News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Service Tax »
 No tax on gift from relative but show it in ITR under exempt income
 How new income tax rates impact those with Rs 10 lakh salarya
 As new income tax regime beckons, should you switch?
 Which is better for you? New income tax regime vs old
 More people need to come under tax net
 How India can fix its problem of not collecting enough taxes
 which is the best option to save taxes under Section 80C?
 Can these deductions make you tax free?
 Best mid cap mutual funds to invest in 2020
 Income tax calendar for the year 2020
 How to reduce your tax liability while changing job

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 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting