Public Provident Fund: PPF varies from Rs. 26 Lack if you invested Rs. 1000/- per month, but how? First, it is recommended that you start investing in PPF at a very young age. Suppose you start investing at the age of 20, you can run it until you achieve 60 years.

New Delhi: The Public Provident Fund (PPF) the scheme, launched by the National Savings Corporation in 1968, aimed to develop small savings as a viable investment option. PPF will give very good results in the long run if you choose your intelligent term. 

 

The Public Provident Fund currently offers an interest rate of interest. 1%. A minimum of rupees five hundred (500/-) and a maximum of rupees One lack fifty thousand(1.5 Lack) per annum may be deposited in a PPF account. Deposits can be made up to a maximum of 12 transactions.

You may also require: A unique & handy Excel Based Automated Income Tax Revised Salary Certificate preparation Form 16 Part A&B for the F.Y. 2020-21[This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B- who are not able to download the Form 16 Part A from the Income Tax Department’s TRACES PORTAL, they can use this Utility] 

The key to a good harvest is to start saving from an early stage and continue in a disciplined manner. If you invest even a thousand rupees a month in a public provident fund, it will give you millions in the long run. Here is an approximate calculation of how you can earn more than Rs 26 by investing a small amount of Rs 1000 per month in PPF. 

A PPF account matures within 15 years, after which you can either withdraw all your money or extend the PPF account for blocks for every 5 years. 

Check the following calculations: Rs.1000 invested in PPF changes to Rs.26 lakhs 

First, it is recommended that you start investing in PPF at a very young age. Suppose you start investing at the age of 20, you can run it until you achieve 60 years. 

1. Investment for the first 15 years 

If you continue to deposit Rs.1000 per month for 15 years, you will deposit Rs.1.80 lakh. In the mentioned amount, you will get Rs 3.25 lakh after 15 years. Your interest rate on this 7.1 rate will be Rs 1.45 lakh. 

2. PPF has been extended for 5 years 

Now you increase your PPF for 5 years and if you continue to invest Rs.1000 per month, after 5 years the amount will increase by Rs.3.25 lakhs to Rs.532 lakhs. 

3. PPF again increased for the second time for 5 years 

After 60 months (5 Years), if you re-invest the  PPF again for the next 60 months (5 years) and continue investing Rupees one thousand, then after the next 60 months (5 years) the money in your PPF account will increase to Rs.8.24 lakhs. 

4. PPF has been extended for the third time for five years 

If you extend this PPF account for the third time for 5 years and continue to invest Rs.1000, the total investment the period will be 30 years and the amount in the PPF account will increase to Rs.12.36 lakhs.

You may also required: A unique & handy Excel Based Automated Income Tax Revised Salary Certificate preparation Form 16 Part A&B for the F.Y. 2020-21[This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B- who are not able to download the Form 16 Part A from the Income Tax Department’s TRACES PORTAL, they can use this Utility] 

5. PPF has increased for the fourth time in five years 

If you extend the PPF account for another 5 years after 30 years and invest Rs.1000 per month in the 35th year, the money in your PPF account will increase to Rs.18.15 lakhs. 

PP. The PPF has extended for the fifth time for five years 

After 35 years, you extend the PPF account for another five years and continue to invest Rs.1000 per month, in the 40th year, the money in your PPF account will increase to Rs.226.32 lakhs. 

So, the Rs.1000 you started investing at the age of 20 will be Rs.26.32 lakhs till retirement.

Prepare at a time 100 Employees Form 16 Part B for theF.Y.2020-21 as per new and old tax regime U/s 115 BAC [This Excel Utility handy and easy to generate just like as an Excel file]

 

On April 17, 2021 by www.taxexcel.net

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If you are filing a tax return? You can claim the deduction you can afford

An income tax return (ITR) is basically a document that is filed under the provisions of the Income Tax Act, detailing one's income, profit and loss and other exemptions as well as tax refunds or tax liability. Chapter VI-A of the Income-tax Act contains various sub-sections of section 80 which allows an appraiser to claim exemption from the total income due to various tax-saving investments approved expenses, grants, etc.

 

Such exemptions allow an assessor to reduce the amount of tax payable. Since the current tax filing involves earning money for the financial year 2010-2017, all the exemptions approved in that financial year must be examined. Paid employees can take advantage of several exemptions when filing income tax returns.

 

Here are 9 deductions you can claim on your salary return:

 

1. Standard deduction

Standard deduction. Salary income is available for Rs. 50,000 employees. As a result of the standard deduction, the salaried person will be able to claim the flat deduction that will be given to his / her job from his / her income. No proof is required to claim this deduction.

