Introduction

 

Auto Fill Income Tax Revised Form 16 for the F.Y.2020-21 U/s 115 BAC with interest income for senior citizens 

 

Interest income is the amount paid to an entity to pay its loan or to another entity to use its funds. On a larger scale, interest income is the amount of money an investor earns in an investment or project. 

Such income is generally taxable, but the Income Tax Act provides for some exemptions on such income. Individuals and senior citizens are given such exemptions separately.

Why have senior citizens in India increased WRT tax exemption?

Most of the elderly people in India face financial crisis in old age as most of them are not in a position to earn a living.

Download & Prepare One by One Automated Income Tax Form 16 Part A&B and Part B for the F.Y.2020-21 as per New and Old Tax Regime U/s 115 BAC

Their savings, if any, are not enough to cover their daily expenses, especially medical expenses. Valuable older people are looking for a good short-term financial plan to earn a good income from their money. Income tax laws provide variously benefits to senior citizens in India with the aim of alleviating their problems.

 

Citizens, The limit of financial tax exemption for ordinary citizens below the age of 60 years is Rs. 2.5 lakhs in a financial year. However, in the case of senior citizens, the discount limit is three lakh rupees and in the case of super senior citizens, the limit is five lakh rupees.

 

Thus, the annual income is up to Rs 3 lakh and no senior citizen has to file any tax or ITR without deducting any TDS in the financial year. Similarly, a super senior citizen is exempted from paying tax and filing ITR if his annual income is up to Rs, 5 lakh and no TDS is deducted.

 

Considered a senior citizen in India?

 

By law, a senior citizen is an individual resident between the ages of 60 and 80 as the last day of the previous financial year.

 

Who is Super Senior Citizen in India?

 

A senior citizen called who's Age above 80 Years of age

Is interest income taxable?

 

Interest income from fixed deposits is taxable. This is covered in your income tax return under the heading 'Income from other sources.

Download & Prepare One by One Automated Income Tax Form 16 Part B for the F.Y.2020-21 as per New and Old Tax Regime U/s 115 BAC

 

Senior citizens earning interest income from FDs, savings accounts and recurring deposits can get income tax exemption up to Rs 50,000 per annum under section 80TTB. This is through the amendment of the Finance Act 2018.

 

What is Section 80TTB?

 

Section 80TTB which was applicable w.e.f. 1 April 2018 is a provision under which a taxpayer, a resident senior citizen, at any time during any financial year, aged 60 years and above, can deduct a sum of money from a certain income from his total income from that total income for that financial year.

 

Specific income is any one of the following:

 

Interest on bank deposits (savings or fixed);

Interest on deposits in cooperative societies engaged in banking business including cooperative land mortgage bank or a cooperative land development bank; Or

Interest on post office deposits

Senior citizens cannot claim a waiver under Section 80TTA

Section 80 TTA gives a rebate of Rs 10,000 on interest income. This discount is available to any individual and HUF.

Download & Prepare at a time 50 Employees  Automated Income Tax Form 16 Part A&B and Part B for the F.Y.2020-21 as per New and Old Tax Regime U/s 115 BAC

 

This deduction on interest earned is allowed – 

From a savings account with a bank

From a savings account with a cooperative society taken into the banking business

From a savings account with a post office

Previously, this the deduction was available to everyone regardless of their age, i.e. for persons under 60 years of age, senior citizens and super senior citizens.

 

However, senior citizens will not be able to claim an exemption under this section from the financial year 2011. After Budget 2018, 80 TTA of the department has been amended which prohibits senior citizens from claiming any rebate on interest earned on savings accounts with banks or post offices under this particular department. However, they have to claim a rebate of up to Rs 50,000 for the interest received from the savings account and have fixed deposits in banks and post offices under the newly inserted department, i.e., Section 80TTB.

Download & Prepare at a time 100 Employees  Automated Income Tax Form 16 Part A&B and Part B for the F.Y.2020-21 as per New and Old Tax Regime U/s 115 BAC

 

To know which interest income is taxable and what are the exemptions, see the following summary: -

 Interest income on fixed deposit - Interest income on a fixed deposit is taxable and taxable according to the applicable tax slab rate. In addition, the bank deducts TDS on this income, although TDS is deducted only when the amount of interest income exceeds Rs. 10,000 in a given financial year. In addition, the exemption limit for senior citizens is Rs. 50,000 under TTB Rs. 50,000. If all taxable income from your source is below the relevant exemption limit, the TDS can also be availed by submitting Form 15G (15H for Senior Citizens).

 

Interest income on a savings account - Rs. 10,000 (Rs. 50,000 for senior citizens) Interest income on a savings account is exempt. However, any interest income on a savings account above Rs 10,000 is taxable as per the applicable slab rate. To calculate the exemption limit, interest income is added from all accounts, including bank savings accounts, post office savings accounts and cooperative bank savings accounts.

 

Interest income on recurring deposits - Savings of interest earned on recurring deposits are fully taxable without any discount against any savings account. In addition, under Section 1944, banks deduct TDS at the rate of 10% on interest on recurring deposits.

Download & Prepare at a time 50 Employees  Automated Income Tax Form 16 Part B for the F.Y.2020-21 as per New and Old Tax Regime U/s 115 BAC

 

On April 09, 2021 by www.taxexcel.net

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 How to reduce tax for F|Y2022-23 under the new budget 2021, there were several legitimate ways for 

taxpayers to file tax returns under the old regime to claim tax exemption under 1919 Income Tax Act. 

1961 Act.

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

Section 80C of the 1961 Income-tax Act is among the most known deductions. Only a person can claim an exemption under this section if he prefers the old/existing tax discipline in the given financial year. People who prefer the current tax exemption, on the other hand, will not be able to claim the exemption under this section.

So, you can reduce your taxable income at the bottom of the bottom. 

Download Automated Income Tax Form 16 Part A&B and Part B which can prepare One by One Form 16 Part A &B and Part B for the F.Y.2020-21

Exemption under section 80C

This is one of the most popular discounts available under the tax law. Section 80C of the Income-tax Act, 1961 allows individuals to claim a tax benefit of Rs 1.5 lakh.

 

If you can disclose Rs 1.5 lakh of your annual investment, you can deduct Rs 1.5 lakh from your total taxable income. 

A) Tax savings fixed deposits,

B) Public Provident Fund (PPF),

C) Certificate of National Conservation (NSC),

Salary,

D) Life insurance premiums,

E) National Pension Scheme (NPS),

F) Home loan repayment

G) EPF,

H) The Senior Citizens Savings Scheme and Sukanya Samridhi Yojana are some of the initiatives that are eligible for discounts.

Download Automated Income Tax Form 16 Part B which can prepare One by One Form 16 Part B for the F.Y.2020-21 

I) Additional Exemptions under Section 80CCD (1B) An additional Rs. 50,000 / - can be deducted for contribution to the National Pension System under Section 80CCD (1B) in addition to Rs.

 

J) 80C. (NPS) Individuals can invest in both equity and debt funds under this scheme, which allows them to build a retirement portfolio. At age 60, the full amount can be withdrawn.

 

K) Exemption under section 80E

Under this section, you can claim a tax deduction for the interest paid on a loan for yourself, your spouse, legal guardian for you or any of your students.

There is no limit to the amount of discount that can be claimed in a given year. The loan that you have started repaying and lasts for the next seven years or until full interest is paid, whichever comes first, you can get the discount.

Download Automated Income Tax Form 16 Part A&B which can prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2020-21 

In addition, this tax deduction is only possible if the loan is borrowed by an approved financial institution instead of a family member or friend.

