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Latest Income Tax Slab Rates FY 2020-21 (AY 2021-22) With Automated Income Tax Master of Form 16 Part B for F.Y. 2019-20 & A.Y. 2020-21


What are the Latest Income Tax Slab Rates FY 2020-21 (AY
2021-22) after Budget 2020? Is there any changes to applicable tax
rates for individuals? Let us see the details.

I already covered the Budget 2020 related posts and you may
refer them for your better understanding.

In this post, my
concentration is to share with you about the Latest Income Tax Slab Rates FY
2020-21 (AY 2021-22) and applicable Security Transaction Tax (STT).

The difference between Gross Income and Total Income
or Taxable Income?

Before jumping into Latest Income Tax Slab Rates FY
2020-21 (AY 2021-22), first understand the difference between Gross Income and
Total Income.

Many of us have the confusion of understanding what is Gross
Income and what is Total Income or Taxable Income. Also, we calculate the
income tax on Gross Income. This is completely wrong. The income tax will
be chargeable on Total Income. Hence, it is very much important to understand
the difference.

Gross Total Income
means total income under the heads of Salaries, Income from house property,
Profits and gains of business or profession, Capital Gains or income from other
sources before making any deductions under Sections.80C to 80U.

Total Income or Taxable Income means Gross Total Income
reduced by the amount of permissible as deductions under Sec.80C to 80U.

Therefore your Total Income or Taxable Income will always
be less than the Gross Total Income.

Latest Income Tax Slab Rates FY 2020-21 (AY 2021-22) With Automated Income Tax Master of Form 16 Part B for F.Y. 2019-20 & A.Y. 2020-21 2

Latest Income Tax Slab Rates FY 2020-21 (AY 2021-22) With Automated Income Tax Master of Form 16 Part B for F.Y. 2019-20 & A.Y. 2020-21 3

  The
main feature of this Excel Utility:-

1)  
Prepare At time 50 Employees  Excel Based  Form 16 Part B ( Modified Format of Form 16 Part B Vide CBDT
Notification No.36/2019 Dated 12/04/2019 ]

2)  
All the Amended Income Tax
Section have in this utility as per Budget 2019

3)  
You can print individual Form
16 Part  B

4)  
Most easy to install just
like an Excel File

5)  
Easy to Fill the all column

6)  
Automatic Convert the Amount
to the In-Words

Latest Income Tax Slab Rates FY 2020-21 (AY 2021-22)

The government now confused individual taxpayers. Earlier
individuals used to worry only about finding ways to tax and invest
accordingly. Now they have to find the ways which tax slabs they have to use.

In one way Government is forcing us to SAVE more.
However, with this new change, I think the Government is more concerned with
making us to SPEND more.

There will be two types of tax slabs.

1.                  
For those who wish to
claim IT Deductions and Exemptions.

2.                  
For those who DO NOT
wish to claim IT Deductions and Exemptions.

Let me explain both the slabs as below.

Latest Income Tax Slab Rates FY 2020-21 (AY 2021-22) With Automated Income Tax Master of Form 16 Part B for F.Y. 2019-20 & A.Y. 2020-21 4

Now, if you wish to
choose the new tax regime, then you have to forget the below deductions or
exemptions.

(i) Leave travel concession as contained in clause (5) of
section 10;

(ii) House rent allowance as contained in clause (13A) of section 10;

(iii) Some of the allowance as contained in clause (14) of section 10;

(iv) Allowances to MPs/MLAs as contained in clause (17) of section 10;

(v) Allowance for income of minor as contained in clause (32) of section 10;

(vi) Exemption for SEZ unit contained in section 10AA;

(vii) Standard deduction, deduction for entertainment allowance and
employment/professional tax as contained in

section 16;

(viii) Interest under section 24 in respect of self-occupied or vacant property
referred to in sub-section (2) of section 23.

(Loss under the head income from house property for rented house shall not be
allowed to be set off under any

other head and would be allowed to be carried forward as per extant law);

(ix) Additional deprecation under clause (iia) of sub-section (1) of section 32;

(x) Deductions under section 32AD, 33AB, 33ABA;

(xi) Various deduction for donation for or expenditure on scientific research
contained in sub-clause (ii) or sub-clause

(iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35;

(xii) Deduction under section 35AD or section 35CCC;

(xiii) Deduction from family pension under clause (iia) of section 57;

(xiv) Any deduction under chapter VIA (like section 80C, 80CCC, 80CCD, 80D,
80DD, 80DDB, 80E, 80EE, 80EEA,

80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc).

Which one to use for the highest tax benefits?

It is not yet clear and hence it is hard for me to say
anything BLINDLY. However, going by changes, I assume it changes from
individual to individuals. Hence, you have to calculate on your own and adopt
the one which is more beneficial for you.

CONFUSING RIGHT? YES, as per me, this new tax slab regime
is the most complicated tax slab rate any government introduced. Now many
individuals will be in a dilemma of which one to use, the ADDITIONAL one along
with the existing headache for taxpayers of HOW TO SAVE MORE TAX.

Note: – Along with the applicable taxes, you have to
additional surcharges at below rates.

·     Surcharge:

·       10% surcharge on
income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.

·       15% surcharge on income
tax if the total income exceeds Rs.1 Cr.

·        Health and Education cess : 4% cess on income tax including
surcharge. This Health and Education Cess replaced the earlier 2% Education
Cess and 1% Secondary and Higher Education Cess from Budget 2018.

Once you adopt the new
tax slab by not using any deductions or exemptions, you are just forgoing the
tax saving part of these schemes. However, the interest earned and maturity
amount will remain tax free for you as it was earlier.





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