In the 2018 EU Budget, the Government of India implemented the following changes regarding deductions for health insurance and/or medical treatment. The same provisions also apply to the 2020-21 fiscal year. Please note that according to Articles 80C, 80CCC and 80CCD(1) together, the total deduction must not exceed Rs 1,50,000 for the 2020-21 financial year. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is higher than this limit of Rs 1.5 lakh. If you opt for a new tax regime from the 2020-21 / AY 2021-22 financial year, the standard deduction is not available. An employee can opt for the new tax system and inform his employer at the beginning of the 2020-21 financial year. Employees can change the option to choose the tax regime each year Please note: It is acceptable to pay taxes if you cannot save or invest in the right financial products. But don`t just invest to save TAXES. The cost of buying the wrong financial products can outweigh the cost of taxes. Tax planning is not an objective, but a tool.
Remember, “Tax planning alone is not financial planning.” After calculating the net taxable income, your tax liability can be decided based on the income tax rates for the 2020-21 fiscal year. Don`t invest in low-interest life insurance or other financial products just to save tax. It`s best to plan your taxes based on your financial goals at the beginning of the fiscal year itself. Plan your taxes yourself now instead of waiting until the end of December 2020 (or) January 2021. To pay income tax online, please log in to nsdl.com. Please select the appropriate Challan, e.B. “Challan no / ITNS 280” for payment in case of self-assessment and select during processing. A window will open, select the tax payment as “Income tax (except company), choose the payment method, choose the payment method and enter details such as PAN, AY, address, etc. Once you continue, a separate window will open where you will need to make the payment by net bank or debit card. As soon as the payment is made, a counter sheet will be displayed as proof of payment. Please save this counter-sheet for future reference. Related article: Treatment of standard deduction Rs 50000 under the new tax regime (FY 2020-21 / AY 2021-22) I am a central government retiree, an IT assessor who draws more than 50,000 am.
I would like to introduce a new tax regime for AY2020-21. But I have a confusion. If an AY2020-21 appraiser claims Std deductions of only Rs 50,000, which benefit from other benefits of the new tax system. Or do I have to do without it with other deductions? Through Article 80C, an individual or undivided Hindu family (HUF) can save up to Rs 1.5 lakh of their total gross income in a financial year, thereby reducing net taxable income and, consequently, the tax payable. Full use of this deduction can reduce up to Rs 46,800 (including Cess at 4%) for those in the highest control plate by 30%. In addition to the tax deductions under Articles 80C and 24b, a person can claim up to Rs 1.5 lakh under Section 80EEA from the 2019-2020 fiscal year. The same applies to the financial year 2020-21 or AY 2021-22, subject to the following conditions: The standard deduction of Rs 40,000 for the financial year 2018-19 has been increased to Rs 50,000 for the financial year 2019-2020. The same applies to the 2020-21 fiscal year. Dear Sir, Thank you very much for your research. My tax payable for the 2020-21 fiscal year is Rs. 10 Lakes. Can I now pay Adv.
Tax for fiscal year 2020-21 to avoid tax? My current age is 52. Looking for your early response. Interest and maturities received on the Sukanya Samriddhi account and the PPF account are exempt from tax in the old and new tax system. I am happy to know that you have given a complete list of deductions that, thanks to Article 87A, have indicated a discount of Rs.12,500 If, however, the total taxable income exceeds Rs.500000 – for Sr. Citz with a taxable income of Rs.6.25 lakes the income tax is 10000 / -( up to 5lacs (5.00lacs-3.00 lakes, that is, for 2 lakes @ 5%) plus 20% of 1.25 lakes, i.e. Rs.2500 Total Rs.12500 Income tax will be zero Please specify for Rs. 12,500 discount, taxable limit should be Rs.6.25,000 and not Rs.5,00,000 /- Why or what is not rational by setting the taxable limit at Rs.500000/- under i T Sec.67A and who will benefit from the reduction of Rs.12,500 if the taxable income is at Rs.5.00 lakes only I am not clear on this point Please guess c) 50% of the total salary for metropolitan cities and 40% for trains I believe the above list is only at Rs.5.00 lakes I am not clear on this point Please guess c) 50% of the total salary for metropolitan cities and 40% for non-metros I believe the above list is useful for your tax planning needs. Please note that these income tax exemptions apply to the 2020-2021 fiscal year (or the 2021-2022 valuation year). .