Taxexcel

Sunday, 6 June 2021

Exemption from the Income Tax Under Chapter VI-A of the Income Tax Act, salaried persons below the age of 60 years is eligible for various tax exemptions. Below is a table illustrating the applicability of these income tax exemptions with their limits: Section 80C - Earnings from -

• Tax saving fixed deposit

• National Savings Certificate

• Equity Linked Savings Scheme National Pension Scheme Employee Provident Fund Public Provident Fund

Senior Citizens Savings Scheme

Limits of Sukanya Samridhi Yojana etc. - Maximum discount limit up to Rs. 1.5 lakhs.

Section 80CC - Above the amount deposited in LIC Annual Plans. Limit - The maximum discount limit is up to Rs 1.5 lakh.

Hope you may also, like- Automated Income Tax Form 16 Part B for the F.Y.2020-21 which can prepare at a time 50 Employees Form 16 Part B with new and old tax regime U/s 115 BAC

Section 80 TTA - Interest Limit on Bank Savings Account - Rs. 10,000

Category 80GG - Rent of payment of rent when the person does not earn house rent allowance - Short amount of - Rent payment - (10% of total income) 25% of total income 5000 per month Division

80E - Total interest paid for education - No limit

80EE - First time home interest limit - Rs 50,000

A) Rs. 25,000

B) 50% of the amount invested in equity schemes.

Hope you may also, like- Automated Income Tax Form 16 Part B for the F.Y.2020-21 which can prepare at a time 100 Employees Form 16 Part B with new and old tax regime U/s 115 BAC

Section 80D - Health Insurance Policy for Self and Family Premium Limit - Rs. 25,000 for Self, Wife and Dependent Children Self 25,000 (for Self, Wife and Dependent Children) + 25,000 for Parents ) + Up to 50,000 (for parents over 60). Up to 50,000 (self, spouse and dependent children with the largest member over 60 years) + up to 500,000 (for parents over 60)

Section 80DDB - Treatment of Dependent Persons with Specific Diseases. Limit - For persons below 60 years, Rs. 40,000 For persons above 60 years of age, the discount limit is Rs.1,00,000. Department

Hope you may also, like- Automated Income Tax Form 16 Part A&B for the F.Y.2020-21 which can prepare at a time 50 Employees Form 16 Part A&B with new and old tax regime U/s 115 BAC [Who are not able to download the Form 16 Part A from the TRACES PORTAL, they can use this Excel Utility]

80GGC - Contribution Restrictions on Political Parties - There are no restrictions on the method of payment other than cash.

Section 80G - Contributions to charities and specific relief funds. Limited - a few charitable donations 50- Eligible for operations and eligible for a few operations.

Also listed some income tax benefits in the form of allowances and discounts that can help reduce tax liability for salaried individuals. These are:

Standard deduction U/s 16(ia) up to Rs 50,000 in place of previously available treatment reimbursement and transport allowance.

Leave the travel allowance, which can be claimed twice in a block of four years

Download and Prepare at a time 100 Employees Automated Income Tax Form 16 Part A&B for the F.Y.2020-21 which can prepare at a time 50 Employees Form 16 Part A&B with new and old tax regime U/s 115 BAC [Who are not able to download the Form 16 Part A from the TRACES PORTAL, they can use this Excel Utility]

Share It

No Comments

Saturday, 5 June 2021

How to claim salary arrears relief under U/s 89 (1) | the amount paid on the basis of arrears of employment arrears, have you ever considered tax deduction U/s 89 (1)

Most of us don't know what relief is under 89(1). Most employees call it "10 E"

This article is about "How to calculate income tax on arrears of salary".

Let's understand:

What is the relief U/s 89?

Tax calculation depends on the income of the taxpayers, Salary arrear is a step of income that was getting in the relevant financial years of the previous year.

This means that the amount we will estimate in previous years is getting in the current year.

The amount owed makes your income higher and it will pull you into a higher tax slab.

Although the amount received in the current year was supposed to be received in the previous year, due to the process of the employer, you are liable for the duty, so what will happen to the tax arrears.

