Key Highlights of the 2021 Budget. The coronavirus epidemic caused financial problems for many. 

Barriers encourage sector-after-sector, people lose jobs and uncertainty deepens. The health impact of 

the COVID-19 epidemic introduces unexpected expenditures for the personal budget. The middle class 

will expect unemployment in 2020-21 central budget to help overcome these problems. If anything, 

middle-class taxpayers expected certain tax breaks so that they had more money in their hands than 

their salaries.

 

The basic tax exemption limit was raised from Rs 2.5 lakh to Rs 5 lakh per annum to increase the amount of money in the hands of the people in the self-respecting India package announced last year to combat the economic impact of the COVID-19 epidemic. This decision may appear in this year's budget announcement.

You may also, like- Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21 [This Excel Utility can prepare at a time 50 Employees Form 16 Part B]

In the 2021 interim budget, the Center had proposed to increase the basic income tax exemption limit to Rs 5 lakh per annum. The discount limit has not been increased though. Last year, the government kept the exemption limit unchanged but allowed taxpayers to choose between a lower tax rate or an exemption between the existing tax and tax system.

 

There is a demand to increase the standard deduction from the current Rs 50,000. As a result, taxpayers' medical reimbursement and travel allowance discounts will be reduced from standard discounts to 2019-20. Was removed from the fiscal year. The standard waiver ensures that taxpayers have a portion of their salary that is not subject to income tax.

 

With the increase in the standard discounts, people will have more money to pay for medical bills and higher fuel costs. Some reports have suggested that the standard exemption limit could be increased from Rs 755,000 to Rs 100,000 depending on the Finance Ministry's assessment.

You may also, like- Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21[This Excel Utility can prepare at a time 100 Employees Form 16 Part B]

 

There is a demand to increase the benefits for domestic workers in the real estate sector under Section 80C and Section 24B of the Income Tax Act. This will give taxpayers more disposable income, but it will also bring back demand in the residential real estate sector.

 

Paid classes will expect tax breaks against allowances paid by employers for setting up workplaces at home. As working from home became the norm, some companies paid their employees to buy the necessary furniture and equipment. However, this amount is taxable in the hands of employees.

You may also, like- Automated Income Tax Revised Form 16 Part A&B for the F.Y.2021-22[This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

 

Considering the inconveniences caused by the coronavirus epidemic and the new wage code, any move to more disposable income this year would be welcome. Some estimates suggest that the share of household wages may decline from 1st April 2021  will take effect.

 

According to the new pay rules under the code mandate, the allowance components cannot exceed 50 per cent of the total salary, which means 50 per cent of the basic salary. This means companies will have to increase the private pay component, which will provide gratuity to provident funds and increase employee contributions. This will help increase their retirement corps, but it will also reduce their household wages.

Download Automated Income Tax Arrears Relief Calculator U/s89(1) with Form 10 E from the F.Y.2000-01 to the F.Y.2021-22 (Updated Version)

On July 14, 2021 by www.taxexcel.net

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 Senior Citizen parental medical bills can save you taxes. With COVID's second wave in full swing,

 health insurance seems like an unavoidable requirement that also gives you tax benefits under Sec 80D.

 

But here’s the catch - health insurance premiums for senior citizens are either too high or unavailable, especially for those with pre-existing conditions. Don't worry - did you know that even your senior citizen's parents' medical bills can save you taxes?

Let's find out how it works

You may also, like- Autofill Income Tax Preparation Excel Based Software All in One for the Non-GovtEmployees for the F.Y.2021-22[ This Excel Utility can prepare at a time your Tax Computed Sheet as per Section 115 BAC + Auto Calculate House Rent Exemption Calculation U/s 10(13A) + Automated Income Tax Form 12 BA + Automated Income Tax Form 16 Part A&B and Part B as per new and old tax regime]

Medical expenses incurred for senior citizens 60 years of age or older are reasonable.

This waiver claim may include parents (spouses or dependent children) for themselves (senior citizens themselves) or families.

 

The person for whom the discount has been claimed is not covered by any health insurance.

 

All medical expenses, from counseling fees to medications, or the purchase of devices such as hearing aids, are permitted. A proof will be required.

Most importantly - no payments made in cash are allowed.

 

The limit of medical expenses is the same as that allowed for health insurance which is Rs 50,000 per year for parents and Rs. Separate annual Rs. 50,000 for self, wife or dependent children (if senior citizen).

 

This year, as there are plenty of examples of people who spend money on treatments related to covid, make sure you make good use of this facility to save your taxes.

Download Autofill Income Tax Preparation Excel Based Software All in One for the West Bengal Government Employees for theF.Y.2021-22

 

Main Feature of this Excel Utility:-

 

#This Excel Utility can prepare at a time your Tax Computed Sheet as per Section 115 BAC

 

#Auto Calculate House Rent Exemption Calculation U/s 10(13A)

 

#Automated Income Tax Form 16 Part A&B

 

#Automated Income Tax Form 16 Part B

 

# Individual Salary Structure as per W.B.Govt Employees Salary Pattern

On July 11, 2021 by www.taxexcel.net

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 Major changes in the income tax rules for the fiscal year 2021-22| The government usually changes the

 tax rules during the budget presented in February. These changes are effective from the following fiscal

 year beginning in April.

