Showing posts with the label changes in tax

Key Tax Changes w.e.f 01.04.2020 Part 2

My Dear readers, followers, taxpayers & clients,   Welcome to my blog. Get yourself update with changes in tax structures. I wrote in previous blog some key changes on tax structure. Now, let see some another key changes in this second part. Even while the country is in a complete lockdown to control the spread of Coronavirus in the country, the new financial year (FY) 2020-21 has started from April 1. For income tax purpose, while the FY 2020-21 has begun on April 1 and will end on March 31, 2021, the relevant assessment year (AY) will be AY 2021-22.   All income earned during the FY is assessed in the AY and income tax return for FY 2020-21 is accordingly filed in the AY 2021-22. As a taxpayer and even if one is not a taxpayer, there have been several important changes that one needs to be aware of. Here are a few of those key income tax changes effective April 1, 2020. 1. Financial Year not extended It is important to note that contrary to the concern raised

Key Changes in Income Tax w.e.f. 01st April 2020

My Dear readers, followers, taxpayers & clients, Welcome to my blog. Get yourself update with changes in tax structures.           Now, our Financial Year 2020-21 started from 01 st April 2020. Also, we knew that, there were some changes made in tax structure in the Budget 2020-21 held in Feb 2020. So I want to share some of these with all of You. 1) Taxpayers can now choose between two options ( one claiming deductions, other not claiming deductions ) to arrive at their tax liability. They can choose options beneficial to them. ( I will discuss in detail in next blog.) 2) Salary taxpayers can switch between two options every year, whereas businessmen and professionals can choose it only once. 3) The dividend would now be taxed in hands of taxpayers. No DDT to be paid by companies. Also, a surcharge on dividend income capped at 15 percent of dividend income. 3) TDS to be deducted on dividend payment by the company or mutual funds on the amount exceeding