Home loan grant - principal interest exemption.

There are basically two components to a home loan installment payment. The principal amount and part of interest. An assessing principal may deduct the maximum amount of Rs.1,50,000. 

In the eyes of the income tax house, the property is divided into two parts let’s go outside the property (rented property) and self-occupied property. The interest rebate provision is different for both properties.

 

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

Income Tax Act 1961

Deduction of interest components for self-occupied property under section 24B is Rs. 2 lakhs. The government has allowed the real estate sector to grow further by introducing a new Section 80EEA in the 2021 budget, which is already part of Chapter VI.

 

The terms and conditions of the 80EE section and the 80EEA section are given below. 

Deduction under Section 80EE

A person is eligible for exemption under Section 80E with a maximum limit of Rs 50,000. 

Terms

1. The value of the house should be less than Rs 50 lakh 

2. Will have to be sanctioned during 2016-17

3. The approved amount should be less than Rs. 35 lakhs

4. The assessor should not have any residential house on the date of approval. 

Deduction under this section will remain available until payment is made.

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

 

Deduction up to a maximum of Rs 2 Lacks. Under Section 24, In case of a loan taken for the acquisition of a self-occupied property, Rs.200,000 is available under Section 24 for the interest paid on the loan. 

Deduction Under Section 80EEA

To encourage the real estate sector and to provide additional rebates to the taxpayer, the government introduced more concessions in the Home Loan n 2021 budget. 

The conditions for being satisfied for a waiver under section 80EEA are as follows: 

1. It should be approved by any financial institution between April 2019 and March 31, 2021.

 

2. 80 80EE deductions should not be claimed in case of individual

 

3. There should be no separate residential house on the date of approval

 

4. The stamp duty value of the house is 45 lakh

Deduction benefits under this section are available from A.Y. Y 2020-21 and up to the year of subsequent assessment.

 

This means that the availability of additional discounts approved under 80EEA (Income Tax Act) for interest paid on affordable housing loans in Budget 2021 has been increased to 31 March 2022 within one year. Before the announcement of the budget for 2021, until March 21, 2021.

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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

On June 26, 2021 by www.taxexcel.net

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Tax Exemption Allowance U/s 10 (14) (i) and U/s 10 (14) (iii) are as follows:

 

# Assistant allowance: It is exempt up to the actual amount spent for hiring an assistant required for official duties. Extra, if any, will be taxable.

 

# Uniform Allowance: Exemption up to actual expenditure on acquisition or maintenance of government uniforms. Extra, if any, will be taxable. 

# Vehicle Allowance: Actual expenditure is waived for performing government duties. If the amount received is more than the actual expenditure, additional, if any, will be taxable.

 

# Traveling Allowance: It is exempt up to the actual expenditure incurred for employment purposes. Extra, if any, will be taxable. Any allowance paid to cover travel expenses during travel or transfer will be waived.

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# Daily Allowance: Any allowance sanctioned by the employee for fulfilling the normal daily charges applicable by such employee (during travel or in case of transfer) due to absence from his / her normal workplace will also be waived. . Such allowance will include any amount paid in the case of transfer, packing and personal impact transportation of such transfer.

 

The allowances mentioned in (i) to (vi) are exempt from up to the amount spent by the employee for the purpose for which this allowance is paid. Personal Allowance is available for the allowance with exemption from the amount specified in Section 10 (14) (iii) of the following:

Personal Allowance is available for the allowance with exemption from the amount specified in Section 10 (14) (iii) of the following:

 

# Combined Hill CompensationAllowance / High Altitude Allowance / Unreasonable Climate Allowance / Snow Boundary Allowance / Snowfall Allowance: Any special allowance of nature:

 

A discount of Rs. 2,000 / - has been allowed. 300 p.m. From 7,000 p.m.

 

You may also, like- Automated Income Tax Software in Excel All in One for the Bihar State Employees for the  F.Y. 2021-22 [This Excel Utility can prepare at a time your Tax Computed Sheet + Individual Salary Structure as per the Bihar State Employees Salary Pattern + Automated H.R.A. Exemption Calculation U/s 10(13A) + Automated Form 16 Part A&B and Form 16 Part B for the F.Y.2021-22]

 

# Border Area Allowance / Remote Area Allowance / Complex Area Allowance / Troubled Area Allowance Any special compensation allowance in nature:

 

 Rs. 200 p.m. From 1,300 p.m.

 

# Compensation field allowance:

 

Rs. 2,600 p.m.

# Compensatory Field Allowance: Rs. 1,000 p.m.

 

# Counter Rebel Allowance / Field Field Allowance: Rs. 3,900 p.m.

 

# Highly active field allowance: Rs. 4,200 p.m.

 

# Underground Allowance for Coal Mine Workers: Discount allowed up to Rs. 2,000 / -. 800 p.m. Posting Armed Forces in Andaman and Nicobar Islands and Lakshadweep Islands

 

# Rs for island duty allowance discount. 3,250 p.m.

 

# Retired Chairman and members of UPSC will be given an allowance for receiving services on an order basis and contractual secretarial assistance or 14,000 per month, whichever is less.

You may also, like- Automated Income Tax Software in Excel All in One for the Jharkhand State Employees Fort he F.Y.2021-22 [This Excel Utility can prepare at a time your Tax Computed Sheet + Individual Salary Structure as per the Jharkhand State Employees Salary Pattern + Automated H.R.A. Exemption Calculation U/s 10(13A) + Automated Form 16 Part A&B and Form 16 Part B for the F.Y.2021-22]

 

# Transportation Allowance for Specific Disabled Employees: The concession regarding Transport Allowance has been effectively discontinued for general employees from the assessment year 2019-20. However, the evacuation must continue at @ 3,200 p.m. Blind / Deaf or Dumb or Orthopedically Handicapped or. Disability of lower parts.

