How income is calculated under Wealth Tax explain with example?
The wealth tax is calculated at 1% on net wealth above ₹30 lakh. If your net wealth for the financial year is ₹50 lakh, 1% wealth tax will be charged on ₹20 lakhs. (₹50 lakhs – ₹30 lakhs exemption = ₹20 lakhs) So, the final amount payable will be ₹20,000/- as its 1% on ₹30 lakh.
What are the slabs of income tax?
Income Tax Slabs & Rates 2020-2021
| Income Tax Slab | Tax rates as per new regime |
|---|---|
| ₹2,50,001 – ₹ 5,00,000 | 5% |
| ₹5,00,001 – ₹ 7,50,000 | ₹12500 + 10% of total income exceeding ₹5,00,000 |
| ₹7,50,001 – ₹ 10,00,000 | ₹37500 + 15% of total income exceeding ₹7,50,000 |
| ₹10,00,001 – ₹12,50,000 | ₹75000 + 20% of total income exceeding ₹10,00,000 |
What is form BB return of net wealth?
Form BB is a wealth tax form which has been introduced as a replacement for Form BA, which was in use until the financial year 2014-15. Form BB is used for the purpose of filing wealth tax returns. Wealth tax is imposed on those taxpayers who comprise richer sections of the society.
What is the limit of wealth tax?
Rs. 30 lakhs
If the total net wealth of an individual, HUF or company exceeds Rs. 30 lakhs, on the valuation date, tax @1% will be leviable on the amount in excess of Rs. 30 lakhs. Every person whose net wealth exceeds such limit shall furnish a return of net wealth.
What is taxable income in India with example?
Taxable Income Slab Rates
| Taxable income slab | Taxable income rates |
|---|---|
| For total income Rs. 0 – Rs. 3.00 lakh | NIL |
| For total income between Rs 3.00 lakh- Rs 5.00 Lakh | 5% |
| For total income between Rs 5.00 lakh – Rs 10 Lakh | 20% |
| For income that exceeds Rs.10 Lakh | 30% |
Which slab is better for income tax?
And in the new regime, they will be taxed at half that rate i.e. 10%. Also, those with an annual income of Rs. 7.5 lakhs to Rs. 10 lakhs will have to pay a 15% income tax….Old vs New: A Comparison For Different Slabs.
| Income tax slab for FY 2020-21 old regime | Annual Income | New Regime FY 2020-21 |
|---|---|---|
| 30% | Rs. 15 and above | 30% |
Who should file BB form?
Form BB is used for filing Wealth Tax Returns which can be done online. Individuals, HUFs and Companies whose net wealth exceeds a specified taxable limit (as per the Wealth Tax Act for that particular AY) must file Form BB. Note that no wealth tax is levied from AY 2016-17 onwards.