Question: Is Tax Slab Increased To 5 Lakhs?

What happens if taxable income is above 5 lakhs?

As per current income tax laws, a person is eligible for tax rebate up to Rs 12,500 under section 87A, if the net taxable income does not exceed Rs 5 lakh.

However, if your net taxable income exceeds Rs 5 lakh by even Re 1, say it is Rs 5,00,001, then you will not be eligible to avail the benefit of tax rebate..

Can I deposit 10 lakhs in bank?

Aggregate Fixed Deposits of Rs 10 lakh or more in a year. Banks are required to report the cash payment made for Fixed Deposits amounting Rs 10 lakh or more in a year. However, these fixed time deposits will not include deposits made through renewal of other fixed deposit.

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

How can I save my income tax 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

How do you calculate income tax for the financial year 2020 21?

The tax liability will be Rs 12,000. The total tax liability in the new tax regime comes out to be Rs 1,99,500 ( 0+12,500+25,000+37,500+ 50,000+62,500+12,000)….S. No.Income slabsIncome tax rate (%)2Between Rs 2,50,001 and Rs 5 lakh5%3Between Rs 5,00,001 and Rs 7.5 lakh10%4Between Rs 7,50,001 and Rs 10 lakh15%4 more rows•Oct 23, 2020

What is the tax slab for 2019 2020?

Tax Rates for Individuals as per budget 2019-2020Income Tax Slab (in Rupees)Tax Rate for Individual Below the Age Of 60 Years0 to 2,50,000*Nil2,50,001 to 5,00,0005% of total income exceeding 2,50,0005,00,001 to 10,00,000Tax Amount of 12,500 for the income up to 5,00,000 + 20% of total income exceeding 5,00,0001 more row•Dec 11, 2019

What is the standard deduction for AY 2020 21?

Therefore, the taxpayer can claim a standard deduction of Rs. 40,000* or the amount of pension, whichever is less. *Increased to Rs 50,000 for FY 2019-2020(AY 2020-21) through the Interim Budget 2019.

Can I file ITR for AY 2020/21 now?

All Income Tax Return Preparation Software for AY 2020-21 are now available for e-Filing. ITR 1, 2, 3, 4, 5 & 7 for AY 2020-21 is now available for e-Filing. ITR 6 will be available shortly.

What are current tax slabs?

RelatedTaxable income slabsIncome tax rates and cessUp to Rs 2.5 lakhNilRs 2,50,001 to Rs 5,00,0005% of (Total income minus Rs 2,50,000) + 4% cessRs 5,00,001 to Rs 10,00,000Rs 12,500 + 20% of (Total income minus Rs 5,00,000) + 4% cessRs 10,00,001 and aboveRs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cessOct 20, 2020

What tax will I pay on 5 lakhs?

SynopsisIncomeTax liabilityBetween Rs 2.5 lakh and Rs 5 lakh5% of Rs 2.5 lakh = Rs 12,500Income above Rs 5 lakh (Rs 10,000)20% of Rs 10,000 = Rs 2000Total tax liabilityRs 14,500Final Tax liability with cess @ 4%Rs 15,0801 more row•Feb 28, 2020

What is the income tax slab for 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22Taxable incomeTax Rate (Existing Scheme)Tax Rate (New Scheme)Rs. 7,50,001 to Rs. 10,00,00020%15%Rs. 10,00,001 to Rs. 12,50,00030%20%Rs. 12,50,001 to Rs. 15,00,00030%25%Above Rs. 15,00,00030%30%3 more rows

What is 5 lakh tax exemption?

The rebate under Section 87A has been hiked to Rs 12,500. This would effectively make tax liability zero for taxpayers having net taxable income not exceeding Rs 5 lakh. Naveen Wadhwa, DGM, taxmann.com says, “The key announcement of Interim Budget, that no tax to be levied if income is up to Rs 5 lakh, has a rider.

Can I deposit 5 lakhs in my account?

Individuals who deposit cash above Rs. 2.5 lakh and senior citizens who deposit cash above Rs. 5 lakh may be scrutinised. Any amount within the specified limit will be excluded from scrutiny considering that the money is from household savings, cash withdrawals, earlier income, and so on.

Can I deposit 3 lakhs in my account?

If you are an individual owning a proprietary business and have deposited, for instance, Rs 3 lakh in the denomination of scrapped currency notes in your account after demonetisation, you can declare in your tax return for the assessment year 2017-18 that the amount is part of your past savings.

Can I deposit 4 lakhs in my account?

No, You can not deposit the amount of Rs 3 lakh in any bank account without quoting your PAN Number. … 49,995/- has to be deposited mandatorily with a PAN Card only. As more than this amount will include reporting to reported to Income tax dept. There might be charges for deposit which might differ from bank to bank.