Download Automated All in One TDS on Salary for the Non-Govt (Private) Employees for F.Y. 2019-20 With Income Tax relief for AY 2020-21

The Interim Budget presented by the finance minister, Piyush Goyal, on February 01, 2019, made some major changes to the tax rates applicable to individuals. Effectively, the budget has made net taxable income free of tax up to Rs5 lakhs. But there is a catch here. The tax slabs have not been tinkered with. Instead, the tax on the lowest slab will be given as rebate to the assessee. For example, the Finance Bill envisages a maximum tax rebate of Rs12,500 under Section 87A of the Income Tax Act. What needs to be remembered is that these new rates of tax will be applicable from the financial year 2019-20 corresponding to the assessment year 2020-21. Let us understand this issue better as we go through the individual slabs for income tax applicable.

Applicable Income Tax Slab Rates for AY2020-21 for Individuals
The tax slabs will depend on whether the tax assessee falls in the category of a super senior citizen (above 80 years), senior citizen (60-80 years) or others (less than 60 years)

 

A.             Individual (resident or NRI), less than 60 years on the last day of the previous year:

Net income range	Income-Tax rate
Up to Rs2,50,000	Nil
Rs2,50,001 to Rs5,00,000	5%
Rs5,00,001 to Rs10,00,000	20%
Above Rs10,00,000	30%

 

B.            Senior citizens, above 60 years but less than 80 years during the previous year:

Net income range	Income-Tax rate
Up to Rs3,00,000	Nil
Rs3,00,001 to Rs5,00,000	5%
Rs5,00,000 to Rs10,00,000	20%
Above Rs10,00,000	30%

 

C.            Super senior citizens, who are 80 years or more during the previous year:

Net income range	Income-Tax rate
Up to Rs 5,00,000	Nil
Rs. 5,00,001 to Rs10,00,000	20%
Above Rs10,00,000	30%

 
Additional levies over and above the basic slabs
 
The tax calculated as per the above slabs provides the basic tax payable. There are three adjustments to be made to this figure as under:
 

·                  Income Tax Act levies surcharge on higher income groups. If the net taxable income is more than Rs50 lakhs and up to Rs100 lakhs, a surcharge of 10% is levied. If the annual income is more than Rs100 lakhs, then a surcharge of 15% is applicable on that slab.

·                  While surcharge is subject to the income level, the health and education cess of 4% is chargeable to all assessees. In the case of higher-income groups, this cess is payable on 4% of the (sum of tax payable and surcharge).

·                  Rebate of 100% of tax payable will be provided under Section 87A, subject to a maximum of Rs12,500 per assessee. That makes any taxable income up to Rs5 lakh entirely tax-free.

 ·                  The rate of standard deduction has been enhanced from Assessment Year 2020-21 to Rs50,000 per year from Rs40,000 currently. This is available as a flat deduction to all assessees in lieu of transport allowance and medical reimbursement.

Earn a million and pay zero tax
One of the advantages of the new tax slabs is that the rebate under Section 87A will be applicable if the net taxable income is up to Rs5 lakhs. This gives you the opportunity to plan your taxes accordingly. You will be surprised but you can pay zero tax even if your total income is more than Rs10 lakh. Here is how!

Income and Investment particulars	Tax Calculation (AY 2020-21)
Gross Income	Rs10,25,000
Section 80C – PF, LIC	Rs1,50,000
Section 24 – Home Loan Interest	Rs2,00,000
Section 80E – Interest on Education Loan	Rs70,000
Section 80D – Health Insurance	Rs55,000
Total Deductions	Rs4,75,000
Net Income	Rs5,50,000
Standard Deduction	Rs50,000
Net Taxable Income	Rs5,00,000
Tax Payable	Rs.12,500
Rebate under Section 87A	Rs.12,500
Net Tax Payable for FY2019-20	Nil

As can be seen from the above table, you can actually pay zero tax even if you are earning more than a million during the year. With the new fiscal year has just begun, these considerations can go into your tax planning.

Download All in One TDS on Salary for Non-Govt Employees for the Financial Year 2019-2020 and Assessment Year 20120-2021 With Form 12 BA

The feature of this Excel Utility is the following:-

1) This Excel Utility can prepare automatic Tax Calculation as per new Finance Budget 2019

2) The Salary Structure as per the All of Non-Govt(Private) employee’s Salary Pattern

3) Automated Individually Salary Sheet for each Employee

4) Automated Income Tax Salary Sheet for each Employee 

5) This Excel Utility calculate your House Rent Exemption Calculation U/s 10(13A)

6) Automated Income Tax Form 16 Part A&B for F.Y. 2019-20 in New Format

7) Automated Income Tax Form 16 Part B for the F.Y. 2019-20 in New Format

8) Automated Form 12 BA