In this scenario, the tax department allows the assessor to reduce such inconvenience under section 89 (1) of the Income-tax Act.

To avail of the benefits of Section 89 (1), it is mandatory to fill up Form 10E.

As per Section 89(1), it is most important to make out the claim and fill the Form 10E

What is Form 10E?

To demand the amount from the previous financial year U/s 89(1) which has already paid due to arrears, it is necessary to fill the form 10 E without filling the cannot demand the previous financial year's amount. Form 10E entitled you to enter all the salary income and discount details of all years.

Download Automated Income Tax Salary Arrears Relief Calculator U/s 89(1) with Form 10 E from the F.Y.2000-01 to F.Y.2021-22 (Updated Version) as per Budget 2021

Share It

No Comments

Friday, 4 June 2021

Section 80 CCD: Deduction for NPS Contribution |Chapter-A of the Income-tax Act provides for various exemptions for contributions to pension schemes. These exemptions are available under Section 80C, Section 80CCC, and Section 80CCD and can be claimed at the time of filing an income tax return. This article focuses primarily on exemptions approved under Section 80 CCD. For exemptions under Section 80C and Section 80CC.

Deduction under 80 CCD

There is a provision of 80 CCD for exemption of income tax for contributions to the National Pension Scheme (NPS) and for contributions to the notified pension scheme. Discounts under this section are available to individuals only and not to HUFs. Individual claims under this section may be residential or non-residential.

You may also, like- Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y.2020-21

Section 80 CCD (1): Grant of NPS Scheme for Contribution by Individual

Exemption under Section 80CCD (1) is not only available to salaried persons; salaried persons can also contribute to the NPS scheme and get relief for the same.

The maximum amount allowed as exemption under Section 80CCD (1) is: -

In case of employees: 10% of his salary for the financial year (salary includes value-added allowance but excludes all other allowances and permits)

In case of non-employees: 10% of total income in F..Y (increased from F.Y 2017 to 20%)

Section 80 CCD 2015 Budget Amendment

Earlier, the amount of exemption allowed for contributions to NPS was limited to Rs 1 lakh [Section 80 CCD Sub-section 1A]. However, to encourage people to contribute to the NPS, the maximum amount allowed to be invested in the National Pension Scheme has been increased from Rs 1 lakh to Rs. 1.5 lakh.

You may also, like- Download and Prepare at a time 100 Employees Form 16 Part B for the F.Y.2020-21

In addition, a new sub-section 1 B has been introduced in the budget 2015 announced by Arun Jaitley to provide additional discounts for any amount payable, for which Rs. 50,000 50,000 for contributions by any individual assessors under NPS.

This is an additional advantage. Benefits above Rs 50,000 and above. A rebate of Rs 1.5 lakh can be claimed under Section 80C. Therefore, it can now be claimed under Section 80C + Section 80CCD that the total exemption. 2 lakh rupees.

Section 80 CCD (2): Deduction on NPS scheme for contribution by employer

If an employer contributes to the NPS scheme on behalf of the employee and is availed by the employee, the amount under which the employer contributes by the employee may also be waived under section 80CCD (2).

You may also, like- Download and Prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2020-21

The contribution made by the employee himself in the NPS scheme will be allowed as a discount under section 80 CCD (1) and the contribution made by the employer in the NPS scheme will be approved as a discount under section 80CCD (2).

The concession approved under section 80CCD (2) will be allowed for the contribution of employers up to 10% of the salary of the individual.

Receives tax refunds on money from the National Pension Scheme

The contribution made by the NPS scheme will be returned to the employee as a pension after retirement or by surrendering the policy (as it may be).

At the time of withdrawal from the NPS account, 60% of the accumulated balance can be withdrawn and he will be exempted from tax. An annuity will be purchased from the balance of 40% amount.

Budget 2017 Update: Exemption will also, be allowed for partial withdrawal without exceeding 25% of the contribution made by the employee under certain conditions under the Pension Fund Control and Development Authority Act.

