The benefit of purchase of 2 house property is available only once in life. TDS rates AY 2021-22 (FY 2020-21) Revised / Reduced w.e.f 14/05/2020 for SALARY and OTHER THAN SALARY payments to all Resident and Non-Resident assessees. INCOME TAX SLAB RATES TDS rates for financial year 2020-21 relevant to analysis year 2021-22 which was proposed in union budget 2020. 10 Crore  and receives Rs. 92/2020- CT to 94/2020- CT, Extend due dates for Income Tax Audit & Returns for AY 2020-21, Extend Tax Audit/ITR due dates for AY 2020-21, ICAI requests for extension of various Income-tax due dates, Extend Due Dates for Tax Audit and Income Tax Return Filing, Extend Income Tax Audit & ITR Due dates for AY 2020-21, Extend due dates of Audit Reports, ITRs, GST Returns, VSV Scheme, Extend due date for filing ITR & Tax Audit Report- AY 2020-21, Extend Tax/TP Audit & ITR Due dates for AY 2020-21, Open letter for extension of Due dates under Income Tax and GST, 1. New categories for Tax Collection at Source (TCS): 9. . Today we will learn and understand about income tax exemption limit, income tax slab for AY 2021-22 (FY 2020-21), income tax rebate for AY 2021-22 (FY 2020-21) in India, limitations of tax planning, tax planning strategies, and related limitations for individuals in India and for salaried employees for current … 5,00,000) can avail rebate under section 87A. By Parag Agarwal On June 15, 2020 In TCS Rates, Assessment Year 2021-22, Income Tax No Comments Spread the knowledge of Tax Revised TCS rates for FY 2020-21- In the month of May 2020, The government has announced a package of Rs. 5 Lakh – – 2,50,000 to Rs. Due dates are as under: DATE OF FILING ITR FOR AY 2019-20(FY 2018-19). Profit declared may be below or above  8% / 6%. It includes all the changes and updates of Budget 2020, changes as per Finance Act, 2020, and changes announced by the Finance Minister on 13-05-2020. Limit of Turnover for the Audit is presently Rs. In view of the Covid, Government is coming out with frequent changes in various laws including Income Tax Law. A)This budget has introduced a new tax regime by introducing new tax slab rates for the FY 2020-21. has extended the due dates  for various actions. 12. Deduction is allowed only from the total income computed as per the provisions of the Act, following assessment: a person; or; A Hindu undivided family. The amount of rebate is 100 per cent of income-tax or Rs. 50000/-, the difference would be ignored, Difference between actual purchase price and stamp value would treated as Income from other sources, If the stamp value does not exceed 10%,   the difference would be ignored, Stamp Value would be substituted as Sale Consideration for computation of capital gains/business income, Audit required if  Gross Receipts from Profession during the relevant previous year exceeds Rs.50 lakhs  or, Audit required if the profit declared is below 8% / 6%, Audit required if the profit declared is below 8% / 6%  in the Assessment year or opted for such scheme in preceding 5 years. Till 31/03/2020,  only those assessees were required to deduct TDS whose accounts were subject to Tax Audit  u/s 44AB. Section 80C 80% of the claim of the assessee. 1 Cr or less  = 26% (25% + Nil+4%), Whether stipulations regarding non-use of 2nd hand plant & machinery is applicable under the section, No (MAT Rate will be 15% instead of 18% + Surcharge + Cess), What happens to the existing unutilized MAT credit, Company can carry forward and utilize it as per Sec 115JAA, No question of unutilized MAT credit being a new company, Rs 30,000 per contract or Rs 1, 00, 000 for aggregate amount during the year, b) Land or building or furniture or fitting, b) In case of fees for any other professional services. Karvitt.com. 1 crore. As per amendment made by Finance Act 2020, where the person is carrying on business and fulfills below conditions than threshold limit for tax audit shall be increased to Rs. If the 5% cash receipts/payment creiteria is satisfied. In the case of Land and Buildings acquired before 01/04/2001,  the assessee is given option to substitute  Fair Market Value (FMV) prevailing as on 01/04/2001 