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In this article author compares Major Income Tax Changes for AY 2018-19 , 2019-20 , 2020-21.
| AY 2018 – 2019 | AY 2019 – 2020 | AY 2020 – 2021 | |
| Tax Slab | TI 0 to 2,50,000 – NIL | TI 0 to 2,50,000 – NIL | TI 0 to 2,50,000 – NIL |
| TI 2,50,000 to 5,00,000 – 5% | TI 2,50,000 to 5,00,000 – 5% | TI 2,50,000 to 5,00,000 – 5% | |
| TI 5,00,000 to 10,00,000 – 20% | TI 5,00,000 to 10,00,000 – 20% | TI 5,00,000 to 10,00,000 – 20% | |
| TI above 10,00,000 – 30% | TI above 10,00,000 – 30% | TI above 10,00,000 – 30% | |
| Cess on Tax | @ 3% | @ 4% | @ 4% |
| Standard Deduction for Salary – Section 16 | NA | 40,000 | 50,000 |
| Deemed Let out Property | Only one property is allowed as self occupied and others are charged notional rent | Only one property is allowed as self occupied and others are charged notional rent | Exempt levy of IT on notional rent on second occupied houses |
| Stamp Duty valuation – Section 50C | Change between actual consideration and stamp duty valuation to be considered | Consider Stamp Duty Value only if it exceeds 105% of the declared consideration. | Consider Stamp Duty Value only if it exceeds 105% of the declared consideration. |
| Exemption under section 54 | Can avail against purchase of ONE residential property only | Can avail against purchase of ONE residential property only | Can avail against purchase of TWO residential property if CG < 2 Crore |
| Holding Period of Investment – Section 54EC | 3 Years Transfer of any Long Term Asset is eligible | 5 Years Only Long term Land Building is Eligible | 5 Years Only Long term Land Building is Eligible |
| Tax on LTCG Share STT Paid Cases | Exempt under Section 10(38) | Taxable @10% if CG> 1,00,000 | Taxable @10% if CG> 1,00,000 |
| Rebate under section 87A for Resident Individuals | Upto Rs. 2500 if TI < 3,50,000 | Upto Rs. 2500 if TI < 3,50,000 | Upto Rs. 12500 if TI < 5,00,000 |
| Deduction in respect of interest on deposits in case of senior citizens Section 80TTB | NA | 50000 (80TTA not available to this category) | 50000 (80TTA not available to this category) |
| Deduction under section 80D | 1. Assessee & family maximum 25,000 | 1. Assessee & family maximum 25,000 | 1. Assessee & family maximum 25,000 |
| 2. Parents of Assessee Rs. 25,000 | 2. Parents of Assessee Rs. 25,000 | 2. Parents of Assessee Rs. 25,000 | |
| 3. Medical expense of Assessee and Family Member only for Very S. Citizen Rs.30,000 | 3. Medical expense of Assessee and Family Member only for S. Citizen Rs.50,000 | 3. Medical expense of Assessee and Family Member only for S. Citizen Rs.50,000 | |
| 4. Medical expense of Parents only for Very S. Citizen Rs. 30,000 | 4. Medical expense of Parents only for S. Citizen Rs. 50,000 | 4. Medical expense of Parents only for S. Citizen Rs. 50,000 | |
| Aggregate in 1 & 3 or in 2 & 4 Limited to a maximum of Rs. 30,000 | Aggregate in 1 & 3 or in 2 & 4 Limited to a maximum of Rs. 50,000 | Aggregate in 1 & 3 or in 2 & 4 Limited to a maximum of Rs. 50,000 | |
| Deduction under section 80DDB ( Medical Treatment fo specified disease) | 1. Normal Citizen Rs. 40,000 | 1. Normal Citizen Rs. 40,000 | 1. Normal Citizen Rs. 40,000 |
| 2. Senior Citizen Rs. 60,000 | 2. Senior Citizen Rs. 1,00,000 | 2. Senior Citizen Rs. 1,00,000 | |
| 3. Very Senior Citizen Rs. 80,000 | |||
| TDS Limit under section 194A | 5000 in the case of Non Bank & 10,000 in the case of Bank & P.O. | Rs. 5000 in the case of Non Bank | Rs. 5000 in the case of Non Bank |
| Rs. 10,000 in the case of Bank & P.O. for Normal Citizens and 50,000 for S. Citizen | Rs. 40,000 in the case of Bank & P.O. for Normal Citizens and 50,000 for S. Citizen | ||
| TDS Limit under section 194I | 1,80,000 | 1,80,000 | 2,40,000 |
For more information, Click at income tax slab for ay 2020
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