Are there any changes to the tax laws that I should be aware of?
Curious about tax savings?
Yes, there may be changes to the tax laws in India every year that you should be aware of. It's important to keep up with these changes to ensure that you are taking advantage of all available deductions and credits and reporting your income and deductions accurately. Some recent changes to the tax laws in India include:
1. Introduction of new tax regime: The Finance Act 2020 introduced a new tax regime, which offers lower tax rates but without certain deductions and exemptions. Taxpayers can choose between the old and new tax regimes based on their preference and tax liability.
2. Increase in standard deduction: The standard deduction for salaried employees was increased from Rs. 40,000 to Rs. 50,000 in the Interim Budget 2019.
3. Deduction for affordable housing: The Interim Budget 2019 introduced a new deduction for affordable housing. Under Section 80EEA, an additional deduction of up to Rs. 1.5 lakh is available for interest paid on loans taken for the purchase of an affordable house.
4. TDS on cash withdrawals: Finance Act 2019 introduced a new TDS (tax deducted at source) provision for cash withdrawals from banks and post offices. TDS is applicable on cash withdrawals exceeding Rs. 1 crore in a financial year.
5. Increase in TDS threshold for rent: The threshold for TDS on rent paid by individuals was increased from Rs. 1.8 lakh to Rs. 2.4 lakh in the Interim Budget 2019.
It's important to consult with a tax professional or stay updated with the latest tax news to ensure that you are aware of any changes that may impact your tax liability.