Here’s the insight of what interim budget 2020-21 has in store for you.

1. To simplify the tax system and lower tax rates, about 70 out of the more than 100 Income-tax deductions and exemptions have been removed.
2. Dividend Distribution Tax (DDT) is abolished. Companies will not be required to pay DDT. Dividends to be taxed only in the hands of recipients, at applicable rates.
3. New optional tax slabs: New Income-tax slabs introduced by budget 2020.

   Taxable Income slabs	Tax rates
   Up to Rs 2.5 lakh	NIL
   Rs 2.5 Lakh to Rs 5 Lakh	5%
   Rs 5 Lakh to Rs 7.5 Lakh	10%
   Rs 7.5 lakh to Rs 10 lakh	15%
   Rs 10 lakh to Rs 12.5 lakh	20%
   Rs 12.5 lakh to Rs 15 lakh	25%
   Rs 15 lakh and above	30%

   
   

   Note:- Every resident Individual having total income up to Rs 5,00,000 will get a tax rebate of Rs 12,500 or total tax liability, whichever is less.

4. To avail the benefit of a reduced tax slab rate, an individual has to forego following tax exemptions.
   • To avail the benefit of a reduced tax slab rate, an individual has to forego following tax exemptions
   • Interest on House loan.
   • Deduction under chapter VIA (except Section 80CCD(2) on account of the employer's contribution).
   • Deduction of Rs 15000 allowed from family pension u/s 57(iia).
   • House Rent Allowance u/s 10(13A).
   • Leave Travel Allowance u/s 10(5).
   • Deduction of Rs.1500 on clubbing of Income.