Many Taxpayer in India see tax evasion as a mark of smartness. If the government allows you a tax break, you are free to take it. If there is a legal way you can save some of your hard-earned money from being taxed, you are free to save it. How is the Indian tax payers are doing their tax planning!. Can this be called as Smart Taxation or Tax Morality!!. Once Mr. Jaitley commented “Indians are generally conservative and God-fearing, but they do not see tax evasion as a moral problem”. May be this smartness is the reason the governments consider scrutiny is a better tool than moral persuasion to make the evaders pay up.

Bible reminds us about this tax-morality in Romans 13:2 and 7, “Therefore, whoever resists authority, resists what God has appointed, and those who resist will incur judgment. Pay to all what is due them- taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honour to whom honour is due”.

Let us plan our taxation in a smart and moral way! I wish you a good financial year ahead!

Finance bill 2019 has not done any changes in the income tax slabs, however there has been some changes related to salaried tax payers. Highlighting the changes and give you the new tax calculator for FY 2019-20 [AY 2020-21].

  1. Standard Deduction from taxable salary. Standard Deduction for salaried persons raised from 40,000 rupees to 50,000 rupees.
  1. Rebate under section 87A has increased from 2500 to 12500 rupees up to the income of 5 lakh rupees, hence individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate. Tax payers whose taxable income cross the limit of 5 Lakh need to have a smart way here!

Salient features of the Tax calculator.

  1. Useful for the salaried employees of government and private sector, with all heads of Income including agricultural income.
  2. Private sector employees can use to do their Flexi allocation and tax planning.
  3. Tax and rebate calculation of agriculture income, to arrive the annual tax liability.
  4. Marginal relief on surcharges where income crosses 50L and 1Cr.
  5. Individual Form 16 Part B generation, useful for the small size firms.
  6. Automated HRA exemption/Sec 80GG deduction calculation based on the salary and rent payments.
  7. Validate and highlights the limits Chapter VI A deduction, Housing loan interest set off, and surcharge impacts.
Income tax Slabs & Rates FY 2019- 20, AY 2020-21
Income tax Slabs General Category Sr.Citizen Very Sr. Citizen
Upto Rs. 2. 5Lakh NIL NIL NIL
Rs.2.5 Lakh to 3.0 Lakh 5% NIL Nil
Rs.3.0 Lakh to Rs.5.0 lakh 5% 5% NIL
Rs.5.0 Lakh to Rs.10.0 Lakh 20% 20% 20%
Above 10.0 Lakh 30% 30% 30%

Surcharge:

  1. If the total income between Rs 50 Lakhs and Rs 1 crore, a surcharge of 10% will be levied.
  2. 15% surcharge on income tax if the total income is over and above Rs 1 cr.

(Republished with amendments)

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38 Comments

  1. amit says:

    Please Provide me excel sheet for Tds calculation for latest f y ,2019-20 monthly we will enter all the employee’s salary details

  2. T r Shylajakindly says:

    Kindly send me excel sheet for Tds calculation for latest f y ,2019-20 monthly we will enter all the employee’s salary details

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