All the
taxpayers are known that the New Tax System introduced in Budget 2020 U/s 115 BAC For the F.Y.2020-21. In this The system you can choose your option as Old Tax Slab or New Tax Slab U/s 115 BAC.
Wednesday, 4 November 2020
Sunday, 1 November 2020
Who can Claim Deductions under Section 80DDB?
Under Section 80DDB of the tax
Act, 1961, taxpayers can claim deduction for medical treatment of certain
specified ailments for self or dependent. this sort of deduction is roofed in
Chapter VIA of the tax Act, 1961. The citizen
of
How much Deduction are often Claimed under Section 80DDB?
Deductions amounting to the subsequent figures are often claimed under Section 80DDB:
For financial year 2014-15 (Assessment Year 2015-16)
• An assessee is eligible to say tax write-off of Rs. 40,000 or the particular amount paid, whichever is lower.
• Senior citizens, above the age of 60 years, are eligible for tax write-off of Rs. 60,000 or the quantity actually paid, whichever is lower.
From financial year 2015-16 onwards (Assessment Year 2016-17)
• An assessee is eligible for tax write-off of Rs. 40,000 or the particular amount purchased medical treatment, whichever is lower.
• Senior citizens, between the ages of 60 years and 80 years, can claim tax write-off of Rs. 60,000 or the particular amount spent on the medical treatment, whichever is lower.
• Super senior citizens, aged above 80 years, are eligible for tax write-off of Rs. 80,000 or the particular amount purchased the medical treatment, whichever is lower. From fiscal year 2018-19 onwards (Assessment Year 2019-20)
• An assessee is eligible to say tax write-off of Rs. 40,000 or the particular amount paid, whichever is lower.
• Senior citizens, above the age of 60 years, are eligible for tax write-off of Rs. 1,00,000 or amount actually paid, whichever is lower.
Diseases
or Medical Ailments Specified under Section 80DDB
According to the tax Department, following are the eligible diseases or ailments that are taken into consideration for claiming tax deduction under section80DDB:
(1) Neurological diseases, where the incapacity level is certified to be of 40% and more -
• Dementia
• Dystonia Musculorum Deformans
• Aphasia
• Motor Neuron Disease
• Ataxia
• Chorea
• Hemiballismus
• Parkinson’s Disease
(2) Malignant Cancers
(3) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
(4) Chronic kidney failure
(5) Hematological disorders
• Hemophilia
• Thalassaemia
Documents
Required to say Deduction under Section 80DDB
For exposure under Section 80DDB of the tax Act, 1961, the assessee possesses to provide proof that the medical treatment has actually taken place. it's mandatory to get a certificate from a prescribed authority, from whom the medical treatment has been availed, if one wishes to say deduction under this section.
According to the tax Department’s website, the subsequent specialists can issue certificates under section 80DDB:
Disease
Specialist
The ability level is certified to be 40% and above (as mentioned under the heading ‘Diseases or Medical Ailments specified under Section 80DDB’ for diseases listed in point 1 (a) - (h)) A Neurologist with a Doctorate of medicine (D.M.) degree in Neurology or any equivalent degree that's recognized by the Medical Council of India
For Malignant Cancers An Oncologist with a Doctorate of drugs (D.M.) degree in Oncology or any equivalent degree that's recognized by the Medical Council of India
For Full Blown Acquired Immune-Deficiency Syndrome (AIDS) Any specialist holding a postgraduate degree generally or internal medicine , or any equivalent degree that's recognized by the Medical Council of India
For Chronic Renal failure A Nephrologist with a Doctorate of drugs (D.M.) degree in Nephrology or a Urologist with a Master of Chirurgiae
(M.Ch.) degree in Urology or any equivalent degree that's recognized by the Medical Council of India
For Hematological disorders A specialist holding a Doctorate of medicine (D.M.) degree in Hematology or any equivalent degree that's recognized by the Medical Council of India
Note - just in case a patient is receiving medical treatment during a government-run hospital for any of the ailments mentioned above, the prescription are often issued by any specialist who works full-time therein hospital, holding a post-graduate degree generally or general medicine or any equivalent degree, recognized by the Medical Council of India.
What
should be Mentioned within the Prescription?
The prescription is needed in supporting of the diseases or ailments must contain:
• The patient’s name
• The patient’s age
• Name of the disease or ailment
• The specialist’s name
• The specialist’s license number
• The specialist’s address
• The specialist’s qualification
Budget
2018: Amendment to Section 80DDB
While proposing Budget 2018, minister of finance Arun Jaitley provided a serious relief to taxpayers by enhancing the tax write-off for medical treatment of senior citizens. ranging from fiscal year 2018-19, the utmost tax write-off which will be claimed under Section 80DDB for the medical treatment (of specified ailments) of senior citizens (60 years and above) is Rs. 1,00,000. The limit until then had been Rupees Sixty Thousand for senior citizens (60 years to 80 years) and Rupees Eighty Thousand for most super senior citizens (80 years and above). This amendment shall be applicable from April 1, 2019 and can accordingly apply in reference to the assessment year 2019-20 and therefore the subsequent years.
