Articles

With a view to simplify the complex maze of plethora of deduction claims of the individuals and HUF taxpayers, the Government of India introduced the New Personal Tax/ Alternative Tax Regime, w.e.f. FY 2020-21 and onwards with reduced tax rates under a new section 115BAC of the Income Tax Act.

The compulsory requirement of foregoing of the majority of the available specified deductions by the individuals and HUFs opting for the new personal tax regime viz. deductions u/s 80C, 80D, 80E, 80G, 80QQB, 80TTA, 80TTB, 80CCD(1)/(1B), HRA u/s 10(13A), interest on housing loan in respect of self-occupied property u/s 24(b), made the said new regime unpopular and with a very few takers.

In order to make the new regime more appealing to the taxpayers, some significant amendments.