Income Tax--Current Issues

Practice Update

V.K. Subramani

A COMPARATIVE STUDY OF TAX LIABILITY

The Finance Act, 2020 has inserted section 115BAC which gives an option to the personal taxpayers to either pay in the old slab rates of tax or the new rates prescribed in section 115BAC. In this write up, we would do a comparative study for deciding which would be more appropriate for persons having salary income with self-occupied property (with housing loan) and investments eligible for deduction under Chapter VI-A.

Example: Mr. A is employed in a company with salary income of Rs. 30 lakhs before standard deduction for the financial year 2020-21 :--