instead of actual cost. Rates of TDS applicable for Financial Year 2020-21 Assessment Year 2021-22 (After COVID-19) As you all know TDS rate has been revised with effect from 14th May 2020. Just Check up before Panicking, Extend Income Tax, Companies & CGST Act compliance due dates, Provisions for modifying PAN based IEC introduced, Companies (Compromises, Arrangements & Amalgamations) Second Amendment Rules, 2020, Disqualification, Striking off And Cancellation of DIN, Changes in GST Rules relating to Registration, ITC Returns and E Way Bills, Practical issues on ITC after Notification No. 1 Crore. Further, loss under the head house property can’t be set off against other heads of Income. Employer’s  Contribution to National Pension Scheme(NPS)  / Provident Fund/ Pension Fund in excess of Rs. Reporting of the donations received by Trust : 16. The Finance Act, 2020, has provided an option for Individuals and HUF for payment of taxes at the following reduced rates from Assessment Year 2021-22 and onwards: 2. Rs.1, 50,000 is maximum limit Note 2 :  The relaxation in TDS/TCS  rates   with effect from 14/05/2020 will not have any impact on the ultimate tax liability and therefore, any deficit in tax liability, due to reduced rates should be  paid  by Advance Tax Instalments. In case the assessee has business or professional income, this option shall be exercised on or before the due date for furnishing the returns of income. related to purchased of property, use of credit card, purchase of shares,  cash deposit /withdrawals exceeding specified limits etc. Also find out the deduction under Section 80D for FY 2020 - 21 & AY 2021 - 22 from Goodreturns. Surcharge : @ 12% on the amount of income-tax where net income exceeds Rs. 2,50,000 – – Up to Rs. Budget 2020, provides an opportunity to choose between a new-tax regime or continue with the old-tax regime. In order to submit a comment to this post, please write this code along with your comment: 7f41aaf9b98b115ca5c2049c8eb5d3a5. 3. 1 cr but not 10 cr = 27.82%         (25% + 7% + 4%), c) Total income exceeds 10 cr = 29.12% (25% + 12% + 4%), a) Filed the returns of income for all of the three assessment years relevant to the three previous years and cash withdrawals exceeding 1 cr, Payment by e-commerce operator to e-commerce participants ( applicable w.e.f. The Section 44AB of the Income-tax Act, 1961 states the regulations for the tax audit of a firm or entity. Suppose a person is having Net Taxable Income(NTI)  upto Rs.5,00,000/- The tax will be Rs. In India, income tax slab rates are dependent upon the age of the assessee as well as the residential status. 100000/-, Every person donating to PM CARES Fund shall be eligible to claim a 100% deduction of the amount donated from his total income. Please guide me. You can use Scripbox’s income tax calculator and estimate the tax liabilities under the old as well as new tax regime. Basic Exemption. Alternate Minimum Tax (AMT):  Tax payable cannot be less than 18.5% (+HEC) of “adjusted total income” computed as per section 115JC. 94/2020-Central Tax, Removal of Director Under Companies Act, 2013 with Notice & Resolution formats, GST Moving Towards Inspector Raj……. How to report EPF and ESI due date extension in Tax Audit Report for AY 2020-21 . Our income tax … Total income of the assessee is calculated after claiming depreciation under section 32. 1. With effect from 01/04/2020, dividends received  from companies / mutual funds would be included in the `Income from Other Sources’. Income Tax Slabs for different financial years. New tax regime: Budget 2020 has announced a new tax regime giving taxpayers an option to pay taxes as per the new tax slabs from FY 2020-21 onwards. Employer’s contribution to the National Pension Scheme (NPS)  is exempt perquisite in the hands of the employee. But, if the taxpayer opts to claim a deduction in the Financial Year 2020-21, then he shall not be eligible to opt for concessional tax regime of section 115BAC and 115BAD, as the case may be. Thus,  there was no upper monetary limit on the amount of contributions. Once the assessee has exercised the option for any