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The Union Government in Budget 2020 has proposed a new tax regime by slashing Income Tax Rates. Some changes have been made in the income tax slabs to decrease the total tax payable by the individuals. The Budget 2020 has offered the taxpayers an option to choose between the existing Income Tax regime which allowed income tax exemptions and deductions and a new tax regime with new income tax slabs and slashed income tax rates but no tax exemptions and deductions. According to the Finance Minister, the new tax regime offers lower tax rates and new tax slabs. It concurrently removes tax exemptions which will result in lower tax outgo for the individual taxpayer.
Individual taxpayers are specified in three categories according to their age:
The cess and surcharge on income tax payable in the new personal tax regime remain the same as in the existing tax regime.
These rates will apply to individual taxpayers who will give up all the exemptions and deductions prevailing under the income tax laws.
Income Tax Slab
Up to Rs.2,50,000
Rs.2,50,000 to Rs.5,00,000
5% of total income exceeding Rs.2,50,000
Rs.5,00,000 to Rs.7,50,000
10% of total income exceeding Rs.5,00,000
Rs.7,50,000 to 10,00,000
15% of total Income exceeding Rs.7,50,000
Rs.10,00,000 to 12,50,000
20% of total income exceeding Rs.10,00,000
Rs 12,00,000 to Rs. 15,00,000
25% of total income exceeding Rs 12,00,000
30% of the total income
Taxable Income Slabs
Income tax rates
Up to Rs 2,50,000
5% of (the total Income-Rs.2,50,000)+ 4% cess
Rs 5,00,000 to Rs 10,00,000
12,500+(20% of the total Income-Rs. 5,00,000)+4% cess
Rs 10,00,000 and Above
1,10,000 + 20% of the total income +4% cess
Income tax rates and cess
Up to Rs. 5,00,000
Rs.5,00,000 to Rs.10,00,000
20% of the (total income- Rs.5,00,000)+4% cess
Rs.10,00,000 and above
1,00,000 +30% (of the total income –Rs.10,00,000)+4% cess
Contributions exceeding an amount of Rs. 7, 50,000 made by an employer to an employee’s account in a recognized provident fund, National Pension Scheme and superannuation fund will be taxed perquisite in the hands of the employees. The annual increase to such contributions exceeding Rs. 7,50,000 will also be a taxed perquisite.
In below are mentioned the major tax-related dates in all the months of 2020.
Quarterly Statement of TCS to be deposited for the quarter ending 31 December 2019
Issue of Quarterly TCS Certificate in respect of the tax collected for the quarter ending 31 December 2019
Quarterly statement of TDS deposited for the quarter ending 31 December 2019
Issue of Quarterly TDS Certificate for payments other than salaries for the quarter ending 31 December 2019
Fourth Installment of Advance Tax for the Financial year 2019-2020
Last date of filing belated or revised ITR for the year 2018-2019
Quarterly filing of the statement of TCS deposited for the quarter ending 31 March 2020
Quarterly filing of the TDS deposits made for the quarter ending 31 March 2020
First Installment of Advance Tax for Financial year 2020-20121
Date of issuing of Form 16 to the employees by the employer
Quarterly TCS statement filing for the quarter ending June 30, 2020
Issue of quarterly certificate for the quarter ending June 30, 2020
Filing of quarterly statement of TDS for the quarter ending June 30, 2020
ITR filing deadline for individuals, HUFs, and other assessees whose book of accounts are not required to be audited
Issue of quarterly TDS certificates for incomes other than salaries
Payment of the second instalment of Advance Tax for the year 2020-21
ITR filing by those taxpayers whose account books need to be audited
Filing of quarterly statement of TCS for the quarter ending on September 30, 2020
Filing of quarterly statement of TDS deposited for the quarter ending on September 30, 2020
TDS Certificate to be issued for all incomes other than salaries
ITR filing for the taxpayer with audited books and International Transactions
Third Advance Tax instalment for the financial year 2020-21
Which tax regime old or new will be beneficial that will result in a lower tax rate for each individual is likely to depend on his or her income, composition and investments are done. Each individual taxpayer has to do his income calculations to figure out which tax regime will be more beneficial for them. So it is wise of you to consult an expert for guidance. Contact our experts in Enterslice to help you in Filing Income Tax and make it clear as to which regime will be best for you.
Our Recommendation: Union Budget 2020-21: Key Highlights
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