You may also like: Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E in Excel from the F.Y.2000-01 to F.Y.2020-21

2. Home Rent Allowance (HRA) deduction

Rent expenses are expenses incurred by a business for the use of property or location in an office, retail space, factory, or a storage area. Rental costs are a kind of fixed operating cost or an exploitation cost for a business, as opposed to a variable cost. Rent costs often include the option of renewal subject to a one- or two-year contract between the tenant and the lease or landlord and tenant. Salary earners living in rented houses can claim a house rent allowance (HRA) to cover their taxes under the Income Tax Act or completely. The deduction available is the lowest of the following amounts:

Original HRA has been obtained 

50% of those living in metro cities [private salary + DA] (40% of non-metro) or

The actual rent paid less than 10% of the basic salary + DA 

You may also like: AutomatedIncome Tax House Rent Exemption Calculator U/s 10(13A) in Excel 

3.Deduction under section 80C

Anyone can claim a rebate of Rs 1.5 lakh from your total income under Section 80C. Taxpayers can deduct up to Rs 1,50,000 from their total taxable income and it is available to individuals and HUFs. Some investments are eligible for exemption under Section 80C of the Income Tax Act. Click here to read clearance U / s 80C

 

4. Exemption under section CCD

The 80 CCD section deals with exemptions received for individuals against contributions to the National Pension Scheme (NPS) or the Atal Pension Scheme (APY). Employers' contributions to NPS also fall under this category. NPS is an informed pension scheme of the Central Government

 

Section 60 CCD (1) deals with tax exemptions for all assessors appointed by the Government, any other employer or self-employed person. Arrears are limited to a maximum of 10% of salary (basic + money allowance) for employees and 10% of gross income for self-employed taxpayers. The discount limit cannot exceed one lakh rupees in a financial year.

You may also like: Automated New Pan Card Application Form 49 A in Excel 

Section 80CCD (2) deals with the employer's contribution to an employee's NPS fund. Employees will be able to deduct this amount as your department’s 80 CC (2). The amount of deduction is limited to 10% of the employee’s salary. 

5. Exemption under section 80D

An individual can claim a discount of up to Rs 25,000 for self, wife and dependent children insurance. Additional discount for parental insurance is available up to Rs 25,000 if the age is less than 60 years or up to Rs 30,000 if the parents are over 60 years of age. 

6. Exemption under Section 80 TTA

Exemption from the Savings Account from any Bank or Post Office gets a rebate of Rs 10,000 on interest income. This deduction is available to any individual and HUF.

This discount on interest earned is allowed:

With a bank savings account

Co conducts banking business from a savings account of a cooperative society

You may also like: Automated Income Tax Form 16 Part A&B and Part B in Excel for the F.Y.2020-21[This Excel Utility can prepare One by One Form 16 Part A&B and Part B as per new and old tax regime U/s 115 BAC] 

7. Exemption under section 80GG

Available for payment of 80GG discount if HRA is not accepted. The place of employment of the taxpayer, wife or minor child should not have residential accommodation. The taxpayer should not have self-occupied residential property elsewhere. The taxpayer must live between paying rent and rent. The discount is available to all individuals

The lowest of the following discounts are available:

Adj rent total minus 10% adjusted total income

5,000 5,000 per month

25% of total gross income

 

8. Exemption under section 80EE

This discount is in respect of interest on residential property, a deduction is only available to individuals under this category.

The cost of the house must be less than 50 lakhs. The loan taken for the house must be Rs 35 lakh or less

 

The loan must be approved by a financial institution or a housing finance company. The loan approved between 01.04.2016 to 31.03.2017. As of the date of loan approval, no other home property is owned by the individual.

 

9. Exemption under Section 80U

A deduction of Rs.5,000 is available for a resident who is suffering from a physical disability (including blindness) or mental retardation. In case of severe disability, one can claim a rebate of Rs 1,25,000.

 Download Automated Income Tax Form 16 Part B in Excel for the F.Y.2020-21[This Excel Utility can prepare One by One Form 16 Part B as per new and old tax regime U/s 115 BAC]

On April 14, 2021 by www.taxexcel.net

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 Complete guide in Income Tax form 16 for the F.Y.2020-21

 

What is Form 16?

 

When the payer pays for the payer, according to the income tax department, a certain amount of the total amount paid for the payer should be deducted and paid to the income tax department. This is called tax deduction at source or TDS. Here, the payer is the deductible and the payer is the deductible.

