Introduction

The Savings Bank Interest earns is the amount paid to an entity for lending its money or letting another entity use its funds. On a bigger scale, interest income is the amount earned by an investor’s money that he places in an investment or project.

Such income is usually taxable, however, the Income Tax gives surely rebate on such income. Such exemption is distinguished for people and senior citizens separately.

How can the senior citizens in India have increased rebate from income tax?
In India, the bulk of older persons 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 expenses, 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 Income Tax law has given them much of rebates to the senior citizens in India with the view to mitigating their issues.

The basic tax exemption limit for normal citizens below 60 years aged is Rs 2.5 lakh during a financial year. Apart for The Senior Citizens, the rebate limit is Rs 3,00,00/-, while for Super 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 financial year. Similarly, an impressive 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.
Which persons can be taken into account as a Senior Citizen in India?
According to the law, an oldster is a private resident between the age bracket of 60 to 80 years, as on the Maturity Day of the previous financial year.
Which persons can be taken into account as a most senior citizen in India?
A super oldster is a private resident who is above 80 years, as on the Judgment Day of the previous financial year.
Is Interest Income Taxable?
Interest income from Fixed Deposits is taxable. It's covered under the top, ‘Income from Other Sources’ in your tax return.

Senior citizens receiving interest income from FD's, checking account and recurring deposits can avail tax exemption of up to Rs 50,000 annually under Section 80 TTB. This is a often by way of an amendment vide Finance Act 2018.
What is Section 80TTB?
Section 80TTB which was applicable w.e.f. The first day of April 2018 may be a provision whereby a taxpayer who may be a resident oldster, aged 60 years and above at any time during a financial year shall demand a rebate of below of Rs Fifty Thousand or an amount from a specified income from his gross total income for that same financial year.
Specified income is any of the next income in aggregate:
1. Interest on bank deposits (savings or fixed);
2. Interest on deposits held during a co-operative society engaged within the business of banking, including a co-operative land mortgage bank or a co-operative exploitation bank; or
3. Interest on post office deposits
Senior citizens shall not demand deduction under section 80TTA
This section 80TTA entitled to get a rebate of Rs 10,000 on interest income. This deduction is out there to a personal and HUF.
This deduction is allowed on interest earned —
1. From a bank account with a bank
2. From bank account with a co-operative society carrying on the business of banking
3. From bank account with a post office
Earlier, this deduction was available to everyone no matter their age, i.e., to individuals aged below 60 years, senior citizens, and super senior citizens.

However, with effect from the financial year 2018-19, The Senior Citizens shall not demand deduction under this section. In the Budget 2018, U/s 80TTA has been amended which restricts senior citizens from claiming any deductions on interest received on checking account either with bank or post office under this particular section. However, they will claim deduction up to Rs 50,000 for interest received from a bank account and glued deposit with banks and post office under the newly inserted section, i.e., section 80TTB.

Let us ask the below summary to seek out what interest incomes are taxable, and what are exempt:-

Conclusion:-
Interest income on a tough and fast Deposit — The interest income on a tough and fast Deposit is taxable, and one possesses to pay taxes as per the applicable tax slab rates. The bank deducts TDS as this income, also TDS is deducted only interest income exceeds Rs 10,000 in any given financial year. The rebate limit for senior citizens is Rs Fifty Thousand U/s 80TTB. It can also be entitled to a rebate on TDS by filing Form 15G (15H for senior citizens) if your overall taxable income from all sources is below the respective exemption limit.
Interest income on a bank account – Interest income on bank account up to Rs 10,000 (Rs 50,000 for senior citizens), is exempt. Any interest income on Savings account exceeds Rs A Thousand will be taxable as per applicable slab rates. However, calculate the rebate limit of interest income from all the accounts will be added, Bank Savings Accounts, post office Savings Accounts, and co-operative bank Savings Accounts.

