The income Tax return has to be filed by each eligible candidate as per rules and
regulations. The income tax rules for the new financial year 2020-21 have
undergone some major changes. Since April 1, 2020, these changes are being
followed.
Income
tax return has to be filed by each eligible candidate as per rules and
regulations.
With
the Union Budget, the 2020-21 FM Nirmala Sitharamanhos made some major changes
to the income tax rules. From 1 April 2020, these changes will take effect.
From
April 1, 2020, FM Nirmal Sitharmanhas introduced a new tax system. Those who
choose such disciplinary forces will have to anticipate certain concessions.
For Individuals and HUFs: - It is proposed to introduce new Section 115BAC for a low rate of duty.
Individuals with no business income / HUF can take such action. The once used
option can be withdrawn at once. If the person / HUF stops earning business
income, they can opt for this type of project again.
The rates of surcharge will be as under: -
•
Total income has exceeded Rs 50 lakh but not more than 10 %
•
Total income exceeds Rs 1 crore but does not exceed Rs 2 crore @ 15%
•
Total income exceeds Rs 2 crore but does not exceed Rs 25 crore 25%
•
Total income exceeds Rs 5 crore %%%
The
total income will be calculated for the assessors for the new tax duty without deducting the following
income: -
Section
10AA, 32 AD, 33 ABA,
35 (1) (ii), 35 (1) (IIA), 35 (1) (iii), Section 35 ( 2AA), 35 AD, 35 cc, and
deductions in Chapter 6 VI -A (excluding)
Release
the travel allowance under section 5 of section 10 (5).
House
rent allowance under section 10 (13a).
Allowance
for Members of Parliament / MLAs under Section (1 17).
Minor
Minor 10/32 (etc.) Allowance for income etc.
The standard discount of 50 50,000 U / S16.
Deductions from House Property The interest income paid on the home loan (self-occupied /
vacant) u / s 24.
•
Entertainment allowance and employment / professional tax are not available.
15,000
/ - discount for Rs. 57 / - for Family Pension.
It
is not allowed to set off bearable losses and devaluations from previous
assessment years.
House without losses under the main income from home property.
The
exemptions / discounts / discounts / allowances for the assessors of the new
tax duty is still as follows:
1.Individuals
with Unit at Financial International Financial Services Center
(IFSC) / HUF, 80 / Exemption
•
Discount U / s 80CCD (2) and 80JJAA will be available.
Ed
discount will be available for post saving interest (Rs. 3500 for individual
account holder and Rs. 7000 for joint account holder).
The mature amount received in LIC will be discounted.
The
amount of interest earned on Su Sukanya Samriddhiyoge and the amount of
maturity will still be exempted.
The
employer's contribution to NPS, EPF or supervision fund will still be
deductible up to .5.5 lakh and more will be taxable in the hands of the employee.
Employees
will still get a discount of up to Rs 5,000 from the employer. An additional
amount will be taxable.
Food
coupons received from Yer employers will be discounted up to a maximum of Rs 50
per meal per day.
There
will be a discount on the amount received in the leave encashment.
Vol
The amount received in voluntary retirement scheme will be exempted up to Rs.
5,00,000.
For
Co-operative Societies: - New section 115BAD has been introduced to provide
taxability at the rate of 22% of residential co-operative societies. Surcharge
@ 10% will be charged. No AMT liability will be levied on those who choose the
new tax discipline for residential cooperatives. The option once used by the
Residential Cooperative Society cannot be withdrawn in subsequent years.
FM
Nirmalasitharaman has also made some changes during the old regime. Some of the
changes are as follows:
Distribute
dividends not applicable to companies from 1 April 12020 The dividend is now
taxable in the hands of the recipients
Direct
The new Direct Tax Dispute Scheme has been launched. Those who pay this amount
by March 31, 2020, will have their interest advertising penalty waived. However,
due to the Covid-19 effect, the March 31, 2020 deadline has been extended.
Tax
audit threshold limit u / s 44AB has been increased from 1 crore to 5 crores if
the cash cover / total receipts do not exceed 5% during the previous year.
Also, the cash payment in the previous year is not more than 5%.
Manufacturing
A rebate of 15% has been introduced for sector companies for new generation and
electricity.
•
Section 234G (Insert New Section) Rs. 200 per day for default of statement or
certificate submitted under section 35 by research association, university,
college, institution or any other institution
The following are the major changes for FY 2019-20:
The financial year 2016-17 brings some changes in the income tax rules. Consistent
with the previous years, the expectations and sentiments of Indian taxpayers,
especially salaried and pensioners, have increased when former Union Finance
Minister Mr. Piyush Goel presented the budget for the financial year 2011-2020.
Income
up to 5 lakhs rupees is tax-free
A person whose income is less than five lakh rupees does not have to pay any tax.
Under section 87, the tax exemption has been increased to Rs.500. 12,500,
income free Rs. 5 lakh rupees.
What
will happen if the income is more than five lakh rupees?
If
the net income is more than five lakh rupees, then a person has to pay tax and
no exemption will be given.
Note:
Considering both the above issues, even if the threshold limit is less than
five lakhs or less, it is mandatory to file ITR (Income Tax Returns). If the
limit of the original discount is two and a half lakh rupees, ITR must be
filed.
How much has the standard discount been increased?
The
standard discount has been increased from Rs 40,000 to Rs 50,000.
When
was the standard deduction reintroduced?
Standard
discounts were reintroduced in 2018. After it was rebuilt, the government
waived taxes on the provision of transportation and medical care, which reduced
the change in benefits.
Feature of this Excel Utility:-
1) This Excel Utility Calculate the Income Tax As per the New Tax
System New and Old Tax Regime U/s 115BAC, As per Budget 2020
2) All the Income Tax feature as per the Budget 2020 have in this
Excel Utility including the Exemption and Deduction of the Income Tax Section U/s 115BAC
3) This Excel Utility has an Option for Opt-in for New Tax Regime
OR Old Tax Regime, and Tax Calculate as per this Option U/s 115BAC
4) This Excel Utility has the Individual Salary Structure as per
the Government and Non-Government (Private) Concerns Salary Pattern.
5) This Excel Utility Auto
Calculate your Income Tax after filling the Salary Structure U/s 115BAC
6) Automated Income Tax Arrears Relief Calculation U/s 89(1) From
the F.Y.2000-01 to F.Y.2020 ( Update Version) With Form 10E
7) Automated Income Tax Revised Form 16 Part A and B in New Format
8) Automated Income Tax Revised Form 16 Part B in New Format
9) All the Income Tax Modified Section have in this Excel Utility
as per Budget 2020 U/s 115BAC.
