Under section 192 of the income tax act,1961 every employer should deduct TDS from employee salary. These deducted TDS details are acknowledged in form 16 (TDS certificate). Here you can download the latest auto income tax calculator for FY 2019-20 (AY 2020-21) or simply form 16 in Excel format for AY 2020-21.
Budget 2020 was released by the central government and introduced new income tax slab rates, but the salary holders can choose either old income tax slab system or new slab system as per their choice.
New Income Tax Slab Rates
|2,50,000 – 5,00.000||5%|
|5,00,000 – 7,50,000||10%|
|7,50,000 – 10,00,000||15%|
|10,00,000 – 12,50,000||20%|
|12,50,000 – 15,00,000||25%|
Old Income Tax Slab Rates
What are the latest changes in income tax rules as per budget 2020
In new income tax slab system all the tax exemptions are abolished, like Standard deduction, exemption under section 80c ( Like insurance premium payments, mutual fund investments, children education) , Section 80D allowances (medical insurance), House rent allowances, LTA etc…
Which is Better New Income Tax Slab System or Old Income Tax Slab System
Without any doubt, old income tax slab system is better for salary holders, because there you can use all the allowances so that the net income tax payable amount will decrease.
For whom the new income tax slab system is better
If you don’t want to do all the complex calculations related to income tax and if you want a simple system of making IT payments then the new income tax slab system is better.
Useful allowances in Income Tax Rules (Ay 2020-21), If You Want to Use Old Income Tax Slab System
1. A rebate of 12,500 Rs has given to the salaried employees up to a taxable income of 5 Lakhs i.e if your taxable income is below 5 lakhs then you don’t need to pay any income tax.
(For example, if your taxable income is 5 lakhs then you don’t need to pay any income tax, earlier employees need to pay 5% tax on amount more than 2.5 Lakhs. Now due to this rebate, you are exempted from the tax. But if your taxable income is 5,50,000 then you are liable to pay income tax. You need to pay a 5% tax on 2.5 Lakhs and 20% tax on the remaining 50000).
2. Standard deduction has increased to 50000 Rs, earlier it was 40000 Rs.
3. The limit of interest income for TDS has increased to 40000 Rs, earlier it was 10000 Rs.
4. The limit of rental income for TDS has increased to 2.4 Lakhs, earlier it was 1.8 Lakhs.
Form 16 Related Questions
Difference between form 16 and form 16A
Form 16 and form 16A both are TDS certificates, whereas form 16 is used to file returns on income from salary and form 16A is used to file returns on income other than salary, for example, interest from fixed deposits in banks, income from house rents etc.
Difference between form 16 and form 26AS
Form 26AS is the annual statement of income tax returns it consists of details of form 16, form 16A and refunds. Form 26AS shows complete details about IT returns of the employees.
Can we download form 16 online
Yes, if the tax is deducting from the income then you can download your form 16 or form 16A online at TRACES website. If you are a first time user then you need to register at TRACES website (Tax Reconciliation Analysis and Correction Enabling System). If you are an employee then you can get form 16 from your employer.
Last date to file income tax returns for ay 2020-21
The last date to file income tax returns for ay 2020-21 is 31 July. Any delay in filing income tax returns leads to 1% interest per month on pending tax dues. For more details read this article on interests on late payment of income tax.