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Tuesday, 3 August 2021

What is the necessity of a Pan Card | PAN is very necessary for all entities and individuals.

It is not only used by the income tax authorities for tracking tax payments but it has now become mandatory for many days of transactions.

To open a new bank account or any investment to any financial concerned, a PAN card is required.

The advantage of having a PAN card

1. IT returns filing

All individuals and organizations eligible for income tax are expected to file their IT returns. A PAN card is required for filing IT returns and it is an application for primary cause individuals and other organizations.

2. Proof of identity

The PAN card serves as proof of valid identification. In addition to voter cards, Aadhaar cards, PAN cards are accepted by all financial institutions and other entities as proof of identity.

3. Tax deduction

An essential reason for getting a PAN card is for tax purposes.

If the entity or person does not associate PAN number with his bank account and the annual interest earned on the savings deposit is more than Rs. 10,000 / - then the bank will deduct 30% TDS instead of 10%.

4. Claim an income tax refund

Many times, the TDS deducted from a taxpayer's income is more than the actual tax he is supposed to pay. To claim additional taxes, the taxpayer must have a PAN linked to his bank account.

5. Start a business

To start a business, a company or any other entity is required to register a PAN in the name of its entity.

Tax Registration Number (TRN) is required for a business that is available only if the entity has a PAN.

6. Open a bank account

All public, private and cooperative banks have made it mandatory to have a bank account in the name of an individual or company to open a savings or current account.

Only under the Prime Minister's Jan Dhan Yojana, a person can open a Zero Balance Account using a voter card or other proof of identity.

7. Open a Demat account

PAN card is also mandatory for an individual or entity to open a Demat account, which is required to hold shares in dematerialized form.

8. Purchase and sale of movable property

One of the advantages of a PAN card is the ability to enter into the transaction of sale or purchase of assets of an individual or entity.

The PAN should be mentioned in the deed prepared at the time of sale or purchase of immovable property worth Rs. 10 lakhs or more.

9. Overseas Travel 50,000 / - PAN card required with cash payment along with travel abroad

10. Time Deposit Post Office, Cooperative Bank, Non-Banking Financial Company Deposit will also require PAN, the deposit will be added up to Rs50,000/-. It will take five lakh or more PANs per year

11. Hotel and Restaurant Bill Payment over Rs. 50,000 / - per year

12. Purchase or sale of goods and services. Purchase or sale of any product or service is more than Rs.00 2 lakh PAN is required for each transaction

13. Bank Draft, Pay Order and Bank Card Check With a transaction of more than Rs. 50,000 / - per day, PAN card is required for bank draft, pay order and banker check. This means that only one PAN card will be required for transactions above Rs. 50000 / -. Advantages of Income Tax Authority

1. A PAN card helps the Income Tax Authority to keep an account of all financial transactions which may be essential for assessing the tax liability of an individual or company, it helps to reduce the possibility of tax evasion. The PAN card contains the person's name, date of birth and photograph and is also accepted as proof of identity of the holder.

2. The PAN number is unique for each entity containing the PAN number. Name and address may change or card may be lost or stolen but PAN number will still remain unchanged. Thus, the chances of abuse are low.

3. A minor account can be easily opened through his guardian's PAN card

4. It is a useful tool for estimating the total tax revenue generated in India

5. Who can hold a PAN card to help an entity determines which tax should be levied based on its income?

The following companies may have a PAN card:

Class Signing Personal Self HUF. Doing Company Director Firm / LLP Partner AOP / BOI Authorized Signing PAN

Linked to Aadhaar

A person's Aadhaar card must be linked to a PAN card if he already has an Aadhaar card. Linking will help the nation to solve the problem of multiple PAN cards issued under one name.

If the user's Aadhaar card number is specified, it is also mandatory to link them for tax submission.

Conclusion

As per the above matters mentioned uses and benefits of PAN cards, it will become clear to a person why it is so important to have a PAN card in his daily transactions.

Download Auto Fill Pan Card Preparation Excel BasedSoftware 49 A as the latest amended version

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Deduction under Chapter VI-A of the Income-tax Act contains various sub-sections of section 80

which allow an assessor to claim a deduction from the total income due to various tax-saving

investments, approved expenditures, grants, etc. Reduce taxes payable.

Chapter VI of the Income Tax Act has the following sections:

80C: Deduction limit for life insurance premium, deferred annuity, contribution to provident fund (PF), fixed equity share or debenture subscription etc. Rs. 1.5 lakh together Section 80CCC and Section 80CCD (1)

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80CCC: Deduction in contribution to the fixed pension fund Max Rs. 1.5 Lakh.

80CCD (1): Deduction in contribution to Central Government Pension Scheme - In the case of an employee, 10 per cent of salary (Basic + DA) and in any other case, 20 per cent of his total income will be tax-free in one FY. The overall limit with 80C and 80CCC is Rs 1.5 lakh.

80CCD (1B): Discount up to Rs. 50,000 for contribution to Central Government (NPS) Pension Scheme.

80CCD (2): Deduction in the contribution of the employer to the pension scheme of the Central Government. Tax benefits are given on 14 per cent contribution by the employer, where such contribution is made by the central government and where the contribution is made by any other employer, a 10 per cent tax benefit is given.

