Income Tax Changes Effective From Today, April 1, 2020: Things You Need to Know

New Delhi, April 1: The new financial year, 2020-21 starts from today amid the nationwide coronavirus lockdown. Many new IT-rules are also coming into effect with the start of the fiscal year. Keeping in mind the lockdown imposed to curb the spread of the virus, the government had earlier extended the deadline for filing Income tax returns for 2018-19 by three months. Similarly, the linking of pan card with Aadhaar card has also been extended to June 30. Nirmala Sitharaman Makes Important Announcements on Income Tax Return Filing Deadlines, GST And More Amid Coronavirus Outbreak: Check Full List of Announcements.

Here are some changes that will come into effect from April 1, 2020, as announced in Budget 2020:

New Tax Slab:

As Finance Minister Nirmala Sitharaman announced on February 1 that from today, the new tax slab will be effective, however, the old tax slab will also remain in existence. This will allow people to chose or select any one of the two slabs-new or old.

Under the new tax rate- there is zero tax for income up to Rs 2.5 lakh; 5 percent for income between Rs 2.5 lakh and up to Rs 5 lakh. For the next slab which is for income between Rs 5 lakh and upto Rs 7.5, the rate will be 10 percent. 15 percent for income between Rs 7.5 lakh and up to Rs 10 lakh and 20 will be applicable to those whose income is between Rs 10 lakh and up to Rs 12.5 lakh.

Financial Year Not Extended

Several fake reports were doing the rounds on media of the financial year being extended due to coronavirus lockdown in India. However, the government clarified that it has not been extended and the status quo on the same is being maintained.

Deadline For Filing Income Tax Extended to June 30

The government has extended the deadline for filing Income tax returns for 2018-19 to June 30. Similarly, the linking of pan card with Aadhaar card has also been extended to the above-mentioned date.

Govt Extended Tax Benefits Available on Interest Payment of Home Loan

For the first time buyer of a home, the government has extended the tax benefit available on interest payment of the home loan.

Last Date For IT-Savings Extended

Due to the lockdown, if you were not able to make your tax-saving for FY2019-20, the government has relaxed the rules and has allowed taxpayers to invest in PPF, NSC, ELSS or any other tax saving scheme by June 30, 2020, and yet claim tax benefit for the FY 2019-20.

(The above story first appeared on LatestLY on Apr 01, 2020 02:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).