 

L) Exemption under section 80D 

An individual or HUF can claim a discount of Rs 25,000 for the medical insurance premium paid in a calendar year. Health insurance premiums paid for you, your spouse, your children and your parents may be exempt. Keep in mind that if your parents are not senior citizens, you can take an additional discount of up to Rs 25,000 for their insurance. (Over 60 years)

 

The amount of exemption is extended to Rs. 50,000 if the parents are more than 100 years of age. The total exemption for both taxpayers and parents above the age of 60 years is Rs.1,00,000 1, in addition, Section 80 (d) allows a rebate of Rs.5000 for preventive check-ups conducted on taxpayers, spouses, minors and parents in subsequent years. You can see some sections such as Section 80 (DD), Section 80 (DDB) and Section 80 (U) for additional discounts.

Download Automated Income Tax Form 16 Part A&B which can prepare at a time 100 Employees Form 16 Part A&B for the F.Y.2020-21

M) Exemption under section 24(B)

 

If you have an existing home loan, you can claim interest payable as a tax deduction under Section 24 of the Income Tax Act. As a deduction, it can be claimed that the total amount is Rs 2 lakh per annum.

 

N) Apart from this, under Section 80 (EE) of the IT Act, you can claim an additional rebate of Rs 50,000 in addition to Rs 200,000.

There are certain requirements that must be met in order to deduct this additional discount. If the property is leased, and you do not own it, there is no ceiling above and you can deduct the full interest rate as a tax break.

 

O) The home stamp duty value of the house must be less than Rs 45 lakh to be eligible for this discount. Also, home loans must be issued between April 1-2019 and March 31, 2020.

Download Automated Income Tax 50 Employees Form 16 Part B for the F.Y.2020-21

P) Exemption against interest earned on savings accounts

An individual or HUF can claim a total rebate of Rs 10,000 for interest income from a savings account of a bank, co-operative society or post office.

To be clear, under the 80TTTA of the Income Tax Act, interest on savings accounts is tax-free up to Rs 10,000 per annum.

 

Q) And Section 80 (TTB), which enables senior citizens to claim a rebate of up to Rs 50,000 from interest income. Discounts against grants You can also contribute or donate to charities to increase your tax benefits.

 

R) 80G- The various contributions listed under 80 (g) of the Tax Code are 100% or 50  liable for the operation. Individuals must be aware, however, that cash contributions above Rs 2,000 are not liable for tax deductions. As a result, contributions through digital forms are more effective as they will be liable for tax deduction under section 80. (G)

 

S) 80GG- Exemption under Section 80GG You can claim this Exemption if you do not receive Home Rent Allowance (HRA) as part of your salary or if you are self-employed. You will need to fill out Form 10BA to take advantage of this discount. This clause enables you to claim a deduction of up to Rs 60,000.

Download Automated Income Tax 100 Employees Form 16 Part B for the F.Y.2020-21

 

On April 08, 2021 by www.taxexcel.net

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A permanent Account Number (PAN) is a 10-digit alphanumeric number provided by the Income Tax Department to any "person" who are wanting for it or department assigns a number without an application.

 

A PAN helps to link all transactions of "individuals" to the department. These transactions include filing of income tax returns, payment of taxes, TDS / TCS, correspondence, etc. It has been noticed that the Income Tax Department has been inactivating all income tax assessment panes with more than one pan at any time in the past. 

PAN card de-activation can, unfortunately, cause some obstacles. As the Income Tax Department deactivates the PAN which it uses for the purpose of filing its income tax return, the assessment will no longer be able to file its return.

 

PAN blocks e-filing login once deactivated by the Income Tax Department and therefore will not be able to respond electronically to the online communication/information/notices by the Income Tax Department.

 

The steps you can take if your PAN is disabled by the Income Tax Department are as follows:

Contact AO

 

If your PAN is activated by the department, you need to contact your AO by letter in order to activate your PAN.

You may also, like- Automated All in One Value of Perquisite U/s 17(1) in Excel

Submission of relevant documents in AO

After the letter indicates the activation of your PAN, you will need to attach relevant documents related to PAN activation. The following documents are attached

 

Copy of PAN card which the assessment uses to file regular income tax returns

2. A copy of ITRV is a copy of the PAN filed with the Income Tax Department for the last three years

3. Compensation bond on behalf of the Income Tax Department. An indemnity bond acts as a security bond to ensure that the contract will be fulfilled. 

