Skip to main content

Pay No Tax on Aggregate Income of Rs 7,85,000/- (Ay 2019-20)

In this case assessee (male/female below 60 years) having salary/business or professional income/income from other sources of Rs 7,85,000/- (including saving bank account interest Rs. 10,000/-) and living in a house/flat acquired with borrowed funds, will be required to pay no tax as under:

Net Income from Salary/Business/Profession Other Sources                             Rs. 7,85,000
Income From House Property
                  (Fully self occupied)                                                  Nil
Less: Interest on funds borrowed                                             Rs. 2,00,000
         for acquiring the property                                               ----------------   (-) Rs. 2,00,000
                                                                                                                           ____________
Gross Total Income                                                                                               Rs. 5,85,000

less: Deduction u/ss 80C/80CCC/80CCD(1)
         (LIC, NSC, PPF etc.,)                                                    Rs. 1,50,000
         Deduction u/ss 80CCD(1B)
         (Contribution to new pension scheme)                          Rs.    50,000
        Deduction u/s 80D (Medical Insurance Premium)         Rs.    75,000
        Deduction u/s 80TTA (savings account interest)           Rs.     10,000
                                                                                               ___________       Rs. 2,85,000
                                                                                                                            ___________
Total Income                                                                                                       Rs. 3,00,000
 Tax Payable on total income of Rs 3,00,000                                                      Rs.     2,500
Less: Rebate u/s                                                                                                  Rs.      2,500
Net Income Tax Payable                                                                                          NIL
Compiled By
CA.R.JEYARAJAN FCA.,
(Chartered Accountant)
can be reached at jeyarajan@rareassociates.in

Labels:
Location: Thoothukudi, Tamil Nadu, India

Comments

Post a Comment

Popular posts from this blog

Power of Attorney and Tax Laws

Scope of power of Attorney: Its not an instrument of transfer in regard to any right, title or interest in an immovable property. Its a creation of agency where by grantor authorizes the grantee to do the acts specified there in. This is quite common in the case of NRIs who invest in india but are not in a position to sign the various documents or do the follow-up on these investments. All the actions taken by the attorney under the PoA are the actions of the grantor Income Tax on (guarantee) power of attorney holder: As attorney acts as an agent he is not taxable under tax laws for the acts done or receipts or incomes received by him on behalf of the grantor. However the tax officers may raise tax demand on the attorney as recent income tax tribunal decisions are in their favour. It is advisable to take the following precautions (preventive measures) to minimize the risk of such amounts being treated as income of attorney. Preventive Measures: Funds received ...
Post a Comment
Read more

NOTES ON GSTR 9C - RECONCILIATION STATEMENT BETWEEN GSTR 9 (Annual Return) & ANNUAL FINANCIAL STATEMENT

GENERAL The reconciliation statement to be prepared for the period from July 2017 to March 2018 for the financial year 2017-18. The reconciliation statement to be filed for every GSTIN separately in cases where the multiple GSTIN exists for one PAN. Reconciliation statement to be prepared for the ANNUAL TURNOVER declared in audited Annual Financial Statement with the turnover as declared in the Annual Return (GSTR 9) . [GSTR 9C - Part I) TAX PAYABLE as per declaration in the reconciliation statement(GSTR 9C-Part I)   and the actual tax paid as declared in Annual Return (GSTR 9) INPUT TAX CREDIT (ITC). Audited Financial Statement for the financial year 2017-18 to be divided for two periods for the period from 01st Apirl, 2017 to 31st June 2017 and for the period from 01st July 2017 to 31st March 2018 The reconciliation statement to be certified by a chartered accountant. POINTS TO BE CONSIDERED FOR  ANNUAL TURNOVER RECONCILIATION In cases where One...
Post a Comment
Read more