Introduction tax, Tax burden, Types of Taxes in India, Direct Tax, Indirect Tax, Income Tax, History of Income Tax, Sir James Wilson Income Tax Act, 1961, Heads of Income under Income Tax, Income form Salary, Income for House Property, Profits or losses from Business or profession, Capital Gains, Income form Other Source, Tax Rates for A.Y 2020-21, NEW TAX REGIME FOR INDIVIDUALS & HUF (SECTION 115BAC)

1. Introduction Taxation
Mr. Rathesh J,
Asst. Professor

2. Is Payment of
Tax is burden?
10/14/2020 Mr. Rathesh J, Asst. Prof.

3. Tax is “Quid Pro Que”
• An exchange of goods or services
10/14/2020 Mr. Rathesh J, Asst. Prof.

4. Comon people pay tax tax to
10/14/2020 Mr. Rathesh J, Asst. Prof.

5. 10/14/2020 Mr. Rathesh J, Asst. Prof.

6. Some statistics
about Income Tax
10/14/2020 Mr. Rathesh J, Asst. Prof.
In 2015-16
3.7 crore individuals filed
Income tax return
Only 76 lakhs showed income
above 5 lakhs
Out of 76 lakhs, 56 lakhs are
salaried people

7. Types of Taxes in India
Direct Tax
Income Tax
Wealth Tax
Indirect Tax
GST
Customs Duty
Excise Duty
VAT
10/14/2020 Mr. Rathesh J, Asst. Prof.

8. Income Tax is
Payment of tax on income of a person
10/14/2020 Mr. Rathesh J, Asst. Prof.

9. History of Income Tax
1860
•Sir James Wilson
Introduced to
compensate losses
due to 1857 1st
freedom revolt
Income Tax Act,
1961
•Govt. Of India Passed
Act after
independence based
on law Commission
Report
Direct Tax Code
•Now Govt. of India
also thining to
amend Income Tax
Act with Direct Tax
Code
10/14/2020 Mr. Rathesh J, Asst. Prof.

10. Heads of Income under Income Tax
Salary
House
Property
Business /
Profession
Capital
Gains
Other
Sources
10/14/2020 Mr. Rathesh J, Asst. Prof.

11. Income form Salary
• Should be employee employer
relationship
• Salary receive in current year
• Any advance salary received
• Arrears of salary receive
10/14/2020 Mr. Rathesh J, Asst. Prof.

12. Bifurcations of
salary
Basic
• DA (Dearness Allowance)
• HRA (House Rent Allowance)
• Education Allowance
• Travelling Allowance & etc....
Allowances
• RFA (Rent Free Accommodation)
• Transportation Facility
• Lunch
• Other benefit
Perquisites
Commission10/14/2020 Mr. Rathesh J, Asst. Prof.

13. Income for House
Property
Rent or Revenue earned from any kind of land or
building
10/14/2020 Mr. Rathesh J, Asst. Prof.

14. Profits or losses from Business or
profession
10/14/2020 Mr. Rathesh J, Asst. Prof.

15. Capital Gains
• Building
• Land
• Shares
• Any property
10/14/2020 Mr. Rathesh J, Asst. Prof.

16. Any income not covered
in above 5 heads
Income form Other
Source
10/14/2020 Mr. Rathesh J, Asst. Prof.

17. Tax Rates for A.Y 2020-21
Particulars Income Tax Rate
Rs. 0 -2,50,000 0 Nil
Rs. 2,50,000 – 5,00,000 2,50,000 5%
Rs. 5,00,000 – 10,00,000 5,00,000 20%
Rs. 10, 00,000 & above Amount above 10 lakh 30%
Health & Education Cess On Income tax 4%
Surcharge
Total income exceeds Rs. 50 lakh up to INR 1 crore
Total income exceeds Rs. 1 crore up to INR 2 crore
Total income exceeds Rs. 2 crore up to Rs 5 crore
Total income exceeds Rs 5 crore
On Income tax
10%
15%
37%
Extra conditions are applied
For normal individual (Age 0 to 60 years)
10/14/2020 Mr. Rathesh J, Asst. Prof.

18. Tax Rates for
A.Y 2020-21
• For normal individual (Age 60 to 80 years)
Particulars Income Tax Rate
Rs. 0 -2,50,000 0 Nil
Rs. 2,50,000 – 5,00,000 3,00,000 5%
Rs. 5,00,000 – 10,00,000 5,00,000 20%
Rs. 10, 00,000 & above Amount above 10
lakh
30%
Health & Education Cess On Income tax 4%
Surcharge
Total income exceeds Rs. 50 lakh up to INR 1
crore
Total income exceeds Rs. 1 crore up to INR 2
crore
Total income exceeds Rs. 2 crore up to Rs 5
crore
Total income exceeds Rs 5 crore
On Income tax
10%
15%
37%
Extra conditions are
applied
10/14/2020 Mr. Rathesh J, Asst. Prof.

19. Tax Rates for A.Y 2020-21
Particulars Income Tax Rate
Rs. 0 -2,50,000 0 Nil
Rs. 2,50,000 – 5,00,000 500,000 Nil
Rs. 5,00,000 – 10,00,000 5,00,000 20%
Rs. 10, 00,000 & above Amount above 10 lakh 30%
Health & Education Cess On Income tax 4%
Surcharge
Total income exceeds Rs. 50 lakh up to INR 1 crore
Total income exceeds Rs. 1 crore up to INR 2 crore
Total income exceeds Rs. 2 crore up to Rs 5 crore
Total income exceeds Rs 5 crore
On Income tax
10%
15%
37%
Extra conditions are applied
For normal individual (Age 80 years & above)
10/14/2020 Mr. Rathesh J, Asst. Prof.

20. NEW TAX REGIME FOR INDIVIDUALS & HUF (SECTION
115BAC)
10/14/2020 Mr. Rathesh J, Asst. Prof.