News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« News Headlines »
 How to pre-validate your bank account to get income tax refund Income Tax Return 2019
 Notification NO. 86/2019 Income-Tax
 Didn't receive income tax refund? Here's how you can raise a re-issue request step by step
 Notification No. 80/2019- The Central Board of Indirect Taxes and Customs
 CBDT Extends Income Tax Return Filing Deadline in J&K, Ladakh Union Territories to November 30
 Check you income tax outgo for AY2019-20
 ITR forms for AY 2019-20 notified – Complete list of ITR forms and their usage
 No taxable income? You may still have to file your returns
 Not received your tax refund? Here is what you should do
 Notification No.76/2019 Central Board Of Indirect Taxes And Customs
  What to do if you haven’t got tax refund yeta
 Section 35D of the Income Tax Act, 1961 deals with the Amortization of Expenditure incurred in respect of Preliminary Expenses.
 Notification No. 80/2019 Central Board Of Direct Taxes
 Notification No. 79/2019 Central Board Of Direct Taxes
 This major tax deadline is today. What you need to know

Check you income tax outgo for AY2019-20
October, 31st 2019

The Indian constitution has empowered both center and state governments to impose taxes under the purview of their administration.

The Indian constitution has empowered both Centre and state governments to impose taxes under the purview of their administration. The respective state governments levy taxes like toll tax, stamp duty, house tax, entertainment tax, etc. the central government levies taxes like income tax, gift tax, wealth tax, service tax, customs duty, excise duty, etc. Since income tax is directly paid by an earning individual, it becomes important to calculate one's income tax liability using the income tax calculator. Some of the calculations given below would help the readers:

The Income-tax slab and its rate as proposed by the Finance Minister Nirmala Sitharaman in her Union Budget 2019 for the AY 2018-19 for Individuals/Hindu Undivided Family (HUF)/Association of Persons(AOP)/Body of individuals(BOI) the rates are like this — up to Rs 2.5 lakh, income tax interest rate is nil, for above Rs 2.5 lakh to Rs 5 lakh income tax interest rate is 5 per cent, for above Rs 5 lakh to Rs 10 lakh income tax interest rate is 20 per cent while for income above Rs 10 lakh income tax interest rate is 30 per cent. Apart from the Income Tax, an earning individual will also have to pay 4 per cent towards ‘Health and Education Cess’.

Check Income Tax Calculator here

Rebate under Section 87A of the Income Tax Act 1961 is available for a resident individual if her or his total income does not exceed Rs 3.5 lakh. The amount of rebate is 100 per cent of income-tax or Rs 2500, whichever is less. This rebate is applied to the total tax before the 4 per cent Education Cess is added. It is available to all individuals but not super senior citizens as they have fully exempted up to Rs 5 lakh.

Now, let's consider an earning individual aged 45 earned Rs 12 lakh in FY 2018-19. If the tax slab mentioned above continues for the Assessment Year 2019-20 also, his or her tax liability will be calculated as follows: For earning up to Rs 2.5 lakh is nill, for earning from Rs.2,50,001 to Rs.5,00,000 @ 5 per cent is Rs 12,500, for earnings from Rs.5,00,001 to Rs.10,00,000 @ 20 per cent is Rs 1 lakh and for earnings on balance Rs.2,00,000 @ 30 per cent is Rs 60,000. He will have to pay an additional educational cess at 4 per cent, which is Rs 6900. So, the net income tax outgo of an earning individual who earns Rs 12 lakh per annum is Rs 1,79,300.

In order to decrease this income tax outgo, the earning individual can do the investment that allows income tax exemption under Section 80C of the income tax and some other options.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions