The
repayment of Home Loan comprises of 2 components i.e. Repayment of Principal and Repayment of Interest. As
the repayment comprises of 2 different components, the tax
benefit on a home loan is governed
by different sections of
the Income Tax Act and these are claimed
as tax deductions under
different sections while
filing the Income Tax Return.
Thursday, 23 April 2020
Sunday, 19 April 2020
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:
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:
Saturday, 18 April 2020
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.
Tuesday, 14 April 2020
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.
Friday, 10 April 2020
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.
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”.
Wednesday, 8 April 2020
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