The finance ministry predicts that 5 percent of income taxpayers will switch to the budget’s new income tax plan in the coming fiscal year.
Finance Minister Nirmala Sitharaman presented next year’s budget. The income tax has been significantly reduced in this budget. In addition, new schemes have been announced with some changes in the current income tax calculation system.
There is no income tax of up to Rs 5 lakh under the new scheme. Under the new scheme, no tax deduction section including 1 cc will be considered as there is no income tax exemption up to Tk 1 lakh.
Under Sections 5c and 3d, LTC will no longer be entitled to income tax deductions for housing rent deductions, entertainment allowances, professional taxes, residential loan and home loan interest.
Where in the next financial year, one can plan income tax. Doing so will only be tax deductible up to two and a half lakh rupees.