This discussion clarifies income tax for the 2020-2021 financial year. An individual earning Rs. 6,24,000 annually, with Rs. 1,50,000 invested in PPF, is informed that they likely have no income tax liability. It's noted that tax is only payable on income exceeding Rs. 5 lakhs, and deductions are not permitted under the new tax scheme offering a Rs. 5 lakh exemption.
05 August 2021
You need to pay income tax on income exceeding 5 lacs. No deduction allowed when you choose new scheme of 5 lacs exemption. @ Ankit Neema correct your reply.