The Budget 2020 was announced on 1st Feb.
New Tax Regime announced and Income Tax slab rates were changed by FM Nirmala Sitharaman.
We understand it can be confusing.
Ask us Anything about #Budget2020.
Do I need to use the new tax regime from my next ITR filing?
Hi @Sofiyah_Valiante ,
From FY 2020-21 onwards, you have the option to choose between the Old and New Income Tax Regime. You can report it while filing your Income Tax Return from AY 2021-22 onwards.
You can use the Income Tax Calculator to check which Income Tax Regime is better for you.
Thank you so much for your prompt reply. However i have one more doubt - I have been investing in ELSS, FD & NPS etc. What should I do? Can I still claim these deductions? under new tax regime?
After Union Budget 2020, you cannot claim any Chapter-VIA deductions under the New Income Tax Regime.
However, you can continue to claim all the deduction if you choose the Old Income Tax Regime.
You can use the Income Tax Calculator to check which Tax regime is better for you.