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IT Software / Income Tax Calculation Software and Section wise details 2019-20

Income Tax Calculation FY 2019-20 (2020-21 AY) IT Slab Rates 2019-20. Income Tax Slab Rates FY 2019-20 (2020-21 AY) IT for Salaried Employees 2019-20 / Complete Income Tax Section wise Details for 2019-20, IT for Individuals.

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; www.apteachers.in
(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. www.gsrmaths.in
·         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.
Download IT Act Circular by IT department