The
Finance Minister has tabled today, the Union General Budget 2020-21 in the
Parliament. Below are the latest Income Tax Slab Rates for FY 2020-21
or AY 2021-22. (FY is
Financial Year and AY is Assessment Year)
Latest Income Tax Slab Rates FY 2020-21
Effective from FY
2020-21, the individual tax assessee will have an option to go for new Tax Slab
Rates by forgoing the existing Income Tax Deductions and Exemptions, like HRA,
Section 80C, Home loan tax benefits etc.,
So, to avail the
below new tax slab, which is optional, taxpayers will have to let go of
income tax exemptions.
- Income below Rs 2.5 lakh will continue to remain tax-exempt.
- Income between Rs 2.5 to Rs 5 lakh will be taxed at 5% but will continue to get Section 87a rebate, hence no tax liability.
- Under the new regime, taxpayers will pay 10%, 15%, 20% and 25% for incomes between Rs 5 to Rs 7.5 lakh, Rs 7.5 to Rs 10 lakh, Rs 10 to Rs 12.5 lakh and Rs 12.5 to Rs 15 lakh, respectively.
Latest Income Tax Slab Rates FY
2020-21 & AY 2021-22 (without tax deduction as well as exemptions)
Income Tax Rates FY
2020-21 (if tax deductions / exemptions are to be claimed)
An
individual tax assessee has to now calculate his/her tax liability with and
without tax deductions and then can opt for a tax slab rate that is more
beneficial to him/her.
It’s
appears the various web site that the Nill Tax up to Rs. 5 Lakh. But it is
revealed the deduction U/s 87A Max Rs. 12,500/-
Just
simple the Tax Calculation for the Financial Year 2020-21 and Assessment Year
2021-2022 as per the Finance Budget 2020. The Tax Slab can be read up to Rs.
2.5 Lakh is Nill and From Rs. 2.5 Lakh to 5 lakh @ 5% . Hence the Tax will be 5,00,000/-
Fewer Rs. 2,50,000/- = Rs. 2,50,000/- Tax effect on the rest amount i.e. Rs.
2,50,000/- @ 5% will be Rs. 12,500/- and Less Under Section 87A Rs. 12,500,/-
So the Tax showed as Nil up to Rs. 5 Lakh.
Hope
it is clear that 5% Tax is not abolished by the Budget 2020, It stands years Tax Slab up to Rs. 5 Lakh.
Download And
Prepare At a Time 50 Employees Automated
Income Tax Form 16 Part B With Form 12 BA (Modified Format) [This Excel Utility Prepare At a time 50 Employees Form 16 Part B with Form 12 BA in New Format for A.Y. 2020-21]
The
main feature of this Excel Utility:-
1)
Prepare At time 100 Employees
Excel Based Form 16 Part B with Form 12 BA ( Modified Format of Form 16
Part B Vide CBDT Notification No.36/2019 Dated 12/04/2019 ]
2)
All the Amended Income Tax
Section have in this utility as per Budget 2019
3)
You can print individual Form
16 Part B with Form 12 BA
4)
Most easy to install just
like an Excel File
5)
Easy to Fill the all column
6)
Automatic Convert the Amount
to the In-Words
