The document discusses amendments to India's direct tax laws for the 2020-21 fiscal year. It provides the new income tax slabs and rates for individual taxpayers, domestic companies, foreign companies, and cooperative societies. Standard deduction has been increased to Rs. 50,000 for individuals. Tax rates for domestic companies are 30% if turnover is below Rs. 50 crore, and 25% if above. Surcharge rates on income taxes over Rs. 1 crore and Rs. 10 crore are also provided. Direct taxes in India include income tax, corporate tax, dividend tax, capital gains tax, wealth tax, and gift tax. Direct taxes are also collected at the state level through land revenue, agricultural income tax, and

1. Amendments in Direct
Tax
DT II - 23.6.2020

2. Income Tax Slab under new tax regime for all individual for FY 2020-
21 ( AY 2021-22)
Income Tax Slab Tax Rate
Up to Rs 2.5 lakh NIL
Rs 2.5 lakh to Rs 5 lakh 5% (Tax rebate of Rs 12,500 available u/s 87A)
Rs 5 lakh to Rs 7.5 lakh 10%
Rs 7.5 lakh to Rs 10 lakh 15%
Rs 10 lakh to Rs 12.5 lakh 20%
Rs 12.5 lakh to Rs 15 lakh 25%
Rs 15 lakh and above 30%

3. Income Tax Slab
Taxable income Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
Amount of Standard deduction u/s 16(ia) increase from Rs. 40,000/- to Rs. 50,000/- for the AY 2020-21

4. Tax Slab Rate for Domestic Company
A domestic company is taxable at 30%. However, tax rate is 25% if turnover or gross receipt of the
company does not exceed Rs. 50 crore.
Plus:
Applicable surcharge:
7% of tax where total income exceeds Rs. 1 crore
12% of tax where total income exceeds Rs. 10 crore
Applicable Education cess
4% of tax plus surcharge

5. Tax Rates for Foreign Company
A foreign company is taxable at 40%
Plus:
Applicable surcharge:
2% of tax where total income exceeds Rs. 1 crore
5% of tax where total income exceeds Rs. 10 crore
Applicable Education cess:
4% of tax plus surcharge

6. Income Tax Slab for Cooperative Society
Taxable income Tax Rate
Up to Rs. 10,000 10%
Rs. 10,000 to Rs. 20,000 20%
Above Rs. 20,000 30%
Plus:
Surcharge: 12% of tax where total income exceeds Rs. 1 crore
Education cess: 4% of tax plus surcharge

7. Direct Taxes in India
● Income tax
○ 1860 - Finance Minister Sir James Wilson introduced
○ Income tax Act passed in 1886, amended 1922, 1939, 1947
○ Income tax act 1961 - Independent India
○ Income tax rules 1962
● Corporate Tax
● Dividend tax
● Capital gain tax
● Wealth tax
● Gift tax

8. Direct tax at State Level
● Land Revenue
● Agricultural Income Tax
● Professional Tax
Not practised
by states now

9. Direct taxes at local government level
● Municipalities
● Corporations
● Panchayats

10. Introduction to HUF
❏ Hindu Undivided Family
❏ Hindu Coparcenary
❏ Conditions for claiming HUF status
❏ Common property owned by family
❏ Hindu coparcenary
❏ Karta of HUF
❏ Schools of Hindu Law
❏ Mitakshara
❏ Dayabhaga

11. Assessment of HUF
❖ Jain & Sikhs Families
❖ Income not chargeable to HUF:
➢ Income from impartible estate
➢ Income from converted property
➢ Personal earnings of members
➢ Income from sridhan
➢ Income from father