In Union Budget 2020, the Finance minister introduced the new tax regime with lower tax rates giving the individual taxpayers option to choose between the old tax regime and the new tax regime. The new system is applicable from 01-April-2020(FY 20-21). The proposed lower tax rates will be applicable only if you are willing to give up exemptions and deductions available under various provisions of the Income-tax Act, 1961. Only employer’s contribution on account of an employee in a notified pension scheme [under Section 80CCD (2) ] and for new employment [under Section 80JJAA ] can be claimed.
Refer tax slabs for greater understanding and assessment.