Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Fin year 2020-21

192 views 6 replies

Surajit Mondal

94 Points Joined July 2017

If a person's salary is 1050000 in the fin year 2020-21. How much tax he would pay in the new tax system ?

Replies (6)

RAJA P M

"Do the Right Thing...!!!"

128111 Points Joined January 2015

Try to check out through the link...

https://www.bankbazaar.com/income-tax.H T M L

Kapadia Pravin

17264 Points Joined December 2018

85000/- + cess 4%

upto 250000 >> Nil
2.50 to 5 lakhs >> 12500/- (5%)
5.00 to 7.50 lakhs >> 25000/- (10%)
7.50 to 10 lakhs >> 37500/- (15%)
10 to 10.50 lakhs >> 10000/- (20%)

So 85000+4% Cess

Monu Prajapati

45 Points Joined September 2018

tax on salary income of Rs. 10,50,000/- shall be as follows :-

1) first 2,50,000/- : nil as basic exemption limit

2) next 2,50.000/- : 12,500 @ 5%

3) next 2,50,000/- : 25,000 @ 10%

4) next 2,50,000/- : 37,500 @ 15%

5) next 50,000/- : 10,000 @ 20%

total tax shall be Rs. 85,000 before rebate of Section 87A i.e. Rs. 12500 so effectively tax shall be payabe Rs 72,500. and cess @ 4%

Kapadia Pravin

17264 Points Joined December 2018

Under new tax regime, there is no Rebate 87A applicable.

So tax will be 85000 +4% cess

Surajit Mondal

94 Points Joined July 2017

But upto 5 lakh nil tax. pls clear it ?

Under old tax regime if total income is below 5 lakhs then -
tax 12500/-
less - 12500/-
net tax - Nil

No tax is bcoz of 87A rebate

But if you cross 5 lakhs in income, there is no rebate available. eg. Total income say 510000/- then

Tax 14500/- (12500+2000)
Less - Rebate Nil
Net tax is 14500/- + 4% Cess