Slab Rate Comparison:
Earlier F.Y. 2020-21 Upto 2.50 lakh NIL Upto 2.50 lakh NIL 2.5 to 5 lakh 5% 2.5 to 5 lakh 5% 5 to 7.50 lakh 20% 5 to 7.50 lakh l0% 7.5 to 10 lakh 7.5 to 10 lakh 15% 10 to 12.50 lakh 30% 10 to 12.50 lakh 20% 12.5 to 15 lakh 12.5 to 15 lakh 25% above 15 lakh above 15 lakh 30%
*New slab rates are optional.
*No deductions available under the new scheme.
*No tax if total income is below 5 Lakh
Note: In short viability of selecting the scheme depends upon the amount of deductions available to the assessee.
Housing loan Interest:
Additional deduction of interest on housing loan upto Rs. 1.5 lakh taken for property having stamp duty value below Rs. 45 lakh will be available for loans sanctioned in financial year 2020-21
The deadline for promoters to get the project approved to avail 100% tax deduction on profits from affordable housing projects has been extended till 31st March 2021.
Start-up Tax Holiday:
The earlier turnover limit for start-ups to avail tax holiday has been raised from Rs. 25 crore to Rs. 100 crore.
Vivad se Vishwas:
The new scheme proposed to close all pending appeals in direct tax. The benefit is:
-If liability discharged upto 31st March 2020: 100% exemption in penalty and interest.
-If paid upto 30th June 2020: Partial exemption of interest and penalty as will be specified further.
The threshold limit of turnover for tax-audit is raised to Rs. 5 crore from Rs. 1 crore provided that 95% of transactions(both sales and expenses) are being done through banking channel i.e. cash transactions should not exceed 5%.
- Tax rate for Cooperative Societies decreased to 22% from 30%. However no exemptions will be available.
- Reduced Corporate tax rate of 15% will be applicable for newly established manufacturing and power generating units.
- Due date for Tax audit and filing of ITR for assesse whose books are required to be audited will be 31st October instead of 30th September.
- Taxability of Dividend Shifted to receiver i.e. Dividend distribution Tax is removed.
- Difference in stamp duty valuation and actual sale consideration on sale and purchase of property is allowed upto 10% instead of 5%.