Income Tax FY19-20

Income Tax FY19-20

205°
Images
Deal Major
122
19188
187

I am starting this thread for discussions related to current year only smile


Case 1 -

So if your income (after all deductions and exemptions) is Rs.499999

You pay zero tax (Rs.12500 rebate if your net income is less than 5 lakhs)


Case 2 -

If your income (after all deductions and exemptions) is Rs.500001

You have to pay Rs.12500 + 4% cess (Rs.500)

Note – No rebate as your income is above 5 lakhs


Income ~ 500000 ~ Zero tax
Income ~ 600000 ~ Rs.33800 (Rs.13000+20800)

19 Comments  |  
10 Dimers
Images
Deal Major
122
19188
187

Deductions and Exemptions:

Suppose your Income is 10L

:: Imaginary figures mentioned below

HRA (check formula for that online) ~ Rs.46000
STANDARD DEDUCTION ~ 50000
PROF TAX DED ~ 2400

80C ~ 150000 (Tax saving FD, Mutual Funds, EPF, PPF, Term Incurance)
NPS ~ 50000 (Tier 1)

80D (Extra health insurance) ~ 25000 (you) + 25000 or 50000 (parents below 60 or above 60)

Education loan interest ~ 15000-25000

If you took loan for buying property, extra deductions smile

https://www.desidime.com/forums/dost-and-dimes/...

Images
Deal Major
122
19188
187
Original wrote:

Deductions and Exemptions:

Suppose your Income is 10L

:: Imaginary figures mentioned below

HRA (check formula for that online) ~ Rs.35000
STANDARD DEDUCTION ~ 50000
PROF TAX DED ~ 2400

80C ~ 150000 (Tax saving FD, Mutual Funds, EPF, PPF)
NPS ~ 50000

80D (Extra health insurance) ~ 25000 (you) + 25000 or 50000 (parents below 60 or above 60)

Education loan interest ~ 15000-25000

If you took loan for buying property, extra deductions smile

https://www.desidime.com/forums/dost-and-dimes/...

One more exemption -

Rs.1600 per month Conveyance allowance exempt smile
Rs.19200 per year.

The above allowance exempt under Section 10 (14)(ii)for Salaried Employees is exempt to the extent of the amount received or the limit specified whichever is less.

Actual expenditure incurred in such cases does not have any relevance.

Missing
Deal Cadet
166
512
8

I want to inquire about people above the age of 60 having no salaried income but earning interest through FDs and savings account upto 5 lacs. Do they have to pay any taxes or fill any forms like 15H?

Images
Deal Major
122
19188
187
erikalui wrote:

I want to inquire about people above the age of 60 having no salaried income but earning interest through FDs and savings account upto 5 lacs. Do they have to pay any taxes or fill any forms like 15H?

Zero tax

Refer – https://economictimes.indiatimes.com/wealth/tax...

and

https://www.charteredclub.com/section-87a-r...e/

Missing
Deal Lieutenant
273
3103
41
Expand
Original wrote:

One more exemption -

Rs.1600 per month Conveyance allowance exempt smile
Rs.19200 per year.

The above allowance exempt under Section 10 (14)(ii)for Salaried Employees is exempt to the extent of the amount received or the limit specified whichever is less.

Actual expenditure incurred in such cases does not have any relevance.

Incorrect.
this has been withdrawn effective from FY 2018-19 after reintroduction of standard deduction.
CBDT Notification No. 17/2018/F. No.370142/02/2018-TPL dt 06-04-2018

Images
Deal Major
122
19188
187
Expand
panchabhut wrote:

Incorrect.
this has been withdrawn effective from FY 2018-19 after reintroduction of standard deduction.
CBDT Notification No. 17/2018/F. No.370142/02/2018-TPL dt 06-04-2018

Yup, sorry for the incorrect info. biggrin

Disabled can still claim this exemption (Rs.3200) along with standard exemption.
https://www.taxmann.com/blogpost/2000000361/tra...

Cropped254511418
Deal Cadet
1,068
912
9
DealBroker23 wrote:

I guess home loan comes under 80C only

Only principal payment comes under 80C. Interest payment comes under section 24.

Download
Deal Lieutenant
7
3446
74

noob question
what will be my tax on 6 lac income(income from other sources) if
1. I show my clg fee as 75k a year(I have receipt)
2. I show a loan of like 1 lac from bank with proper documents

Missing
Deal Newbie
51
20
0

Bythe way the revision in income tax is for FY 20 21 please change the subject

Missing
Deal Newbie
55
38
0
Expand
Awake wrote:

Just to highlight that one has to file return to claim rebate (if income>2.5l<=5l)

Really..? So you mean employer will deduct 12.5k tax from salary and the same will be refunded by IT after filing Itr ??

Images
Deal Lieutenant
99
3113
34
SARDARKHAN wrote:

noob question
what will be my tax on 6 lac income(income from other sources) if
1. I show my clg fee as 75k a year(I have receipt)
2. I show a loan of like 1 lac from bank with proper documents

1) clg fee deduction is given only to parents (not the student itself). Its 150000 u/s 80c
2) if home loan you can claim principal ded u/s 80c (max 1.5l deduc u/s 80c). And for interest part you would have to claim loss on self occupied house property.

Images
Deal Lieutenant
99
3113
34
Expand
RamSun97 wrote:

Really..? So you mean employer will deduct 12.5k tax from salary and the same will be refunded by IT after filing Itr ??

Well its a rebate and u can only claim a rebate if u file ur itr.
But u can ask ur emp not to deduct tds (if income<5l) after showing proof and all.

Download
Deal Lieutenant
7
3446
74
Expand
Awake wrote:

1) clg fee deduction is given only to parents (not the student itself). Its 150000 u/s 80c
2) if home loan you can claim principal ded u/s 80c (max 1.5l deduc u/s 80c). And for interest part you would have to claim loss on self occupied house property.

again two question pls
1. how much tax I have to pay if I show my income as 5/4.99 lac(income from other sources) and no deductions
2. the new tax bracket is for this fy19-20(ay 20-21) or fy 20-21(ay 21-22) ?

Images
Deal Lieutenant
99
3113
34
Expand
SARDARKHAN wrote:

again two question pls
1. how much tax I have to pay if I show my income as 5/4.99 lac(income from other sources) and no deductions
2. the new tax bracket is for this fy19-20(ay 20-21) or fy 20-21(ay 21-22) ?

For fy 19-20, income upto 2.5l is exempt and if u have income less than 5l, you can claim rebate of total tax due ( considering you file the return in time). Hence no tax till 5l.
If income greater than 5l, then you cannot claim any such rebate and will pay tax even for 2.5l to 5l.

New limits announced recently in budget will be appl For fy 20-21.

Download
Deal Lieutenant
7
3446
74
Expand
Awake wrote:

For fy 19-20, income upto 2.5l is exempt and if u have income less than 5l, you can claim rebate of total tax due ( considering you file the return in time). Hence no tax till 5l.
If income greater than 5l, then you cannot claim any such rebate and will pay tax even for 2.5l to 5l.

New limits announced recently in budget will be appl For fy 20-21.

thatnk you so much for the detailed info
kg smile

Images
Deal Major
122
19188
187
Expand
SARDARKHAN wrote:

thatnk you so much for the detailed info
kg smile

Income less than 5 lakhs
No tax

More than 5 lakhs then for income upto Rs.5 lakhs ~ Rs.13000 tax including cess.


New tax bracket is for upcoming FY 20-21 or AY 21-22

Missing