Slide 1 Slide 2 Slide 3 Slide 4 Slide 5 Slide 6

Blog

  • 04 Feb 2019 Text - Text
  • 28 Jan 2019 GST on advances received for future supplies - Dear Esteemed Professional Colleagues, Greeting of the day! Friends today i am w...
  • 13 Jan 2017 Key Points In Creation Of HUF, Tax saving in HUF AND Format of Affidavit for HUF creation and for apply PAN of HUF - KEY POINTS IN CREATION OF HUF AND FORMAT OF DEED/AFFIDAVIT FOR CREATION OF HUF: ...
  • 11 Jan 2017 JOB WORK PROVISIONS UNDER GST- AT A GLANCE - GST will be new world of opportunity for all the chartered accountants as well a...
  • 24 Jun 2016 BREXIT: How Will It Affect India? - BREXIT: How Will It Affect India? The United Kingdom has held the referendum for...
  • 05 Jun 2016 BASICS OF HARYANA VAT - In era of competition every client is looking for complete solution under one ro...
  • 16 Mar 2016 Records/Registers maintained by a Registered Central Excise Manufacturer / Dealer - Records/Registers maintained by a Registered Central Excise Manufacturer/Dealer:...
  • 01 Feb 2016 Collaborations & Joint Development Agreement and Capital Gains Tax - Collaborations & Joint Development Agreement and Capital Gains Tax: A joint ...
  • 26 Jan 2016 Magic of Zero tax on Rs. 10 Lakhs salary Income - Magic of Zero tax on Rs. 10 Lakhs Income Item No. Nature Amount 1 Basic Tax Exem...
  • 17 Dec 2015 Rules regarding quoting of PAN for specified transactions amended effective from 1st January, 2016 - Rules regarding quoting of PAN for specified transactions amended The Government...
  • Income tax slabs under the new tax regime for all individuals for FY 2020-21 (AY 2021-22)

    Income Tax Slab Tax Rate
    Up to Rs 2.5 lakh NIL
    Rs 2.5 lakh to Rs 5 lakh 5% (Tax rebate of Rs 12,500 available under section 87A)
    Rs 5 lakh to Rs 7.5 lakh 10%
    Rs 7.5 lakh to Rs 10 lakh 15%
    Rs 10 lakh to Rs 12.5 lakh 20%
    Rs 12.5 lakh to Rs 15 lakh 25%
    Rs 15 lakh and above 30%
    • The tax calculated on the basis of such rates will be subject to health and education cess of 4%.

    • Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.

    • Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime.

      1. Leave Travel Allowance (LTA)

      2. House Rent Allowance (HRA)

      3. Conveyance

      4. Daily expenses in the course of employment

      5. Relocation allowance

      6. Helper allowance

      7. Children education allowance

      8. Other special allowances [Section 10(14)]

      9. Standard deduction

      10. Professional tax

      11. Interest on housing loan (Section 24)

      12. Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)

    • Points to remember while opting for the new tax regime:

      1. Option to be exercised on or before the due date of filing return of income for AY 2021-22

      2. In case a taxpayer has a business income and exercised the option, he/she can withdraw from the option only once. A business taxpayer withdrawing from the optional tax regime has to follow the regular income tax slabs.

    According to the current income tax laws in India, the income tax rate on resident individuals varies based on their age. There are different tax slabs applicable to the individuals for the financial year 2018-19 and 2019-20. For instance, a resident individual, aged below 60 years, with an income less than Rs 2.5 lacs is exempt from paying income tax.

    Given below are the tables for the latest income tax slabs for FY 2018-19 and FY 2019-20.

    Income Tax Slabs & Rates for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2019-20 – Part I

    Income Tax Slab Tax Rate for Individual & HUF Below the Age Of 60 Years
    Up to ₹ 2,50,000* Nil
    ₹ 2,50,001 to ₹ 5,00,000 5% of total income exceeding ₹ 2,50,000
    ₹ 5,00,001 to ₹ 10,00,000 ₹ 12,500 + 20% of total income exceeding ₹ 5,00,000
    Above ₹ 10,00,000 ₹ 1,12,500 + 30% of total income exceeding ₹ 10,00,000
    • No tax for individuals with income less than ₹ 2,50,000

    • 0%-5% tax with income ₹ 2.5 lacs to 5 lacs for different age groups

    • 20% tax with income ₹ 5 lacs to 10 lacs

    • 30% tax with income above ₹ 10 lacs

    • A tax rebate under section 87A is allowed to individual taxpayers a maximum amount of:

      – Rs 2,500 for total income up to Rs 3.5 lakh for FY 2018-19

      – Rs 12,500 for total income up to Rs 5 lakh for FY 2019-20

    • Investments upto ₹ 1.5 lacs under Sec 80C can save ₹ 46,800 in taxes.

    Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

    Let’s understand the tax calculation for rebate with the help of an example:

    Source of income (FY 2019-20) Income (Rs)
    Salary (6,50,000)
    Less: Standard deduction ( 50,000) 6,00,000
    Interest on fixed deposit 50,000
    Gross total income 6,50,000
    Less: Deduction under section 80C 1,50,000
    Total income 5,00,000
    Income-tax (@ 5% from Rs 2.5 to 5 lakh) 12,500
    Less: Rebate u/s 87A 12,500
    NIL

    Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2019-20 – Part II

    Income Tax Slabs Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years
    Income up to Rs 3,00,000* No tax
    Income from Rs 3,00,000 – Rs 5,00,000 5%
    Income from Rs 5,00,000 – 10,00,000 20%
    Income more than Rs 10,00,000 30%

    Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

    Let’s understand the tax calculation for rebate with the help of an example:

    Source of income (FY 2019-20) Income (Rs)
    Salary (4,00,000)
    Less: Standard deduction ( 50,000) 3,50,000
    Income from house property 2,50,000
    Interest on fixed deposit 50,000
    Gross total income 6,50,000
    Less: Deduction under section 80C 1,50,000
    Total income 5,00,000
    Income-tax (@ 5% from Rs 3 to 5 lakh) 10,000
    Less: Rebate u/s 87A 10,000
    NIL

    Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2019-20 – Part III

    Income Tax Slabs Tax Rate for Super Senior Citizens (Aged 80 Years And Above)
    Income up to Rs 5,00,000* No tax
    Income from Rs 5,00,000 – 10,00,000 20%
    Income more than Rs 10,00,000 30%

    Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

    Let’s understand the tax calculation for a rebate with the help of an example:

    Source of income (FY 2019-20) Income (Rs)
    Salary (3,50,000)
    Less: Standard deduction ( 50,000) 3,00,000
    Income from house property 2,50,000
    Interest on fixed deposit 1,00,000
    Gross total income 6,50,000
    Less: Deduction under section 80C 1,50,000
    Total income 5,00,000
    Income-tax (nil below Rs 5 lakh) NIL
    Less: Rebate u/s 87A NIL
    NIL

    Surcharge applicable to the individuals covered in Part I, II and III:

    Income limit Surcharge Rate on the amount of income tax
    Net income exceeds Rs 50 lakh but doesn’t exceed Rs 1 crore 10%
    Net income above Rs 1 crore but doesn’t exceed Rs 2 crore 15%
    Net income exceeds Rs 2 crore but doesn’t exceed Rs 5 crore 25%
    Net income exceeds Rs 5 crore 37%

    Income Tax Slabs for Domestic Companies for FY 2019-20 – Part IV

    Turnover Particulars Tax Rate
    Gross turnover upto 400 Cr. in the FY 2017-18 25%
    Gross turnover exceeding 400 Cr. in the FY 2017-18 30%
    Where the company opted for Section 115BA 25%
    GWhere the company opted for Section 115BAA 22%
    Where the company opted for Section 115BAB 15%

    In addition cess and surcharge is levied as follows:

    Cess: 4% of corporate tax

    Surcharge applicable:

    Income Limit Surcharge Rate on the amount of income tax
    Net income exceeds Rs.1 Crore but doesn’t exceed Rs.10 Crore 7%
    Net income exceeds Rs.10 Crore 12%

    However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.

    Tax slabs and tax rates for AY 2019-20 (FY 2018-19):

    Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2018-19 – Part I

    Income Tax Slabs Tax Rate for Individual & HUF Below the Age Of 60 Years
    Up to ₹ 2,50,000* Nil
    ₹ 2,50,001 to ₹ 5,00,000 5% of total income exceeding ₹ 2,50,000
    ₹ 5,00,001 to ₹ 10,00,000 ₹ 12,500 + 20% of total income exceeding ₹ 5,00,000
    Above ₹ 10,00,000 ₹ 1,12,500 + 30% of total income exceeding ₹ 10,00,000

    Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

    Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2018-19 – Part II

    Income Tax Slabs Tax Rate for 60 Years Old Or More but Less than 80 Years Old
    Income up to Rs 3,00,000* No tax
    Income from Rs 3,00,000 – Rs 5,00,000 5%
    Income from Rs 5,00,000 – 10,00,000 20%
    Income more than Rs 10,00,000 30%

    Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

    Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2018-19 – Part III

    Income Tax Slabs Tax Rate for Super Senior Citizens (Aged 80 Years And Above)
    Income up to Rs 5,00,000* No tax
    Income from Rs 5,00,000 – 10,00,000 20%
    Income more than Rs 10,00,000 30%

    Note: An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

    Surcharge applicable to the individuals covered in Part I, II and III:

    Income limit Surcharge Rate on the amount of income tax
    Net income exceeds Rs.50 Lakhs but doesn’t exceed Rs. 1 Crore 10%
    Net income exceeds Rs.1 Crore  15%

    Income Tax Slabs for Domestic Companies for FY 2018-19 – Part IV

    Turnover Particulars Tax Rate
    Gross turnover upto 250 Cr. in the FY 2016-17 25%
    Gross turnover exceeding 250 Cr. in the FY 2016-17 30%

    In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax

    Surcharge applicable:

    Income Limit Surcharge Rate on the amount of income tax
    Net income exceeds Rs.1 Crore but doesn’t exceed Rs.10 Crore 7%
    Net income exceeds Rs.10 Crore 12%