If you get arrears of salary? If genuinely, you might be worried about the tax consequences of the same. Should you 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 the 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 are 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 someplace in the scope of (1) and (2).

 

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

 

5.         Calculate differentiation someplace 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 the 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 10Efrom the Financial the Year 2000-01 to Financial Year 2020-21 (Up-to-date Version)

 

On December 28, 2020 by www.taxexcel.net

Share It

No Comments

Read More

 

As per Budget 2020, taxpayers were given an opportunity (option) to choose between the old and new tax regime. In the new tax regime, taxpayers have an opportunity (option) to pay lesser tax on the complete income. That implies taxpayers won't be permitted to guarantee the derivations and tax benefits in any case accessible in the old tax regime if the new tax regime is chosen. The taxpayer needs to make his/her decision prior to recording the Income Tax Return (ITR) of the important Financial Year (F.Y).

The option to choose the new tax regime is just accessible for People and Hindu Unified Family (HUF).

 

As referenced above, taxpayers need to make their choice prior to recording the important ITR. This determination should be conveyed to the Income Tax Office before the ITR is documented.

Download Automated Income Tax Arrears ReliefCalculator U/s 89(1) with Form 10E from the financial year 2000-01 to the Financial year 2020-21 (Updated Version)

 

How to inform your Employer as well as the Income Tax Department that, which tax regime is chosen?

 

The Central Board of Direct Taxes (CBDT) has delivered Form 10-IE to respond to this inquiry. As such, any individual who wishes to pay income tax according to the new tax regime needs to convey his/her decision to the Income Tax Office through form 10-IE. On the off chance that a taxpayer needs to quit the new tax regime, a similar form (10-IE) should be submitted prior to recording the income tax returns for the pertinent Financial Year (F.Y).

 

Substance of Form 10IE

 

The essential subtleties needed to be entered in form 10-IE are;

 

•           Name of the individual/HUF

 

•           Confirmation – Regardless of whether the individual/HUF has any income under the head benefit or gains from business or calling

 

•           Permanent Account Number (PAN)

 

•           Address

 

•           Date of Birth/Joining (In DD/MM/YYYY format)

 

•           Nature of Business/Calling

 

•           Confirmation – Regardless of whether the taxpayer has any unit in Global Monetary Administrations Place (IFSC), as alluded to in sub-section (1A) of section 80LA (if true, the subtleties must be given)

 

•           Details of the past form 10-IE documented (If relevant)

 

•           Declaration

 

Download the form 10-IE from in PDF Format

 

Focuses to recall

 

•           Once the taxpayer practices his option to pay tax according to the new tax regime, in the earlier year, this option can't be removed for a similar earlier year. This can consequently be removed just a single time for whatever other earlier the year when the taxpayer is ineligible for practising the option.

 

•           This the form will be endorsed by the individual/Karta of the HUF/Approved Delegate as it was.

 

•           Form No. 10-IE must be outfitted electronically either with a computerized signature or through the Electronic Confirmation Code (EVC).

 

•           The choosing expert on account of form 10-IE is – The Important Chief General of Income-tax (Frameworks) or the Chief General of Income-tax (Frameworks).

 

•           This form will be relevant from F.Y 2020-21.

 

•           In case this form isn't documented by the taxpayer, Income Tax will be determined according to the old tax rates.      

 

Download Automated IncomeTax 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 (New and Old Tax Regime)

 

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 Form 12 BA

 

4) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)

 

5) Individual Salary Structure as per the Non-Government (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 into the in-words without any Excel Formula

On December 26, 2020 by www.taxexcel.net

Share It

No Comments

Read More

In Budget 2020 has introduced a New Tax System New and Old Tax Regime U/s 115 BAC and also allow the taxpayers to opt-in whether they can get the New Tax Regime or Old Tax Regime U/s 115 BAC for the F.Y.2020-21. Those who willing to opt-in the Old Tax Regime they can get the benefits of Tax Sections and those who willing to opt-in the New Tax Regime they can not get any Tax Benefits as per the Income Tax Act 1961. In this article 6 top tax benefits for the Old Tax Regime for F.Y.2020-21

1. Use HRA Exemption Effectively

HRA (House Rent Allowance), an allowance given with the salary to the government and private employees. This allowance is to meet the expenditure actually incurred on payment of rent. Income Tax Department gives tax benefit on this allowance. It Does not consider the full amount as taxable income.

To avail the utmost tax break on HRA, you ought to keep your HRA 50% of the essential salary and rent paid should be 20% quite of HRA.

Download Excel Based Income Tax House RentExemption Calculator U/s 10(13A)

2. Purchase a Dream Home by taking home equity credit

As a salaried person, you can enjoy the tax-saving on home loan by purchasing a house. By this manner, you'll own your dream home and avail the tax break also.

So, if you've got taken a home equity credit, you'll save tax under three sections, viz. 80C, 24 and 80EEA.

Deduction on Repayment of Principal Amount

Out of the home loan EMI, the principal amount is eligible for a tax deduction up to Rs.1.5 lakh u/s 80C. You must have an idea of the principal amount in the EMI. It changes continuously, thus you ought to ask EMI schedule.

Deduction on Interest Paid on Home Loan U/s 24(b)

You can claim the tax deduction of interest paid on home loan u/s 24(b) as well. The limit of this deduction is Rs. 2 lakh for some cases. But, if you have taken the home loan for a property which is not self-occupied, then there is no maximum limit of deduction. Hence, you'll claim the entire interest amount u/s 24.

3. Ensure Retirement Pension Through the NPS

National Pension Scheme, (NPS) maybe a retirement saving scheme. Any person can invest during this scheme including salaried persons. You have to invest throughout your service period. A part of your contribution also goes to the shares and bonds.

After retirement, you get a lump-sum amount. Some amount is also used to give you a regular pension.

Let us see how you'll save tax through NPS-

Employees’ contribution in NPS account u/s 80CCD (1)

Your investment in the NPS account is eligible for a tax deduction up to Rs.1.5 lakh.

Employer’s contribution in NPS account u/s 80CCD (2)

The employer’s contribution in your NPS account is also eligible for a tax deduction. But, the total contribution should be 10% of your salary. The limit is 14% for the central government employees.

Additional contribution in NPS account u/s 80CCD (1B)

Besides the above contributions, you'll deposit an additional amount in your NPS account. And may get a further tax break up to ₹50,000. This deduction is available only if you invest more than the prescribed amount. As you know that Employee has to contribute 10% of their salary. The excess amount is eligible for this deduction.

4. Invest in PPF

The most popular saving scheme of all of the taxpayers in India. The PPF scheme is designed for long term saving. Thus you can use it for your Children’s higher education and marriage as well.

5. Health Insurance for Hassle-free Treatment U/s 80D

Like, Life Insurance, the government gives you the tax deduction benefit on health insurance as well. So, invest in any health scheme for hassle-free treatment and avail the tax break u/s 80D. This section gives you a chance to save tax up to Rs. 1 lakh. Let us see how-

• If you pay a premium against health policy for you and your family (including children), you can claim a deduction of Rs.25,000.

• For dependent parents with your family above 60 years, the limit of deduction enhances up to Rs. 50,000.

• The deduction may be up to Rs. 75,000, if your parents are senior citizens. So, Rs.25,000 for you and your family and extra Rs.50,000 for your parents.

• Moreover, if you and your parents both are senior citizens, you can claim deduction up to Rs. 1 lakh.

6. Use Children Tuition Fees for Tax Deduction

You can save tax by paying the tuition fees of your two children up to Rs.1.5 lakh u/s 80C. Remember this deduction is available for the fee paid to the educational institute from pre-primary to higher education.

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 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 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 December 25, 2020 by www.taxexcel.net

Share It

No Comments

Read More

Those opting for new tax regime from the monetary year 2020-21 onward should present an additional Form 10-IE while presenting their income tax returns.

The (CBDT) notified a new Form to be filled by those opting for the new or old tax regime for the financial year 2020-21. This new Form notified by CBDT on 1^st October 2020 is Form 10-IE.

You should document this Form at the hour of filling your income tax return (ITR) on the off chance that the taxpayer has picked the new or old tax regime U/s 115 BAC.

Download Automated Income Tax preparation Excel Based Software All in One for the Government & Non-Government Employees for the Financial Year 2020-21 and Assessment Year 2021-22 as per U/s 115 BAC.

[This Excel Utility prepare at a time your Income Tax as per your option U/s 115BAC perfectly + 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) + Automated Calculation Income Tax House Rent Exemption U/s 10(13A) + Individual Salary Structure as per the Gov and Private Concern’s Salary Pattern + Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 + Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21]

Finance Minister Nirmala Sitharaman Introduced the new tax regime in the Budget  2020 . The new tax regime is discretionary, anybody opting for it needed to forego a large portion of the deductions accessible under the income tax law, for example, Section 80C, 80D, 80TTA for a deduction on investment account of any Bank or Post Office. The new tax regime, be that as it may, offers concessional tax rates.

A taxpayer is needed to decide on the new or old tax regime at the time of filling the ITR, according to newly-introduced Section 115BAC of the Income Tax Act, 1961. This will be done through the new Form 10-IE notified by CBDT.

 

Taxpayers need to take care of the Form 10-IE to pass on to the tax authorities that a new tax regime has been decided to filling their ITRs. As per the tax laws, any person who has business income will present the Form 10-IE before the due date of filling of the  ITR on July 31 or sometime in the future in the time that the cutoff time is reached out by the public authority. Salaried people can fill this Form 10-IE e previously or/at the time of submit their option U/s 115 BAC in due time.

Download Automated Income Tax preparation Excel Based Software All in One for the Non-Government Employees for the Financial Year 2020-21 and Assessment Year 2021-22 as per U/s 115 BAC.

[This Excel Utility prepare at a time your Income Tax as per your option U/s 115BAC perfectly + Automated Income Tax Form 12 BA + Automated Calculation Income Tax House Rent Exemption U/s 10(13A) + Individual Salary Structure as per the Private Concern’s Salary Pattern + Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 + Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21]

 

On December 24, 2020 by www.taxexcel.net

Share It

No Comments

Read More

As per the Budget 2020, introduced a New Tax Section 115 BAC, which means that the New Tax Regime and Old Tax Regime as you like you can choose the option Vide the new introduced Form 10-IE in this Budget.

If you choose the New Tax Regime as well as new tax Slab for the financial year 2020-21, you can not availed any income tax exemptions as per the Income Tax Act 1961 except the NPS benefits and have no benefits in the new tax slab rate to the Senior Citizen. But if you choose the Old Tax Regime as well as Old Tax Slab then you can availed the all of benefits of the Income Tax As per the Income Tax Act 1961.Look the below New and Old Tax Slab for the F.Y.2020-21 as per U/s 115BAC.

 

 

However here is a unique Excel Based Form 16 Preparation Software, prepared as per the New Section 115 BAC for the Financial Year 2020-21.

 

Download Automated Income Tax Revised Master of Form 16 Part A&B for the Financial Year 2020-21 with new and old tax regime U/s 115 BAC. [This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

 

Feature of this Excel Utility:-

 

1) This Excel Utility Prepare at a time 50 Employees Revised Form 16 Part A & B [Who are not able to download Form 16 Part A from the TRACES PORTAL, they can use this Excel Utility.

 

2) In this Form 16 Part B have details of all the Income and Deductions as per New and Old Tax Regime 

 

3) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.