Download Automated Income Tax Preparation Excel Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2021-22 and A.Y.2022-23

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 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.2021-22 (Update Version)

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2021-22

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2021-22

Share It

No Comments

Thursday, 3 June 2021

Income tax exemption for salaried employee’s |Various income tax exemptions for salaried employees is mentioned below. These income tax exemptions for salaried employees are highly recommended for everyone as they help to save tax legally which can reduce the tax burden on salaried employees.

Please see the link attached to the points below for a detailed look at each income tax deduction for salaried employees.

1. HRA discount for salaried employees

Many employers pay House Rent Allowance (HRA) to their employees to stay in a better place. A portion of the house rent allowance paid by an employer to an employee is exempt from income tax and income tax is levied only on the remainder.

Download Automated House Rent Exemption Calculator U/s 10(13A)

2. Income tax deduction on Leave travel allowance

Many employers allow their employees to go on vacation with their families. The amount paid by the employer to an employee to go on leave is exempt from the collection of a certain amount of tax on the condition that the amount paid was for leave only in India.

Leave travel allowance (LTC) is also an effective income tax exemption for salaried employees. However, this amount can only be claimed if the employee actually goes on leave because his bills have to be settled.

You may also, like- Automated Income Tax Calculator All in One for the Bihar State Employees for the F.Y.2021-22 as per Budget 2021

Salary Structure for the Bihar State Employees

3. Discount on cashing out pages for salaried employees

Most employers give all their employees a certain number of giving days as can be claimed as leaves. However, if a person does not claim these pages, many employers also offer their employees the option to cash these pages, meaning that employers pay employees extra for pages that were allowed to be accepted but not taken.

This amount received as leave encashment is also allowed to claim a discount up to a certain amount.

4. Pension Exemption from salaried employees

When an employee retires, many employers pay a pension to their employees. Sometimes, the employer pays the pension out of his own pocket, and in some cases, the employer buys an annuity, and then the pension is paid by the company from which the annuity was purchased.

The pension can be of 2 types, unmarried and uncommitted. The entire amount of the pension is exclusively paid in the modified pension and this amount is paid in regular break installments in the unresolved pension.

Regardless of the type of pension, both types of pensions are exempt from income tax up to a certain limit.

You may also, like- Automated Income Tax Calculator All in One for the Andhra Pradesh State Employees for the F.Y.2021-22 as per Budget 2021

5. Gratuity exemption to the salaried persons.

Gratuity is a gift made by the employer to his or her employees in appreciation of past service. Gratuity can be accepted by either:

1. The employee himself at the time of retirement

2) Legal heir at the time of death of the employee

For the purpose of calculating income tax deduction for salaried employees receiving a gratuity, the employees can be divided into 3 categories, and then the exemption is granted depending on the department which is:

1. Employees and employees of government local authorities

2. Employees covered under the Payroll Act, 1972

3. Employees are not covered under any of the above two.

V. Receipt of income tax exemptionin VRS

The amount received or accepted by the employee by voluntary retirement under the Sonar Handshake Scheme will be waived under Section 10 (10C).

You may also, like- Automated Income Tax Calculator All in One for the Jharkhand State Employees for the F.Y.2021-22 as per Budget 2021

7. Income tax deduction for perquisites

Some employers offer their employees various benefits/facilities like car, mobile phone, rent-free.

This kind of permission is not completely tax-free. A specified price of such benefits is allowed as a discount and the price of the approved balance benefits is allowed as a discount.

You may also, like- Automated Income Tax Calculator All in One for the Non-Govt (Private) Employees for the F.Y.2021-22 as per Budget 2021

Various other allowances such as transport allowance, child education allowance are also allowed as income tax exemption for salaried employees but only up to a certain limit.

Relevant points related to income tax exemption for salaried employees

1. The 7 most effective tax exemptions for salaried employees. However, there are various other discounts but not commonly used.

2) The above-mentioned income tax exemption is available only for salaried employees. However, there is other tax saving options available to all categories of taxpayers such as Benefit of Interest on Home Loan, Income Tax Exemption from Sec 80C to 80U, Capital Earnings Exemption under Section 54, etc.

Download Automated Income Tax Salary Arrears Relief CalculatorU/s 89(1) along with Form 10 E from the F.Y.2000-01 to the F.Y.2021-22 (Updated Version)