Income Tax Slabs for individuals below 60 years of age under new tax regime – Applicable for F.Y. 2020-21 (A.Y. 2021-22)
Income Tax Slab
Up to Rs 2.5 lakh
Rs 2.5 lakh to Rs 5 lakh
5% (Tax rebate of Rs 12,500 available under section 87A)
Rs 5 lakh to Rs 7.5 lakh
Rs 7.5 lakh to Rs 10 lakh
Rs 10 lakh to Rs 12.5 lakh
Rs 12.5 lakh to Rs 15 lakh
Rs 15 lakh and above
For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income upto Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income upto Rs.5 thousand(Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)
For Individuals and HUFs not having income from profits and gains of business or profession
For individuals and HUFs having income from profits and gains of business or profession
For Individuals, HUFs and Firms (other than LLP) being a Resident having Total Income upto Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE
(Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)
For persons other than :-
(iii) Company and
(iv) Person filing Form ITR-7
For Companies other than companies claiming exemption under section 11
For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D)
Procedure For Income Tax Return Filing Through Popcorn Infotech ?
• The tax calculated on the basis of such rates will be subject to health and education cess of 4%.
• Any individual opting to be taxed under the new tax regime from F.Y. 2020-21 onwards will have to give up certain exemptions and deductions, mentioned below:
1. Leave Travel Allowance (LTA)
2. House Rent Allowance (HRA)
4. Daily expenses in the course of employment
5. Relocation allowance
6. Helper allowance
7. Children education allowance
8. Other special allowances [Section 10(14)]
9. Standard deduction
10. Professional tax
11. Interest on housing loan (Section 24)
12. Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)
• Points to remember while opting for the new tax regime:
1. Option to be exercised on or before the due date of filing return of income for A.Y. 2021-22
2. In case of a taxpayer having business income, the option once exercised can be withdrawn only once. Further, if the taxpayer withdraws the option, he will never be able to opt-in the option again.
Major tax deductions available if you opt to pay tax as per old tax rates:
Government of India allows various benefits and exemptions to individuals to save Income Tax. Most common options available are listed below.
1. Under section 80C, you are allowed to avail tax exemption of up to Rs.1.50 Lakhs. Various available options under 80C are as under:
• Tax Saving Fixed Deposits
• Public Provident Fund
• Employee Provident Fund
• National Pension Scheme
• Unit Linked Insurance Plans
• Sukanya Samridhi Yojana
• National Saving Certificate
• LIC Life Insurance Premiums
• Children’s Tuition fees (for max. 2 children)
• Senior Citizens Savings Scheme (for above 60 years age)
• Repayment of Home Loans, stamp duty, registration fees and transfer expenses
2. Under section 80D, you can claim maximum deduction of up to Rs.60,000/-
• You can claim deduction of medical insurance premium from Rs.25,000/- to Rs.60,000/-, based on contributions towards self/ family/ parents/ senior citizen parents.
• Under section 80D, for medical expenses of citizens above age of 60 who are not covered under any health insurance policy, you are allowed to claim tax exemption from Rs.30,000 – 60,000/- depending upon whether expenses are for self/ family/ parents.
• Medical checkup expenses of up to Rs.5,000/- is allowed, if the expense is incurred towards a person not covered under any health insurance policy.
3. Under section 80EE, you can claim deduction of up to Rs.50,000/- on home loan interest
4. Under section 80TTA, interest earned in Savings Account is tax free up to income of Rs.10,000/-
Income of minors
Minor’s income is added to parent’s income and taxed in the parent’s file. Parent can claim deduction of upto Rs.1,500/- in minor’s income.
1. If both the mother and father are earning, the income of the minor is added to the income of that parent whose income is greater.
2. If the parents are divorced, the minor's income is added to the parent's income who has the custody of the child.
3. If both the parents are not alive, the income of the minor is not clubbed with the guardian, but instead a separate income tax return is filed.
4. When a child earns an income by way of any work or from an activity for which he uses special talent or knowledge, the minor is required to file an income tax return separately.
5. Income of a child suffering from any disability specified under Section 80U will not be clubbed with the income of the parent. A person is considered differently-abled when he is suffering from more than 40% of any of these - blindness, poor vision, hearing impairment, loco motor disability and mental illness.
Documents required to file Income Tax returns :
For an employee
3) Bank Account Details
4) Form 16 (if issued by employer)
5) Income Tax log-in password (if available)
6) Details of investments if any (inc. those eligible for tax benefits)
For professionals/ businesses
3) Bank account details
4) Income Tax log-in password (if available)
5) Details of investments if any (inc. those eligible for tax benefits)
6) Income details (our representative will get in touch with you)
7) Complete books of accounts (if required, our representative will get in touch with you)
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