How to Save Your Taxes For FY 2019-20 (Last Chance) By CA (CS) Ujjwal Jindal


Brief Summary:
This article provides valuable tips and suggestions to assist all the taxpayers in saving their taxes that are to be paid for the financial year 2019-2020. This article is packed with real-life comprehensive illustrations which shall give all the readers thorough insights to lower their tax incidence and will also help them understand the tax provisions & implications in a finer way.
In order to provide further relief to the taxpayers for making various compliances, the Government issued the above Notification.By virtue of the above mentioned notification, all the taxpayers have a last and final chance to save the taxes they have to pay for the financial year 2019-20 on their total income.
Description |
Implication |
FURTHER EXTENSION in the date for making investment/deposit/payment for claiming deduction under Chapter VIA-B
Date for making investment/deposit/ payment for claiming deduction under Chapter VIA-B which includes Section 80C (LIC, PPF, NSC, etc.), 80D (Mediclaim, etc.), 80G (Donations), etc. has been further extended to 31st July, 2020. |
1. Investments/Deposits/Payments can now be made up to 31.07.2020 for claiming deduction under these sections for financial year 2019-2020.
2. The deduction can be availed only once for a financial year and cannot be taken for both the financial years simultaneously. For example, Mr. Vineet can make PPF deposit on 31.07.2020 and claim the deduction for the same under section 80C for F/Y 2019-2020 or for F/Y 2020-2021. He cannot claim it for both the years simultaneously. |
FURTHER EXTENSION in the date for claiming deduction under Section 54 to 54GB
Date for making investment, construction or purchase for claiming roll over benefit or deduction in respect of capital gains under sections 54 to 54GB of the Act has been further extended to 30th September, 2020. |
The investment, construction or purchase made up to 30.09.2020 shall be eligible for claiming deduction from capital gains arising during F/Y 2019-2020. |
FURTHER EXTENSION in the date for Aadhaar-PAN linking
Extension of Aadhaar-PAN linking date to 31st March, 2021. |
The earlier date was 30th June, 2020.
To avoid penalty and invalidation of PAN, Aadhaar needs to be linked with PAN by 31.03.2021. |
FURTHER EXTENSION in the date for filing income tax return (ITR) for FY 2018-2019 (AY 2019-2020)
Date of filing ITR for FY 2018-19 further extended to 31st July, 2020. |
The time for filing of original as well as revised income tax returns for the FY 2018-2019 (AY 2019-2020) has been further extended to 31st July, 2020. |
EXTENSION in payment of Self-Assessment Tax if the tax liability is upto Rs. 1,00,000/- |
The date for payment of self-assessment tax in the case of a taxpayer, whose self-assessment tax liability is upto Rs. 1 lakh has been also extended to 30th November, 2020. However, it was clarified that there shall not be any extension in the date for the payment of self-assessment tax for the taxpayers having self-assessment tax liability exceeding Rs. 1 lakh. In this case, the whole of the self-assessment tax shall be payable by the due dates specified in the Income Tax Act and delayed payment would attract interest under section 234A of the Act. |
EXTENSION in the date for furnishing TDS/TCS statements and issuance of TDS/TCS certificates pertaining to FY 2019-2020
Date of furnishing TDS/TCS statements/certificates extended to 31st July, 2020 and 15th August, 2020 respectively. |
The furnishing of the TDS/TCS statements and issuance of TDS/TCS certificates being the prerequisite for enabling the taxpayers to prepare their return of income for FY 2019-20, the date for furnishing of TDS/TCS statements and issuance of TDS/ TCS certificates pertaining to the FY 2019-20 has been extended to 31st July, 2020 and 15th August, 2020 respectively. |
- this rebate is available to resident individuals only and not to HUFs.
