Income Tax Slabs , Tax Rates for FY 2020-21 Old vs New and Changes in Budget

1. Restriction on employer contribution to PF.
a. Under this act contribution of employer to the account of employee in a recognized provident fund exceeding 12% of salary is Taxable.

b. Amount of Contribution to an approved superannuation fund by the employer exceeding Rs. 1,50,000 is treated as perquisite in the hands of employee.

c. Assesee is allowed a deduction under NPS for 14% of the salary contributed by central government and 10% salary contributed by any other employer.

d. Its is proposed to provide a combined upper limit of Rs, 7,50,000 in respect of employer's contribution in a year to NPS.


2. TCS on foreign remittance through LRS.
Proposed to amend Section 206C.

a. Scope and Coverage : Authorised dealer shall be liable to collect TCS if he receives in aggregate Rs. 7,50,000 or more in a financial year from the person for remittance out of Inida under the LRS of RBI.

b. Rate : 5% However in non PAN / Aadhaar case , rate shall be 10%.

c. Not applicable if buyer has deducted TDS under any provision of the Act.

3. New Residency Rules for Individuals. - It is proposed to amend section 6 of Income Tax Act.

4. TCS on Sale of Goods
a. Scope and Coverage : Seller of goods is liable to collect TCS whose total turnover from the business carried on by it exceeds 10 crore during the immediately preceeding FY.

b. Ceiling Limit : Consideration received from buyer in previous year in excess of Rs. 50 Lakh.

c. Rate : 0.1% on consideration received from Buyer. However, higher rate of 1% in Non Pan ? Aadhaar Cases.

d. No TCS to be collected under this section, if TCS is already collected under other provisions or TDS has been deducted under any other provision.

5. 194C for Contract Manufacturing

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