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‘Calculation of Tax’ in case of ‘Salaried Person’ under new Regime of Section 115BAC

Particulars

Salary Rs. 10 Lakhs

Salary Rs. 20 Lakhs

New Regime

Old Regime

New Regime

Old Regime

Basic Salary (50% of Gross Salary)

5.00.000

5,00,000

10,00,000

10,00,000

Add : Allowances

 

 

 

 

Other Allowances

2,00,000

2,00,000

4,00,000

4,00,000

HRA

2,00,000

2,00,000

4,00,000

4,00,000

Leave Travel Concession (LTA)

1,00,000

1,00,000

2,00,000

2,00,000

Gross Salary (A)

10,00,000

10,00,000

20,00,000

20,00,000

Less : Deductions

 

 

 

 

  1. HRA (monthly Rent is Rs.25,000)

-

-2,00,000

-

-2,00,000

  1. LTA (Rs.80,000 is Exempt from Tax)

-

-80,000

-

-80,000

  1. Standard Deduction

-

-50,000

-

-50,000

Taxable Salary (B)

10,00,000

6,70,000

20,00,000

16,70,000

Less : Loss under the head House Property

-

-2,00,000

-

-2,00,000

Gross Total Income

10,00,000

4,70,000

20,00,000

14,70,000

Less : Deduction under Chapter VI-A(C)

 

 

 

 

  1. Section 80C

-

1,00,000

 

1,00,000

  1. Section 80CCD(1B)

-

50,000

 

50,000

  1. Section 80CCD(2)

50,000

50,000

50,000

50,000

  1. Section 80D

-

50,000

 

50,000

Taxable Income (D) = (B-C)

9,50,000

2,20,000

19,50,000

12,20,000

Income Tax

67,500

-

3,22,500

1,78,500

Add : Surcharge

-

-

-

-

Add : Education Cess

2,700

-

12,900

7,140

Total Tax Liability (E)

70,200

-

3,35,400

1,85,640

Net Tax Savings / Loss

-70,200

-1,49,760

Impact of New Scheme of Section 115BAC on 'Salaried Person'

Particulars

Salary Rs. 10 Lakhs

New Regime

Old Regime

Basic Salary (50% of Gross Salary)

5.00.000

5,00,000

Add : Allowances

 

 

Other Allowances

2,00,000

2,00,000

HRA

2,00,000

2,00,000

Leave Travel Concession (LTA)

1,00,000

1,00,000

Gross Salary (A)

10,00,000

10,00,000

Less : Deductions

 

 

  1. HRA (monthly Rent is Rs.25,000)

-

-2,00,000

  1. LTA (Rs.80,000 is Exempt from Tax)

-

-80,000

  1. Standard Deduction

-

-50,000

Taxable Salary (B)

10,00,000

6,70,000

Less : Loss under the head House Property

-

-2,00,000

Gross Total Income

10,00,000

4,70,000

Less : Deduction under Chapter VI-A(C)

 

 

  1. Section 80C

-

1,00,000

  1. Section 80CCD(1B)

-

50,000

  1. Section 80CCD(2)

50,000

50,000

  1. Section 80D

-

50,000

Taxable Income (D) = (B-C)

9,50,000

2,20,000

Income Tax

67,500

-

Add : Surcharge

-

-

Add : Education Cess

2,700

-

Total Tax Liability (E)

70,200

-

Net Tax Savings / Loss in New Tax Regime

-70,200

Computation of Tax for ‘Individual or HUF’ in case both Opting and without Opting New Tax Regime of Section 115BAC Tax Amendments in Finance Bill 2020 Individuals and HUFs can pay Tax as per Section 115BAC from Assessment Year 2021-22 (Financial Year 2020-21)
Income Tax Slab for Financial Year 2020-21 (AY : 2021-22)



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