Today Buget, No tax on Interest from Bank or Post office up to Rs.40,000/-
1. My income 800000+ Interest from Bank Rs.50,000
2. My income 800000+ INterest from Bank Rs.40,000/-
Please tell me Total Tax payable in above situations
4 Replies
Md Raza
(19 Points)
Replied 01 February 2019
I think it will effective from 1 April 2019.....This year calculation remain same
Mohammad Rafiuzama
(83 Points)
Replied 01 February 2019
This will be applicable from 2019-20 Financial year
As per situation 1:
Total taxable income - 8,00,000+10,000 = 8,10,000
upto 2,50,000 Nil tax
2,50,000 to 5,00,000 @ 5% RS. 12,500
5,00,000 to 8,10,000 @ 20% RS. 62,000
Total RS. 74,500
cess @ 4% on 74,500 is RS. 2,980
Total tax payable is RS. 77,480
Situation 2:
Total taxable income - 8,00,000
upto 2,50,000 Nil tax
2,50,000 to 5,00,000 @ 5% RS. 12,500
5,00,000 to 8,00,000 @ 20% RS. 60,000
Total RS. 72,500
cess @ 4% on 72,500 is RS. 2,900
Total tax payable is RS 75,400
As per situation 1:
Total taxable income - 8,00,000+10,000 = 8,10,000
upto 2,50,000 Nil tax
2,50,000 to 5,00,000 @ 5% RS. 12,500
5,00,000 to 8,10,000 @ 20% RS. 62,000
Total RS. 74,500
cess @ 4% on 74,500 is RS. 2,980
Total tax payable is RS. 77,480
Situation 2:
Total taxable income - 8,00,000
upto 2,50,000 Nil tax
2,50,000 to 5,00,000 @ 5% RS. 12,500
5,00,000 to 8,00,000 @ 20% RS. 60,000
Total RS. 72,500
cess @ 4% on 72,500 is RS. 2,900
Total tax payable is RS 75,400
v k s supraja
(intermediate)
(216 Points)
Replied 01 February 2019
Here I want to clarify one thing that.....
Finance Minister in his budget 2019 speech has proposed to raise the TDS threshold for interest earned on bank and post office deposits to Rs 40,000 from the current Rs 10,000.
The above is not to be confused with the existing deduction allowed under section 80TTA.
As per this section, Individuals below age of 60 years can continue to claim deduction up to Rs 10,000 on interest earned from savings account, whether held with a bank (nationalised or co-operative) or post office in a single financial year.
And there is no change in existing slab rates...
Hence in situation 1 bank may deduct TDS on excess of 10000 @ 10% (i.e., 50k-40k)... Tax calculation is same as applicable to A.Y.18-19 and claim TDS as deducted and pay if any payable.....
however in situation 2 bank didn't deduct any TDS as limit doesn't exceed 40k... Remaining process is same...
Finance Minister in his budget 2019 speech has proposed to raise the TDS threshold for interest earned on bank and post office deposits to Rs 40,000 from the current Rs 10,000.
The above is not to be confused with the existing deduction allowed under section 80TTA.
As per this section, Individuals below age of 60 years can continue to claim deduction up to Rs 10,000 on interest earned from savings account, whether held with a bank (nationalised or co-operative) or post office in a single financial year.
And there is no change in existing slab rates...
Hence in situation 1 bank may deduct TDS on excess of 10000 @ 10% (i.e., 50k-40k)... Tax calculation is same as applicable to A.Y.18-19 and claim TDS as deducted and pay if any payable.....
however in situation 2 bank didn't deduct any TDS as limit doesn't exceed 40k... Remaining process is same...
Mohammad Rafiuzama
(83 Points)
Replied 01 February 2019
Under situation 1 Bank will deduct TDS and deducted TDS to be subtracted from tax before cess and calculate the total tax payable. I miss this in while calculate.
Recent Topics
- Softex For freelancer ?
- GST ON REIUMBURSEMENT ENTRY ON GST PORTAL
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
- WHETHER ITC REVERSAL TH. GSTR 3B OR DRC03
- Advance Tax For Freelancers
- Is fvu 8.8 version available ?
- Interest and penalty on advance tax shortfall
- Joint Account with 3 legal heirs.......
Related Threads
CAclubindia
