GOOD NEWS FOR SALARIED PERSON WHO EARN RS 50,000 P.M.



IF INCOME OF RS 50,000 PER MONTH THEN NO TDS 

A)STANDARD DEDUCTION FROM GROSS SALARY UNDER SECTION 16 (ia) of (“The Act”)

As per the provision prior to amendment
A deduction of  Rs  40,000  or   Amount of salary  (whichever is less).
i.e.  Rs  40,000

As per amendment made in this provision w.e.t. A .Y. 2020-21

The deduction has been raised from Rs 40,000 to Rs 50,000 .
i.e.  Rs 50,000

B)REBATE FROM INCOME TAX TO A RESIDENT INDIVIDUAL UNDER SECTION 87A of (“the Act”)

 As per provision prior to amendment 
 Rebate u/s 87 A is available if –
i)His total taxable income upto Rs 3,50,000
         Quantum of rebate is –
          Amount of income -tax payable or Rs 2500 (whichever is less)
                           i.e  Rs 2500
 
As per amendment made in this provision w.e.t. A.Y. 2020-21
i) His total taxable income upto Rs 5,00,000
         Quantam of rebate is-
         Amount of income-tax payable or Rs 12,500  (whichever is less)
                        i.e. Rs 12,500


CONCLUSION : 
If a resident individual has taxable income upto Rs 5,00,000 annually (after claiming deduction u/s 80C to 80U) then No TDS required to deduct


Author
CA Pooja Shukla FCA
RYPS & ASSOCIATES LLP
Contact No: 9810505547

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