Salaried representatives form the major piece of the overall taxpayers in the nation and the commitment they make to the tax assortment is very significant. Annual tax deductions offer a gamut of chances for saving tax for the salaried class. With the assistance of these deductions and exclusions and, one could decrease his/her tax substantially.
In this article, we attempt to show a portion of the major deductions and allowances, available to the salaried persons, utilizing which one can lessen their annual tax liability.
1. Standard Deduction
The Indian Finance Priest, while introducing the Association Spending plan 2018, announced a standard deduction amounting to Rs. 40,000 for salaried workers. This was in the place of the transport allowance (Rs. 19,200) and medical reimbursement (Rs. 15,000). Subsequently, salaried individuals could avail an additional annual tax exception of Rs. 5,800 in FY 2018-19. The constraint of Rs. 40,000 has been increased to Rs. 50,000 In the meantime Spending plan 2019. Read more on Standard Deduction
Feature of this Excel Utility:-
1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) This Excel Utility has the all amended Income Tax Section as per Budget 2020
3) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
4) Individual Salary Structure as per the West Bengal Govt. Employees Salary Pattern as per ROPA-2019
5) Individual Salary Sheet
6) Individual Tax Computed Sheet
7) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
8) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
10) Automatic Convert the amount in to the in-words without any Excel Formula
2. Section 80C, 80CCC and 80CCD(1)
Section 80C is the most widely utilized alternative for saving personal tax. Here, an individual or a HUF (Hindu Unified Families) who contributes or spends on stipulated tax-saving avenues can claim deduction up to Rs. 1.5 lakh for tax deduction. The Indian government too underpins a couple as the tax saving instruments (PPF, NPS and so on.) to encourage individuals to save and contribute towards retirement. Uses/venture u/s 80C isn't allowed as a deduction from salary arising because of capital gains. It means that on the off chance that the pay of an individual involves capital gains alone, then Section 80C cannot be utilized for saving tax. Some of such ventures are given underneath which are qualified for an exclusion under Section 80C, 80CCC and 80CCD(1) up to a maximum of Rs 1.5 lakh.
• Life insurance charge
• Equity Connected Savings Plan (ELSS)
• Employee Opportune Store (EPF)
• Annuity/Benefits Plans
• Principal payment on home loans
• Tuition charges for kids
• Contribution to PPF Account
• Sukanya Samriddhi Account
• NSC (National Saving Certificate)
• Fixed Store (Tax Savings)
• Post office time stores
• National Annuity Plan
Feature of this Excel Utility:-
1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) This Excel Utility has the all amended Income Tax Section as per Budget 2020
3) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Updated Version)
4) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
5) Individual Salary Structure as per the Govt and Private Concern’s Salary Pattern
6) Individual Salary Sheet
7) Individual Tax Computed Sheet
8) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
9) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
10) Automatic Convert the amount in to the in-words without any Excel Formula
3. Medical Insurance Deduction (Section 80D)
Section 80D is a deduction you can claim on medical costs. One could save tax on medical insurance charges paid for the health of self, family and ward parents. The breaking point for Section 80D deduction is Rs 25,000 for charges paid for self/family. For charges paid for senior resident parents, you can claim deductions of up to Rs 50,000. Additionally, health tests to the degree of Rs 5,000 are also allowed and secured inside as far as possible. Your boss may pay premium on your behalf and deduct it from your salaries. Such excellent paid is also qualified for deduction under section 80D.
4. Enthusiasm on Home Loan (Section 80C and Section 24)
Another key tax saving tool is the intrigue paid on home loans. Homeowners have the choice to claim up to Rs. 2 lakh as a deduction for enthusiasm on home loan for self-involved property. On the off chance that the house property is let out, you can claim a deduction for the whole enthusiasm pertaining to such a home loan. Please note that from FY 2017-18, the misfortune from house property that can be set off against other wellsprings of pay has been limited to Rs. 2 lakh. In addition to the above, one can also claim the principal segment of the lodging loan repayment as a deduction under 80C up to a maximum restriction of Rs 1.5 lakh. Read more about deductions from house property
5. Deduction for Loan for Higher Examinations (Section 80E)
Personal Tax Act gives a deduction to enthusiasm on education loans. The significant conditions attached to claiming such deduction are that the loan ought to have been taken from a bank or a financial foundation for pursuing higher investigations (in India or abroad) by the individual himself or his mate or youngsters. One may start claiming this deduction starting from the year in which the loan starts getting repaid and up to the following seven years (for example total of 8 A.Y.) or previous repayment of the home loan, which comes to earlier. Indeed, even a legal guardian could avail this annual tax deduction. Read more about deductions from Section 80E
6. Deduction for Donations (Section 80G)
Section 80G of the Personal Tax Act, 1961 offers annual tax deduction to an assessee, who makes donations to charitable organizations. This deduction varies based on the getting organization, which infers that one may avail deduction of half or 100% of the amount donated, with or without limitation. Read more about Section 80G
7. Deduction on Savings Account Intrigue (Section 80TTA)
Section 80TTA of the Personal Tax Act, 1961 offers a deduction of up to INR 10,000 on pay earned from savings account premium. This exclusion is available for Individuals and HUFs. In case the pay from bank premium is not as much as INR 10,000, the entire amount will be allowed as a deduction. In any case, in case the salary from bank premium surpasses INR 10,000, the amount after that would be taxable. Read more about deduction from Section 80TTA
8. Additional Deduction for Enthusiasm on Home Loan (Section 80EE)
Section 80EE allows homeowners to claim an additional deduction of Rs.50,000 (Section 24) for intrigue segment of the home loan EMI. Given, the loan must not be for more than Rs 35,00,000 and the value of the property must not be more than Rs 50,00,000. Furthermore, the individual must not have any other property enrolled under his name at the time the loan is sanctioned. Read more about deduction from Section 80EE
Feature of this Excel Utility:-
1) This Excel utility prepares and calculate your income tax as per the New Section 115 BAC (New and Old Tax Regime)
2) This Excel Utility has an option where you can choose your option as New or Old Tax Regime
3) This Excel Utility has a unique Salary Structure for Government and Non-Government Employee’s Salary Structure.
4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Update Version)
5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
6) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
7) Individual Salary Sheet
