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Calculate tax paypal by an individual who is ordinary resident in India for the previous year 2020 if he is left old system of declaration a other income 16 lakh agriculture income to 25000 other income to lakh agricultural income 20000 an absorbed agriculture loss in case of a 7000 broch forward from the assessment year 2021 is there any benefit to him if he ops new system of taxation?
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Calculate tax paypal by an individual who is ordinary resident in Indi...
Tax Calculation under Old Regime
In the previous year 2020, the individual's income sources and calculations under the old tax regime are as follows:
- **Total Income:**
- Agricultural Income: ₹25,000
- Other Income: ₹16,00,000
- Agricultural Income: ₹20,000
- Total Income = ₹16,00,000 + ₹25,000 + ₹20,000 = ₹16,45,000
- **Agricultural Loss:**
- Absorbed Agricultural Loss: ₹7,000
- Net Taxable Income = ₹16,45,000 - ₹7,000 = ₹16,38,000

Tax Calculation under New Regime
If the individual opts for the new tax regime, the following points apply:
- **New Tax Regime:**
- The new regime offers lower tax rates but does not allow many deductions.
- Agricultural Income is exempt and does not affect tax slabs.
- **Taxable Income Calculation:**
- Total Taxable Income = ₹16,00,000 (as agricultural income is exempt)


Comparison of Tax Benefits
- **Old Regime Benefits:**
- Deductions allowed on various investments and expenses.
- Absorbed agricultural losses can be set off against other income.
- **New Regime Benefits:**
- Lower tax rates but limited deductions.
- For income above ₹15,00,000, the tax rate is 30%, without the benefit of deductions.

Conclusion
- **Tax Impact:**
- Under the old regime, the individual has a higher taxable income due to deductions but can benefit from the exemptions and lower effective tax with various deductions.
- The new regime simplifies tax calculation with lower rates but offers limited deductions.
- **Recommendation:**
- Evaluate the total tax outflow under both regimes, considering the individual’s investment habits and future planning. If deductions are significant, sticking to the old regime may be beneficial.
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Calculate tax paypal by an individual who is ordinary resident in India for the previous year 2020 if he is left old system of declaration a other income 16 lakh agriculture income to 25000 other income to lakh agricultural income 20000 an absorbed agriculture loss in case of a 7000 broch forward from the assessment year 2021 is there any benefit to him if he ops new system of taxation?
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Calculate tax paypal by an individual who is ordinary resident in India for the previous year 2020 if he is left old system of declaration a other income 16 lakh agriculture income to 25000 other income to lakh agricultural income 20000 an absorbed agriculture loss in case of a 7000 broch forward from the assessment year 2021 is there any benefit to him if he ops new system of taxation? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Calculate tax paypal by an individual who is ordinary resident in India for the previous year 2020 if he is left old system of declaration a other income 16 lakh agriculture income to 25000 other income to lakh agricultural income 20000 an absorbed agriculture loss in case of a 7000 broch forward from the assessment year 2021 is there any benefit to him if he ops new system of taxation? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate tax paypal by an individual who is ordinary resident in India for the previous year 2020 if he is left old system of declaration a other income 16 lakh agriculture income to 25000 other income to lakh agricultural income 20000 an absorbed agriculture loss in case of a 7000 broch forward from the assessment year 2021 is there any benefit to him if he ops new system of taxation?.
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