 

After paying this amount to the  deductible income tax department, the taxpayer will need to confirm a TDS certificate to declare all taxes deducted from total income according to their source.

 

Form 16 Part A is a TDS certificate that specifies the amount of money deducted, the nature of the payment and the TDS deposited or paid in the TDS deposit section. This form is issued when TDS is deducted for the payment of salary-allowance such as professional fees, rent payment, interest on bank fixed deposits etc.

Format of Form 16 Part A

You may also like: Auto Fill One by One Prepare 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

As per the Income Tax Section 203 the Salary Certificate Form 16 to issued to employees as per the Income Tax Act. The individual has to file Form 16 at the time of filing the income tax return. Form 16 contains the following details as follows:

 

Employer's Name: This section contains the names and addresses of the cutters or payers who deduct the amount of TDS from the total discounted income.

 

Discount name and address: In this section, the details of the person receiving income from the employer or cutter are included.

 

Detector Detection Details: This section contains the cutting pan and TAN number.

 

Deduction Identification Details: This section contains the PAN details of the discounters. This PAN number is very important because it indicates that the tax is credited to the exempt party.

 

Total arrears: This section shows the amount received as payment to the issuers.

 

The amount deposited with the Income Tax Department and Amount deducted as TDS: The corresponding amount is calculated based on the total income of the exemption.

How to fill out Form 16A

You may also like: Auto Fill One by One Prepare Income Tax Form 16 Part B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC 

Enter the name and address of the subtraction. When filling in the address details, make it a point to enter the pin code as well.

 

Enter the subtraction TAN details. The TAN number is usually lettering. It starts with four alphabets, then has five digits and ends with one alphabet.

 

Next, enter the Employer's pan details. The PAN number is also alphanumeric. It starts with four alphabets, then ends with five digits and one alphabet.

 

Fill in four recognition numbers.

 

Next, enter the type of payment - whether the type of payment is professional or contracted.

 

The form contains the relevant code for all types of payments. Enter the appropriate code in the Payment section.

 

Next, enter the name of the discount, i.e., the person from whose income the TDS is deducted.

 

Enter the discount PAN number in the appropriate column.

 

Enter the appropriate time. This section will contain the financial form for which you want to get in Form 16. For example, for the current fiscal year, you must enter as of 1st April 2020 - 31st March 2021.

 

After filling in all the details above, enter the details of the TDS deductions.

The amount of TDS should be indicated in words.

You may also like: Prepare at a time 100 Employees Income Tax Form 16 Part A & B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC 

How to get to Form 16?

 

Generally, the TDS deductor has to issue Form 16A to the exemption from whose income the TDS has been deducted.

 

Form 16 is issued for the current financial year. This document shows the total income of the deductible from the source of salary and the total tax deducted from that income in the given financial year.

 

Taxpayers can get Form 16A from the Income Tax Department website, where they have the option to download the Form 16A PDF.

 

The download in Form 16 takes place in editable PDF format.

You may also like: Prepare at a time 50 Employees Income Tax Form 16 Part A & B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC 

When is Form 16 required?

 

If a person has other sources of income after deducting TDS on the income applicable under Form 1 16A required when filing an income tax return for the given financial year, they have to pay Form 1 at the time of filing the income tax return.

 

Generally, financial institutions and banks ask for income tax documents in Form 16 for verification when the person applies for a loan such as personal loan, vehicle loan, housing loan, consumer, etc.

You may also like: Prepare at a time 100 Employees Income Tax Form 16 Part B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC 

The difference between Form 16 and Form 16A

 

The employer issues a Form 1 for the income tax certificate deducted from the source on the salary of their employees and submitted it to the Income Tax Department. On the other hand,

 

Form 16 is issued to certify the TDS deducted from the individual salary income.

Employers should issue their Form 1 if their employees' annual salary income exceeds 250,000 and the appropriate TDS is deducted. TDS will be applicable as per the income tax slab. For salary income, TDS is to be deducted at the rate of 10% of the payer who pays. The details of this tax are shown in Form 16.

 

For employees, the tax deduction limit is Rs. 250,000. TDS is deducted if the annual income limit is exceeded. This discount is mentioned in Form 16, On the other hand, TDS is deducted on salary income if the income exceeds the limit of Rs. 30,000.

Form 16 is issued annually, and Form 16 is issued quarterly.

 

You can successfully file your income tax return by knowing these details about Form 16 Part A.

Download & Prepare at a time 50 Employees 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 14, 2021 by www.taxexcel.net

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