Question: What Is Slab Rate Of Income Tax?

Does ay 2020/21 have standard deduction?

Therefore, the taxpayer can claim a standard deduction of Rs.

40,000* or the amount of pension, whichever is less.

*Increased to Rs 50,000 for FY 2019-2020(AY 2020-21) through the Interim Budget 2019..

What is the latest income tax slabs?

Income Tax Slabs and Rates for Financial Year: 2019-20Income Tax SlabSenior Citizens (aged 60 years but less than 80 years)Up to 3,00,000Nil3,00,001 to 5,00,0005%5,00,001 to 10,00,00010,000 + 20% of total income exceeding 5,00,000Above 10,00,0001,10,000 + 30% of total income exceeding 10,00,000

Is new or old tax slab better?

Enter new tax regime – More slabs, lower tax rate but no way to reduce taxesTax Slab(₹)Old Tax RatesNew Tax Rates5,00,000 – 7,50,00020%10%7,50,000 – 10,00,00020%15%10,00,000 – 12,50,00030%20%12,50,000 – 15,00,00030%25%3 more rows•Mar 12, 2020

Which income tax slab is beneficial?

Investments under Sec 80C: Rs 1.5 lakh. Leave travel allowance: Tax free if claimed once in block of two years. NPS contribution: Rs 50,000. Medical insurance premium: Rs 25,000 (Rs 50,000 for parents and senior citizens)

How do you calculate income tax for the financial year 2020 21?

The calculation of income tax that you are liable to pay under the new tax regime can be explained with an example. Suppose your total income in FY 2020-21 is Rs 16 lakh….S. No.Income slabsIncome tax rate (%)1Up to Rs 2.5 lakhNil2Between Rs 2,50,001 and Rs 5 lakh5%3Between Rs 5,00,001 and Rs 7.5 lakh10%4 more rows•Dec 14, 2020

Which regime is better for income tax?

Calculations show that salaried individuals claiming a large number of exemptions (80C, 80D, interest on housing loan, HRA and LTA etc.) are likely to be better off in the existing income tax regime.

What is the income tax slab for AY 2020 21?

Income tax slab rate applicable for New Tax regime – FY 2020-21.Income Tax SlabNew Regime Income Tax Slab Rates for FY 2020-21 (Applicable for All Individuals & HUF)Rs. 5.00 lakhs- Rs 7.5 Lakhs10%Rs 7.5 lakhs – Rs 10.00 Lakhs15%Rs 10.00 lakhs – Rs. 12.50 Lakhs20%Rs. 12.5 lakhs- Rs. 15.00 Lakhs25%4 more rows•Dec 30, 2020

How is new slab tax calculated?

Let’s understand income tax calculation under the current tax slabs and new tax slabs (optional) by way of an example….How to calculate income tax? (See example)Up to Rs 2,50,000Exempt from tax0Total Income TaxRs 12,500 + Rs 25,500+ Rs 37,500 + Rs 50,000 + Rs 62,500 + Rs 1,77,600 + Rs 14,604Rs 3,79,7048 more rows

Is 80c removed in new tax slab?

The tax benefit on paying life insurance premiums to lower the tax liability under section 80C is not available in the new income tax slab structure. “However, maturity proceeds received from a life insurance company continues to be exempted from tax under section 10(10D) in the new tax regime,” says Wadhwa.

How can I save tax on 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

How do I calculate taxable income?

What are the steps to determine slab of your taxable income in India?Calculate your gross salary by adding Dearness Allowance, House Rent Allowance, Transport Allowance, Special Allowance to your basic pay.Then deduct the exemptions of HRA, professional tax and standard deduction from the gross salary.More items…•

What is the tax slab for 2019 2020?

Tax Rates for Individuals as per budget 2019-2020Income Tax Slab (in Rupees)Tax Rate for Individual Below the Age Of 60 Years0 to 2,50,000*Nil2,50,001 to 5,00,0005% of total income exceeding 2,50,0005,00,001 to 10,00,000Tax Amount of 12,500 for the income up to 5,00,000 + 20% of total income exceeding 5,00,0001 more row•Dec 11, 2019

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

Can I file ITR for AY 2020/21 now?

The last date of income tax return (ITR) filing for FY 2019-20 (AY 2020-21) is extended to 10th January 2021. For tax audit and TP audit, the last due date is 15th february 2021. The due date for filing income tax returns is the date by which the returns can be filed without any late fee or penalty.

What is the formula to calculate tax?

Now, one pays tax on his/her net taxable income.For the first Rs. 2.5 lakh of your taxable income you pay zero tax.For the next Rs. 2.5 lakhs you pay 5% i.e. Rs 12,500.For the next 5 lakhs you pay 20% i.e. Rs 1,00,000.For your taxable income part which exceeds Rs. 10 lakhs you pay 30% on entire amount.