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Odisha: Income taxpayers to benefit from new regime with 2020 Budget plan, say experts

An individual who is currently availing more deductions and exemption under the Income Tax Act may choose to avail them and continue to pay tax in the old regime.

Published: 02nd February 2020 07:26 AM  |   Last Updated: 02nd February 2020 07:26 AM   |  A+A-

Income Tax

For representational purposes

Express News Service

BHUBANESWAR: The common man on Saturday endorsed the new personal income tax regime brought forward in Budget  2020-21."A taxpayer, who has not made any investment to avail exemption or deduction, will reap benefits from the new tax regime," said secretary of The Institute of Chartered Accountants of India, Bhubaneswar branch, Biswaranjan Sutar. 

Sutar said some taxpayers make investments to avail deductions and the new tax regime will not affect investments in health insurance, term life insurance, pension schemes, and others as these are all long-term targets. The Centre has removed about 70 exemptions and deductions from the new regime. The tax regime will be optional for taxpayers. An individual who is currently availing more deductions and exemption under the Income Tax Act may choose to avail them and continue to pay tax in the old regime.

Retired officer of SBI Braja Kishore Nayak said it will benefit the persons with less or no investment. "Under the new regime, the IT rates have been reduced significantly. It is now up to an individual taxpayer, who has made investments, to evaluate both the regimes and choose one of them," he added.

Praveen Patodia of Vinayak Traders, Cuttack which deals with LED torches and electronic items, said, “I am waiting for the details of 70 exemptions and deductions removed from the new regime. In the old regime, a taxpayer was able to avail deductions up to a maximum Rs 1.5 lakh."

A private bank employee working in the city, Deepika Gupta, said she has invested in tax saver fixed deposit and in life insurance. "Though I don’t know the complete details of the new regime, I will prefer to pay tax in the old regime," she added.

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