Income
Tax Calculation FY 2019-20 (AY 2020-21)
IT
Slab Rates 2019-20
As
per the First Schedule of the Income Tax Bill, The Income Tax Slab Rates for
2019-20 Financial Year are as follows:
Rates
of income-tax for below 60 Years
Description
|
Income
Tax Applicable Rate
|
|
Total
income does not exceed Rs. 2,50,000
|
Nil.
|
|
Total
income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000
|
5
per cent of the amount by which the Total income exceeds Rs. 2,50,000;
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(Rs 12,500 Tax Rebate applicable u/S 87A- Get Details Click Here) + 4% cess. www.gsrmaths.in |
|
Total
income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000
|
Rs.12,500
plus 20 per cent. of the amount by which the Total income exceeds Rs. 5,00,000 +
4% cess
|
|
Total
income exceeds Rs. 10,00,000
|
Rs.
1,12,500 plus 30 per cent. of the amount by which the Total income exceeds
Rs.10,00,000. + 4% cess
|
Income
Tax Rates for Individuals aged 60-80 Years
Description
|
Income
Tax Applicable Rate
|
Total
income does not exceed Rs. 3,00,000
|
Nil
|
Total
income exceeds Rs.3,00,000 but does not exceed Rs. 5,00,000
|
5
per cent of the amount by which the Total income exceeds Rs.
3,00,000; + 4% cess
|
Total
income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000
|
Rs.10,000
plus 20 per cent of the amount by which the Total income exceeds Rs.
5,00,000 + 4% cess
|
Total
income exceeds Rs. 10,00,000
|
Rs.
1,10,000 plus 30 per cent of the amount by which the Total income exceeds
Rs.10,00,000. + 4% cess
|
Note: Senior citizen age 80 years & above: Up to Rs.5,00,000/-Income Tax-NIL
Section 87A:
No Tax on Taxable Annual Income up to Rs. 5
Lakh. The limit of Rebate u/s 87A has been increased from Rs.3.5
Lakhs to Rs.5 Lakhs.
Section 87A provides exemption on tax payment
to a RESIDENT INDIVIDUAL. As per this provision, if an individual’s taxable
income is up to Rs. 5 lakhs then he will get the benefit of Rs. 12500 or the
amount of tax whichever is lower. If you are liable to pay tax up to the limit
of rebate allowed, then after taking the rebate benefit, no payment will be
required to be made for tax amount. For availing the full amount of rebate, the
Total Taxable Income of return filer shall be up to Rs 5,00,000 for the Financial
Year 2019-20, the Assessment year 2020-21.
Standard
Deduction U/S 16 (ia):
Standard
Deduction of Rs.50000/- or amount of salary, whichever is less shall be
allowed. (ii) Entertainment Allowance as per rules and (iii) Tax on Employment
- 100% (Professional Tax).
Deduction
U/S 24(2):
100%
deduction (Housing loan interest) subject to a maximum limit of Rs.30,000/-
being interest paid on an amount of Housing Loan for Self Occupied
House Property. If self-occupied House Property has been acquired or
constructed with capital borrowed on or after 01.04.1999 and the acquisition or
construction of the said house property is completed within five years from the
end of the Financial Year in which the capital was borrowed. Maximum limit
of Rs.2.00 lakhs shall be applicable.
Section 80EE:
This deduction (up to Rs. 50,000) is over and
above the Rs 2 lakh limit under section 24 of the income tax act.
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·
Value of the house should be Rs 50 lakhs
or less
- Loan taken for the house must be Rs
35 lakhs or less
- The loan must be sanctioned by
a Financial Institution or a Housing Finance Company
- The loan must be sanctioned between
01.04.2016 to 31.03.2017
- As on the date of the sanction of
loan, no other house property must be owned by you.
Section 80EEA:
A deduction for interest payments up to Rs 1,50,000 is
available under Section 80EEA. This deduction is over and above the deduction
of Rs 2 lakh for interest payments available under Section 24 of the Income Tax
Act. Read more about the deduction of Rs 2 lakh on interest on home loan here.
Therefore, taxpayers can claim a total deduction of Rs 3.5L for interest on
home loan, if they meet the conditions of section 80EEA. www.gsrmaths.in
Conditions for
claiming the deduction:
- Housing
loan must be taken from a financial institution or a housing finance
company for buying a residential house property.
- Stamp
duty value of the house property should be Rs 45 lakhs or less.
- The
individual taxpayer should not be eligible to claim deduction under the
existing Section 80EE.
- The
taxpayer should be a first-time home buyer. The taxpayer should not own
any residential house property as on the date of sanction of the loan.
·
Conditions with respect to the carpet
area of the house property. These conditions have been specified in the
memorandum to the finance bill, but not mentioned in section 80EEA
Deduction
U/S 80 (D): (Medi-claim premium):
(1)
In case of an Individual assesse:
(a)
For Medical insurance prem. Or preventive health check-up of Self, Spouse
and dependent children. Maximum Rs.25000/- (Rs.50000/-, if Any insured
person is a senior citizen) ( Only if paid by
cheque/ Bank Mode) www.gsrmaths.in
(b)
For insurance on health of any parent or parents - Maximum Rs.25000/-
(Rs.50,000/-
if any insured person is a Senior Citizen). ( Only if paid by cheque/ Bank Mode )
(2)
In case of an H.U.F., the maximum deduction is Rs.25000/- (Rs.50000/- if any
insured person is a Senior Citizen), Scheme of GIC or any other insurer
approved by IRDA,or under the scheme of Central Govt.Health Scheme.(CGHS), or
State Govt. schemes as may be, notified by the Central Govt.
Deduction
U/S 80(DD):
- For medical
treatment including deposits made for maintenance of handicapped dependent.
Rs.1,25,000/- in case of severe disability >75%.
·
<75% -- 75,000/-
Note:
Policy amount received U/S 80 DD shall be taxable. Amount received under a Key man
insurance Policy shall be taxable.
Deduction
U/S 80(DDB):
- 40,000/- or the amount actually
paid, whichever is less.
- In the case of a senior citizen and
super-senior citizen, Rs.1,00,000 or amount actually paid, whichever is
less.
- Neurological
Diseases where the disability level has been certified to be of 40% and
above
- Malignant Cancers
- Full Blown Acquired
Immuno-Deficiency Syndrome (AIDS)
- Chronic Renal
failure
- Hematological
disorders - (i) Hemophilia (iI) Hemophilia (iii)
Thalassemia
Deduction
U/S 80U:
A deduction of Rs. 75,000 is allowed for people with
disabilities, and Rs. 1,25,000 deduction for people with severe disability.
Difference
between Section 80U and Section 80DD:
Section 80DD provides tax deductions to the family members
and the kin of the taxpayer with a disability, whereas Section 80U provides
deductions to the individual taxpayer with a disability himself. Section 80DD
is applicable if a taxpayer deposits a specified amount as an insurance premium
for taking care of his/her dependent disabled person. Under section 80DD, the
deduction limits are the same as Section 80U. Here, a dependent refers to the
siblings of the assessee, parents, spouse, children or a member of a Hindu
Unified Family.
Deduction
U/S 80-E:
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Deduction
in respect of interest on Loan taken for Higher Education: An Individual
assesse - loan taken from approved Financial Institution for full time study.
The deduction will be allowed for a maximum period of 8-years or till the
interest is fully paid whichever is earlier. Deduction shall be allowed without
any limit.
Deduction
U/S 80G:
For
Donations, deduction available is:
(A)
National Defence Fund (Prime Minister/Chief Minister’s Relief Fund
etc.-100% of qualifying donation and
(B)
Other Specified Charitable Trust - 50% of qualifying donation (Qualifying
donation should not exceed 10% of assessable income).
Deduction
from Gross Total Income:
U/S
80 C: Specified Savings:
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LIC / PPF / KVP / EPF / SSY /
NSC / HOME LOAN PRINCIPAL / SCHOOL FEES/ ELSS/STAMP DUTY ₹1,50,000
Deduction
U/S 80CCC (Pension Scheme Premium):
Maximum
Rs.1,50,000/- for new Jivan Suraksha Pension Scheme of LIC or any such scheme
of any other Insurer approved by IRDA.
Section
80 CCD:
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Contribution
to Pension Scheme Fund by an individual employed by the Central Govt.on or
after 01.01.2004. (Maximum 10% of salary).
MOST
IMPORTANT:
Limit
of Deduction - U/S 80CCE w.e.f. Assessment year 2006-07 and onwards, provides
that the aggregate amount of deductions allowable U/S 80-C, 80-CCC and 80-CCD (1)
shall not, in any case, exceed Rs.1,50,000/- .
Section
80 CCD (1B):
Amount
paid or deposited by the assesse to his account in a notified pension scheme
(i.e. New Pension Scheme) subject to a maximum of Rs.50,000/- shall be allowed
as a deduction. (This benefit shall be available over and above the
limit of Rs.1,50,000/- as mentioned U/S 80CCE)
Section
80CCG
·
Deduction in respect of investment in
Equity Saving Scheme
·
Listed equity shares or listed units of
an equity oriented mutual fund
·
For example: RGESS 2012 (Rajiv Gandhi
Equity Saving Scheme).
·
Amount of deduction: 50 % of the amount
invested in such equity shares.
·
Maximum deduction: Rs.25000/-
·
The deduction is allowable for 3 years
beginning with the year in which the first purchase is made.
·
Gross Total Income of the assesse shall
not exceed Rs.12 lakhs. (Rs.10 lakhs for A.Y.2013-2014).
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Section
80 TTA - Deduction in respect of Interest on
Savings account deposit. (Saving accounts of banks, co-operative banks and post
office are allowed) Fixed deposit and recurring deposit interest is not allowed
as deduction under this section. Maximum amount allowable: Rs.10000/- to any
individual or H.U.F.
Section
80 TTB - Deduction of interest shall be allowed up
to Rs.50,000/- to senior citizens.
16 U/S
10(34) - Any income received by way of dividends
from domestic company
referred
to the Section 115-O shall be exempted.
