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Income Tax AY 2019 2020

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Income Tax AY 2019 2020

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Income Tax AY 2019 2020

  1. 1. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Income Tax - FY 2018-19 (AY 2019-20) By Parvathi.V Accounts Department •Notaxforindividualswith •0%-5withincome2.5intaxes%tax ₹
  2. 2. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com • No tax for individuals with income less than 2,50,000₹ • 0%-5 with income 2.5 lacs to 5 lacs₹ for different groups • 20% tax with income 5 lacs to 10₹ lacs • Investments upto 1.5 lacs under Sec₹ 80C can save 45,000 in taxes% tax₹
  3. 3. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Different groups Individuals & HUF (Age <60 years) Income Tax Slabs Tax Rate Health and Education Cess Income up to Rs 2,50,000* No tax Income from Rs 2,50,000 – Rs 5,00,000 5% 4% of Income Tax Income from Rs 5,00,000 – 10,00,000 20% 4% of Income Tax Income more than Rs 10,00,000 30% 4% of Income Tax
  4. 4. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Income Tax Slabs Tax Rate Health and Education Cess Income up to Rs 3,00,000* No tax Income from Rs 3,00,000 – Rs 5,00,000 5% 4% of Income Tax Income from Rs 5,00,000 – 10,00,000 20% 4% of Income Tax Income more than Rs 10,00,000 30% 4% of Income Tax Senior Citizens (Age: 60-80 yrs)
  5. 5. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Income Tax Slabs Tax Rate Health and Education Cess Income up to Rs 5,00,000* No tax Income from Rs 5,00,000 – 10,00,000 20% 4% of Income Tax Income more than Rs 10,00,000 30% 4% of Income Tax Senior Citizens (Age: 60-80 yrs)
  6. 6. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com » Turnover Particulars • Tax Rate • Gross turnover upto 250 Cr. in the previous year 25% • Gross turnover exceeding 250 Cr. in the previous year 29% • In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax Surcharge: Taxable income is more than 1Cr. but less than 10Cr.: 7% Taxable income is more than 10Cr. :12% Domestic Companies
  7. 7. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com DEDUCTION IN RESPECT OF INVESTMENTS • Section 80C provides for a deduction of savings in specified modes of Investments form gross total income. It is available only to an Individual or HUF. The Maximum permissible deduction is Rs.1.5 lakh along with deduction u/s 80CCC & 80CCD.
  8. 8. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Investments in Tax Saving FDs Tax-saving FDs are like regular fixed deposits but come with a lock-in period of 5 years and tax break under Section 80C on investments of up to Rs 1.5 lakh. Eligibility : Can be opened by Resident Indian individuals. Liquidity: Fixed Deposits have lock-in period of 5 years. Rate of Interest : FD interest rateacross different banks ranges from 5.5% to 7.75% Investment Limit: Minimum investment limit is Rs 1000. Tax Treatment : Interest earned in taxable.
  9. 9. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Investments in PPF (Public Provident Fund) • PPF are long term investments backed by government of India. Deposits made in a PPF account are eligible for tax deductions under Section 80C. • Eligibility : Can be opened by Resident Indian individuals, salaried and non-salaried individuals. A HUF cannot open a PPF account. • Liquidity: PPF account have lock-in period of 15 years, but can be further extended by 5 years. Partial withdrawals are allowed after 7 years. • Rate of Interest : Current interest rate is 7.6% p.a. • Investment Limit: Minimum and maximum investment limit is Rs 500 and Rs 1.5 lakh respectively. • Tax Treatment : Interest earned in tax-free.
  10. 10. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Investments in EPF (Employee Provident Fund) • EPF is a retirement benefit scheme that is available to all salaried employees. This amounts to 12% of basic salary + DA, that is deducted by an employer and deposited in the EPF or other recognised provident fund. • Eligibility : Can be opened by employee with basic salary greater than 15,000 /month • Liquidity: Can withdraw PF balance after 2 months of leaving job and does not take up employment within two months with an employer covered by PF Act • Rate of Interest : Interest rate on the EPF is 8.55%. • Investment Limit: Both employer and employee have to contribute a minimum 12% of Basic Pay + D.A. • Tax Treatment : Entire PF balance (including interest) is tax-free if withdrawn after continuous service of 5 years
  11. 11. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Investments in NPS (National Pension System) • The NPS is a pension scheme that has been started by the Indian Government to allow the unorganised sector and working professionals to have a pension after retirement. Investments of up to Rs 1.5 lakh can be used to avail tax deductions under Section 80C • Eligibility : Can be opened by every Indian citizen between the age of 18 and 60 • Liquidity: Partial withdrawals are allowed after 15 years but under special conditions • Rate of Interest : Interest rate on the NPS varies between 12% – 14% • Investment Limit: No limit on maximum contribution • Tax Treatment : Employer contributions are tax-free
  12. 12. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com • Payments in LIC – Life Insurance Premium • Payments in Children’s tution fees • The fee can be paid to any school, college, university or educational institute situated in India. The fees have to be for a full-time course only. • Repayment of Home Loan • Tax savings for Home loan interest under Section 24 B • The principal amount in the repayment of a home loan can be added to the 80C limit of Rs1.5 lakh for tax savings. • The interest component of home loans is allowed as deduction under Section 24 B for up to Rs2 lakh . • .
  13. 13. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Investments in Sukanya Samriddhi Yojana • Sukanya Samriddhi Yojana/Scheme is one of the most popular scheme by Government of India. The scheme is aimed at betterment of girl child in the country • Eligibility : Parents/guardians can open account in the name of a girl child till she attains the age of 10 years • Liquidity: Up to 50% of the deposit amount can be prematurely withdrawn once the girl reaches the age of 18 years • Rate of Interest : Interest rate on Sukanya Samriddhi Yojana is 8.6% • Investment Limit: Investment is limited to maximum Rs.1,50,000 in a financial year • Tax Treatment : Investment and withdrawals & maturity amount are tax-free
  14. 14. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com • DEDUCTION IN RESPECT OF CONTRIBUTION TO CERTAIN PENSION FUNDS (SECTION 80CCC) • DEDUCTION IN RESPECT OF CONTRIBUTION TO PENSION SCHEME OF CENTRAL GOVERNMENT (SECTION 80CCD) • Assessee gets an additional deduction of 50,000 • LIMIT ON DEDUCTION U/S 80C, 80CCC, 80CCD, 80ccd(1B) -Rs. 2,00,000/- • DEDUCTION IN RESPECT OF MEDICAL INSURANCE PREMIUM (SECTION 80D) – Rs.25,000/- • DEDUCTION IN RESPECT OF REHABILITATION OF HANDICAPPED DEPENDENT RELATIVE (SECTION 80DD) – Rs.75,000/- • In case of severe disability (i.e. a person with 80% or more disability), the deduction ofRs. 1,25,000 • Note : (To claim this deduction, you have to submit FORM NO. 10- IA.)
  15. 15. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Computation Sheet – AY 2019 – 2020
  16. 16. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com

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