New section115BAC is embedded in Income Tax Act by the Finance Act 2020 and it is
pertinent w.e.f first April 2020 and will be appropriate on Individuals and
HUFs for evaluation year 2021-22 and resulting appraisal years. Under this
section taxpayers i.e Individuals and HUFs has an option to pay the tax based
on concessional piece rates subject to certain conditions. The new income tax
chunk rates according to section 115BAC are as per the following:
Thursday, 30 April 2020
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.
Friday, 24 April 2020
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.
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.
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