INDIVIDUAL TAXATION (AY 2019-20)

& Return filing with screenshot

Prepared By: Bhuwan Tewari

Date:-16/05/2023
 Points of Presentation
 Introduction & Background
 Why, Need
 Heads of Income , Slab in India
 Exemptions
 Deduction
 ITR filing procedures
 Payment of Tax/Refund
 Benefits of ITR filing
 Conclusion
 Brief History of Income Tax in India:

“In this world nothing can be said to be certain, except

death and taxes.”
Benjamin Franklin

 Tax is a mandatory liability for every citizen of the country. There are two types of tax in
India i.e. direct and indirect.

 Taxation in India is rooted from the period of Manu Smriti and Arthasastra. Present Indian
tax system is based on this ancient tax system which was based on the theory of
maximum social welfare.
 Brief History of Income Tax in India:

 In India, this tax was introduced for the first time in 1860, by Sir James Wilson in order to meet the
losses sustained by the Government on account of the Military Mutiny of 1857.

 In 1918, a new income tax was passed and again it was replaced by another new act which was
passed in 1922.This Act remained in force up to the assessment year 1961-62 with numerous
amendments.

 In consultation with the Ministry of Law finally the Income Tax Act, 1961 was passed. The Income
Tax Act 1961 has been brought into force with 1 April 1962. It applies to the whole of India and Sikkim
(including Jammu and Kashmir).
Since 1962 several amendments of far-reaching nature have been made in the Income Tax Act by
the Union Budget every year.
 Present Scenario in India in case of ITR

Number of ITR return filed

Number of new ITR Filers
68,400,000
54,300,000 9,949,000

37,900,000

8,551,000
2013-14 2016-17 2017-18

2016-17 2017-18
People raise the question 'Why should I pay tax?
They argue:

 I have to pay for my food, for my house, for my travel, for my medical treatment, for

owning a vehicle not only cost of vehicle but also vehicle tax and what not.

 Even on many roads, one has to pay toll tax! They also say that if we compare with

countries like USA and UK, the people get social security as also medical facilities

virtually without any cost. But India does not offer such facilities.
 Allowances Exempt under Section 10(14)
(I)-No limit
 Travelling Allowance
 Daily Allowance
 Conveyance Allowance:-This is the different allowance than
transport allowance. It is the expenditure granted to an employee to
meet the expenses on conveyance in performing of his office duties.
 Helper Allowance
 Academic Allowance:- Allowance granted for encouraging academic,
research & training pursuits in educational & research Institutional.
 Uniform allowance
 “standard deduction” of Rs. 40,000.

Particulars Until AY 2018-19 From AY 2019-20

Gross Salary (in Rs.) 5,00, 000 5,00,000
(-) Transport Allowance 19,200 Not Applicable
(-) Medical Allowance 15,000 Not Applicable
(-) Standard Deduction Not Applicable 40,000
Net Salary 4,65,800 4,60,000

Benefit of Extra 5,800 now available

 Deduction U/s (16)
There are basically two deduction

1.) Entertainment Allowance [Section 16(ii)] -(Government Employees)

2.) Professional Tax [Section 16(iii)] -(KIPL- 2,350/-)
 Income from House Property
Particulars Amount (Rs.)

Gross Annual Value xxx

Less: Municipal taxes (xxx)

Net Annual Value xxx

Less: Deductions u/s 24 Standard deduction (xxx)

Deduction on interest paid (xxx)

Taxable income from house property

Deductions: 1. Standard Deduction u/s 24@30% of Annual Value

2. Interest paid on home loan( Max Rs. 200,000/-)
3. Loan Principle payment u/s 80C
4. Deduction for fist time home buyer u/s 80EE
 Deduction for fist time home buyer u/s 80EE

First time Home Buyers can claim an additional Tax deduction of up to Rs.50,000 on home loan interest
payments under this section. Below are the few conditions for this.
 He must be an individual (Resident or Non-Resident).
 Loan must be taken for the acquisition of the property.
 Loan should be sanctioned after 2016-17.
 Loan amount should not exceed Rs. 35 Lakh.
 The value of the house should not be more than Rs 50 Lakh.
 The home buyer should not have any other existing residential house during the sanction of loan.
Do remember that if you claimed the interest under this section, then the same can’t be claimed under other
sections for deductions.
 Income from Other Sources
1.) Income:
• Dividend
• Interest- From Savings, Term deposit, income tax refund, other
• Income of winnings from lotteries, crossword puzzles etc.,
excluding income from owning race horses
• Income from the activity of owning and maintaining race
horses
 Deductions under Chapter VI-A

Section 80E

 If the loan is taken by an individual for any study in India or outside India, then they can claim the
entire interest as deduction under this section. The loan must be taken from notified Financial
institutions/ Approved Charitable institutions or from any Banks.
 The interest part of the loan on such education loan can be claimed for deduction for pursuing
individual’s own education or for the education of his relatives (Spouse, children or any student for
whom the individual is legal guardian).
 The deduction under section 80E can be claimed for a maximum of 8 assessment years from the
year you start repaying the loan or the interest is fully repaid.
 Deductions under Chapter VI-A

Section 80G

 Donations to certain approved funds, trusts, charitable institutions/donations for

renovation or repairs of notified temples, etc can be claimed as a deduction under this
section.
 This deduction can only be claimed when the contribution made by cheque or draft or in
cash (for donations below Rs 2,000). In-kind contributions like food material, clothes,
medicines etc. do not qualify for deduction under this section.
 The various donations specified in Section 80G are eligible for a deduction of up to 100% or
50% with or without restriction, as provided in Section 80G.
 Deductions under Chapter VI-A

Section 80U

 To claim tax benefits under Sec.80U, the taxpayer should be an individual and resident of India.
 If he is suffering from 40% or more than 40% of any disability, then he can claim a tax deduction.
 The disability should also be certified by recognized medical authorities.
 You can claim the fixed deduction of Rs.75,000. a higher deduction of Rs.1,25,000 is allowed in
respect of a person with a severe disability (i.e. having a disability of 80% or above).
 Rebate under Section 87A

 The old tax regime remains the same, i.e. 12,500 for income up to Rs 5
Lakhs for FY 2023-24 (AY 2024-25)
 Under the new income tax regime, the amount of the rebate under Section
87A for FY 2023-24 (AY 2024-25) has been modified. A resident individual
with taxable income up to Rs 7 Lakh will receive a Rs 25,000 tax relief.
To avail this benefit, there are certain conditions and they are as below.
 The taxpayer must be a resident individual.
 Your Total Income (Less Deductions from 80C to 80U) is equal to or less
than Rs.5,00,000.
 The rebate is the 100% of income tax on such income or Rs.12,500 (old tax
 Income Tax E-Filing ( ITR-1)

Total ITRs are – ITR 1 to ITR 7

ITR-1
i. Earlier ITR-1 was applicable for both Residents, Residents Not ordinarily resident (RNOR) and also Non-
residents. Now, this form has been made applicable only for resident individuals

ii. The condition of the individual having income from salaries, one house property, other income and having total
income up to Rs 50 lakhs continues

iii. There is a requirement to furnish a break-up of salary. Until now, these details would appear only in Form 16
and the requirement to disclose them in the return had never arisen

iv. There is also a requirement to furnish a break up of Income under House Property which was earlier mandatory
only for ITR -2 and other forms
Name:-CA Sharda S. Shukla