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Income tax slab rates for F.Y. 2020-21
- 1. INCOME TAX RATE FOR F.Y. 2020-21 CA SURBHI CHAUDHARI
- 2. TAX RATE UNDERNEWTAX REGIME INCOME Proposed rate of tax (F.Y. 2020-21) Upto 2,50,000 NIL 2,50,001-5,00,000* 5% 5,00,001-7,50,000 10% 7,50,001-10,00,000 15% 10,00,001-12,50,000 20% 12,50,001-15,00,000 25% 15,00,001 and above 30% *Rebate under Section 87A continues for a resident individual (whose in- come does not exceed 5,00,000. The amount of rebate is 100% of income tax calculated before education and health cess. For an individual or a hindu undivided family.
- 3. COMPARISONOLDV/S NEW 15,00,001 and above OLD REGIME NEW REGIME* INCOME RATE OF TAX INCOME PROPOSED RATE OF TAX Upto 2,50,000 NIL Upto 2,50,000 NIL 2,50,001-5,00,000 5% 2,50,001-5,00,000 5% 5,00,001-7,50,000 20% 5,00,001-7,50,000 10% 7,50,001-10,00,000 20% 7,50,001-10,00,000 15% 10,00,001-12,50,000 30% 10,00,001-12,50,000 20% 12,50,001-15,00,000 30% 12,50,001-15,00,000 25% 15,00,001 and above 30% 15,00,001 and above 30% * New Scheme is optional i.e. assessee may or may not opt for the same
- 4. List of Exemptions and Deductions which can now forego: Under the Head Salary 1.Leave travel concession u/s 10(5) 2.House rent allowance u/s 10(13A) 3. Allowance u/s 10(14) except those prescribed below:- -Transport Allowance -Conveyance Allowance -Any Allowance granted to meet the cost of travel on tour or on transfer -Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.
- 5. 4.Deduction u/s 16 -Standard Deduction - Entertainment allowance -Professional Tax
- 6. Under the Head house property Interest payable on borrowed capital under section 24 in respect of self-occupied or vacant property referred to in sub-section 23(2) Loss under head income from house property for rented house shall not be allowed to be set off under any other head and would be allowed to be carried forward as per the extant of law)
- 7. Under the Head PGBP 1.Additional deprecation u/s 32(1)(iia) 2.Deductions under section 32AD (Investment in new Plant & Machinery in Notified Backward Area) 3. Deductions under section33AB (Tea Development) 4. Deductions under section33ABA (Site Restoration Fund) 5.deduction under section 35 (Donation for or expenditure on scientific research) 6.Deduction under section 35AD ( Capital expenditure on specified Business) 7.Deduction section 35CCC (Expenditure on Agriculture Extension Projects) 8.Exemption under section 10AA (newly established businesses in SEZ.)
- 8. Under the Head Other Sources 1.Allowances to MPs/MLAs exempt u/s 10(17) 2.Allowance for income of minor u/s 10(32) 3.Deduction from family pension u/s 57(iia)
- 9. Under Chapter VIA All deductions mentioned under chapter VIA i.e. section 80C to 80U are not allowed except -80CCD(2) (employer contribution on account of employee in notified pension scheme) and - 80JJAA (for new employment) can be claimed.
- 10. Situation 1: Assesse having total income of rs 1500000
- 11. Situation 2: Assesse having total income of Rs.15,00,000 without considering any exemptions and deduction . -House rent allowance of rs 80,000 -Leave travel allowance rs. 40000 He also pays interest of rs. 200000 on the housing loan taken for his self occupied property. He invested rs.150000 u/s 80C.
- 13. Additional Point This section is optional and the option shall be exercised for every previous year where the assesse has no business income. Furthermore, if the assesse having business income than in that case the option once exercised for the P.Y. shall be valid for that P.Y. and for all subsequent years. The option can be withdrawn only once other than the previous year in which exercised and shall be continued with Normal provisions of Income Tax (other than 115BAC) thereafter, till ceases to have any business income.