This deduction was available over and above the deduction of Rs 2 lakh under section 24 for the interest paid on home loans. As per the announcement, the timeline to avail a loan for buying an affordable house in order to avail deduction under section 80EEA of the Income-tax Act, 1961 has been extended till March 31, 2021.Įarlier, individuals could avail deduction of Rs 1.5 lakh on the interest on home loan for property value not exceeding Rs 45 lakh, if the loan was sanctioned on or before March 31, 2020. ![]() Those who have not availed a loan for buying an affordable house, there was good news in Budget 2020. ![]() Extension of deadline to avail deduction on loan for affordable house.However, this provision will be applicable if the income accrued in India is more than Rs 15 lakh in a financial year. However, if the taxable income accruing in India does not exceed 15 lakh, then the individual will be considered an NRI if his/her stay does not exceed 181 days.įurther, an Indian Citizen will be deemed to be a resident in India if he is not liable to pay tax in any other country or territory by reason of domicile or residence or any other criteria. As per the final changes made, a non-resident Indian visiting India will be considered 'Resident but not ordinarily resident', if his/her taxable income accruing in India exceeds Rs 15 lakh, stay in India exceeds 120 days and his/her total stay in India in the previous four financial year is 365 days or more. However, certain amendments were made in those proposals at the time of passing of the Budget in the Parliament. Changes in rules to determine NRI statusīudget 2020 proposed certain changes in the criteria used to determine the 'non-resident Indian (NRI)' status or otherwise of a person.Till FY 2019-20, dividend paid by mutual funds and domestic companies used to attract dividend distribution tax (DDT) which made dividends up to Rs 10 lakh in the hands of an individual tax-exempt.įurther, such dividend will attract tax deduction at source (TDS) at the rate of 10 per cent, if the dividend received by an individual in a financial year exceeds Rs 5,000. ![]() Dividend becomes taxable in the hands of an individualįrom April 1, dividend received by you from mutual funds and domestic companies will be taxable in your hands.For instance, the option to avail new tax regime comes into effect from April 1, 2020, however, how will tax deduction at source (TDS) work under new tax regime? Can an employee switch between the new tax regime and the existing one during the financial year? However, there is no clarity on certain aspects of the new tax regime. Spend P2P Data Center Fuel Rates Diesel Rates Petrol Rates Bank Pan Number Bank holidays Penny Stocks MF Ratings & NAV Top Performing Schemes Top Star Rated Schemes Top Tax Saving Schemes Highest Risk Adjusted Return New Fund Offers Forthcoming Dividends NPS Top Performing NPS Scheme Most Consistent NPS schemes ETF Perfomance Latest Prices Listed Bonds Traded in Cash Market ULIPs ULIP Schemes Calculators Recurring Deposit Calculator Fixed Deposit Calculator LTCG Tax Calculator Income Tax Calculator Rent Receipt Generator SIP Calculator IFSC Bank Code NPS Calculator Invoice Generator EPF Calculator House Property Income HRA Calculator Sukanya Samriddhi Calculator Education Loan Calculator Car Loan Calculator Home Loan Calculator Personal Loan Calculator Risk Tolerance Calculator Financial Fitness Calculator Buy Online Health Insurance Car Insurance 2 Wheeler Insurance Interest Rates Recurring Deposit Rates Fixed Deposit Rates Bank Fixed Deposits Rates Post Office Schemes Rates MCLR Loan EMI Participate & Win Stocks & Shares ET Wealth ET Wealth Editions Buy Wealth Magazine ET Wealth NewsletterĪs announced in Budget 2020, from FY 2020-21, an individual taxpayer not having business income will have the option either to continue with the existing income tax regime and avail deductions and exemptions or avail the new tax regime with lower income tax rates sans deductions and tax-exemptions.
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