If an individual is earning an amount of Rs. 1,50,000/- in previous year then for AY 2020-21 his income tax will be
Answers
Answer:
nil
Explanation:
because upto 250000/- amount of tax will be zero
Answer:
With the financial year 2019-20 , it’s time for salaried and self-employed individuals to focus on income tax calculation and filing of IT returns. The tax calculation for this financial year will be based on the income tax slabs for the assessment year 2020-21. To understand how to go about computing your tax liability, you need to begin by calculating your total income. You then need to account for any deductions or tax-saving investments you may have. Then, identify the income tax slab that applies to you to arrive at your tax liability. Here’s a closer look at the details of this step-by-step process.
Step 1: Calculate your total income
There are 5 heads of income under which your income is classified. These heads are listed below.
1. Income from salary: This includes all the income earned as part of your salary. You can find these details in the Form 16 issued by your employer.
2. Income from house property: If you own a house property that you’ve let out as a rental, the rental income earned from that property falls under this head of income.
3. Income from business or profession: For self-employed individuals practicing their own business or profession, the income earned is classified as business income.
4. Income from capital gains: Any profits arising out of the sale of a capital asset during the financial year is taxed under this head of income. Capital assets include land, building, bullion, jewelry, bonds, and stocks, among others.
5. Income from other sources: Any other income that cannot be classified under the above-mention heads is taxed as an income from other sources. Some examples include interest on fixed deposits, dividends earned, and lottery winnings.