previous year, it cannot be subsequently withdrawn for the same or any other previous year. Rs. 50 Lacs in the preceding financial year(i.e. 1 Crore in the preceding financial year (i.e. #CASansaar #TaxAudit #IncomeTax Tax Audit Limits for Assessment Year 2020-21 - Rs. Interest allowed 150000/-, c) House property 2 – Max. Income Tax Rates AY 2021-22. employees  14%)  and similarly employers contribution to Recognised Provident Fund (RPF)  could be made upto 12% of salary income. According to the Income Tax Act 1961 Section 80C is most popular section claim 80% by the assessee. b) Indian Citizen living out of India and not assessed for Income Tax in other country (e.g. 20 Lakhs crore in which Current TCS rates along with TDS rates were revised and cut by 25%. 45 Lacs. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. 03/2017; Due Date for filing of return in FORM GSTR-3B August to Dec-2017 II Notification No. The limit of audit can be summarized as under: If income of assessee exceeds the maximum exemption limit and he has opted for the Presumptive Tax scheme in any of the last 5 previous years,  but does not opt for the same in current year. Tolerable Limit increased for difference in Stamp Value/ Actual Value of the Property: 19. 5 lakhs continues for AY 2021-22. Interest allowed 150000/-, Seeking to expand the tax payer base further, Budget 2019 has proposed to make income tax return filing mandatory for certain persons even if their income is below the taxable limit. A complete guide on Section 80G of income tax act. This income tax slab for ay 2021-22 is up to date includes all amendments in budget 2020. What will be the due date for the Advance Tax payment Instl. 14th May 2020. From AY 2021-22: 13: Salary: NPS+SAF+ PF anything in excess of 7.5 lac contributed by Employer will be taxable as perquisites in hands of employee: From AY 2021-22: 14: Salary: Salary Standard deduction Rs 50000 (Earlier Rs 40000) From AY 2020-21: 15: TDS / TCS: BIG CHANGE – TDS+TCS applicability for those who are crossing 1cr TO or 50lac receipts. Thus, for those not opting for New … What is the 80c limit for 2021- 22? 3 Lakh – – Up to Rs. 3 Lakh to Rs. The tax audit limit for AY 2020-2021 is as follows: The tax audit limit of Rs 1 crore has been increased to Rs 5 crore with effect from AY 2020-21 (FY 2019-20) if the taxpayer's cash receipts are limited to 5% of the gross receipts or turnover, and if the taxpayer's cash payments are limited to 5% of the aggregate payments. FAQs on Tax audit. 3/12 45000/- relating to the A.Y 2020-21 in June,2020 i.e the A.Y 2021-22 . In this part you can gain knowledge about the normal tax rates applicable to different taxpayers. Situations where ITR filing is mandatory: 7.1 Deduction of TDS  by Individuals/HUF : 8. We do not accept any liabilities whatsoever for any losses caused directly or indirectly by the use/reliance of any information contained in this video or for any conclusion of the information. Information relating to demand and refund, Information relating to pending proceedings, Information relating to completed proceedings, Any other information in relation to sub-rule (2) of rule 114-I, If the stamp value does not exceed 10% or Rs. Threshold Limits. 50 Lacs in the case of professions. Further, sub-section (2) of section 271AAD provides that any other person who causes the person referred earlier, to make such false entry or omits or causes to omit any entry which is relevant for computation of total income of such person, to evade tax liability shall also be liable to penalty similarly. Visit to India is not required  for such Citizen. 2. Finance Act, 2020 has amended the Tax Audit Limit in case of the business. After the announcement of Union Budget 2020, on 1st February 2020, the slab rates have drastically changed compared to FY 19-20. Extension of Time-limit for deduction of Interest on Loan for affordable Housing: 20. With effect from 01/04/2020  (FY 2020-21), the linkage of TDS with the audit has been discontinued and following assessees are required to deduct TDS: Following 3 new categories  of  transactions have been introduced  with effect from 01/10/2020  for TCS: ii) 0.5% in case of remittance out of education loan(in case of Non-PAN/Aadhar 5%). 