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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Qualification: Student - CA/CS/CMA
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Location: Perumbavoor, Kerala, IN
Member Since: 15 Aug 2017 | Total Posts: 2

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