Income Tax


Thursday 2 April 2020

TDS Rate F.Y. 2020-21 & A.Y. 2021-22

TDS is nothing but a Tax Deducted at Source, while its mandatory by Government with such a threshold limit as & when applicable as mention below in the TDS chart. Deductor is require to deduct TDS in prescribed manner as mention within due date, said amount should be deposited to central government, if Deductor is failed to do in given time than deductor is liable to pay interest with late fee if such TDS return is not filed within due date as mention below. In this Budget A.Y. 2021-2022 government has change or amend  the rate in some section & also insert some section under which to Deduct the TDS. 

Due Date of TDS Deduction & Paid to Central Government:-
7th of the following month (for e.g. Apr month TDS should be deduct & paid on or before 7th of may)

Interest is charged in a Two way, Firstly when Deductor is nor deduct the TDS & remitted to Government than interest is levy at 1% per month till date of such payment. If (Secondly) Deductor deduct the TDS but not remitted to Government than Interest is levy at 1.5% per month till date of such payment.   

Due Date of TDS Submission:-
Due Date of Filing
31st July
31st October
31st  January
31st May

TDS Deducted u/s 194IA, Trnasction during moth of March, Due Date of TDS Deposited on or before 30th April.

Late Fee:-
If TDS return not submitted within given above date than Rs. 200 per day late fees will be levy till date of TDS Submission but subject to Maximum TDS amount. For e.g. TDS amount for Q-1 is Rs 7000 same has been deducted & deposited to government but TDS is not submitted till 30th July & later TDS submitted on 10th September than total Late Fee will be Rs 8200/- but late fee not exceed to maximum of TDS amount i.e., Rs 7000/- in this case. So, late fees will be Rs 7000 if return filed on 10th September)

Slab Rate for Salary Person:- 
Old Slab Rate
New Slab Rate
Rs 0-2,50,000
Rs 2,50,001-5,00,000
Rs 5,00,001-7,50,000
Rs 7,50,001-10,00,000
Rs 10,00,001-12,50,000
Rs 12,50,001-15,00,000
Rs 15,00,001 & above
Rebate u/s 87A of Rs 12500 available if Total Taxable Income is less than Rs 5Lac, if Taxable Income more than Rs 5Lac in this condition rebate will be revoke & no benefit will allow. (Rebate available under Old Slab as well as in New Slab rate)

If you select New Slab rate please mind it NO DEDCUTION will available, like Interest on Home Loan, Chapter VI A Deduction. NO benefit will allow.

Click here to Download TDS Chart A.Y. 2021-22

Wednesday 5 February 2020

Budget 2020, Unpredictable & Highlight with Key points

On 1st Feb, 2020 FM Nirmala Sitharaman presented the Union Budget of 2020-21 in Parliament (LS) with her ever longest Speech of 2 hrs & 40 mins by any Finance Minister after Independence.

In Budget government focus on revive the Growth of Economy as decline underrated now & increase the capacity of end consumer to consume the product & services through increase their Income & As usual Government try to provide more benefits to Agriculture sector which are required by every government in their Budget.

Today, we discuss on Income Tax which are most awaited by every One....., 
In Budget FM proposes the New Tax regime with different slab rate under Income Act 1961, In this you have to pay tax Directly on Net Profit without availed any Exemption & Deduction under Chapter VI A except 80CCD & 80JJAA & as well as you can availed old Tax slab rate with all Deduction as going on. People can choose any Tax regime old or New as per their requirement but still some clarification pending from CBDT.

If New tax regime accepted than its mandatory to maintain for further year & If asessee does not have Business Income in P.Y. than he can switch or change the Tax regime otherwise earlier Tax regime will continue.

In new Tax slab rate almost 70 exemption or Deduction has removed in this budget out of 100.

FM proposes Dividend Distribution Tax to be abolished, earlier its paid by Company on Dividend received by recipient now DDT will paid by recipient of Dividend in their hand at applicable rate.

In Budget Government take some initiative through provide Concessional rate in Tax, 15% Concession to Power Generation Companies. 100% Tax concession to Sovereign wealth funds on Investment in infrastructure projects. Tax on Co-operative society now 22% without any exemption with surcharge & cess earlier it was 30%.

FM proposes to waived of Interest & penalty who wish to pay Disputed Tax amount on or Before till 31st March & also proposes New Direct Tax Dispute settlement Scheme (Vivaad se Vishwaas Scheme). In addition FM to amend Companies Act to bring Criminal liability in certain cases as may required in law to make more effective & efficient.

FM proposes to extend the Income Tax Deduction for affordable house by 1 year, In this to get benefit upto Rs. 1.5 Lakh Interest paid on Home Loan, deduction will continue till 31st March 2021.

In Income Tax Government now focus on faceless appeals for that they allow to amend the IT Act according to that. 

FM proposes to raised FPI limit in corporate Bonds from 9% to 15%. In this Budget Government want Double divestment target for the next Fiscal at Rs. 2.1 lakh Crore.

Government introduces TDS on mutual Fund at 10% at the time of Payment to recipient & amend TDS on professional Fee of Technical. TDS on Technical Fee at 2% instead of 10%. Government want to sell the 10% share of LIC & IDBI through IPO. 

FM proposes the National Policy on Official Statistics to Improve Data Collection & Dissemination with the help of New Technology in the market.

New Slab rate are as Follows :-
Taxable Aamount              Tax Rate
0 - 2.5lac                               NIL
2.5lac - 5.0lac                        5%
5.0lac - 7.5lac                        10%
7.5lac - 10.0lac                      15%
10.0lac - 12.5lac                    20%
12.5lac - 15.0lac                    25%
15.0 lac & above                   30%

but upto Rs 5lac NO Tax if assessee has Taxable income less than or equal to 5lac than he can availed rebate u/s 87A of Rs. 12500/-(Tax Amount). In case Taxable Income more than Rs 5lac than rebate should be withdrawn.

Government now made compulsory Completely Electronic Registration of Charity Institution & In this to the amend pre-filled form for the Assessee to Claim exemption u/s 80G against Donation made by them easily.   

FM proposes to Increases the threshold limit of Tax Audit under Income Tax Act, earlier it was Rs 1.0 crore now increases to Rs 5.0 crore but subject to condition that 95% of Sales or Turnover should Cashless it means through banking channel & Expenses should not be more 5% in cash than this limit will applicable otherwise earlier limit will be continue.

FM proposes a Good news for Bank Depositors, In this government increases Insurance amount of Depositor from Rs 1 lakh to Rs. 5 lakh, which increase the faith of Bank customer to make more investment in it.

Government estimated the Nominal GDP growth for 2020-20 at 10% which more than expectation by agency.Now its very interesting to see that Government can achieve this growth rate & HOW.....????