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
Service Tax »
 Have you filed your income tax return? Here is a quick guide
 Government panel moots tax relief for companies
 New income tax refund rules Income Tax Filing 2019
 Income Tax dept relaxes assessment and scrutiny norms for start-ups
 Tax department launches 'e-filing Lite' for taxpayers
 ITR 5 Form filing: How to download and fill the form online
 How to save tax if you have missed the deadline for submitting proof of investments ITR Filing for AY2019-20
 How to correct a mistake ITR filing AY 2019-20
 ITR filing for AY 2019-20: Don't miss these incomes
 Meeting tax deadlines helpsa
 How To File Income Tax Return Without Form 16? ITR Filing

How did Netflix get away with not paying income tax in 2018?
February, 11th 2019

In the interim budget, though the government offered tax rebate for income up to ?5 lakh, it left income tax slabs unchanged. The current tax slab starts at 5% for income between ?2.5 lakh and ?5 lakh, 20% if your income is between ?5 lakh and ?10 lakh and 30% for income above ?10 lakh, for individuals less than 60 years old.

Senior citizens have to pay nil tax for income up to ?3 lakh and for super senior citizens, the exemption is up to ?5 lakh.

Remember that your entire income doesn’t get taxed at one rate.

The math

Say you are below the age of 60 years and your total taxable income is ?15 lakh.

Without factoring in any tax benefits, ?2.5 lakh will attract zero tax. According to income tax department calculator, the next ?2.5 lakh will be taxed at 5%, which amounts to ?12,500.

The next slab in this example, which is ?5 lakh, will attract 20% on the amount and you will pay ?1 lakh. The remaining income of ?5 lakh will attract tax of 30% considering it exceeds ?10 lakh limit for which you will pay ?1.5 lakh.

So your total tax amount will be ?2.63 lakh before cess.

The cess

Besides your tax slab, you also have to pay cess on your total tax outgo.

The cess levied on your tax goes towards health and education. Health and education cess was introduced in budget 2018, and is levied from financial year 2018-19.

Earlier, it used to be levied for secondary and higher secondary education only.

The cess is charged at 4% of the tax amount.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

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