Finance Act, 2020 has introduced the following important changes with regard to individual income tax:
- Optional tax regime for individuals with modified tax slabs and reduced rates. On satisfaction of certain prescribed conditions, an individual may opt to compute tax in respect of total income (without considering prescribed exemptions/ deductions), as per the new slab rates, instead of the existing tax regime.
- Significant changes to the residency rules for determining the residential status in India.
The annexed links may help in determining the likely impact of the above changes in certain scenarios: