Income Tax Calculator _{Last Updated : 20 Feb 2020}

News about Income Tax Calculator

• Online calculator to compare new vs old tax regime launched by income tax department

  An online calculator to help taxpayers compare the old tax regime with the new tax regime and calculate their tax liability for each system has been launched by the income tax department. This will help them understand how much tax they would have to pay under the old regime, which has higher taxes but exemptions and deductions, versus how much they would have to pay in the new regime, which has lower taxes but a flat rate without any exemptions and deductions. This online calculator is available on the official e-filing website of the income tax department of the government of India. There will be a comparative table that will also be displayed that shows the difference in taxes between the two systems. To know the taxable income, taxpayers across all the income tax slabs can fill in their estimated income annually from all sources as well as all the deductions and exemptions that they are eligible for. This will help them understand which tax system may be better for them in the long run.

  

  12 Feb 2020

• No angel tax if startups comply with DPPIT February notification

  The Central Board of Direct Taxes (CBDT) has stated that startups which have received notices of assessment under Section 56(2)(viib) of the Income Tax Act will not have to pay angel tax if they are compliant with the notice sent out in February by the Department of Promotion for Industry and Internal Trade (DPPIT). The DPPIT had taken measures for safeguarding startups from this particular section of the I-T Act. The section would have considered any excess of capital that was raised by startups as income which would then be taxable. Now the definition of startup has been amended by the DPPIT. There is now a relaxation in the procedures and conditions in which startups can avail exemption from angel tax. They can now avail exemption from this section of the I-T A, if they have previously received such notices. This does not apply to the issue of shares which exceeds the face value of the shares and which fulfill the DPIIT conditions. The notification states that all startups will receive exemption of angel tax irrespective of the share premium values if the aggregate amount of the share premium after issue or the proposed issue of the share and the paid-up share capital does not exceed Rs.25 crore.

  

  7 March 2019

• Bhubaneswar Municipal Corporation Hands Out Hand-Held Devices to North Zone Tax Collectors

  The Bhubaneswar Municipal Corporation, in an effort to digitally manage collections, has distributed to the North Zone tax collectors 13 hand-held devices. The collectors can now give citizens system-generated payment receipts at their homes. The Corporation Hall had organised a meeting where tax collectors received the devices from Mayor Ananta Narayan Jena, saying that it was the first step that the state had taken towards digitising the management of collections as the devices are GPRS-enabled. They work with SIM cards in the same manner as other smart devices.

  

  26 September 2018

• Indian Residents as well as NRIs can make the most of ELSS Tax Benefits

  Tax savings can be done under Section 80C of the Income Tax Act through equity-linked saving schemes. Investments in these schemes to the extent of Rs.1.5 lakh can be claimed as deductions, and these benefits can be claimed by Indian residents as well as non-resident Indians. In case you earn taxable income from other sources or a house property in India, it makes sense to invest in mutual funds. The taxation structure for mutual funds in India are such that capital gains from ELSSs are charged 15% tax if the units are redeemed within a year, and the tax rate applicable to them is 10% in case redemptions are made after a year. Moreover, long-term capital gains to the extent of Rs.1 lakh in a particular fiscal year are exempt from tax. However, short-term capital gains are added to the overall income of an individual and taxed at a marginal tax rate.

  

  31 August 2018

• More Than Half of Property Tax Payments Made Online

  More than 50% of the property tax collections in PCMC limits have been made online. According to the additional commissioner and head of the property tax department, Dilip Gawde, the collections made by the department amount to Rs.223.90 crore. These collections were made from more than two lakh property holders until the 8th of August. Out of the aforementioned amount, Rs.119.34 crore was collected from 1.08 lakh property holders online. The total number of property holders in the city is approximately four lakh. The facility to make tax payments only was made available only recently through the BHIM app launched by the Union Government, and has turned into quite a successful venture so far.

  

  27 August 2018

• The industry ministry targets ease of doing business at the district level

  An extensive action plan has been proposed by the commerce and industry ministry. This action plan includes the digitisation of land records and online publication of water tariff rates for users of all types. This decision has been taken to promote the ease of doing business at the district level. The recommendations are for different departments and offices at the district level. This includes the urban local bodies, district magistrate, sub registrar officer, stamps and registration department, Office of Collector, and municipal corporations. This decision has been taken as per the drafted plan that has been put in the public domain for stakeholders’ comments. At the district level, all the concerned offices and departments have been suggested by the ministry to put the primary focus on putting up all the relevant information on the websites and promote paperless transactions and digitisation of documents alongside.

  As per the recommendations, the designing and implementation of a system that enables the online submission of application, payment, tracking, and monitoring without the need for a point of touch would help in improving the ease of doing business. The DIPP also suggested that adding land and property tax payment records of the last 2 years also need to be digitised. The areas where the department has recommended reforms include starting a business, land record enabler, urban local body services, registration, paying taxes, obtaining the approval for construction, and paperless courts and law and order.

  

  23 August 2018

• GST on cement, ACs, and TVs likely to be cut: Arun Jaitley

  In a recent Facebook post, Union Minister Arun Jaitley wrote that the taxes have not been increased for any product under GST. He also added that GST Council is working on phasing out the highest tax slab under the GST system, i.e. 28%, gradually. The 28% tax slab will be levied only on luxury goods and sin goods once the revenues are stabilised. Other goods which are present in the highest tax slab other than the luxury goods and sin goods are cement, air conditioners, large screen televisions, and a few other goods.

  Jaitley said that earlier complicated indirect tax system was a “Congress legacy tax”. He also added that after taking the excise duty, Value Added Tax (VAT), and the central sales tax along with the cascading effect of the taxes, the tax rate worked out to 31%. The Union Minister concluded that the NDA government has successfully reduced the cost to the consumers of goods and also boosted the purchasing capacity and thus, added to the consumption in the Indian economy.

  

  20 August 2018

• Income Tax Department clears Rs.7,000 crore GST refunds of exporters

  The Income Tax Department (ITD) has refunded half of the pending Goods and Services Tax (GST) refunds of exporters within the first nine days of the ongoing special refund fortnight. The Central Board of Indirect Taxes and Customs (CBIC) tweeted that more than Rs.7,000 crore of IGST/ITC refunds has been already sanctioned in the ongoing Special Refund Fortnight.

  Exporters and traders were asked to visit their respective jurisdictional GST office or Customs House/Port during the time period from 31 May 2018 to 14 June 2018 and settle the pending claims. Due to various mismatches, refunds worth Rs.14,000 crore (approximately) were stuck. The CBIC had organised the special drive for fast track clearances. The refunds which were held up due to mismatches in the GSTIN mentioned in the shipping bills and the return forms were also allowed for clearance by the CBIC. However, these GST refunds were initiated and were based on the PAN of the exporters.

  

  15 June 2018

• No GST on free services banks offer, clarifies government

  The Central Board of Indirect Taxes and Customs (CBIC) has recently issued a 32-page document which covers all the frequently asked questions (FAQs). These FAQs are based on the topic of applicability of the Goods and Services Tax (GST) on the banking sector, the insurance sector, and the stock broking services.

  The month of April saw a lot of chaotic reactions when CBIC had sent service tax notices to the banks. These notices were issued to notifying the banks about the non-payment of service tax, interest, and penalty on some of the free services that are extended by the banks towards their customers. Following this incident, the Department of Financial Services had approached CBIC asking for a clarification on the subject. The recently issued FAQs are in relation to this. The FAQs have clearly stated that free services provided by the bank like ATM withdrawals, cheque book issuance, etc. will not be counted under the GST regime. However, the FAQ document also mentions that any “related activity” which attracts a separate charge will come under the Goods and Services Tax limits “if other elements of taxability” are present.

  

  7 June 2018

• Finance Secretary says that the fall in GST collection is not a matter to worry about

  After the fall in the amount of GST collection from Rs.1.03 lakh crore in April to Rs.94,016 crore in May, the Indian Finance Secretary Hasmukh Adhia said that there is nothing to be worried about. In a series of tweets published by him, Adhia said that April is traditionally the month of lowest collection. Thus, the comparison between the GST collection of April and May is not justified.

  Adhia tweeted, “As per the experience of last 5 years, the average collection of taxes on goods and services during April is approx 7.1 per cent of the annual taxes as against 11 per cent for March.”

  Revenue proceeds collected from Goods and Services Tax (GST) returns filed in April was a record amount of Rs.1.03 lakh crore, while the same for the month of May was Rs.94,016 crore. The returns filed in April were in regards to the business activities for the month of March and the returns filed in May were in regards to the business activities of April.

  

  6 June 2018

• BJP’s Sushil Modi deflates Centre’s GST way to bring down fuel prices

  The Deputy Chief Minister of Bihar, Sushil Kumar Modi told the press that it is a misconception that bringing petroleum products under the Goods and Services Tax (GST) regime, will lower the prices of fuel. This statement contradicted the claims of the central ministers who stated that bringing the fuel prices under GST will be a probable solution to control the rising prices of fuel.

  Recently, the fuel prices have hit record high rates and that has invited strong criticism from the opposition parties. The main reason behind the price rise is the surge in the global crude oil prices. However, fuel is heavily taxed by the central and state governments and that accounts for around 50% of the retail price of petrol and diesel.

  

  31 May 2018