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
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 into the in-words without any Excel Formula
Friday, 30 October 2020
In India, the bulk of Senior Citizen face financial hardship in adulthood as most of them aren't during a position to earn their livelihood. Their savings, if any, aren't enough to satisfy their day to day, particularly the medical expenses. Senior Citizen with good net-worth value are in search of excellent short-term financial getting to earn an honest income from their finance. The tax law provides various benefits to senior citizens in India with the view to mitigating their issues.
Who is taken into account an oldster in India?
According to the law, an oldster is a individual resident between the age bracket of 60 to 80 years, as on the Judgment Day of the previous fiscal year.
Who is taken into account as an excellent oldster in India?
A super Senior Citizen is a private resident who is above 80 years, as on the Judgment Day of the previous fiscal year.
Just because an oldster has been filing an ITR all his life doesn't necessarily mean that he/she is mandatory required to file an ITR. Repeatedly, senior citizens continue filing their ITR’s even once they aren't required by law. this might happen thanks to misinformation, fear of tax penalties, lack of data etc. Given below are certain situations where an oldster won't be required to file their ITR.
No taxable income after turning 60
The basic tax exemption limit for normal citizens below 60 years aged is Rs 2.5 lakh during a financial year. Except for Senior Citizens, the exemption limit is Rs 3 lakh, while for Very Senior Citizens, the limit is Rs 5 lakh.
So, an oldster doesn’t need to pay any tax or file ITR just in case the annual income is up to Rs 3 lakh and no TDS is deducted during the fiscal year. Similarly, a real oldster is exempted from paying tax and filing ITR if his/her annual income is up to Rs 5 lakh and no TDS is deducted.
Pension is below the exemption limit
Retirement age is that the age at which an individual is predicted or required to cease work and is typically the age at which they'll be entitled to receive superannuation or other benefits. In India, generally, people retire once they reach the age of 60 to 65 years after which they receive benefits like a pension, which is taxable under the tax.
With a pension, the employer guarantees an income in retirement. Employers are liable for both funding the plan and managing the plan’s investments. But not many employers gives a offer to the pensions, but government organizations usually do.
Essentially, on retirement, if the worker opts for commutation of pension, some are paid as a payment to the pensioner while on the balance the pension begins. In simple terms, commutation means a payment in lieu of periodic payments of pension. In such a case, the quantity of pension is going to be less than the quantity of pension with none commutation.
This would cause situations where your pension income falls below the essential exemption limit i.e not taxable and hence not susceptible to file ITR. Therefore, it's important to recollect that albeit your salary income exceeded the essential exemption limit (making you susceptible to file your ITR), it doesn't mean that your lower pension also exceeds the limit. Verify if your pension exceeds the essential exemption limit. There are chances that you simply wouldn't be susceptible to file your ITR just in case they are doing not.
Know the essential Exemption limit for oldster and Super Senior Citizen in India for FY 2019-20 and FY 2020-21
Download Automated Income Tax Value of Perquisite Calculator U/s 17(2) 
Filing an ITR depends upon the character of income
The ITR form applicable to a taxpayer depends on the sort of taxpayer, whether individuals, HUF, company, etc., the character of income and total income. you'll not be required to file an ITR if you are doing not have taxable income under the 5 heads of tax . to form an income chargeable, it should be under a minimum of one among the five income heads:
• Salary Income
• House Property Income
• Profits or Gains from Business or Profession
• Capital Gains
• Income from other Sources
For instance, suppose Mr A had properties from which he was earning rent. an equivalent was taxable under the top ‘Income from House Property’. Mr A had no other source of income. within the current year, Mr A sold all his properties and was susceptible to pay capitals gains tax. He will file ITR within the current year declaring income under the top ‘Capital Gains’ and Income from House Property.’
However, from the next year as Mr A will haven't any properties and thus no taxable income. Therefore, he won't be susceptible to file his ITR.
Senior citizens also receive a variety of other benefits under tax Provisions such as:
• Deduction under Section 80TTB of Interest-free Income
• Additional Deduction under Section 80D
• Additional Deduction under Section 80DDB
• Senior citizens are free from the burden of paying advance tax unless they create income under the top ‘Profits and Gains from Business or Profession’.
• Super Senior Citizens (individuals above 80 years) can file for his or her tax Return through either ITR-1 (Sahaj) or ITR-4 (Sugam). they will prefer to roll in the hay either manually or electronically, while no other assessee can file Offline Returns.
Thanks to attractive tax deductions and benefits, the tax law has provided an advantageous position for senior citizens in India.
