15 lakh30%5 more rows•Oct 23, 2020

What is new slab rate of income tax?

RelatedTaxable income slabsIncome tax rates and cessUp to Rs 2.5 lakhNilRs 2,50,001 to Rs 5,00,0005% of (Total income minus Rs 2,50,000) + 4% cessRs 5,00,001 to Rs 10,00,000Rs 12,500 + 20% of (Total income minus Rs 5,00,000) + 4% cessRs 10,00,001 and aboveRs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cessOct 20, 2020

Is the new tax slab better?

The New Tax Regime has proposed lower income-tax rates, for income segments up to Rs 15 lakh….Income-tax rates under the new tax regime v/s the old tax regime.Income slabs (Rs)Tax Rate(Old Regime)Tax Rate(New Regime – devoid of exemptions & deductions)10-12.5 lakh30%20%12.5-15 lakh30%25%Above 15 lakh30%30%4 more rows•Feb 7, 2020

What is the standard deduction for over 65 in 2020?

For 2020, the additional standard deduction for married taxpayers 65 or over or blind will be $1,300 (same as for 2019). For a single taxpayer or head of household who is 65 or over or blind, the additional standard deduction for 2020 will be $1,650 (same as for 2019).

How much is a standard deduction 2019?

For single taxpayers and married individuals filing separately, the standard deduction rises to $12,200 for 2019, up $200, and for heads of households, the standard deduction will be $18,350 for tax year 2019, up $350.

What is the income tax slab for 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22Taxable incomeTax Rate (Existing Scheme)Tax Rate (New Scheme)Rs. 7,50,001 to Rs. 10,00,00020%15%Rs. 10,00,001 to Rs. 12,50,00030%20%Rs. 12,50,001 to Rs. 15,00,00030%25%Above Rs. 15,00,00030%30%3 more rows

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.