As soon as new tax regime was announced in Finance Bill, 2020 people became curious and started calling their consultants to ask that which tax regime they should choose and what is the new tax regime and is it for everyone or not.
Basically the new tax regime was supposed to apply for FY 2020-21, however people couldn’t hold it till next financial year and started asking questions and it was not easy to give same answer to each and everyone as this section needs one to study each case separately and calculate whether there is any tax saving in moving to tax regime or not.
Now, Budget 2020 has been passed by Lok Sabha and received President assent and only one change was made to Section 115BAC as compared to original section presented at the time of Budget i.e. at that time it was mentioned that for people earning income from business can withdraw from this section only once in a life time and the section didn’t cover people earning income from profession. In the final budget they have even included people earning income from profession.
Hence now the people engaged in profession can also withdraw this option once in lifetime i.e. once they opt in for this section and in later year’s if they withdraw section 115BAC for whatsoever reason they can’t opt in again in this provision.
With regard to calculation part earlier there were not much options available, however as the time passed there were many websites which were providing the method to calculate which regime is more beneficial. Also, the Income tax e filing website was providing this functionality, however it was not considering surcharge and similarly there were various flaws in different websites like some would not consider capital gain income etc.
Therefore we have tried to also provide you with a solution through our excel sheet, there might be some flaws in this also as it’s difficult to cover each and every situation in one excel sheet. However, we have tried to include each and every thing we could think of.
You can download the excel sheet from CLICK HERE. (Recommended to open in Desktop/ Laptop for better experience.)
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