- this rebate is only available when the total income does not exceed Rs. 5,00,000”
Statement showing computation of Total Income of Mr. Avinash and Tax payable thereon |
||
Description |
|
Amount (Rs.) |
Income under the head Salary |
|
7,81,000 |
Gross Salary |
8,31,000 |
|
Less: Standard Deduction |
50,000* |
|
Income under the head House Property |
|
(1,05,000) |
Less: Interest paid on loan taken for self-occupied house |
1,05,000 |
|
Gross Total Income (GTI) |
|
6,76,000 |
Less: Deductions under Chapter VI-A |
|
(1,75,000) |
80C – PF contributions & deposit in 5 year Fixed Deposit with PNB |
1,50,000 |
|
80D – Medical Insurance Premium paid |
25,000 |
|
Total Income (TI) |
|
5,01,000 |
Tax payable on total income |
|
12,700 |
Up to Rs. 2,50,000 |
NIL |
|
2,50,001 to 5,00,000 @ 5% |
12,500 |
|
5,00,001 to 5,01,000 @ 20% |
200 |
|
Less: Rebate on tax under section 87A |
(NIL as total income exceeds Rs. 5,00,000) |
NIL |
Add: Health and Education Cess @ 4% |
12,700 x 4% |
508 |
Total Tax Payable |
|
13,208 |
*Standard deduction increased from Rs. 40,000 to Rs. 50,000 by the Finance Act, 2019
Extract showing computation of Total Income of Mr. Avinash and Tax payable thereon |
||
Gross Total Income (GTI) |
|
6,76,000 |
Less: Deductions under Chapter VI-A |
|
(1,75,000) |
80C – PF contributions & deposit in 5 year Fixed Deposit with PNB |
1,50,000 |
|
80D – Medical Insurance Premium paid |
25,000 |
|
80G – Donation to PM Cares Fund |
1,000 |
|
Total Income (TI) |
|
5,00,000 |
Tax payable on total income |
|
12,500 |
Up to Rs. 2,50,000 |
NIL |
|
2,50,001 to 5,00,000 @ 5% |
12,500 |
|
5,00,001 to 5,01,000 @ 20% |
200 |
|
Less: Rebate on tax under section 87A |
(as total income is now not exceeding Rs. 5,00,000) |
12,500 |
Add: Health and Education Cess @ 4% |
12,700 x 4% |
NIL |
Total Tax Payable |
|
NIL |
Statement showing computation of Total Income of Mr. Zaid and Tax payable thereon |
||
Description |
|
Amount (Rs.) |
Income under the head Salary |
|
9,25,000 |
Gross Salary/Pension |
9,75,000 |
|
Less: Standard Deduction |
50,000* |
|
Income under the head House Property |
|
(2,00,000) |
Less: Interest paid on loan taken for self-occupied house |
2,15,000** |
|
Income under the head Other Sources |
|
56,000 |
Interest on Fixed Deposit with SBI |
56,000 |
|
Gross Total Income (GTI) |
|
7,81,000 |
Less: Deductions under Chapter VI-A |
|
(2,71,000) |
80C – PPF contribution |
1,50,000 |
|
80D – Medical Insurance Premium |
50,000 |
|
80G – Donations to PM-NRF |
21,000 |
|
80TTB – Interest on FD |
50,000*** |
|
Total Income (TI) |
|
5,10,000 |
Tax payable on total income |
|
12,000 |
Up to Rs. 3,00,000 |
NIL |
|
3,00,001 to 5,00,000 @ 5% |
10,000 |
|
5,00,001 to 5,10,000 @ 20% |
2,000 |
|
Less: Rebate on tax under section 87A |
(NIL as total income exceeds Rs. 5,00,000) |
NIL |
Add: Health and Education Cess @ 4% |
12,000 x 4% |
480 |
Total Tax Payable |
|
12,480 |
*Standard deduction increased from Rs. 40,000 to Rs. 50,000 by the Finance Act, 2019
Extract showing computation of Total Income of Mr. Zaid and Tax payable thereon |
||
Gross Total Income (GTI) |
|
7,81,000 |
Less: Deductions under Chapter VI-A |
|
(2,81,000) |
80C – PPF contribution |
1,50,000 |
|
80D – Medical Insurance Premium |
50,000 |
|
80G – Donations to PM-NRF & PM CARES |
31,000 |
|
80TTB – Interest on FD |
50,000 |
|
Total Income (TI) |
|
5,00,000 |
Tax payable on total income |
|
10,000 |
Up to Rs. 3,00,000 |
NIL |
|
3,00,001 to 5,00,000 @ 5% |
10,000 |
|
5,00,001 to 5,10,000 @ 20% |
2,000 |
|
Less: Rebate on tax under section 87A |
(as total income is now not exceeding Rs. 5,00,000) |
10,000 |
Add: Health and Education Cess @ 4% |
12,000 x 4% |
NIL |
Total Tax Payable |
|
NIL |
Statement showing computation of Total Income of Mr. Ram Gopal and Tax payable thereon |
||
Description |
|
Amount (Rs.) |
Income under the head Salary |
|
9,50,000 |
Gross Pension |
10,00,000 |
|
Less: Standard Deduction |
50,000* |
|
Income under the head House Property |
|
(2,00,000) |
Less: Interest paid on loan taken for self-occupied house |
2,55,000** |
|
Income under the head Other Sources |
|
58,000 |
Interest on Saving Bank Account |
58,000 |
|
Gross Total Income (GTI) |
|
8,08,000 |
Less: Deductions under Chapter VI-A |
|
(2,53,000) |
80C – 5 year FD with Post Office |
1,00,000 |
|
80D – Medical Insurance Premium paid and amount paid towards Preventive Health Check-up |
50,000*** |
|
80E – Interest on loan for higher education |
26,000 |
|
80G – Donations to PM-NRF |
27,000 |
|
80TTB – Saving Bank Interest |
50,000**** |
|
Total Income (TI) |
|
5,55,000 |
Tax payable on total income |
|
11,000 |
Up to Rs. 5,00,000 |
NIL |
|
5,00,001 to 5,55,000 @ 20% |
11,000 |
|
Less: Rebate on tax under section 87A |
(N/A here as the total income of Rs. 5,00,000 is already exempt) |
N.A. |
Add: Health and Education Cess @ 4% |
11,000 x 4% |
440 |
Total Tax Payable |
|
11,440 |
*Standard deduction increased from Rs. 40,000 to Rs. 50,000 by the Finance Act, 2019.
Extract showing computation of Total Income of Mr. Ram Gopal and Tax payable thereon |
||
Gross Total Income (GTI) |
|
8,08,000 |
Less: Deductions under Chapter VI-A |
|
(3,08,000) |
80C – 5 year Post Office FD & ELSS |
1,50,000 |
|
80D – Medical Insurance Premium paid and amount paid towards Preventive Health Check-up |
50,000 |
|
80E – Interest on loan for higher education |
26,000 |
|
80G – Donations to PM-NRF/PM CARES |
32,000 |
|
80TTB – Saving Bank Interest |
50,000 |
|
Total Income (TI) |
|
5,00,000 |
Tax payable on total income |
|
NIL |
Up to Rs. 5,00,000 |
NIL |
|
5,00,001 to 5,55,000 @ 20% |
11,000 |
|
Less: Rebate on tax under section 87A |
(N/A here as the total income of Rs. 5,00,000 is already exempt) |
N.A. |
Add: Health and Education Cess @ 4% |
11,000 x 4% |
NIL |
Total Tax Payable |
|
NIL |
Description |
Before |
Now |
- ITR by a Company or - Where there is Audit requirement under Income Tax Act or any other law or - ITR by a partner of a firm whose accounts are required to be audited |
31st October, 2020 |
30th November, 2020 |
Others |
31st July, 2020 |
30th November, 2020 |
Filing of Tax Audit Report |
30th September, 2020 |
31st October, 2020 |
- We advise all the taxpayers to file their ITRs only after 31st July, 2020 (being the extended last date for making investments/payments/deposits in order to claim deductions under chapter VIA-B i.e. 80C, 80D, 80G, etc.) so that they do not miss out on the last opportunity for claiming any deduction in a hurry to file for their ITRs.
- We advise all the taxpayers to file their ITRs only after 30th September, 2020 (being the extended last date for making investments/construction/purchase in order to claim roll over benefit/deductions under section 54 to 54GB, if applicable) so that they do not miss out on claiming any benefit/deduction in a hurry to file for their ITRs.
File your income tax returns in time to avoid last minute rush, late fees, interest, penalties and other statutory fines.
Click here to read the disclaimer
About Author
CA (CS) Ujjwal Jindal
Qualification: CA
Company: U J & CO.
Location: Delhi NCR
Member Since: 05 Jun 2020 | Total Articles Contributed: 5
About Author :
A first class commerce graduate (B.Com) from Delhi University.
An associate Company Secretary and
A practicing Chartered Accountant under the label U J & CO.
Write a Comment
