All Individuals & HUF can prefer to pay tax as per new slab rates without availing exemptions & deductions for the fiscal year 2020-21 and Assessment Year 2021-22 as per the Budget 2020.
The option has been given to all or any individuals/HUF to pay tax as per new slab rates (Optional tax regime) on total income computed without claiming any deductions/exemptions – As per Sec 115BAC inserted by Finance Act, 2020 -Applicable from FY 2020-21 (AY 2021-22). Below table summarizes tax rates as per optional tax regime Vs. old rates:

On April 19, 2020 by www.taxexcel.net

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If you have received arrears of salary/pension in the Financial year 2020-21 related to the previous year(s) then your tax liability will be on the higher side due to arrears but do you know that you can bifurcate your income  from arrears in respective years on notional basis and can avail relief u/s 89(1) of Income-tax Act,1961.

On April 18, 2020 by www.taxexcel.net

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Process of Income-tax calculation for the Salaried Persons for F.Y. 2020-21 As per Budget 2020

Income from salary is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance. Some components of your salary are exempt from tax, such as telephone bills reimbursement, leave travel allowance. If you receive HRA and live on rent, you can claim the exemption on HRA. Calculate the exempt portion of HRA, by using this HRA Calculator. 

On April 14, 2020 by www.taxexcel.net

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Union Budget 2020 offers individuals the choice of paying tax under the new regime of lower income tax rates by forgoing the tax exemptions/deductions or continue to pay tax under the existing income tax laws by claiming the applicable exemptions and deductions. Essentially, the more exemptions an individual claims, the less likely he/she is to benefit from the new optional tax regime however which regime is beneficial will vary on a case to case basis. Calculations show that salaried individual.

On April 10, 2020 by www.taxexcel.net

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Amount paid by the employer in the head of the arrears of salary, have you ever thought of tax relief under section 89(1) on salary arrears: No,

Most of us don’t know what is relief under section 89.

Most of the employee says it “relief 89“.

This article is all about “How to calculate income tax on arrear salary”.

On April 10, 2020 by www.taxexcel.net

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Excel Challan 280 FY 2019-20 AY 2020-21. Download Income Tax payment Challan No. ITNS 280  in Excel.

On April 08, 2020 by www.taxexcel.net

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 The Union Cabinet has approved an ordinance slashing the pension and allowances of members of the Parliament by 30 percent for a year.

On April 06, 2020 by www.taxexcel.net

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