1 Record(s) | Page [1 of 1] in 0 seconds [As amended upto Finance Act, 2020] The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 has extended due dates for compliance falling during the period from 20-03-2020 to 31-12-2020. Here are some of the highlights from the finance bill, 2020 discussed hereunder. Income Tax Slab for F.Y. 10 Lakh: 20%: 20%: Above Rs. However those earning less than Rs. So in this post all about TDS rates monetary limit as well as due date for depositing tax … But, if the authority who has found such default during any of these proceeding before him is not the assessing officer, such authority would be required to refer the matter to the concerned assessing officer who would thereafter proceed to initiate & impose penalty under section 271AAD. Read Also: Changes in Tax Audit Turnover Limit under section 44AB-Budget 2020 . Trust registered u/s 80G  and accepting donations would now have to file a statement of donations received after 01/10/2020 and issue a certificate to the donor in a prescribed form. Further the provision relating to the computation, carry forward and set off of AMT credit shall not apply to these assessees. When company must be set up and registered to qualify ? Visit here for Reduced TDS Rates for FY 2020-21 (AY 2021-22) with Threshold Limit w.e.f. Sec 44AB | Tax Audit Amendment | AY 2020-21 | AY 2021-22In this video, we will discuss on Section 44AB of Income Tax Act which is related to Tax Audit.For sponsorship and collaboration, please write to us at thecognizancehub@gmail.comFor more important updates and resources, visit our website https://thecognizancehub.blogspot.comConnect with us on Facebook to stay up-to-dateFacebook - https://www.facebook.com/thecognizancehubPlease ♥Like ♥ Share ♥Subscribe ********DISCLAIMER********The Cognizance Hub does not agree or disagree with the views expressed in the video.This video is merely a general guide meant for learning purposes only. Nil    & if the NTI is Rs. From AY 20-21 , TAX AUDIT APPLICABILITY WILL BE … Section 44AB of the Income-tax Act, 1961 contains the provisions for the tax audit of an entity. Income Tax Deductions & Exemptions allowed under New Tax Regime AY 2021-22 Section 80CCD(2) Employer contribution on account of employee in notified pension schemes like EPF, NPS and/or Super Annuation Account can be claimed up to Rs 7.5 lakh limit. Purchase of Two houses after selling the existing House: 23. 18. Maximum amount of income which is not chargeable to Income-tax in case of Individual, HUF/ AOP/ BOI/ Artificial Juridical Person . Now, a home-owner can claim his 2 properties as self-occupied and remaining house as let out for Income tax purposes. Now, the new position can be summarized as under: Section 80EEA provides for deduction of Interest upto Rs. 7 Lacs in a year  by the concerned bank/foreign exchange dealer : NIL, Overseas Tour Programme Package ( including expenses for travel, boarding, lodging or travelling or similar expenses), Seller of the Goods whose turnover during the preceding FY exceeded Rs. Prior to acting upon this video, you're suggested to seek the advice of your financial, legal, tax or professional advisors as to the risks involved may be obtained and necessary due diligence, etc may be done at your end. There is change in the depreciation rates applicable for Motor Vehicles as under: Presently 26AS form gives the information regarding TDS  Deducted / Taxes paid  related to assessee. Further, the restriction of Section 80G(4) which limits the deduction to 10% of adjusted gross income shall also not be applicable for donation made to PM CARES Fund. 2. 4. TDS rates for AY 2021-22 for Payment of Salary and Wages … 5,00,010/- the tax would be Rs.12500/-  + Cess. a) Indian Citizens/Person of Indian Origin(PIO) shall be treated as resident but not ordinarily resident if he was in India for more than 120 days and  his income  received/accrued in India is more than Rs. Income tax slabs for AY 2021-22 for individuals. 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