 

4) This Excel Utility has the all amended Income Tax Section as per Budget 2020

 

5) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)

 

6) Individual Salary Structure as per the Govt and Private Concern’s Salary Pattern

 

7) Automatic Convert the amount in to the in-words without any Excel Formula

 

On December 23, 2020 by www.taxexcel.net

Share It

No Comments

Read More

 You are eligible to claim tax rebate under this provision if you meet the following conditions:

1. You must be a RESIDENT INDIVIDUAL; and
2. Your Total Income, fewer Deductions, (under Section 80) is equal to or less than Rs 5,00,000.
3. The rebate is limited to Rs 12,500. This means the total tax payable or Rs 12,500, whichever is lower, that amount will be the rebate under section 87A. [This rebate is applied to the total tax before adding the Education Cess (4%)]

On December 22, 2020 by www.taxexcel.net

Share It

No Comments

Read More

 

Comprehend the insights regarding the subject Form 16. We will initially examine what is Form 16, at that point its parts, and its significance. To begin with, what is Form16? Every year your manager issues Form 16 endorsements

This is a declaration under Section 203 of the Personal Duty Act that gives insights concerning the expense sum that has been deducted by your manager that is called TDS. It additionally contains the subtleties of your compensation different livelihoods and tax reductions accessible and profited by you in the last monetary year. It has itemized data about the way of ascertaining pay according to the personal expense laws and assessment payable on it. May, 31 is the last date for your manager to give a Form 16 to you.

 

Presently we'll talk about the parts of Form 16 Section of Form 16 causes us to comprehend the assessment paid, likely expense discount we can get, and can likewise help in better duty arranging, we can do it one year from now, and above all, can likewise, help us to document your personal government forms Form 16 includes essentially of two-part

 Download Automated Income Tax Salary Certificate Form 16 Part A&B and Part B for the F.Y.2020-21 [This Excel Utility Prepared One by One Form 16 Part A&B and Part B]

First is Form 16 Part - A, this is the means by which Section A looks. It contains our own data like our name, address, bosses name and address and of both of our manager, and receipt number of TDS instalment. This data helps the personal assessment division to monitor cash stream from our own just as our bosses account. What's more, the business' gives data like appraisal year. It gives a synopsis of TDS deducted by the business for our sake. This sum is deducted by the business from our compensation consistently as assessment and credits the equivalent to the annual expense office to know why this TDS is deducted.

The main data To some Form 16 Part- A:- Assessment allowance account number of boss and complete TDS deducted, as both of this data must be accurately referenced in our annual expense form, so that if there is any tax reduction, we can get that..

Download Automated Income Tax SalaryCertificate Form 16 Part - B for the F.Y.2020-21 [This Excel Utility PreparedOne by One Form 16 Part B]

 

Presently how about  Form 16 Part B:-

 

This  Form 16 Part -B, gives significant data that you need to record your annual government form. Above all else, the all-out compensation is given by the business in the monetary year is referenced, at that point essential or advantages is an extra advantage gave by the business. Notwithstanding the compensation.

 

It is any advantage conceded liberated from cost, or at concessional rates, for example, lease free home, motorcar office, advances at sponsored rates, and so forth. They are the sum paid by the business, notwithstanding pay to meet some help prerequisites such house lease stipend, Live travel recompense, movement remittance, youngsters' schooling remittance and so on stipend can be completely available. Mostly or non-available. Here the representative has just HRA recompense, which is completely charged deductible. For this situation, and consequently is deducted from all-out compensation before charge estimations, we jump on a home advance interest instalments according to Section 24 of the Income Tax Act.

 

So subsequent to deducting all the cost remittances and cash paid on home credit revenue EMI, we get our cross pay. At that point, allowances are uncovered derivations incorporate those under the part, 80 C, 80CC, and it is CCD whose complete total deductible under these separate segments should not go past rupees 1.5 lakhs.

Download Automated Income Tax Salary Certificate Master of Form 16 Part-B for the F.Y.2020-21 [This Excel Utility Prepared at a time 50 Employees Form 16 Part-B]

Feature of this Excel Utility:-

1) This Excel Utility Prepare at a time 50 Employees Form 16 Part B

2) This Excel Utility Calculate your Tax as per the new section 115 BAC

3) You can use the Tax Calculation as New or Old Tax Regime U/s 115 BAC

4) Automatic Convert amount into the In-words, without any Excel Formula.

5) In this Excel Utility have all the modified Section as per the Budget 2020

On December 21, 2020 by www.taxexcel.net

Share It

No Comments

Read More