Union budget 2020 introduced a new tax regime for taxpayers in India. Several new tax slabs were introduced, with the tax being lowered across all slabs. However, there was a small catch - all exemptions (like HRA) and deductions (like Section 80C) were removed. To further complicate matters, taxpayers can choose to either remain under the old tax regime, or switch to the new regime. Overall, quite complicated!
So how does one decide whether to stay in the old regime, or to opt for the new one?
To help you make an informed decision, all you need to do is make your tax declaration in Opfin the same way as before, and we will show you how much tax you will need to pay under both the old and new regime. We will then recommend which option works better for you, with the goal being to minimise your tax. You can switch between the two regimes with the click of a button, and can also change your mind at any point if you wish to do so (at least till January 2021).
Sample screenshot of new Tax Deductions page -
If you do not see similar content as above under Tax Deductions, then it’s possible that your organization is still completing payroll for the last financial year. So please wait a few days and check again.
With this information, it should become easy for you to pick whether to opt for the new regime or not. If you have any feedback, please do not hesitate to contact us at firstname.lastname@example.org.