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Monday, 27 April 2020


How to do Income Tax Calculation for FY 2020-21? Which Tax Structure to Select?

As per budget 2020, you cannot claim any tax deduction or exemption if you plan to opt new tax structure. So, as an individual tax payer if you opt for the new tax regime with reduce tax rate you need to forgo all tax breaks available today. Fortunately, you have option to continue with old tax structure. Salaried person can switch between old and new tax structure.
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Friday, 24 April 2020


The CBDT or Central Board of Direct Taxes has notified a new format for Form 16. This requires the break up of the Tax-Exempt Allowances paid to the employee and also of all tax breaks claimed by them. In the previous format allowed the companies to give consolidated figures or break-up in different formats for both, thereby leaving some ambiguity regarding their individual composition.
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Thursday, 23 April 2020


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.
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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:
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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.
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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. 
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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.
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