Deadline to reactivate the pan by category

The time is taken by the Income Tax Department to reactivate the PAN after sending a letter to the office is about 15 working days.

Response to the department's online information/correspondence if the e-login is blocked:

Where the re-login has been blocked and the assessment has to be held accountable for the online information/correspondence executed by the Income-tax department, the jurisdiction under which the jurisdiction is to be approached and its concerns addressed and the need to re-apply for a PAN card.

You may also, like- Automated Income Tax House Rent Exemption Calculator U/s 10(13A)

In addition, the assessment department may submit a manual against the investigation/correspondence until the PAN reactivation process. File Note that once the PAN reactivates, the evaluation obligation to respond online and account for the department's investigation is effective and must be met.

 

Penalty for keeping multiple pans

 

One person cannot hold more than one PAN card at a time. If you have more than one PAN card at any one time, you will have to hand over the extra PAN. Holding more than one PAN card at a time is a legal offence and the Income Tax Department can issue laws, so it can be penalized.

According to Section 2227B of the Income Tax Act, 19191, a person may be asked to pay a fine of Rs. 4,000 / -. 10000 / -if Multiple PAN registered in the name of one person.

Download Automated Excel Based New Pan Card Application Form 49 A in Revised Format

On April 07, 2021 by www.taxexcel.net

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Automated Income Tax Form 16 Part B, U / s 203.

 

(1) Every person who has been tax-deductible in accordance with the aforesaid provisions of this the chapter shall, within this period, from the time of payment of credit or payment of the prescribed period, or as the case may be, from the time of issuance shall issue a check to any shareholder for payment of any dividend. such credit has been given or to whom this payment has been made or the check or warrant has been issued, the certificate of duty specifying the amount deducted, and the amount deducted, the rate at which the tax has been deducted and other prescribed Description.

 

(2) Every person, as an employer, as referred to in sub-section (1a) of section 199, should submit, within the prescribed period, the person whose income has been taxed, the tax paid to the Central Government. Specifies a certificate and the amount paid in it, the rate at which taxes have been paid and other details as prescribed.

Who can the TDS certificate issue?

Download and prepare at a time 50 Employees Automated IncomeTax Revised Form 16 Part B for the Financial Year 2020-21 as per new and old tax regime

Tax deducted at source Each person has been tax deducted under Section 203 along with some other details required to issue the certificate to the issuer. This certificate is commonly called a TDS certificate. Even tax-exempt banks have to issue such certificates when paying pensions. In the case of employees earning salary including pension, the certificate should be issued in Form No.-16. In all other cases, a TDS certificate must be issued in Form 16 B. The certificate is issued at the cutter's own stationery. However, in the case of source duty, there is no obligation to issue a TDS certificate. Discount / Discount is not deductible due to claim. 

Duplicate certificate issued

 

Where the original TDS certificate is lost, the issuers can go to the cutter to issue a fake TDS certificate. You may issue a duplicate certificate on Form No. 16 or Form 16 as deducted. However, this type of certificate must be duplicated by the cutter. Further, the cutter, in its alternative, can use digital signatures to authenticate such certificates. In case of issuing such certificate, the cutter can confirm-

 

Provisions of sub-rule (2) of rule 31 relating to the specification of TAN, PAN of containing the book identification number; Invoice identification number; Relevant quarterly statements etc. are agreed with the number of receipts;

 

2. Once the certificate is digitally signed, the contents of the certificates are not changeable; and

 

3. Certificates have a control number and are protected by a log of such certificates

Download and prepare at a time 100 Employees Automated IncomeTax Revised Form 16 Part B for the Financial Year 2020-21 as per new and old tax regime

On April 06, 2021 by www.taxexcel.net

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