– February 3, 2020Under Budget 2020, new income tax rates and slabs were announced. Taxpayers have the option to continue to pay income tax under the old rate or opt for the new income tax regime with reduced tax rates and new income tax slabs; however, they will have to forgo tax exemptions and deductions under Standard Deduction, Section 80D, Section 80C, HRA, LTA, interest on home loan on self-occupied house, etc. Individuals can get a maximum benefit of Rs.78,000 under the new income tax regime. Also, the dividend distribution tax on companies has been removed. The new tax rates will be effective from FY 2020-21.