Finance Minister Nirmala Sitharaman in Budget 2020 announced a concessional tax regime for individuals with new slabs and tax rates for those willing to forego all existing exemptions.
In the new system, there are 7 tax slabs versus 4 in the existing system. A person opting for the new system will not get any benefit of exemptions and deductions like 80C for investments, 80D for medical insurance premium, interest on home loan under Section 24, contribution to pension scheme, house rent allowance, standard deduction, etc. There are altogether 70 exemptions available for an individual taxpayer.
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