Income Tax Return filing: Are you one of those opting for the new income tax regime? Then, there is a new form that you need to fill. The Central Board of Direct Taxes (CBDT) notified a new form to be filled by those opting for the new tax regime for financial year 2020-21.
Income Tax Return filing: Are you one of those opting for the new income tax regime? Then, there is a new form that you need to fill. The Central Board of Direct Taxes (CBDT) notified a new form to be filled by those opting for the new tax regime for financial year 2020-21. This new form notified by CBDT on October 1 is Form 10-IE. You will need to file this form at the time of filing income tax return (ITR) in case you have opted for the new regime.
The alternative tax regime was announced by the Finance Minister Nirmala Sitharaman during the Union Budget 2020 speech. The new tax regime is optional and anyone opting for it had to forego most of the deductions available under the income tax laws such as Section 80C, 80D, 80TTA for deduction on savings account interest earned from a bank account.
Also Read: Points individuals should be aware of while filing their ITR
A taxpayer is required to opt for the new regime at the time of filing the ITR, as per newly-inserted Section 115AC of the Income Tax Act, 1961. This will be done through the new Form 10-IE notified by CBDT.
The new tax regime is available only to individuals and Hindu Undivided Family (HUF). Any salaried individual who does not have business income can opt for old or new tax regimes every year from FY21 onwards. The new regime also introduces new tax rates.
The rates under new income tax regime are – zero tax for income up to Rs 2.5 lakh; 5% for income between Rs 2.5 lakh and up to Rs 5 lakh; 10% for income between Rs 5 lakh and up to Rs 7.5 lakh; 15% for income between Rs 7.5 lakh and up to Rs 10 lakh; 20% for income between Rs 10 lakh and up to Rs 12.5 lakh; 25% for income between Rs 12.5 lakh and up to Rs 15 lakh; 30% for income above Rs 15 lakh.
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