What is the new rule in income tax?
Income tax slab rate FY 2020-21 (AY 2021-22) – Applicable for New Tax regime
| Income Tax Slab | New Regime Income Tax Slab Rates FY 2020-21 (Applicable for All Individuals & HUF) |
|---|---|
| Rs. 5.00 lakhs- Rs 7.5 Lakhs | 10% |
| Rs 7.5 lakhs – Rs 10.00 Lakhs | 15% |
| Rs 10.00 lakhs – Rs. 12.50 Lakhs | 20% |
| Rs. 12.5 lakhs- Rs. 15.00 Lakhs | 25% |
What are the income tax rules in India?
| Income Tax Slabs | Income Tax Rates |
|---|---|
| Income greater than Rs 2.5 lakhs but less than Rs 5 lakhs | 5% of the amount exceeding Rs 2.5 lakhs |
| Income greater than Rs 5 lakhs but less than Rs 10 lakhs | Rs.12,500+20% of the amount exceeding Rs 5 lakhs |
| Income greater than Rs 10 lakhs | Rs.1,12,500+30% of the amount exceeding Rs 10 lakhs |
What are the rules of ITR?
Individuals whose taxable income exceeds the maximum amount not chargeable to tax are eligible for income tax return. The basic exemption limit for FY 2019-20 is Rs 3 lakh for senior citizens (aged between 60 and 80 years), Rs 5 lakh for super senior citizens (aged 80 years or more), and Rs 2.5 lakh for others.
What is Rule 12 of income tax rules?
The person who is the owner of more than one house property and the income of such house property is chargeable under the head ‘Income from House Property’; The person who is assessable for the whole or part of the income on which TDS has been deducted in the hands of a person other than the assessee.
What are the new income tax rules for 2021?
INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22
| Taxable income | Tax Rate (Existing Scheme) | Tax Rate (New Scheme) |
|---|---|---|
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,001 to Rs. 7,50,000 | 20% | 10% |
| Rs. 7,50,001 to Rs. 10,00,000 | 20% | 15% |
How much income is tax free in India?
Rebate of up to Rs 12,500 is available under section 87A under both tax regimes. Thus, no income tax is payable for total taxable income up to Rs 5 lakh in both tax regimes. Rebate under section 87A is not available for NRIs and Hindu Undivided Families (HUF)
Which income is tax free in India?
Under Section 10(1) of the Income Tax Act, agricultural income is fully exempt from income tax. However, for individuals and HUFs, an agricultural income of more than Rs. 5000 is added to the total income.
How is ITR calculated?
How to calculate income tax? (See example)
| Up to Rs 2,50,000 | Exempt from tax |
|---|---|
| Rs 12,50,000 to Rs 15,00,000 | 25% (25% of Rs 15,00,000 less Rs 12,50,000) |
| More than Rs Rs 15,00,000 | 30% (30% of Rs 20,92,000 less Rs 15,00,000) |
| Cess | 4% of total tax (4% of Rs 12,500 + Rs 25,500+ Rs 37,500 + Rs 50,000 + Rs 62,500 + Rs 1,77,600) |
What is Rule 4 of Income Tax Act?
Rule 4 of Income Tax Rules 1962 defines treatment of unrealised rent of income from house property. (d) the assessee has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or satisfies the Assessing Officer that legal proceedings would be useless.
What is the tax deduction for salary 2021?
For FY 2020-21, standard deduction remains same as the previous year at Rs. 50,000.