Income Tax Software Tools

By HSSLiVE.IN - Saturday, January 11, 2020 - 6 Comments

Income Tax Calculator Software for 2019-20

The Income tax for the financial year 2019-20 should be calculated and be paid completely with the salary bill for the month of February 2020. The software tools for doing these calculations and preparing statements are ready for use. Tax is calculated and remitted for the income of the period- from April 1st to March 31st. Since the salary for a month is encashed and received in the next month, inclusion of the salary for the month of March of the previous year and exclusion of the salary of the present year March exist(ie March 2019 to February 2020). All deductions that are possible till March 31st should be considered while calculating the tax amount. Salary means Basic salary, Dearness Allowance, House Rent Allowance, Earned leave Surrender, Festival allowance, bonus, pay revision arrear etc have to be included for tax calculations.

How to Prepare Income Tax Statement

How to Prepare Income Tax Statement for 2019-20. Guidelines Prepared by Alrahiman[PDF]

Net Salary,Gross Salary and Taxable Income

After calculating gross income as said above, the things given below can be deducted.

1.House Rent Allowance (HRA)

2.Vehicle Allowance

3.Amount remitted towards professional tax

The salary received after above said deductions from the gross salary income is called Net salary Income. The income received from rented buildings, business and professional capital gains, income from other sources should be added with this. The income from other sources added to the Net salary is known as Gross Income. As per chapter VI A, 80c, 80ccc, 80CCD sections, maximum Rs.1,50,000/- can be lessened. Apart from this 80CCD(1), 80CCG,80D, 80DD, 80DDB, 80E,80EE,80G,80U deductions are allowed.

The amount of income received after all said deductions should be rounded off to next 10 Rs amount. It is called the Taxable income. This income is considered for tax rate to be remitted. With the tax amount calculated, 2% education cess, 1% secondary and higher education cess (total -3%) should be added. The amount received thus is the tax to be remitted.

Tax Slab 2019-20

The significant change in the tax rate of the present year is the standard deduction of Rs.50000.

Category	Taxable Income	Tax Rate
Till the age of 60	Taxable upto Rs.2.5 lakh	Nil
	Above Rs 2.5 lakh to 5 lakh	5%
	Upto Rs.10 lakh	20%
	Above Rs.10 lakh	30%
From the age of 60	Taxable upto Rs.3 lakh	Nil
	Above Rs 3 lakh to 5 lakh	5%
	Upto Rs.10 lakh	20%
	Above Rs.10 lakh	30%
From the age of 80	Taxable upto Rs.5 lakh	Nil
	Above Rs 5 lakh to 10 lakh	20%
	Above Rs.10 lakh	30%