1) Introduction of a new tax regime in Budget 2020

By now, you probably know the basics of the new income tax regime, but here is a quick recap for you. The new regime comes with reduced tax rates than the current one but without many deductions and exemptions. For instance, if you claim tax exemptions and deductions of over Rs 2.5 lakh in a year (including the Rs 50,000 standard deduction), you will not gain from the new structure. Exemptions like HRA and housing loan interest, which make up a significant amount, cannot be claimed under the new regime.

 

Tax pares will have to opt in which regime works for them, basis the amount of deductions/exemptions they wish to claim. Given below are the answers to some of your queries about the new income tax regime.

2) Are no deductions available under the new tax regime?

The new income tax regime allows a exemptions under section 80CCD (2) of the Income-tax Act, 1961, which is available if Deductor contributes to an employee's NPS account. The maximum deduction an employee can claim is 10% of salary (salary means basic plus dearness allowance).

3) Does the new regime offer a higher tax-exemption limit on income basis the age?

Unlike existing tax regime which offers higher tax-exemption limit for senior citizens (age 60 years and above but less than 80 years) and super senior citizens (age 80 years and above), the new tax regime does not.

4) Say my total taxable income in FY 2020-21 is Rs 4.90 lakh and I opt for the new regime. Do I have to pay tax?

In The new income tax regime also allowed to maximum Income tax rebate of Rs 12,500/- under section 87A of the Income-tax Act.to the Old Tax Regime. Therefore, an individual is not required to pay any tax on income up to Rs 5 lakh in FY 2020-21 if he/she opts for it.

5) How will my employer know which regime I want to be taxed at?

If you willing to opt for the new tax regime, you will have to inform your employer through the declaration form. The employer will start deducting TDS monthly, accordingly. This declaration will be appropriate  for the total financial year 2020-21. Those who do not inform their employer will continue to be taxed as per old regime. For them, the annual claiming of exemptions and deductions will go on as earlier.

6) For TDS purposes, can I switch between regimes while the financial year is going on?

No, once you decide, you cannot switch during the rest of the financial year as far as TDS is concerned. However, you will have the right to choose whether to exercise the option or not at the time of filing the return, which you will have to do this on their own, by claiming or forgoing relevant deductions and exemptions. Certain exemptions can only be claimed via the employer so these may not be available at the time of filing return. If the tax liability below lower, then the employee will have to claim a refund in the return.

Download Automated Income Tax Preparation Excel Based Software All in One for the Government and Non-Government (Private) Employees for the Financial Year 2020-21 and Assessment Year 2021-22 U/s 115BAC

 

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

On September 23, 2020 by www.taxexcel.net

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 Standard Deduction u/s 16(ia) first introduced in Budget from 2018, Advantage of Standard Deduction is just for Salaried Individuals. [ This Standard Deduction is not allowed to the New Tax Regime U/s 115 BAC for the F.Y.2020-21, who are opt in the New Tax Regime but who are opt in the Old Tax Regime they can get this benefits.]

Exemption from Income Tax u/s 16(ia) states that a tax payer having pay chargeable under the head 'Salaries' shall be allowed a deduction of Rs. 50,000/- or the amount of salary, whichever is less, for figuring his total pay. Presently all representatives will get a standard deduction of Rs.  50,000/- P.A.

 

Standard Deduction – First Introduced in Budget 2019

 

The Break Financial plan introduced on 1 February 2019 incorporated various tax benefits for the salaried and the working class. Among them, an additional amount of Rs. 10,000 to the Standard Deduction is an essential move. With the Standard Deduction being Rs 50,000/- now, it will help taxpayers monstrously to diminish their tax outgo

 

From the above, it is clear that the taxable salary has descended on account of the standard deduction.

 

Benefits of the taxpayers

 

In an ongoing clarification issued by the annual tax department, if a taxpayer has gotten a benefits from the former boss, it is taxable under the head 'Salaries'. However, the taxpayer can claim a standard deduction of Rs. 40,000/- or the amount of annuity, whichever is less. Increased to Rs 50,000 for F.Y 2019-2020(A.Y 2020-21) and on-wards Financial Year.

