In
Budget 2020 has introduced a new income
tax slab and new tax rates for Individuals and a HUF. The new tax rate will
apply with a condition that no exclusion and finding can be asserted. Be that
as it may, the new tax regime for individuals and HUFs are discretionary.
New
income tax rate and new income tax slab for AY 2021-22 under the new tax regime
for individuals and HUF presented by the Union Budget 2020.
Concentrate
of Finance Minister discourse during her spending introduction
"So
as to give critical alleviation to the individual taxpayers and to improve the
income-tax law, I propose to bring a new and streamlined personal income taxregime wherein income tax rates will be essentially decreased for the
individual taxpayers who swear off specific reasoning’s and exceptions,"
the FM said in her discourse.
With
this, a new tax framework is introduced the Indian economy which denies any
reasoning and exclusion.
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Financialplan 2020 has offered taxpayers the choice to pick between the current income
tax regime and a new regime with cut income tax rates and new income tax slabs
however with no tax finding and exceptions.
While
introducing the Union Budget 2020, the Finance Minister Nirmala Sitharaman
reported cuts in income tax rates. The rates are a piece of a new income tax
the regime that Sitharaman said will bring down the income tax a salaried
individual pays.
To
offer impact to the new tax regime, a new section 115BAC is embedded in the Income
Tax Act, 1961 with impact from the evaluation year 2021-22.
According
to area 115BAC, an Individual or a HUF will figure his tax risk on the complete
income according to the accompanying table-
Table-1
Sl. No.
|
Total income
|
Rate of tax
|
1.
|
Upto Rs 2,50,000
|
Nil
|
2.
|
From Rs 2,50,001 to Rs 5,00,000
|
5 percent
|
3.
|
From Rs 5,00,001 to Rs 7,50,000
|
10 percent
|
4.
|
From Rs 7,50,001 to Rs 10,00,000
|
15 percent
|
5.
|
From Rs 10,00,001 to Rs 12,50,000
|
20 percent
|
6.
|
From Rs 12,50,001 to Rs 15,00,000
|
25 percent
|
7.
|
Above Rs 15,00,000
|
30 percent
|
Under
the new tax regime, tax obligation of an Individual and a HUF will be figured
dependent on the above table according to his income slab and rate of tax. The
slab increments by Rs. 2.50 lakh.
Note: There
is by all accounts a drafting lacuna in the income tax slab and tax rate table
as referenced in section 115BAC. In spite of the fact that the expectation is
to recommend slab based rate of tax however the table proposes it is a level
rate based taxation. On the off chance that all out income is thought to be Rs.
6,00,000 it straight forward falls in sequential no. 3 of the above table and
the relating rate of tax is 10 percent which processes the tax risk to Rs
60,000. In actuality, on the off chance that the tax is registered on the slab
rate premise, at that point, income-tax on Rs 6 lakh will come to Rs, 22,500.
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Can Prepare at a time 50 Employees Form 16 Part A&B for AY 2020-21]
Section
115BAC is discretionary. It implies a taxpayer could possibly tail it. On the
off chance that a taxpayer doesn't wish to follow the new disentangled tax regime, as it is called, he may decide to pay the income tax on all out income
according to existing income tax rates which are given beneath
Table-2
Category
of Taxpayer
|
Individual/HUF/AoP/BoI/AJP
|
|||||||||||||||||||
Residential
Status
|
Resident
and Non-Resident
|
|||||||||||||||||||
Age
of the Taxpayer
|
Under
60 years of age
|
|||||||||||||||||||
Total
Income
|
Income-Tax
Rate
|
|||||||||||||||||||
Up
to Rs. 2,50,000
|
Nil
|
|||||||||||||||||||
Rs.
2,50,001 to Rs. 5,00,000
|
5%
|
|||||||||||||||||||
Rs.
5,00,001 to Rs. 10,00,000
|
20%
|
|||||||||||||||||||
Above
Rs. 10,00,000
|
30%
|
|||||||||||||||||||
It
would be ideal if you note that there is no adjustment in the income slab and
income tax rate under the current or old regime contrasted with the first
the appraisal year 2020-21.
Relevant
Income Tax Slab Rates for AY 2021-22 for Individuals/HUF
Table 3
Category of Taxpayer
|
Individual (Super Senior Citizen)
|
Residential Status
|
Resident
|
Age of the Taxpayer
|
Above 80 years of age
|
Total Income
|
Income-Tax Rate
|
Up to Rs. 5,00,000
|
Nil
|
Rs. 5,00,001 to Rs. 10,00,000
|
20%
|
Above Rs. 10,00,000
|
30%
|
Comments:
A Non-Resident Senior Citizen or a Very Senior Citizen Individual isn't
qualified for extra alleviation on income-tax slab rates. Just a Resident
Senior Citizen or a Very Senior Citizen Individual is qualified for extra help
on income-tax slab rates.
Overcharge
on Income Tax for AY 2021-22 for all the cases canvassed in Table 1 to Table 3
referenced previously
Exemption
u/s 87A is permitted on the tax obligation to an inhabitant Individual if Total
Income doesn't surpass Rs. 5,00,000. The most extreme measure of refund is Rs.
12,500. This discount isn't permitted to a non-occupant and persons other than
Individual.
Fortunately
this discount of Rs. 12,500 will be accessible under the new tax regime too. It
was at that point accessible for the old tax regime.
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Can Prepare at a time 100 Employees Form 16 Part B for AY 2020-21]
The
viable tax rate for individuals with taxable income up to Rs 5 lakh would be
nil under both the new and the current tax regime as these individuals would
have the option to profit the tax-advantage of refund up to Rs 12,500 under
Section 87A under both regimes.
In
the wake of looking at the tax rate graph and the income tax slab under the old
tax regime and the new tax regime, the time has come to break down whether the
new tax regime is extremely gainful to an Individual.
Is
New Income Tax Slab Rate for Individuals after Budget 2020 is Really Beneficial
Already,
taxpayers paid 20% for incomes between Rs 5-10 lakh and 30% for incomes between
Rs 10-15 lakh.
Income
underneath Rs, 2.50 lakh will keep on staying absolved while income between Rs
2.50 to Rs. 5 lakh will keep on getting a discount.
Feature of this Excel
Utility:-
1) This
Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) This
Excel Utility has the all amended Income Tax Section as per Budget 2020
3)
Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the
F.Y.2000-01 to F.Y.2020-21 (Updated Version)
4)
Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
5)
Individual Salary Structure as per the Govt and Private Concern’s Salary
Pattern
6)
Individual Salary Sheet
7)
Individual Tax Computed Sheet
8)
Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
9)
Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
10)
Automatic Convert the amount into the in-words without any Excel Formula
