Quick Answer: What Is New Slab Rate Of Income Tax?

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 Rates7,50,000 – 10,00,00020%15%10,00,000 – 12,50,00030%20%12,50,000 – 15,00,00030%25%15,00,000 & above30%30%3 more rows•Mar 12, 2020.

Can I file ITR for AY 2020/21 now?

All Income Tax Return Preparation Software for AY 2020-21 are now available for e-Filing. ITR 1, 2, 3, 4, 5 & 7 for AY 2020-21 is now available for e-Filing. ITR 6 will be available shortly.

What is the due date for tax filing FY 2019/20 AY 2020 21?

November 30, 2020The Government issued a notification on June 24, 2020 under the Ordinance which, inter alia, extended the due date for all Income Tax Returns for the FY 2019-20 (AY 2020-21) to November 30, 2020.

Is tax slab increased to 5 lakhs?

As per current income tax laws, a person is eligible for tax rebate up to Rs 12,500 under section 87A, if the net taxable income does not exceed Rs 5 lakh.

What is the formula to calculate taxable income?

Your Adjusted Gross Income (AGI) is then calculated by subtracting the adjustments from your total income. Your AGI is the next step in figuring out your taxable income. You then subtract certain deductions from your AGI. The resulting amount is taxable income on which your taxes are calculated.

Is 80c removed in new tax slab?

The important tax breaks that will not be available under the new tax regime include Section 80C (Investments in PF, NPS, Life insurance premium, home loan principal repayment etc.), Section 80D (medical insurance premium), tax breaks on HRA (House Rent Allowance) and on interest paid on housing loan.

How can I save tax on FY 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.

What is the income tax slab for AY 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22Taxable incomeTax Rate (Existing Scheme)Tax Rate (New Scheme)Rs. 7,50,001 to Rs. 10,00,00020%15%Rs. 10,00,001 to Rs. 12,50,00030%20%Rs. 12,50,001 to Rs. 15,00,00030%25%Above Rs. 15,00,00030%30%3 more rows

Is 80c removed in 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … However, all without deductions.

What is the last date for filing ITR for AY 2020 21?

December 31The due date for filing income tax return for assessment year 2020-21 has been extended till December 31. The Finance Ministry has granted an additional month to complete the process. Earlier, it was postponed from July 31, the annual due date for filing returns, to November 30 due to the Covid-19 pandemic.

Which slab is better for income tax?

Income-tax rates under the new tax regime v/s the old tax regimeIncome slabs (Rs)Tax Rate(Old Regime)Tax Rate(New Regime – devoid of exemptions & deductions)2.5-5 lakh5%5%5-7.5 lakh20%10%7.5-10 lakh20%15%10-12.5 lakh30%20%3 more rows•Feb 7, 2020

Is 80c applicable in new tax regime?

Under the new tax regime, an individual cannot avail tax benefit under section 80C on the contribution made to his/her PPF account. However, any interest accrued or maturity amount received from the PPF account continues to be tax-exempt in the new tax structure as well.

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

At this point, the income which is still chargeable to tax is Rs 7,90,000. From point 4, Rs 2.5 lakh (Rs 10 lakh minus Rs 7.5 lakh) will be taxed at 15 per cent and the tax liability is Rs 37,500….S. No.Income slabsIncome tax rate (%)6Between Rs 12,50,001and Rs 15 lakh25%7Above Rs 15 lakh30%5 more rows•Oct 23, 2020

What is the standard deduction for AY 2020 21?

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 itr1 itr2 itr3 and ITR 4?

An Individual/HUF, having income as a partner of a partnership firm that is carrying out business/profession, does not need to file ITR-3. ITR 4 Sugam Form is for the taxpayers who have opted for the presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act.

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.

How is income tax calculated on new slabs?

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 limit increased?

So, we expect that in the Budget 2020 the limit of Section 80C will get hiked from Rs 1.5 lakh to Rs 2.5 lakh. … Thus, if the threshold limit of Section 80C is increased by the FM in the Budget 2020, this will not only boost investments, but also provide a majority of taxpayers the much-needed relief.

What is SEC 87a income tax?

Rebate under Section 87A provides for a lower tax payment from individuals earning below a specified limit. According to the Income Tax Department, “An individual who is resident in India and whose total income does not exceed Rs. 3,50,000 is entitled to claim rebate under section 87A.

What is the new income tax slab for 2019 20?

⭐ What are the Income Tax slab rates for AY 2019-20?IncomeTaxUp to Rs 2,50,000No taxRs 2,50,000 to Rs 5,00,0005% on income more than Rs 2.5 lakh subject to a maximum of Rs 12,500Rs 500,000 to Rs 10,00, 00020% on income exceeding Rs 500,000 subject to a maximum of Rs 1 lakh plus Rs 12,5001 more row•Dec 11, 2019