Income tax Amendment for A.Y. 2020-21

Income Tax Amendment for A.Y. 2020-21

Rebate U/S- 87A:

Resident individual eligible for rebate u/s-87A if his total income does not exceed INR 5,00,000. The amt. of rebate shall be 100% of Tax payable or INR 12,500, whichever is less. (i.e. no tax payable on income up to INR 5,00,000/- in case of a resident individual)

Surcharge:

Nature of Income	Range of Total Income
	Up to INR 50 lakh	More than INR 50 lakh but up to INR 1 crore	More than INR 1 crore but up to INR 2 crore	More than INR 2 crore but up to INR 5 crore	More than INR 5 crore
Short-term capital gain covered under Section 111A	Nil	10%	15%	15%	15%
Long-term capital gain covered under Section 112A	Nil	10%	15%	15%	15%
Any other income*	Nil	10%	15%	25%	37%

 

Domestic Company

Tax rates applicable in case of domestic companies for A.Y. 2020-21 are as follows:

Particulars	Income Tax Rates
Where it's total turnover or gross receipt during the previous year 2017-18 does not exceed INR 400 crore	25%
Where it opted for Section 115BA	25%
Where it opted for Section 115BAA	22%
Where it opted for Section 115BAB	15%
Any other domestic company	30%

Standard deduction: 

Standard deduction for salaried person increased from INR 40000 to INR 50,000 from A.Y 2020-21.

 Depreciation:

Block of Assets	%
(i) Motor Cars, other than those used in a business of running them on hire, acquired on or after the 23rd day of August 2019 but before the 1st day of April 2020 & is put to use before the 1st day of April 2020	30%
(ii) Motor buses, motor lorries and motor taxis used in a business of running them        on hire other than those covered in (i)	45%

 

U/S-194A:- TDS on interest other than interest on securities.

No TDS deducted up to INR 40,000 and in case of senior citizens is up to INR 50,000 if the interest earned from the deposit with a bank, post office, Fixed Deposit, recurring deposit.        

 Where the deductor is: –

    1.  Banking company or any bank or a banking institution

    2. Co-operative society engaged in the business of banking

    3. Post office (on deposit under a scheme framed and notified by Central Government).

   U/S- 194I:- TDS on Rent

Section 194I - TDS on rent limit has been revised from INR 1,80,000 to INR 2,40,000/- for FY 2019-20 & onwards.

   U/S- 194N:- TDS on Cash withdrawal from Bank

Section 194N is effective from 01/09/2019. Hence, any account holder withdrawal more than 1 crore during F.Y. bank or post office is liable to deduct TDS on cash withdrawal.

   U/S-194M :- TDS on payment to Resident Contractors & Professionals

Section 194M applies to individual/ HUF whose accounts are not required to get audited u/s 44AB and when payment made to a resident individual for a carrying out any work contract or rendering any professional service during financial year and payment exceeding INR 50 lakhs during the financial year in such case TDS deducted at a rate of 5%.

(In case the PAN is not available than TDS deducted at a rate of 20% )