Download Automated Excel Based Income Tax Salary Arrears Relief Calculator U/s 89(1) with Form 10E from the Financial Year 2000-01 to the Financial Year 2020-21 (Updated Version)

 

On September 22, 2020 by www.taxexcel.net

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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

Download Automated Income Tax Preparation Excel Based Software All in One for the West Bengal Govt.  Employees for the Financial Year 2020-21 and Assessment Year 2021-22 U/s 115BAC

 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

 

Download Automated Income Tax Preparation Excel Based Software All in One for the Government and Non-Government (Private) Employees for the Financial Year 2020-21 and Assessment Year 2021-22 U/s 115BAC

 

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

Download Automated Income Tax Preparation Excel Based Software All in One for the Government & Non-Govt (Private) Employees for the F.Y.2020-21 and A.Y.2021-22

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

On September 20, 2020 by www.taxexcel.net

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Salaried representatives structure the major portion of the general taxpayers in the nation and the commitment they make to the tax assortment is very huge. Income tax deductions offer a range of chances for sparing tax for the salaried class. With the assistance of these deductions and exemptions and, one could lessen his/her tax significantly.

In this article, we attempt to somebody of the major deductions House Rent Exemption U/s 10(13A) remittances, accessible to the salaried people, utilizing which one can lessen their income tax risk.

Download Automated Income Tax House Rent Exemption Calculator U/s 10(13A) in Excel which is relevant to assist to you for calculation and guess your exemption amount of your House Rent from the Income Tax

On September 19, 2020 by www.taxexcel.net

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Possessing a home can be considered as one of the most desirable wishes for the greater part of us. In any case, given the soaring costs of houses in the metros and even in Level II urban communities, it has become increasingly hard for individuals to afford it.

 

Therefore, the administration has concocted several key benefits under section 24(B) of the Personal Tax Act, 1961 to grant help by way of various tax breaks for purchasing a house as a way of rewarding anyone who puts resources into real estate.

 This article covers all the provisions under Sec 24( B) that assist you with bringing down your tax liability as a buyer.

 

What is The Exemption That Can be claimed Under Home Loan?

 

There are certain deductions you can claim and get and decrease your tax outgo on the off chance that you have salary from house property.

 

1. Standard Deduction

 

The standard deduction rate of 30% is applicable on the Net Yearly Expense of the property. The best part about this deduction is that it is allowed in any event, when the actual consumption on the property is sequential.

 

The normal costs that may be caused may be insurance, repairs, power, water gracefully, and so forth. An important highlight remember here is that as the Annual Value of a self-involved house is nil, the standard deduction applicable is also nil.

 

2. Exemption On The Interest Part Of The Home Loan Restrictions.

 

As a homeowner, you can claim a deduction up to INR 2 lakh on the interest of your home loan in the event that you are self involving the house. You can also claim this deduction if your home is vacant. In any case, in case you have let out your property, the whole interest on the home loan can be claimed as a deduction.

 

In any case, there are certain criteria you should meet else the deduction on interest will be restricted to Rs 30,000:-

 

•           The house loan taken should only be for the purchase and construction of the house;

 

•           The loan must be taken on or after first April 1999;

 

•           The purchase or the construction, whichever be the case for which the home loan is undertaken ought to be finished inside 5 years from the finish of the financial year in which the loan was taken

 

Apart from the conditions mentioned above, you ought to remember that an interest certificate is an unquestionable requirement for claiming a deduction for the interest payable.

Download Automated Income Tax Preparation Excel Based Software All in One for the West Bengal Govt.  Employees for the Financial Year 2020-21 and Assessment Year 2021-22 U/s 115BAC

 

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

On September 18, 2020 by www.taxexcel.net

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The new Income Tax slab has come into power in the nation from 1 April 2020. The new tax slab rates have been kept discretionary by the administration. On the off chance that a taxpayer is benefiting more from the old slab, he can document it. The Income Tax Division has given a clarification for the individuals who need to choose the new tax slab declared in the Financial plan 2020.

On September 15, 2020 by www.taxexcel.net

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The exceptions and deductions are not applicable here. This being said, the new tax system has its own benefits and negative marks.

The primary valid statement about the new system is that it is not totally replacing the old or a rather current system. The administration is not forcing the new rates and the new immediate tax system on the taxpayers.

On September 14, 2020 by www.taxexcel.net

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