Quick Answer: Is There Any Standard Deduction For FY 2020 21?

What is the MAT rate for AY 2020 21?

How to calculate MAT.

MAT is equal to 18.5% (15% from AY 2020-21) of Book profits (Plus Surcharge and cess as applicable)..

Which slab is better for income tax?

Income-tax rates under the new tax regime v/s the old tax regimeIncome slabs (Rs)Tax Rate(Old Regime)Tax Rate(New Regime – devoid of exemptions & deductions)2.5-5 lakh5%5%5-7.5 lakh20%10%7.5-10 lakh20%15%10-12.5 lakh30%20%3 more rows•Feb 7, 2020

What income is tax free?

As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: Income up to Rs 2.5 lakh is exempt from tax, 5 per cent tax on income between Rs 250,001 to Rs 5 lakh; 20 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh …

Is standard deduction available in new tax regime?

The Union Budget 2020 introduced a new personal income tax regime for individual taxpayers. … These include standard deduction of Rs 50,000, deduction under section 80C of Rs 1.50 lakh and interest on self-occupied property of Rs 2 lakh, deductions which are availed by most taxpayers.

What is the new income tax slab for 2020 21?

Income tax slab rate applicable for New Tax regime – FY 2020-21.Income Tax SlabNew Regime Income Tax Slab Rates for FY 2020-21 (Applicable for All Individuals & HUF)Rs 7.5 lakhs – Rs 10.00 Lakhs15%Rs 10.00 lakhs – Rs. 12.50 Lakhs20%Rs. 12.5 lakhs- Rs. 15.00 Lakhs25%> Rs. 15 Lakhs30%4 more rows•7 days ago

What is the income tax slabs for FY 2019 20?

Tax Rates for Individuals as per budget 2019-2020Income Tax Slab (in Rupees)Tax Rate for Individual Below the Age Of 60 Years0 to 2,50,000*Nil2,50,001 to 5,00,0005% of total income exceeding 2,50,0005,00,001 to 10,00,000Tax Amount of 12,500 for the income up to 5,00,000 + 20% of total income exceeding 5,00,0001 more row•Dec 11, 2019

How is income tax calculated on new slabs?

How to use the Income tax calculator for FY 2020-21 (AY 2021-22)?Choose the financial year for which you want your taxes to be calculated.Select your age accordingly. … Click on ‘Go to Next Step’Enter your taxable salary i.e. salary after deducting various exemptions such as HRA, LTA, standard deduction, and so on. (More items…

Is HRA exemption available for FY 2020 21?

Along with House Rent Allowance (HRA) benefits and Standard Deductions, other common and popular deductions removed under the new tax regime are: Exemption u/s 80C – Up to Rs 1.5 lakh. … Tax rebate u/s 87A – Up to Rs 12,500 on taxable income up to Rs 5 lakh.

What is the personal allowance for 2020 2021?

Personal AllowancesAllowances2020 to 20212019 to 2020Personal Allowance£12,500£12,500Income limit for Personal Allowance£100,000£100,000May 1, 2020

What is the new tax regime 2020?

The Budget 2020 introduces a new regime under section 115BAC giving an option to individuals and HUF taxpayers to pay income tax at lower rates. The new system is applicable for income earned from 1 April 2020 (FY 2020-21), which relates to AY 2021-22.

Can I file ITR for AY 2020/21 now?

The last date of income tax return (ITR) filing for FY 2019-20 (AY 2020-21) is extended to 10th January 2021. For tax audit and TP audit, the last due date is 15th february 2021. The due date for filing income tax returns is the date by which the returns can be filed without any late fee or penalty.

What is 87a in income tax?

The income tax rebate under Section 87a offers some relief to the taxpayers who fall under the tax slab of 10%. Any individual whose annual net income is not more than Rs. 5 Lakh is eligible to claim tax rebate under Section 87a of the Income Tax Act, 1961. This means an individual can get a rebate on tax of up to Rs.

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

How do you calculate income tax for the financial year 2020 21?

The calculation of income tax that you are liable to pay under the new tax regime can be explained with an example. Suppose your total income in FY 2020-21 is Rs 16 lakh….S. No.Income slabsIncome tax rate (%)1Up to Rs 2.5 lakhNil2Between Rs 2,50,001 and Rs 5 lakh5%3Between Rs 5,00,001 and Rs 7.5 lakh10%4 more rows•Dec 14, 2020

What is standard deduction in income tax?

Standard deduction is essentially a flat amount subtracted from the salary income before calculation of taxable income. … The standard deduction that was allowed was equivalent to Rs 30,000 or 40% of the income, whichever was lower, for salaried employees earning an annual income between Rs 75,000 and Rs 5 lakh.

What is the standard deduction for senior citizens in 2020?

The standard deduction for 2020 is $12,400 for singles and $24,800 for married joint filers. There is also an “additional standard deduction,” for older taxpayers and those who are blind. A married filer who is blind or aged 65 and over can claim $1,300 for themselves.

How can I save tax on 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

What deductions are not allowed in new tax regime?

The important tax breaks that will not be available under the new tax regime include Section 80C (Investments in PF, NPS, Life insurance premium, home loan principal repayment etc.), Section 80D (medical insurance premium), tax breaks on HRA (House Rent Allowance) and on interest paid on housing loan.