1.filing Tax For 2020 - Post
1.filing Tax For 2020 - Post
1.filing Tax For 2020 - Post
For the global pandemic going around, filing of tax is going to be new. With the new
regulations and post pandemic situation, there are terms to take care of. These will help for
the scope of the filing for the tax 2020-2021, those who are filling in for the current year.
About the new year for 2020-2021
The new financial year has kicked off and it has started. For all those who are filling in for
their tax returns and updates have to make sure of several things. First of all, there are
changes which are being applied to the same. The government have said that the changes
are readily happening for the pandemic situation and that millions of people are losing their
jobs.
New rules which will be effective from April:
1. As announced for the budget 2020, there are new tax slabs that will come into effect
from April. These slabs are made solely for the people who are not able to file in for
the tax returns due to the extended lockdown. The old tax slabs are going to remain
in effect as well. It is mainly for the people who are likely to go with the regime for.
Zero tax for those who are having an income of about 2.5 lakhs.
5% tax for those who have an income of 2.5lakhs to 5lakhs.
10% tax for those who have an income of 5lakhs-7.5 lakhs.
15% tax for those who have an income of 7.5lakhs- 10lakh.
20% tax for those who have an income of 10 lakh-12.5 lakh.
25% tax for those who have an income of 12.5lakh-15lakh.
30% tax for those who have an income of more than 15 lakh.
2. The employer contribution has been divided and those which are exceeding more
than 1.5 lakhs in a year under the recognised provident funds like the EPF or the
other funds which are coming under the exempted establishments are all taxable. If
there is an individual opt for the claim and the new tax regime, there is the source
for income tax deduction on employer. It is done mainly towards the NPS account of
the employer on which the deduction is counted. The practical part of the deduction
is made on the original amount of the tax deducted.
3. For those who are buying shares and bonds and even houses, the tax exemption is
made for the date of around March 31, 2021. For the amount on which the houses
are bought, it can be around 45 lakh. Those who have taken loan to purchase all the
houses up to rs 45 lakh will have an additional claim on the tax reduction. The
reduction is based of 1.5 lakh and on the existing deduction of about 2 lakh.
4. The dividend which are received from all the mutual funds and all the domestic
companies will face another reduction as well. These bonds and funds will be taxable
and will be kept at hand. Till the last financial year, the dividend was tax free and in
the hands of the recipient. However, the mutual funds, deducted on the basis of the
dividend distribution tax at a rate of 11.2 percent will be equity oriented. It will be
charged for about 29.12 percent for all the debt oriented funds.
5. For the employees of the start-ups, the new tax regime is something new. It is going
to have an effect from today which can allow for the deferment of tax payment as a
whole. It is based onto the tax payment of the shares which are allotted to the
shareholders. It is for them under the Employee Stock Ownership Plan. The new
regime will have the tax payment of about 48 months on excise duty and the sale of
shares, whichever is earliest and convenient.
What are the new changes which are going to happen for the current year?