The budget for 2020-21 has introduced a new tax regime, which an individual tax payer can opt, of lower tax rates coupled with a very few deductions available and fewer exempt allowances available instead of the regular tax regime where you have to pay tax at higher rates but have right to claim various exemptions and …

Can I change my income tax regime every year?

This regime is optional and the option can be exercised in every tax year if the taxpayer does not have business or professional income. However, at the time of filing return of income, one may switch to the old regime.

Are there any changes to the tax code for life insurance?

The updates—enacted as part of the Consolidated Appropriations Act, 2021 (H.R. 133)—could usher in a healthier sales environment for life insurers and a higher savings opportunity for consumers, experts say. A provision in the federal spending bill signed into law at year end changes a tax code rule applying to certain life insurance policies.

When does the new life insurance law take effect?

The new law drops the key interest rate used in creating life insurance policies to 2% for 2021, and ties future rates to periodically updated benchmarks after that. The reduction is effective Jan. 1, 2021 for new policies. If market interest rates normalize in the future, Section 7702 would revert to prior rates.

What are the changes in the house tax bill?

The House bill also proposed to allow the indefinite carryforward of NOLs, eliminating the current 20-year carryforward limitation, while also eliminating all NOL carrybacks with the narrow exception of certain carrybacks for small businesses and farms in the event of casualty or disaster losses arising in a tax year beginning after 2017.

What are the changes to the corporate tax rate?

1. Corporate Tax Rate Reduction and the Alternative Minimum Tax Repeal The top corporate tax rate has been permanently reduced by 40 percent—from 35 to a flat tax rate of 21 percent.