 

# Tribal Area Allowance: This allowance is waived up to Rs 2,000. 200 p.m. In the following states  Madhya Pradesh, Tamil Nadu, Uttar Pradesh, Karnataka, Tripura, Assam, West Bengal, Bihar and Orissa. (xiii) High Altitude Allowance: This type of allowance is given to the Armed Forces in higher areas. It is discounted as below: 9,000-15,000 feet Altitude: 1,060 p.m. up to 15,000 feet Altitude: up to 1,600

You may also, like- Automated Income Tax Software in Excel All in One for the Andhra Pradesh State Employees for the  F.Y. 2021-22 [This Excel Utility can prepare at a time your Tax Computed Sheet + Individual Salary Structure as per the Andhra Pradesh State Employees Salary Pattern + Automated H.R.A. Exemption Calculation U/s 10(13A) + Automated Form 16 Part A&B and Form 16 Part B for the F.Y.2021-22]

 

# Children's education allowance:

If an employer pays an employee as an education allowance for the education of their own children in India, An exemption of up to five thousand rupees will be given for it. 100 p.m. For only two children per child.

 

The employee is allowed a discount on any two children. The term ‘child’ includes all legal children, including a step-child and a legally adopted child, but does not include grandchildren. Discounts will be allowed by the staff regardless of the actual cost of educating children who have both major or minor children.

 

If an employee is receiving both tuition allowances as well; He is only allowed separate discounts for tuition and dormitory allowances for two children.

 

# Hostel Expenditure Allowance: Any allowance paid to an employer to cover the dormitory expenses of the children of the employees will be discounted up to Rs 2,000. 300 p.m. For a maximum of two children per child.

 

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On June 23, 2021 by www.taxexcel.net

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How to reduce your income tax burden for the F.Y.2021-22| everyone wants to reduce income tax liability but most of them do not know how to reduce income tax liability legally. Some people know partial. As a result, they pay more taxes than they can save. In this article, I will try to help you reduce the burden of income tax. 

But before we move on to our main discussion I would like to highlight some of the recent changes in the Income Tax Act that you should know for proper tax planning.

Recent changes in income tax effective from 1.4.2021

 

The Finance Act 2020 and 2021 have seen major changes affecting most income taxpayers. Until you know these changes, you will face many problems. In this article, I have tried to explain them and give you advice on how to deal with them.

You may also, like- Automated Income Tax Preparation Software in Excel All in One for the Andhra Pradesh State Employees for the F.Y.2021-22 [This Excel Utility prepare at a time your Tax Computed Sheet + Individual Salary Structure as per Andhra Pradesh State Employees Salary Pattern + Automated Income Tax Revised Form 16 Part A&B and Form 16 Part B as per new and old tax regime U/s 115 BAC] 

1. Tax on interest in PF: As per the budget of 2021, the interest income of the fund provided is fully taxable, if it is Rs 2,000 more than the interest. 2.5 Lakhs

 

 

2. Punishment for linking Aadhaar and PAN: The last date for linking a PAN card with the Aadhaar card is 31.3.21. If you fail to do so, you will be fined Rs 10,000 U/s 272B of the Income Tax Act.

 

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What is the process to reduce tax liability?

 

The most affected taxpayers are the salaried people. They do not have the opportunity to reduce their tax liability, which are detailed below:

 

A) Savings under sections 80C and 80CC (maximum investment limit is Rs. 1.50 lakhs)

# Compulsory contribution to the Provident Fund

 

# Voluntary contribution to the Provident Fund (VPF)

 

# Contribution to Public Provident Fund Account (CPF)

 

# Life insurance premium

 

# Equity-linked savings scheme,

 

# Payment of principal amount for a home loan

 

# Certificate of National Conservation (NSC)

 

# Unit Combined Insurance Plan (ULIP)

 

# Tax saving FD for five years

B) Savings under section 80 CCD (1)

Employee Contribution to NPS under 80 CCD (1)

1.5 to 1.5 Lakh

 

C) Savings under section 80CCD (1B)

Rs.50000 towards contribution against extra deducted NPS. Contributions to the Atal Pension Scheme are also eligible for exemption.

 

D) Savings under section 80CCD (2)

Under section 80CCD (2), the contribution of employers towards NPS is allowed under this section to be deducted up to 10% of the additional incremental allowance of private salary.

 

E) Savings under 80D

The health insurance premium under section 80D is Rs. 25000 for self, wife and dependent children. The extra rupee maybe available for a discount of Rs 30,000 if the premium is paid to parents below 60 years of age.

 

F) Deduction U/s 24 (b)

Interest in house building can be deducted up to Rs. 2,000 as income from house building. 2 lakh rupees.

 

G) Exemption for interest earned from bank accounts and deposits under section 80 TTB

Senior citizens will be able to give a discount as per the TBB section. 50000 for interest earned against the bank deposit.

 

H) Exemption under Section 80G for grants made to charities

Anyone can save tax by donating to a charitable organization eligible under section 80. However, before granting a grant, one must ensure that the company is registered with the Income Tax Department and is eligible for an 80G exemption.

 

i) Section 80DD - Disable reliable discount. (Wife / child / parents)

An exemption may be claimed in this section if any spouse/child/parent is partially or completely disabled.

 

j) Exemption for Section 80U-disabled taxpayers

If a taxpayer himself is partially or completely disabled, a waiver can be claimed in this section.

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On June 22, 2021 by www.taxexcel.net

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