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

 

On December 17, 2020 by www.taxexcel.net

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Some Tips about New Section 115 BAC

Budget 2020 has introduced a new Section 115 BAC which is a new tax Regime for individual updates and certain procedures and requirements that you need to follow that new tax Regime.

 

We get to see if you can individual salaried employees for you get started in 2020 in which are reduced however certain conditions allow for the detection of the new tax system.

 

In the financial year 2020-2021 you need to fill a form which is issued by CBDTform number 10 IE before filing your income tax return and in case of a business that individuals in need the only fill of Form 10 –IE. which is issued by CBDT from 1st October 2020 which is you need to file in addition to it before filing an income tax return is coming to switch over from old to new.

Also you may like

Download 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)

 

Now we have to divide the category of individuals into parts business income  & income from the salary, that means you can switch from old to new every year’s and it means you need to fill the new option Form I0-IE every year.

 

However, we will see the new tax lab rates that were introduced in budget 2020, and see how you can calculate your income tax for the financial year of 2020 to 21. There are new tax lab rates that were introduced in budget 2020,

 

So as you can see, the new tax lab rates are reduced tax slab rates compared to old tax slab rates, you have the option of choosing which takes neighborhoods, if you are willing to use to calculate your income tax, but there is a condition.

Also you may like

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

 If you need to use new reduced tax rates, you will not have the option of claiming deductions under various sections that would help you to reduce your total income tax. This means, if you need to use reduced tax lab rates, you cannot claim deduction under Section C and Chapter VI-A, which includes investments in provident fund, public provident fund, equity-linked savings schemes, life insurance premiums, and other schemes that fall in this category.

 

Along with this section, you will not have the option of claiming deductions under other sections as well. But the same deductions can be claimed if you're using the old tax regime, which is higher compared to new tax liabilities.

 

Another important point to note is if your taxable income is below rupees five lakhs. If you want not to have to pay any income tax. This is possible because of the tax rebate under the section. 87 A.

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 Government 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 December 16, 2020 by www.taxexcel.net

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In Budget 2020 has introduced a new section 115 BAC. This Section has two options as Old Tax Regime and New Tax Regime. You have a option for which tax slab or regime you choose. You should give your option through a new Tax Form 10-IE which is introduced in Budget 2020. The New Income Tax Slab has also published in this Budget as New Tax Regime.

However If you have got any salary arrears amount from your previous years to this financial year, your tax will be hike in this financial year. But this arrears salary is got for the previous financial year.

 

What kind of salary arrears amount you have to got from your previous year., like as Arrears D.A., Arrears Salary. As per the Income Tax Section 89(1) you can distribute the arrears amount from the previous year also. So your tax liability reduced in this Financial year.

 

In this regard a Unique Excel Based Software Arrears Relief Calculator U/s 89(1) prepared, so you can easy to distribute the arrears amount to the previous year. This Excel Utility can distribute your arrears amount from the financial year 2000-01 to F.Y.2020-21.

 

The Arrears Salary distribute to the previous years through the Form 10E U/s 89(1).

 

Download Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E for the F.Y.2020-21

 

Feature of this Excel Utility are:-

 

1) Easy to operate this Excel Based Software

 

2) This Excel Utility can use from the Financial Year 2000-01 to Financial Year 2020-21

 

3) Enclosed Form 10E in this Excel Utility.

 

4) The Tax calculating as per the each Financial Year’s Tax Slab

 

5)  The Tax calculating for the Financial Year 2020-21 as per new introduced Section 115 BAC

 

On December 14, 2020 by www.taxexcel.net

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While under the old taxregime the salaried people can keep covering taxes, as they had been doing work now; under the new regime, they will be obligated to settle lower taxes, if they forego their deductions and exemptions.

 

New Tax plan 2020 has given taxpayers a choice to proceed with the current tax regime or select the new proposed tax regime. Although today are tangled concerning which regime they should choose an option (in the new prescribed Form 10-IE) and why? While under the old tax regime the salaried people can keep settling taxes, as they had been doing work now; under the new regime, they will be subject to make good on lower taxes, if they forego their deductions and exemptions.

