Changes in provisions regarding Tax Incentives
So far I have covered the changes which are made in exempt income, salary income, house property income and income from business or profession, now going to explain the changes which are applicable in "Capital Gain".i.e. profit or loss which arise when someone sale any capital asset.
Earlier part of the article you can access by clicking following links:-
(1 ) Rate of Income Tax for the Assessment year 2020-21 (Read Part -1 here)
(2)"Exempt income" i.e. Income which do not part of Total Income (Read Part -2 here)
(3) Changes in the head "Income from Salary" (Read Part -3 here)
(4) Changes in "Income from House Property" (Read Part-4 here )
(5) Changes in "Profits or gains from Business or profession (Read Part-5)
(6) Part-6- change applicable in Capital gain (Read Part-6)
More Deduction on Pension Scheme to Central Government Employee (Section 80C)
Central Government employees can now avail deduction u/s 80C also on contribution to Tire-II account of pension scheme referred to in section 80CCD, if the same is for a fixed period of not less than 3 years.
More deduction for Employer’s contribution under NPS (Section 80CCD)
From A.Y. 2020-21 onwards, the amount of deduction (sec 80CCD(2)) in respect of employer’s contribution for an assessee who is employee of Central Government is enhanced from 10% of the salary to 14% of the salary earlier it was limited to 10% of salary.
Deduction for Interest on Home Loan (Section 80EEA)
If following conditions are fulfilled, a an individual assessee who is not claiming deduction u/s.80EE can claim deduction of upto ₹ 1,50,000/- u/s. 80EEA in respect of interest payable on loan borrowed by him from any financial institution for the purpose of acquisition of a residential house property, :
1) Loan has been sanctioned during the financial year 2019-20,
2) the stamp duty value of house property does not exceed forty-five lakh rupees;
3) assessee does not own any residential house property on the date of sanction of loan.
Where deduction is claimed under this section for any interest, then no further deduction shall be allowed in respect of ‘such interest’ under any other provision of this Act [E.g. Section 24(b)
Deduction for Interest on Vehicle Loan (Section 80EEB)
Deduction u/s. 80EEB of upto ₹ 1,50,000/- will be allowed to an individual for interest on loan borrowed for purchase of an electric vehicle provided that the sanction of loan must be between 01/04/2019 to 31/03/2023.
Further, it is also provided that the said interest shall not be eligible for any other deduction under any other provision of this Act [E.g. Section 36(1)(iii)].