Income Tax Allowance and Deduction F.Y.2020-21.

Salary employees make up the largest share of the country’s overall taxpayers and the contribution they make to tax collection is significant enough. As a result of income tax exemption, there is an opportunity to save tax for the salaried class. With the help of these discounts and rebates and, one can significantly reduce his taxes.

 

In this article, we try to list some of the big discounts and allowances available to salaried individuals, using which can reduce their income tax liability.

 

Allowance exemption

House rent allowance 

A tenant-based on rent can get the benefit of HRA (house rent allowance). 

You can claim the lowest of the following as an HRA discount.

A. Total HRA received from your employer

B. Rent paid less than 10% (Basic Salary + DA)

C. 40% of non-metro salary (basic salary + DA) and 50% of metro salary (basic salary + DA)

 Download Automated Income Tax House Rent Exemption Calculator in Excel U/s 10 (13A) as per Income Tax Act

Standard deduction-

The Finance Minister of India, at the time of presenting the Union Budget 2018, the limit was Rs. 40,000 has been increased. The interim budget for 2019 is Rs 50,000.

You may also, like- One by One Preparation Form 16 Part A&B and Part B in Excel for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

Deduction travel allowance (LTA)

The Income-tax Act also provides for LTA exemptions for salaried employees, which restricts travel expenses to their pages. The following are the restrictions applicable to LTAs: 

The LTA covers only domestic travel, not the cost of International travel 

This type of travel mode must be by rail, air travel or public transport 

Approved discount

Sections 80C, 80CCC and 80CCD (1)

Section 80C is the most widely used option for income tax protection. Here, any person or HUF (Hindu Undivided Family) who invests or spends on prescribed tax protection opportunities can claim a rebate of up to Rs 2,000. One and a half lakh rupees for tax exemption. To save taxes. For some such investments up to a maximum of Rs 1.5 lakh is provided under Section 80C, 80CCC, and 80CCD (1). 

Life insurance premium

Equity Linked Savings Scheme (ELSS)

Employees Provident Fund (EPF)

Anniversary / Pension Schemes

Home loans are the main payment

Tuition fees for children

Contribute to PPF account

 Sukanya Samridhi Account 

NSC (National Conservation Certificate)

Fixed Deposit (Tax Savings) 

Post office deposit 

National Pension Scheme

You may also, like- One byOne Preparation Form 16 Part B in Excel for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

Medical Expenses and Insurance Premiums (Section 80D)

Section 80D is a discount that you can claim for medical expenses. Treatment paid for the health of the self, family, and dependent parents can save tax on insurance premiums. 

The limit for Section 80D exemption is:

25,000 for premium for self/family.

. Rs 50,000 for a premium paid for senior citizen parents. 

In addition, health checkups up to Rs. 5000 are also allowed and included in the overall limit.

 

Deduction up to Rs 50,000 on medical expenses incurred by senior citizens (years above 60 years or older) or senior citizen parents, if they are not covered by any medical policy. 

The taxpayer can claim a maximum rebate of Rs 50,000 including premium amount and medical expenses if he is a senior citizen 

(60 years or more) In addition, if he pays the medical bills of his senior citizen parents, he can claim a rebate of up to an additional five thousand rupees. 5000 

Your employer can pay a premium on your behalf and deduct it from your salary. Such premium paid is also eligible for discount under section 80D.

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

 

Home Interest (Sections 80C and 24B)

Another key tool for tax savings is the interest on the home. Homeowners have the option to claim up to  Rs 2 lakh as an exemption for a house building loan interest

 

In addition to the above, the principal component of a housing loan repayment can also be claimed as a rebate under Section 80C up to a maximum of Rs 1.5 lakh.

 

Deduction for higher studies (Section 80E)

The income tax law provides exemptions for interest in education. Notable conditions involved in claiming this amount of discount are that it should have been taken from a bank or financial institution for higher studies (in India or abroad) by the person or his spouse.Or children.