As per the New Income Tax Section 115 BAC introduced in Budget 2020. As per the Section 115 BAC you should give your option as you opt-in as New Tax Regime or Old Tax Regime in the newly prescribed Form 10-IE.

If you choose the New Tax Regime you can not avail any exemption U/s 80 C, Chapter VI-A But if you choose the Old Tax Regime then you can avail all the Exemption as per the Income Tax Act 1961.

 

You may also like this Excel Utility.

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

 

The difference between the two tax regimes

 

 

Deductions/Exemptions

 

Principle exemptions that taxpayers should forego on the off chance that they choose the new regime are Standard Deduction of Rs. 50,000 to salaried taxpayers, House Rent Allowances for people remaining in leased convenience, Interest on lodging advance for a self-involved property, Leave Travel Stipend twice in a square of four years, the most ordinarily asserted derivation under section 80C for fortunate asset commitment, life coverage L.I.C. Premium, Educational Allowances for youngsters, ELSS, PPF and so on

You may also like this Excel Utility.

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

 

Nothing unless other options can be guaranteed under the new tax regime. An aggregate of 70 exemptions has been discarded in the new tax regime.

 

On the off chance that your taxable pay is under 5 lakhs or over 15 lakhs, at that point tax rates are the same in both; thus the older regime that permits exemptions is more fit

 

Out of the multitude of exemptions that have been taken out, check the number of is relevant for you and how much cash you can spare by settling on those. This will help you in the subsequent stage.

 

Because of your net taxable pay post exemptions/deductions, ascertain all-out annual tax under old just as a new regime.

 

Aside from taxable pay, your way of life, life stage, short-and long haul needs alongside monetary objectives are magnificent boundaries to choose what kind of tax regime you ought to settle on. With the expansion, rising commercialization and developing necessities, it's critical to begin sparing early and spend shrewdly. The intensity of compounding has an incredible task to carry out in accomplishing your monetary objectives.

You may also like this Excel Utility.

Download Automated Income Tax Preparation Excel Based Software All in One for the Andhra Pradesh State Government Employees for the F.Y.2020-21 and A.Y.2021-22

 

Note:- that it is conceivable to change tax regimes each monetary year, as both will exist at the same time. First – time taxpayers may choose to pick the new tax regime as it's easy to follow and means lower tax risk. In any case, over the long haul, ventures have monetary advantages and taxpayers will need to go for the old regime as that will be more helpful.

 

The current tax system declaration has gone the additional mile to give sufficient opportunity for a decision to each salaried person. It's ideal to understand each factor as you come to this agenda before doing the switch. Opportunity is yours, utilization it shrewdly.

Download Automated Income Tax Preparation Excel Based Software All in One for the West Bengal State Employees for the F.Y.2020-21 As per New Section 115 BAC (New and Old Tax Regime)

 

Feature of this Excel Utility:-

 

1) This Excel utility prepares and calculates your income tax as per the New Section115 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 as per the W.B. State Employee’s Salary Structure.(After ROPA 2019)

 

4) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21

 

5) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21

On December 08, 2020 by www.taxexcel.net

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In Budget 2020 introduced a new Section 115 BAC for the F.Y.2020-21. This Section 115BAC have an option that you can stay in the Old Tax System along with all the Income Tax Exemptions as per the F.Y.2019-20 and you can Opt in the New Tax Regime Excluding any Exemptions of Income Tax as the previous F.Y. 2019-20 as clearly mentioned in the Budge 2020 U/s 115BAC.

 

As per the Budget the New Tax Slab is given below U/s 115BAC which introduced in the Budget 2020.

 

 

Also it is clear that no relaxation to the Senior Citizen in the New Tax Slab as per U/s 115BAC ( New Tax Regime). We Prepared a Unique Income Tax Preparation Excel Based Software only for the Andhra Pradesh State Employees for the F.Y.2020-21 as per the new Budget 2020 with New and Old Tax Regime U/s 115BAC introduced in the Budget 2020.

As per the New Income Tax Section 115 BAC introduced in Budget 2020. As per the Section 115 BAC you should give your option as you opt-in as New Tax Regime or Old Tax Regime in the newly prescribed Form 10-IE. If you choose the New Tax Regime you can not avail this exemption U/s 80 TTA or if you choose the Old Tax Regime then you can avail this Exemption U/s 80 TTA. 

 

Download Automated Income Tax Preparation Excel Based Software All in One for the Andhra Pradesh State Government Employees for the F.Y.2020-21As per New Section 115 BAC (New and Old Tax Regime)

 

Feature of this Excel Utility:-

 

1) This Excel utility prepares and calculates 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 Andhra Pradesh State Government Employee’s Salary Structure.

 

4) Automated Salary Arrears Relief Calculation U/s 89(1) with Form 10E for the F.Y.2020-21

 

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 December 05, 2020 by www.taxexcel.net

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Section 80GG is an uncommon arrangement under Chapter VI-A of the Income Tax Act, 1961, which gives tax respite to the individuals who don't benefit house rent stipend. To get qualified for tax derivation under this section, an individual must dwell in a rented property. Besides, his/her manager ought not to give home rent recompense (HRA) as a component of the month to month pay.

 

Section 80GG allowance is material to qualified salaried and independently employed experts. Hence, if an individual works a business, he/she is similarly as fit for claiming this specific tax allowance as the salaried partners may be.

 

Tax payers to Eligible to Claim Tax Deductions under Section 80GG?

 

As expressed beforehand, one must meet certain essentials to benefit tax derivations under this particular section of the ITA. Recorded beneath are a portion of the components that an individual must satisfy to claim Section 80GG allowance.

 

I.          Only individuals and Hindu Undivided Family (HUF) are qualified to claim these tax allowances. Organizations or different undertakings can't benefit a similar tax limits after paying rent in a given monetary year.

 

II.        Individuals who are either salaried experts or independently employed can exploit this arrangement. In the event that one has no income to talk about, he/she is excluded from looking for Section 80GG income tax benefits, regardless of whether he/she pays the rent.

 

III.       Those looking to profit this tax refund need to present a properly filled Form 10BA to the public authority already. This Form is an affirmation that the individual recording it doesn't claim profit by a self-involved property in any area.

 

IV.       Section 80GG of Income Tax Act is explicitly intended for who don't get home rent remittance from their managers. On the off chance that an individual's compensation incorporates HRA installment, he/she is ineligible to claim income tax discounts identified with lodging rent.

 

V.        If the yearly rent sum surpasses Rs.1 lakh, the taxpayer should present a duplicate of the mortgage holder's PAN card to claim tax benefits under Section 80GG of Income Tax Act. Remember that this PAN card must have a place with the property proprietor where one lives on rent.

 

VI.       An individual must not have claimed HRA whenever during the financial year for which he/she is claiming the tax advantage under Section 80GG. This is a vital point for the individuals who have changed managers in the most recent year. Regardless of whether one didn't get HRA for a significant bit of the year, getting the equivalent for simply a month excludes his/her from claiming this yearly relief.

 

Individuals dwelling with their parents in a property possessed by their parents are likewise qualified to claim Section 80GG advantages. To do this, one would need to consent to a rental arrangement with his/her parents. Also, the sum appeared as rent will be taxable when the parents document their yearly taxes.

 

How are Deductions Under Section 80GG Calculated?

 

Tax derivations under this section depend on Tax Rule 2A. According to Section 10(13A), minimal sum from the accompanying counts is viewed as a non-taxable income.

 

         Rs.5000 every month or Rs.60000 per year.

 

         The yearly rent sum short 10% of the taxpayer's changed all out income.

 

         25% of the changed all out income for a year.

 

least from them is viewed as the Section 80GG allowance material. Allude to the accompanying table to learn two particular instances of tax derivations dependent on different income and rent installments –

 

 

Form 10BA: How to Do It Correctly?

 

The Form 10 BA is basic for anyone hoping to get Section 80GG tax benefits. Here are a portion of the subtleties that one must fill in Form 10BA before accommodation –

 

         Full address with postal code

 

         Name and PAN of the assessee

 

         Mode of installment

 

         Tenure of residency in months

 

         Rental sum

 

         Address and name of the property proprietor

 

         Declaration expressing that the assessee, his/her life partner or minor kid don't possess some other private property

 

         PAN number of the rented property's proprietor is required if the measure of rent surpasses Rs.1 lakh in some random monetary year.

 

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 November 30, 2020 by www.taxexcel.net

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Did you get any advancement salary or arrears of salary? If genuinely, you might be worried about the tax consequences of the same. Should I have to pay taxes on the total taxable amount? Shouldn't something be said about the tax checks of the prior year, and so forth? Taxpayers who have such requests in their cerebrum here is all that you need to know.

 

Now, you would have quite recently sorted out that income tax is calculated on the total income of a taxpayer for a particular year. The income can either be as salary or family annuity or various wellsprings of income. Regardless, there might be circumstances where you have gotten arrears of family benefits or forthcoming salary during the current financial year. It can happen that an income taxpayer gets a bit of his advantage or salary early or as arrears in any cash related year, which assembles his total income in like manner increase the payable taxes. In such a case, an application can be made and the reviewing authority can permit relief to the taxpayer. To sum up it, the Income Tax Act ensures there is equity in the income tax lump rates, and thus, when a touch of the income got doesn't identify with the current year, a relief is surrendered with the objective that the taxable income doesn't augment.

 

To ensure that you are not messed with following through on extra taxes, the income tax office gives Relief U/s 89(1). If you get any annuity or portions for the previous year, you won't be taxed on the total amount for the current year. Essentially getting you a long way from settling extra taxes, considering the way that there was a deferment in portion.

 

To benefit the preferences under Section 89(1) you would need to submit Form 10E. What is Form 10E would be the most apparent request. The nuances of Form 10E, close by how and why to introduce the comparable is given in detail underneath.

 

What is relief under section 89(1)?

 

Exactly when the taxpayer gets:

 

1.         Arrears of salary or

 

2.         Advance salary or

 

3.         Arrears of family annuity

 

By then, such amount is taxable in the Monetary Year in which it is gotten.

 

Nevertheless, relief under section 89(1) is given to decrease additional tax inconvenience due to deferral in getting such income.

 

How to calculate relief under section 89(1)?

 

Here is the way to calculate relief under section 89(1) of Income Tax Act, 1961:

 

1.         Calculate tax payable on total income recalling arrears for the year in which it is gotten.

 

2.         Calculate tax payable on total income excepting arrears in the year in which it is gotten.

 

3.         Calculate differentiation some place in the scope of (1) and (2).

 

4.         Tax payable on total taxable income of the year to which arrears are related , including arrears.

 

5.         Calculate differentiation some place in the scope of (4) and (5).

 

6.         The amount of relief will be the excess amount of (3) more than (6). No relief will be allowed if the amount of (6) is more than the amount in (3).

 

What is Form 10E?

 

For ensuring relief under section 89(1) for arrears of salary got, it is needed to record Form 10E with the Income Tax division. In the occasion that Form 10E isn't recorded and relief is ensured, by then the taxpayer is well en route to get a notification from Income Tax office for not archiving Form 10E.

Download Automated Income Tax Arrears Relief Calculator U/s 89(1) along with Form 10E from the Financialthe Year 2000-01 to Financial Year 2020-21 (Up-to-date Version)

 

On November 29, 2020 by www.taxexcel.net

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