News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« News Headlines »
 Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure
 E-assessment scheme for faceless scrutiny of income tax returns notified
 Check your ITR and revise it if you’ve made a mistake
 16 LPA-Opening Qualified Chartered Accountant Required For KIMS Hospitals
 Income-tax (6th Amendment) Rules, 2019
 Exception to monetary limits for filing appeals specified in any Circular issued under Section 268A of the Income-tax Act, 1961
 Don't forget to verify returns to get income tax refund ITR filing
 Here's All You Need To Know About Filing A Belated Income Tax Return (ITR)
 5 things to know Income tax benefits you get in sovereign gold bonds
 Haven’t filed your tax return yet? 7 essential steps to file income tax return for FY 2018-19
 Steps To Check Income Tax Return (ITR) Status Online

How Much Income Tax You Can Save In Assessment Year 2020-21
February, 22nd 2019

Once these changes come into force, many income tax assessees will be able to benefit by planning their investments, say financial advisors.

The income tax assessee can make use of latest changes in laws to make most of the earnings in AY2020-21

The government has announced a number of income tax-related changes in Budget 2019. Among these changes with respect to income tax, a full rebate to individuals with annual income up to Rs. 5 lakh has been announced. Once these changes come into force, many income tax assessees will be able to benefit by planning their investments, say financial advisors. From the 25 per cent increase in standard deduction threshold to the existing Section 80C deductions, the taxpayer can make use of income tax laws to make most of the income earned in assessment year 2020-21. (Also read: How to calculate income tax liability)
The government has said that individuals having gross income up to Rs. 6.5 lakh may not be required to pay any income tax subject to investments in instruments such as provident fund.

With additional deductions such as interest on home loan up to Rs. 2 lakh, interest on education loans, National Pension Scheme contributions and medical insurance, persons having even higher income will not have to pay any tax, it noted.

Careful planning of investments as per income tax laws can lead to significant reduction in the person's overall tax outgo, say financial advisors.

“The proportion of the middle class families earning Rs. 10 lakh or more is relative low therefore the proposed budgetary provisions of tax rebates would impact a large section of the salaried middle class,” said Rahul Agarwal, director, Wealth Discovery/EZ Wealth.

But how much income tax can one save as per latest rules in assessment year 2020-21?

COMMENT
“An individual earning a salary of Rs. 10 lakh can save up-to Rs. 58,760 in taxes by making investments under sections 80C, 80D, 8CCD and 24 of the Income Tax Act, and also utilizing the standard deduction,” explained Mr Agarwal, citing the following example.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions