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    By: Bijan Biswal
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    Income tax is a specific form of tax collection from different individuals by the Government. Income tax can be on anything like business profits, property, capital gains, bonuses, and income from different sources. The Government collects tax from individuals and utilizes it for the betterment of people. But the government also gives freedom from tax collection through several means like deduction, exemptions, and rebates.

    Government creates a certain slab to check the rate of income-tax to be collected; these slabs are defined as the Income-tax slab. So, Income-tax slabs are the set of records that are divided by different tax laws as per people with different payable income and round up income-tax at different rates. Tax privileges depend upon the age and residential status of individuals.

    The process of calculating income-tax can be a little complex. S, it is better to opt for some who understand this much better or ask the internet. You can easily get free access to an online income-tax slab for ay 2020-21 calculator where you can easily check and calculate the amount of taxes to pay.

    Income-Tax slab for AY 2020-2021 calculator

    Income tax calculation is quite hard to understand, as said previously. You can go through the income tax slab for ay 2020-21 calculator along with that it needs some factors like exemption, rebates, deduction, indexation, and allowances to be done. So, understanding this is very important to understand the calculation.

    Exemption is the procedure where the individuals do not have to pay single money, and also the Public provident funds and REC bonds are totally tax-free, and individuals do have to give a single penny to them.

    Rebate is the process where the taxpayer can claim or recompense the payable amount. A huge amount of rebates at the time of tax filling can totally decrease the tax-exempt.

    Deduction is the process of lowering the income-tax under section 80C. Reduction of Tax payments for children’s tuition fees and insurance policy falls under deduction.

    Indexation is the process of balancing the investment purchase price to picture the inflation effect. This also helps in achieving long-term capital gains.

    Allowances are the additional amount to be paid along with the income. Allowances are basically in the form of TA, DA, Medical, Educational, Transport, House Rent, and many more.

    There are some basic procedures to calculate the Income-tax. If you are new to this procedure, then it can be a hectic task to perform, but if you follow the given steps, it will be easier for you to deal with the calculation process. The steps are as follows:

    1. Evaluate the Gross Income

    First, you need to examine the total salary you get throughout the year; this must include all the components of the salary like the DA (dearness allowance), LTA (leave travel allowance), HRA (Housing Rent Allowance), Food coupons and, other places from where you can get the salary. And in the second step, you have to remove all the privileges included in it, like the HRA and LTA. In the last step, look at the Income-tax slab for FY 2020-2021 to check the category you will fall under the slab.

    1. Calculating the income after all the taxable deduction

    Firstly, consider the standard deduction and reduce the total taxable amount by reducing specific expenditures like investments, savings, and expenditure on specific things. You can use the excel sheet to do the calculation needed for the tax reduction.

    1. Approach the total amount of Income Tax

    After the removal of all the deductions, you can check the income tax slab. The slab rate is different for different age groups. Different age groups have different amount of tax rates.

    1. Figuring the total Tax

    This is the most crucial part of the whole process, where the individual has to pay the net taxable income. People belonging to the group of 2.5 Lakhs do not have to pay anything, but in the next group of 2.5 lakh, the individuals have to pay 5% of interest. Similarly, the other group of 5 lakhs has to pay 20% interest. And finally, the taxpayer has to give 30% of the interest as exceeding.

    1. Amalgamating the Tax

    This is also a vital procedure. The Tax refund is only possible for the groups lying under the 5 lakhs slab; this is the only exception government has allowed to individuals with a minimum income. In the upcoming years, Individuals have to check the income tax calculator ay 2020-2021.

    Income tax slab for AY 2021-2022 and Slab for FY 2019-2020

    This income-tax slab for ay 2021-22  decides and informs individuals about the amount of tax an individual has to pay. They can check the slab in which they will and then pay the amount of interest they have to pay. The charts are given down for your better understanding. As per the Budget 2019 announcement, no changes are made to the Income-tax slab. Only a refund of Rs 12,500 is added for the taxpayers with an income of Rs. 5 lakh. According to the Income-tax Act, this refund will be available from the income-tax slab for FY 2019-20 onwards.

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    Income tax slab for Individuals & HUF:

    1. Individuals who fall under the age group of 60 years and for HUF :

    Taxable Income

    Tax Rate

    (Existing Scheme)

    Tax Rate

    (New Scheme)

    Up to Rs. 2,50,000

    Rs. 2,50,001 to Rs. 5,00,000

    Rs. 5,00,001 to Rs. 7,50,000

    Rs. 7,50,001 to Rs. 10,00,000

    Rs. 10,00,001 to Rs. 12,50,000

    Rs. 12,50001 to 15,00,000

    Above Rs. 15,00,000

    Nil

    5%

    20%

    20%

    30%

    30%

    30%

    Nil

    5%

    10%

    15%

    20%

    25%

    30%

     

    1. Individuals who fall in the age group of more than 60 but less than 80 years during anytime upto previous year:

     

    Taxable Income

    Tax Rate

    (Existing Scheme)

    Tax Rate

    (New Scheme)

    Up to Rs. 2,50,000

    Rs. 2,50,001 to Rs. 3,00,000

    Rs. 3,00,001 to Rs. 5,00,000

    Rs. 5,00,001 to Rs. 7,50,000

    Rs. 7,50,001 to Rs. 10,00,000

    Rs. 10,00,001 to 12,50,000

    Above Rs. 12,50,001 to Rs. 15,00,000

    Above Rs 15,00,000

    Nil

    Nil

    5%

    20%

    20%

    30%

    30%

    30%

    Nil

    5%

    5%

    10%

    15%

    20%

    25%

    30%

     

    1. Individuals who fall in the age group of more than 80 years at time during the previous year:

     

    Taxable Income

    Tax Rate

    (Existing Scheme)

    Tax Rate

    (New Scheme)

    Up to Rs. 2,50,000

    Rs. 2,50,001 to Rs. 5,00,000

    Rs. 5,00,001 to Rs. 7,50,000

    Rs. 7,50,001 to Rs. 10,00,000

    Rs. 10,00,001 to Rs. 12,50,000

    Rs. 12,50001 to 15,00,000

    Above Rs. 15,00,000

    Nil

    Nil

    20%

    20%

    30%

    30%

    30%

    Nil

    5%

    10%

    15%

    20%

    25%

    30%

     

    • Income Tax Rate for AOP/BOI/Any other Juridical Person

     

    Taxable Income

    Tax Rate

    Up to Rs. 2,50,000

    Rs. 2,50,001 to Rs. 5,00,000

    Rs. 5,00,001 to Rs. 10,00,000

    Above Rs. 10,00,000

    Nil

    5%

    20%

    30%

     

    • Tax Slab for Domestic Company

    A domestic company is taxable at 30%, but the tax rate 25% if the company turnover cannot meet Rs. 400 crore in the past year.

     

    Particulars

    Tax Rate (%)

    If the turnover doesn’t meet at Rs. 400 crore in the previous year 2018-2019

    If the company choose section 115BA (Note 1)

    If the company choose section 115BAA (Note2)

    If the company choose section 115BAB (Note 3)

    Any other domestic company

    25%

     

    25%

    22%

    15%

    30%


    AUTHOR

    Quicken loans
Bijan BiswalSunday , May 16 , 2021

    ....

    Mr Bijan is the man behind www.paisababu.com. He is a well qualified (B.com, MCA, MBA, LLB ) and entrepreneur having more than 20 years expertise in Business. He engaged in blogging for many years. Paisababu.com blog is ranked as one of the Top Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money.to make ware people about various financial products in India for their use. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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