 

Exemption U/s  80G

Section 80G of the Income-tax Act, 1961 offers an income-tax exemption to an appraiser who contributes to a charitable fund. 50% or 100% deduction of donated amount with or without restriction.

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

 

Savings Account Interest Discount (Section 80 TTA)

Section 80 TTA of the Income Tax Act, 1911 offers Rs.10,000 rebate on income earned from savings account interest.

 

Home Interest (Section 80EE)

Section 80EE allows homeowners to claim an additional rebate of Rs.50,000/-

 

Children's allowance

Employers can provide education allowances for your children as part of your salary. Such allowance received by the employer for the education of children is exempt from tax.

However, the employee can claim a maximum of Rs 1200 children per year per chile for a Maximum 2 Child & Hostel Allowances Rs.300 P.M. or 3600/- Per Year.

Prepare At a time 100 Employees Form 16 Part B in Excel for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

 

On May 02, 2021 by www.taxexcel.net

Share It

No Comments

Read More

 

The Form 16 format has been modified by the Income Tax Department (CBDT) and it was already continued from 12th May 2019. The format mentioned in the notification will be effective from May 12, 2019, which is well before the last date for issuing Form 16 for employers ’salaries. Therefore, those issuing Form 16 after the effective date need to confirm that the new format has been used.

 

Key Form 16 and why it's important:

 

Form16 is a certificate from the employer detailing the salary paid to an employee and deducting source tax (TDS) from his salary for the financial year. It has to be issued to the employee by the employer under Section 203 of the Income Tax Act, 1961. It has two sections - Parts A and B

 

Part A:

 

It contains the personal details of the employee such as address and name, employer's name and address, both PAN (Permanent Account Number) and Employer's Tax Exemption Account Number (TN) Part A with your current employer at the time of employment and TDS (withholding tax on your income) Taken) has details.

TDS deducted by the employer

Tan of the employer

Employer's Pan

Name and address of the employer

• Current assessment year

Pay Taxpayer name and address

• Employee pan

 

Part B:

 

The fragment of the form contains all the details of the income earned during the service with the employer, the details of the total discount, and the taxable income. It also includes tax refundable or tax payable duty points.

 

Form 16 is an important document as it forms the basis for filing an income tax return (ITR). If you first hire a chartered accountant online to file income tax, he wants his Form 16.

Download & Prepare at a time 50 Employees Form 16 Part B for the F.Y.2020-21 as per the new and old tax regime U/s 115 BAC

 

In order to file an ITR delicately, it is essential for taxpayers to be aware of all changes in the form. If you are aware of all the changes, you can verify that your employer has provided Form 16 to you and if not, you can ask your employer to correct it in accordance with the revised guidelines.

 

Current Form 16 Part B lists the total amount of salary and discount only. The new format will have a list of details:

1. Salary isolated

Relief according to Re. Details of rebates and surcharges, if applicable, in the latest format. More scholarships in health and academic ways 

2. Detailed Breakup of Exemption Allowance under Section 10:

A. Travel Section Exemption (Exemption) under Section 10 (5)

B. Death cum Retirement Gratuity Discount under 10 (10)

C. The modified value of the pension under section 10 (10a)

D. Leave encashment under section 10 (10AA)

E. House rent benefit U/s 10 (13A)

3. Exemptions under the Income-tax Act (in the BIA chapter):

Specific fields for discounts mentioned below are notified:

Under Section 80C - Discount for Life Insurance Premium paid, Contribution to PPF, etc. 

Under Section 80 CCC - Exemption for Contribution to Pension Fund

Under Section 80CCD (1) - Exemption for a contribution of employees in the pension

 

In the informed pension scheme under Section 80 CCD (1B)

 

Under Section 80CCD (2) - Exemption for Employers' Contribution to Pension Scheme

Under Section 80D - Discount for paid health insurance premiums

 

Under Section 80E - Discount for interest paid on higher education

 

Under Section 80G - Exemption for Grants

 

Under Section 80TTA - Discount for interest income on savings account

 

4. Any other section of the chapter must cite the relevant section.

 

Relief under Section 89(1)

 

Details of rebates and surcharges, if applicable, in the latest format. More scholarships have been replaced in health and scholarship ways.

