Every individual taxpayer is required to compute its tax liability for the AY 2020-21 after taking into consideration the new rates. Further, the deductor or collector was also required to deduct TDS or collect TCS after considering the new rates.
Considering the canon of ability to pay tax, the income tax slabs have been introduced and it's been amended from time to time based on the exigency without affecting the canon behind the act. As such, I am not in line with a provision, section 87A of IT act, which gives rebate on Income Tax liability before adding up the cess on IT.
As per the official notification of the CBDT it is mandatory for an employee to intimate his employee if he is opting for the concessional tax rates under the new tax regime for the purpose of TDS deduction on salary.
This article aims at highlighting the retrospective amendment in provisions of section 115 BBE of the Income Tax Act, 1961 and its applicability.
Liability to deduct tax at source under section 194A, 194C, 194H, 194I and 194J was first introduced by the Finance Act, 2002 by inserting various proviso to the respective sections.Proviso to section 194A(1), Proviso to Section 194C(1), Second Proviso to 194H(1), Second Proviso to Section 194I(1), Second Proviso to 194J(1) were inserted by Finance Act, 2002 w.e.f. 01-06-2002
There is some report circulating on social media regarding suggestions by a few IRS officers on tackling Covid-19 situation. It is unequivocally stated that CBDT never asked IRS Association or these officers to prepare such a report
Sec 115BA provides for a reduced tax rate of 25% in case of all domestic manufacturing companies incorporated on or after Mar1, 2016, Sec 115BAA has been inserted to provide for a reduced tax rate of 22% for all domestic companies.
New section 115BAC is inserted in Income Tax Act by the Finance Act 2020 and it is applicable w.e.f 1st April 2020 and will be applicable on Individuals and HUFs for the assessment year 2021-22 and subsequent assessment years.Under this section taxpayers i.e Individuals and HUFs has an option to pay the tax on the basis of concessional slab rates subject to some conditions.
Know the Income Tax Slab Rates for the Assessment Year 2020-21.
Section 6 of the Income Tax Act contains provisions related to the residential status of an assessee. The Finance Act 2020 amends provisions related to the residential status of the non-resident.
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