 

Which Tax Regime you Choose U/s 115 BAC.

 

Selecting your tax regime New or Old?

 

Last year’s budget gave taxpayers the option to choose between two tax systems. This is the second year when you have to make a choice. What is the difference between the two? The old regime came with a lot of concessions but with a higher slab of tax rates, the new government reduced the tax rate but did not allow specific concessions and concessions. Choose the right slab and get the most out of it. 

Less time to file a revised tax return or billed return 

Tax return due by 31st July of each year You had the opportunity to file or amend your return by 31st March of the assessment year with a slightly late fee With this financial year, the return correction or billet return submission window has been shortened to 3 months. You just have until December 31st;

 

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

Dividend income is featured in ITR

 

Dividend distribution tax was levied on companies till the financial year and dividend income of domestic companies were exempted up to Rs 2,000. 10 lakh, but between 2010-2011 F.Y, dividends are fully taxable as per slab rate and distribute any dividends payable by the companies. So check the TDS against the dividend income on your Form 26AS and settle it with the dividend credit in your account and pay the tax according to your slab.

 

Enjoy pre-filled ITR forms

To make the tax filing process easier and more transparent, your ITR forms will be pre-filled with listed securities, mutual funds, dividend income, bank and post office interest, salary income, etc.

 

Voluntary contributions to the EPF beyond the limit are taxed at interest

 

Interest earned on provident funds was completely exempt from income tax till F.Y2020-21. During the 2021 budget, FM announced that more than Rs 2.5 lakh would be taxed on interest income on voluntary contributions to the EPF. However, this limit was later raised to Rs 5 lakh if the employer did not contribute to the EPF.

 

So, if your EPF / VPF deposit exceeds the prescribed limit, interest income will now be taxable. This will start from 1st April 2021.

 

Tax on ULIPs

 

Maturity earnings of any ULIP policy are exempt from tax if the premium does not exceed 10% of the insured. However, everything changed in the last budget! This provision will be applicable only when the premium for all the ULIPs you have received does not exceed Rs. This rule applies to ULIPs purchased after 01 February 2021.

 

Senior citizens over the age of 75 are not required to file ITR in certain cases 

Senior citizens are exempted from filing IT returns subject to certain conditions if they earn income only from pension and interest income from a bank.

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 Section 115 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

 

On July 10, 2021 by www.taxexcel.net

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Auto Calculate Income Tax Salary Benefit Calculator U/S 89 (1) from F|Y 2000-01 to F|Y 2021-22 with Form10E (Updated Version)

 

Form 10E FAQs

 

Question 1 What is Form 10E?

A. Relief may be claimed in the amount of an advance in arrears or in the nature of salary| Section 89 To claim such relief, the assessor must file Form 10E. The form must be submitted before filing the income return.

 

Q.2 Can I download and resubmit Form 10E?

A: No, there is no need to download Form 10E can be submitted online after logging in to the e-filing portal.

 

Q.3 Should I file Form 10E?

A. Before Income Tax Return submit the 10-E

 

Question 4 Is it mandatory to file Form 10E?

A. Yes, if you want to claim a tax deduction on your arrears/advance income, it is mandatory to file Form 10E.

Q: 5 I failed to file Form 10E but claim relief in mine?

A| If you fail to complete Form 10, you have made 89 claims in your ITR, your ITR will be processed, but you will not be allowed without the relief claimed 89

 

Q. When I can make out, that my Form 10-E has submitted properly?

 How to make out that I submitted properly in ITR?

 

 A: If the relief you claim in 89 is not granted, you will need to notify you via U/S 143 (1) after the ITD ITR processing is completed.

 

Form 10E User Manual

1. Overview

Total income tax liability is calculated from the total income earned during a given financial year| However, if the nature of the salary includes advance or arrears payment within the income of a particular financial year, the Income Tax Act allows relief (U/s 89) for additional understanding of tax liability. Form 10 E need to be filled to claim this kind of relief.

 

 

2. A valid prerequisite for receiving this service is a valid user ID and password registered with the e-filing portal.

 

About the form

 

3.1 Objectives To provide relief to an assessor for salary or profit in advance of salary or family pension received by an assessor in the financial year under the Income-tax Act, 1999.

 

This relief is given at a rate higher than the value of the total income| This type of relief can be claimed on Form 10E with your income statement.

 

3.2 Who can use it? All registered users on the e-filing portal will be able to submit their income statements on Form 10E to claim relief under Section 619 of the Income Tax Act.

 

4. At a Glance Form 10 consists of seven parts:

 

1. Personal information- PAN and contact details

 

2. Consolidation (arrears) - arrears of salary/family pension

 

3. You may attach the Salary or Pension Advance Slip

 

4. Annexure-2 and IIA (Gratuity) - Payment in nature of gratuity for past services

 

5. Compensation - Payment of IV (Pension) for less than 3 years from the employer or previous employer for termination of service for more than one year or as compensation from the previous employer or for an unchanged part of the term. 

Download Automated Excel Based Income Tax Salary ArrearsRelief Calculator U/s 89(1) with Form 10E from the Financial Year 2000-01 to the Financial Year 2021-22 (Updated Version)

On July 08, 2021 by www.taxexcel.net

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