<h1>New Optional Tax Regime in Budget 2020-21 Offers Lower Rates for Middle-Class, Removing 70 Deductions and Exemptions.</h1> The Union Budget 2020-21 introduces a new optional personal income tax regime aimed at providing significant relief to middle-class taxpayers by reducing tax rates for those who forgo certain deductions and exemptions. The revised tax rates range from 5% to 30% across different income slabs, with potential savings for individuals not claiming deductions. The new regime is expected to result in an estimated revenue loss of Rs. 40,000 crore annually. Measures to simplify tax filing, including pre-filling tax returns, are also proposed. Approximately 70 existing exemptions and deductions are slated for removal to streamline the tax system further.