Include CAs in the Vaccination and Professional Work Priority Group: KSCAA

Include CAs in the Vaccination and Professional Work Priority Group: KSCAA

The Karnataka State Chartered Accountants Association (R) (abbreviated as ‘KSCAA’) is a Chartered Accountants Association founded in 1957 under the Karnataka Societies Registration Act. KSCAA was established largely for the benefit of chartered accountants, and it represents them before various regulatory bodies in order to alleviate problems and hardships that they and the business community confront.

The Institute of Chartered Accountants of India (ICAI), a main statutory body formed by an Act of Parliament, The Chartered Accountants Act 1949 (Act No XXXVIII of 1949), for regulating the profession of Chartered Accountancy in India, is predominantly made up of Chartered Accountants. The ICAI is the world’s second-biggest professional organisation of chartered accountants, with a long history of public service to the Indian economy.

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We congratulate and praise the efforts of the Government of Karnataka and the whole State Administration in restricting the spread of the Coronavirus in the state, which has resulted in a steady and gradual drop in the number of Corona positive cases over the past few days.

It is important to note that we CAs have the professional expertise, extensive experience, and in-depth knowledge in the areas of financial controls, financial accounting, financial audit, and risk management and that these skill-sets could be very useful to the government in improving financial management in relation to Covid relief and containment activities.

GST Council to meet Saturday, discuss tax exemption on Covid-19 essentials

CAs should make an effort to fulfil their social obligations by delivering professional services outside of the business sector and to the general public while remaining faithful to their position as partners in national development. It would be an honour and privilege for us at KSCAA to work in the public interest in collaboration with the Government of Karnataka in the fight against Corona by assisting in the implementation and operation of financial discipline and financial controls in the mobilisation and use of public resources.

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The Chartered Accountants (CA) profession has always worked to uphold the ethos of Partners in Nation Building, and it has been their constant effort to keep India’s economy and financial system afloat. The CAs work closely with the government and its regulatory bodies on the one hand, and the diligent and hardworking taxpayers of our country on the other, ensuring that taxpayers comply with all fiscal statutes, such as the GST and income tax, and pay their share of lawful taxes to the government in a lawful and timely manner. Aside from fiscal statutes, the CAs are also in charge of ensuring that persons and corporations follow other rules and regulations.

We are optimistic that your good selves will go to great lengths to ensure that necessary steps are taken in this regard to provide much-needed relief by classifying CAs as PRIORITY GROUP and thus help expedite vaccination of our CA members, their staff, and their families, as well as ensuring that our CA members and staff perform their functions in a very smooth, efficient manner.

How to know which income tax slab you fall in?

If your income level rises, income will be taxed at various rates, called slab rates, at different levels or in different categories. In order to know how much of your tax liability will be in FY 2019-20, it’s important to know what income tax slab you fall into.

While doing your FY2019-20 tax planning, it’s important to know which tax slab your income falls into. The slab rate of your income will fall at is the rate your last income rupee will be taxed at.

These are the current income tax slabs:


Income tax slabs available to citizens below 60 years of age for the 2019-20 financial year. The surcharge derives from earnings above Rs 50 lakh. Cessation of health and education will be added to the income tax payable in all cases at a rate of 4 percent. The Rs 12,500 rebate is eligible under section 87A for persons with a net taxable income of up to Rs 5 lakh.

Suppose your total gross revenue in Financial Year 2019-20 is Rs 15 lakh. The first Rs 2.5 lakh from your Rs 15 lakh income will be exempted from tax from the income tax slab rates given above. This is because there is no income tax up to Rs 2.5 lakh as shown in point (a) according to the existing income tax rates.

After this, the money left in your hands (Rs 15 lakh-Rs 2.5 lakh) is Rs 12.5 lakh which is still taxable. The next Rs 2.5 lakh (i.e., Rs 5 lakh minus the tax-exempt Rs 2.5 lakh) will be taxed at 5 percent from point (b). So your income tax liability at this point would be Rs 12, 500 (5 percent of Rs 2.5 lakh).

Calculation of income tax for gross total income of Rs 15 lakh

The taxable income is Rs 10 lakh (Rs 12.5 lakh minus Rs 2.5 lakh which is taxed at 5 percent). From point (c), the next Rs 5 lakh (i.e. Rs 10 lakh minus Rs 5 lakh) of your profits will be taxed at a rate of 20 percent out of Rs 10 lakh. The tax liability is Rs 1 lakh here (20 percent of Rs 5 lakh).

Your total tax liability will then become Rs 1,12,500 (Rs 1 lakh plus Rs 12, 500). Remember, still the last rupee you do need to tax your income. Thus, from the gross total income of Rs 15 lakh, income up to Rs 10 lakh is only offered for tax purposes, until the point (c). Rs 5 lakh (Rs 15 lakh minus Rs 10 lakh) is the income left to be taxable now.


This Rs 5 lakh income will be taxed at 30 percent from point (d). In this case, the income tax liability would be Rs 1.5 lakh (30 percent of Rs 5 lakh). Your highest income slab is then taxed at 30 percent. The income tax slab under which the last rupee of your income is is taxed usually called the income tax slab you fall into.


Infact, any income above Rs 10 lakh is taxed at 30%. There will also be an income tax surcharge imposed at various income rates if the income is greater than Rs 50 lakh.

From above points(a), (b), (c) and (d), your total income tax liability is Rs 2,62,500. The cess will be applied to Rs 2,62,500 at a rate of 4 percent. The cess amount will be Rs 10,500 (4% of amount from Rs 2,62,500).
The total tax obligation you pay is Rs 2,73,000 (including the cess).

How to Lower the Tax Outgo

How to Lower the Tax Outgo

There are several tax exemptions and deductions available under the Income-Tax Act, 1961, which may help an individual taxpayer to lower his tax outgoing. These include house rent allowance (HRA) tax exemption, leave travel allowance, interest earned from the savings account from the post office etc. Similarly, under section 80C, individuals can claim maximum deduction of Rs 1.5 lakh by investing in specified tax-saving instruments.

Premium paid on health insurance can help you save tax under section 80D and deduction of up to Rs 10,000 can also be claimed under section 80TTA (by persons under the age of 60) on interest earned on savings account kept with bank and/or post office.

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Two Options for Tax payers – Either enter the scrip wise details of long term capital gains or aggregate value

  • 23 Jul 2019
  • IT Assessment
  • Comments Off on Two Options for Tax payers – Either enter the scrip wise details of long term capital gains or aggregate value

After numerous tax payers discovered cumbersome to give all data in case of Capital Gains, Income Tax Department has additionally explained following:

Schedule 112A and 115AD(1)(iii) of long term capital gain are given in the Income Tax Return software according to the Instructions to the Notified ITR form and based on tax payer feedback.Taxpayers have a choice to either enter the Scrip wise details of long term capital gains in Schedule 112A and 115AD(1)(iii) so the right values are populated in the CG Schedule or enter self determined total estimation of long term capital gains directly under particular things in schedule CG in terms with Sec 112A or 115AD(1)(iii) without entering scripwise details. Tax payers may practice either option based on their convenience.

It would be interesting to perceive how software organizations and CAs will managed the ongoing change wherein both options are given.

Contact Certicom Consulting for more information.