5 changes in Income tax rules

New Income Tax rules

The new Financial Year 2020-21 (FY 2020-21) will see five changes in the Income-tax rules, which is in accordance with the budget presented this year. These changes were declared by the Finance Minister Nirmala Sitharaman. The Income Tax Department has given relief and extended the last day of filing the taxes to June 30th. This extension has come into effect due to the COVID-19 crisis, which has paralyzed the country and its financial machinery.  In FY 2020-21, the taxpayers can choose from any of the two income tax regimes declared…

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New Income Tax rules for FY 2020-21 wef April 2020

New Income Tax rules

On February 1st the Finance Minister Ms. Nirmala Sitharaman had introduced certain changes in Income Tax rules, which will come into effect from 1st April 2020. The new financial year has started from April 1st. In Financial Year 2020-21 taxpayers will have an option to choose from the two tax slabs declared by the Finance Minister. One may opt for the old tax slab or choose to switch to the new tax slab. The new tax regime appears to be heavily loaded for investors in higher tax brackets and may…

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Indian taxman will watch your big transactions!

Taxes on Big Transactions

In an attempt to achieve the projected growth rate of 12.7% for FY21, the Income Tax department of India is devising ways and means to make the tax collection system more efficient and to increase the number of taxpayers.  Recently, the Chairman of the Central Board of Direct Taxes, Mr. P.C. Mody has said that now the department will be closely monitoring high-value transactions made by the taxpayers. This step will also curb the tax evaders and help CBDT in achieving its goal of higher tax collection.  Increased use of…

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PAN, Aadhar rule for Income Tax AY 2020-21

PAN and Aadhar rule for Income Tax

As per the latest circular issued by The Central Board of Direct Taxes (CBDT), now employees must declare their PAN or Aadhar details to employees for calculation of Tax deducted at source. In case the employee doesn’t furnish his PAN or Aadhar details, he may be liable to heavy taxation, much more than what was applicable. The employers are directed to deduct higher taxes at source for employees who fail to produce their PAN or Aadhar details.  How is the tax calculated for employees without PAN or Aadhar?  As per…

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