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 Andhra Pradesh State Govt Employee’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
The income chargeable under the head "Salaries" is registered after making the following deductions under Section 16:
1. Standard Deduction;
2. Entertainment Allowance Deduction; and
3. Professional Tax.
1. Standard Deduction [Sec. 16(i)/(ia)] -
• Standard deduction is Rs. 50,000; or
• the Amount of Salary,
Whichever is lower.
2. Entertainment Allowance [Sec. 16(ii)]-
Entertainment allowance may consider if the below conditions:-
(A). In the case of an Administration representative (i.e., a Central Government or a State Government worker), the least of the following is Deductible:
a. Rs. 5,000;
b. 20 % of Basic Salary; or
c. Amount of Entertainment Allowance granted during the earlier year.
In request to determine the amount of entertainment allowance deductible from salary, the following points need consideration:
1. For this reason "salary" avoids any allowance, advantage or other perquisites.
2. Amount actually used towards entertainment (out of entertainment allowance got) is not taken into consideration.
(B). In the case of a Non-Government Representative (including workers of Statutory Corporation and Local Authority), :
Entertainment Allowance is NOT deductible.
3. Professional Tax or Tax on Work [Sec. 16(iii)] -
Professional Tax or Tax on Work, collected by a State under article 276 of the Constitution, is allowed as Deduction.
The following points ought to be kept in see:-
1. Deduction is available just in the year in which professional tax is paid.
2. If the professional tax is paid by the business on behalf of a representative, it is first included in the salary of the worker as a "perquisite" and then the same amount is allowed as a deduction on account of "professional tax" from net salary.
3. If there is no monetary ceiling under the Income-tax Act. Under article 276 of the Constitution, a State Government cannot force more than Rs. 2,500 for each annum as professional tax. Under the Income-tax Act, whatever professional tax is paid during the earlier year, is deductible.
Download Automated Income Tax Arrears Relief Calculator U/s 89(1) along with Form 10Efrom the Financial Year 2000-01 to Financial Year 2020-21 (Up-to-date Version)
Tuesday, 29 September 2020
Perquisite may be defined as any casual remittance or advantage attached to an office or position in addition to salary or wages. It also signifies something that benefits a man by going into his own money. Perquisites may be given in cash or in kind. Notwithstanding, perquisites are taxable under the head "Salaries" just on the off chance that they are
a. allowed by an employer to his employees;
b. allowed during the continuance of business;
c. directly reliant upon administration;
d. resulting in the nature of personal advantage to the representative; and
e. derived by temperance of employer's authority.
It isn't necessary that a recurring and regular
receipt alone is a perquisite. Indeed, even a casual and non-recurring receipt
can be perquisite if the aforesaid conditions are satisfied. The following
recommendations ought to also be kept in see:
• Perquisites are included in salary income just on the off chance that they are gotten by a worker from his employer (maybe former, present or imminent). Perquisites, gotten from an individual other than employer, are taxable under the head "Profits and gains of business or profession" or "Income from other sources".
• Any advantage would be taxable as perquisites just on the off chance that it has a legal origin. As undue facility advantage taken by a representative without his employer's authority would create a legal obligation to restore such advantage, it would not amount to "perquisite" taxable under the Act. Then again, if the advantage has been given unilaterally without the aid of agreement between the parties, the worker can be taxed on the perquisites. It isn't necessary that the advantage ought to have been gotten under an enforceable right.
Under the Act, the expression "perquisites" is defined by section 17(2) as including the following things:
1. the value of lease free accommodation gave to the assessee by his employer [sec. 17(2)(i)];
2. the value of any benefits in the matter of lease respecting any accommodation gave to the assessee by his employer [sec. 17(2)(ii)];
3. the value of any advantage or amenity granted or gave liberated from cost or at confessionals rate in any of the following cases:
i. by a company to a worker who is a director thereof;
ii. by a company to a worker, being an individual who has substantial interest in the company;
iii. by any employer (including a company) to an employee to whom Sections of (I) and (ii) above don't apply and whose income under the head "Salaries" restrictive of the value of all advantages or amenities not accommodated by way of monetary advantages, surpasses Rs. 50,000 [sec. 17(2)(iii)];
4. any entirety paid by the employer in regard of any obligation which yet for such payment would have been payable by the assessee [sec. 17(2)(iv)];
5. any entirety payable by the employer, whether legitimately or through a reserve other than a perceived fortunate store or approved superannuation finance or a store linked insurance subsidize, to impact an assurance on the life of the assessee or to impact a contract for an annuity [sec. 17(2)(v)];
6. the amount of any commitment to an approved superannuation finance by the employer in regard of the assessee, to the degree it surpasses Rs. 1,50,000 [sec. 17(2)(vii)]; and
7. Cost (value) of any other fringe benefits or amenity as may be recommended [sec. 17(2)(viii)].
Download Auto Calculate All in One Value of Perquisite U/s 17(2) in Excel
Wednesday, 23 September 2020
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.
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.
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
Tuesday, 22 September 2020
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.
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