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 The once used option can be withdrawn at once.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 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.
Download Automated Income Tax Preparation Excel Based Software for the Government and Non-Government (Private) Employees For the Financial Year 2020-21 & The assessment Year 2021-22 with New and Old Tax Regime U/s 115BAC as per Budget2020
Feature of this Excel Utility:-
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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
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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.