 

7. TDS Returns: A breaks discount under Chapter-VI-A has also been added to Form 24Q, such as TDS Returns filed by the employer. So Form 24Q has been adjusted to Form 16.

Download & Prepare at a time 100 Employees Form 16 Part B for the F.Y.2020-21 as per the new and old tax regime U/s 115 BAC

On May 01, 2021 by www.taxexcel.net

Share It

No Comments

Read More

 

Introduction

 

What to do if PAN is disabled by Income Tax Department?

 

The Permanent Account Number (PAN) has a ten-digit alphanumeric number supplied by the Income Tax Department to the "person" who is applying for a new PAN CARD either to whom the department assigns a number without any application. 

The  PAN assists to link every transaction of "individuals" to the department.

These transactions like as filing of income tax returns, payment of taxes, TDS / TCS, correspondence, etc. It has been noticed that the Income Tax Department has been disabling all income tax assessment PANs with more than one PAN at any time in the past.

 

Unfortunately, there are some barriers to PAN card deactivation. For example, by deactivating the PAN that the Income Tax Department used for the purpose of filing its income tax return, the assessee will no longer be able to file his return.

 

Once the PAN is deactivated by the Income Tax Department, the e-filing login is blocked, and therefore the assessor will not be able to respond electronically to the online communication/information/notices of the Income Tax Department or file income tax.

 

What steps you can take if your PAN is disabled by the Income Tax Department:

 

Contact AO

 

If your PAN has been deactivated by the department, you are subject to the Income Tax Department for activating your PAN, under whose jurisdiction you will need to communicate a letter to the AO.

 

Submission of relevant documents in AO

 

After submitting the letter mentioning the activation of your PAN, you will attach the relevant papers related to PAN activation. The following papers are attached

 

Copy of PAN card used by the assessor regularly for filing an income tax return

 

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

 

3. Payment bond in the name of the Income Tax Department. An indemnification bond relates to a security bond to assure 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 submitting a letter to the office is about 15 working days.

 

It is noted that the department’s online information/correspondence whether the e-login is blocked:

 

Where the re-login has been blocked and the assessee has to respond to the online information/correspondence of the Income Tax Department, the assessee has to go to the AO which includes the assessee under his jurisdiction, and as a result, his concerns have to be resolved and there is a need to apply for PAN card re-issuance.

 

In addition, the resource may submit a manual against the investigation/correspondence by the department until the PAN reactivation process is filed. Note that once the PAN is reactivated, the evaluator's obligation to respond online and account for the department's investigation will be fulfilled.

 

Penalty for keeping multiple pans

 

Any person cannot get as well as hold more than one PAN card at a time. Whether you belong to more than one PAN card at any one time, you will have to hand over the extra PAN. It is a legal offense to hold more than one PAN card at a time and it can be penalized due to the law that the Income Tax Department can issue.

 

Under Section 272B of the Income Tax Act, 1961, a person may be asked to pay a fine of Rs. 4,000 / -. 10000 / -if Multiple PAN registered in one person's name.

 

Download Automatic as well as Autofill New Pan Card Application Form 49 A in Excel (Modified Version)

 

On April 30, 2021 by www.taxexcel.net

Share It

No Comments

Read More

 

Automatic Income Tax Form 16 in Excel for the F.Y.2020. Taxpayers are generally aware of general tax deductions (such as Section 80C of the Income Tax Act, 1911 which can be taken during any financial year. However, there are other exemptions available under various sections of the Income Tax Act 1961 that can help a person to lower their tax liability further.

 

Keep in mind that until F.Y 2021-22, a person can continue with the old tax system with existing discounts and tax rebate benefits. It also has the option of paying taxes under the new, exempt tax levy which denies most existing exemptions and tax exemptions. 

In both tax systems, a deduction is available if your taxable income does not exceed five lacks in a financial year. Effectively, this means that if your net taxable income does not exceed Rs 5 lacks, there will be no tax liability.

 

Here's a look at how you can save tax by using the various exemptions allowed under the Income Tax Act.

 

Section 80C

This is the most used category where a person can invest a maximum of Rs 1.5 lakh in a given year / at a given time in a financial year or save tax through tax.

 

You may also, like- Download and Prepare One by One Automatic Income Tax Form 16 Part A&B and Part B in Excel for the F.Y.2020-21 as per new and old tax regime.

 

Section 80CCD (1B)

You can save more tax by investing an additional Rs 50,000 in NPS. Note that this discount is available on and above the tax benefit available under Section 80C. In this way, you can save tax by investing up to Rs 1.5 lakh under Section 80C and Rs 50,000 under Section 80CCD (1B) up to Rs 2 lakh in a financial year.

 

Section 80CCD (2)

This deduction is available for employer contributions to an employee's Tier-2 NPS account. A maximum contribution of 10% of the basic salary allowance (where applicable) of the basic salary is allowed under this section.

Note that effective from the financial year 2010-2011, the employer's contribution to the retirement fund - EPF, surplus fund, NPS - more than Rs. 5.5 lakhs in the financial year will be taxable to the employee.

 

When availing of tax benefits under this section, ensure that the employer's contribution and EPF's contribution with your NPS account will not exceed Rs.5.5 lakh in any financial year.

Also, keep in mind that under both the old and new tax systems this is the only exemption

 

Section 80D

The premium paid for the health insurance policy for a self, spouse, and dependent children up to Rs. In addition to these, premiums paid for parental health insurance can provide additional tax breaks of up to Rs 25,000. If your parents are senior citizens (60 years of age or older), this duty break will go up to a maximum of Rs 30,000.

 

You may also, like- Download and prepare One by One Automatic Income Tax Form 16 Part B in Excel for the F.Y.2020-21 as per new and old tax regime

 

Section 80U

 

If you are a person with a disability of 40% or more, you can claim a duty break under 80U. However, waiver claims under sections 80U and 80DD cannot be claimed simultaneously. The claim for a waiver under section 80U is claimed by the disabled person whereas the waiver of the waiver under section 80DD is claimed to have borne the cost for the treatment of the disabled person. The amount of exemption under section 80U for disability and severe disability is the same as in section 80DD

 

Section 24

 

In addition to the tax benefits available on the repayment of the principal of a home loan under section 80C, a tax benefit of up to a maximum of Rs 2 lakh on interest payable in a financial year can also be claimed.

 

Section 80EEA

 

If you have taken a home loan to buy a house under the Affordable Housing Department in the financial year 2010-2011, you can claim additional tax breaks on interest up to a maximum of Rs 1.5 lakh. This discount is available in paragraph 24 (mentioned above) where you will get a tax benefit up to Rs 2 lakh. However, you must meet certain conditions before claiming tax benefits under Section 80EEA.

 

You may also, like- Download and prepare at a time 50 Employees Automatic Income Tax Form 16 Part B in Excel for the F.Y.2020-21 as per new and old tax regime

 

Section 80TTA

Exemption from Interest in savings accounts in banks or post offices up to Rs 10,000 from these sources in financial sources can be claimed as a deduction from the total income under section 80TTA. However, senior citizens cannot claim this discount.

 

Section 80TTB

Senior citizens (60 years and above) can claim a maximum rebate of Rs. 50,000 from the total income under this section.

 

Section 80D- The premium paid for the health insurance policy for the self, spouse, and dependent children up to Rs. In addition to these, premiums paid for parental health insurance can provide additional tax breaks of up to Rs 25,000. If your parents are senior citizens (60 years of age or older), this duty break will go up to a maximum of Rs 30,000.

 

Download and prepare at a time 50 Employees Automatic Income Tax Form 16 Part A&B in Excel for the F.Y.2020-21 as per new and old tax regime

On April 29, 2021 by www.taxexcel.net

Share It

No Comments

Read More