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80CCC: Deduction in contribution to the fixed pension fund Max Rs. 1.5 Lakh

80D: Deduction in health insurance premiums. Premiums up to Rs 25,000 are paid for those other than senior citizens. For senior citizens, the limit is Rs 50,000 and the overall limit under 80D is Rs 1 lakh.

80DD: Decreases in maintenance including treatment of a disabled person who is a disabled person Max Rs.75,000/-

80DDB: A neurologist, oncologist, urologist, haematologist, immunologist or another such specialist can give a discount of up to Rs 40,000 for the treatment of a prescribed disease.

80E: Exemption in case of interest on loan taken for higher education without any upper limit.

You may also, like- Automated Income Tax Preparation Excel Based Software for the Assam State Government Employees for the F.Y.2021-22 [This Excel Utility can prepare at a time your Income Tax Computed Sheet as per new and old tax regime + Individual Salary Structure for the Assam State Govt Employees Salary Pattern + Individual Salary Sheet + Automated House Rent Exemption Calculation U/s 10(13A) + Automated Income Tax Revised Form 16 Part A&B and Part B]

80CCC: Deduction in contribution to the fixed pension fund Max Rs. 1.5 Lakh

80EE: Deduction House Building Loan interest Max Rs. 50,000.

80EEA: Deduction of interest up to Rs.

80EEB: Discount on interest up to Rs 1.5 lakh on loan taken for the purchase of an electric car.

80G: Donations are made to specific funds, charities, etc., depending on nature, the limit varies from 100 per cent of the total grant, 50 per cent of the total grant or 50 per cent of the grant to 10 per cent of the total income.

You may also, like- Automated Income Tax Preparation Excel Based Software for the Andhra Pradesh State Employees for the F.Y.2021-22 [This Excel Utility can prepare at a time your Income Tax Computed Sheet as per new and old tax regime + Individual Salary Structure for the Andhra Pradesh State Govt Employees Salary Pattern + Individual Salary Sheet + Automated House Rent Exemption Calculation U/s 10(13A) + Automated Income Tax Revised Form 16 Part A&B and Part B]

80CCC: Deduction in contribution to the fixed pension fund Max Rs. 1.5 Lakh

80GG: Decrease in rent paid by non-salaried persons who do not get HRA benefits. The deduction limit is Rs 5,000 per month or 25 per cent of the total income per year, whichever is less.

80GGA: Complete discount for specific grants for scientific research or rural development.

80GGC: Complete exemption for grants to political parties, if such grants are not in cash.

80TTA: Discount up to Rs 10,000 in case of interest on savings bank account in case of assessors other than a resident senior citizen.

80TTB: Reduction in interest on deposits up to Rs 50,000 in the case of resident senior citizens.

80U: Discount in case of a disabled person. Depending on the type and extent of disability, the maximum exemption allowed under this section is Rs. 1.25 lakhs

Download Automated Income Tax Preparation Excel Based Software for the Government and All Non-Government (Private) Employees for theF.Y.2021-22

Main Feature of this Excel Utility-

$ This Excel Utility can prepare at a time your Income Tax Computed Sheet as per new and old tax regime

$ Individual Salary Structure for the Govt and All Non-Govt Employees Salary Pattern

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$ Automated Income Tax Salary Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2021-22

$ Automated Income Tax Revised Form 16 Part A&B and Part B]

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Sunday, 1 August 2021

Tax-exemption from income as per Income Tax Act. Is there any section of income that is tax-free in

India? If so, please provide a general definition of this section.

Some of the following items of compensation are not taxable:.

It may be noted that in the case where the person chooses the new tax system, the person does not have the scope of the prescribed exemption and deduction.

You may also, like- Automated Income Tax Preparation Excel Based Software All in One for the Non-Government Employees for the F.Y.2021-22[This Excel Utility can prepare at a time Tax Computed Sheet + Individual Salary Structure as per Non-Govt Employees Salary Pattern + Individual Salary Sheet + Automated H.R.A. Exemption Calculation U/s 10(13A) + Income Tax Form 12 BA + Automated Income Tax Form 16 Part A&B and Part B as per the new section 115 BAC]

General discount from income 80C.

What is the general discount from the permitted income in India?

Discounts are allowed in India as opposed to taxable income (limited to taxable income) based on the type of investment, expenses incurred, income earned, etc.

# Life Insurance Premium Maximum 1,50,000 / -

# Subscription for National Savings Certificates(NSC) and interest earned a maximum of 1,50,000 /

# Contribution to Provident Fund / Approved Retirement Fund recognized by Employee / Public Provident Fund. Maximum Rs. 1,50,000 / -

# Contribution to National Pension System (NPS) Maximum Rs.1,50,000 / -

# Repayment of the loan per purchase/construction cost of new residential house 1,50,000 / -

# Amount paid as stamp duty and registration charge at the time of home purchase. Maximum 1,50,000 / -

# Term deposit for a fixed term of fewer than 5 years with a designated bank as per the scheme formulated and notified by the Central Government.

# Subscription in Units of Unit Trust of India Specific Mutual Fund or United Linked Insurance Plan 1971 (ULIP)

# Tuition Fee (excluding any development fee or donation or payment of similar nature)

# Unit of LIC Mutual Fund contributes to Unit Linked Insurance Plan up to a maximum of Rs.1,50,000 / -

# Informed Mutual Fund or Unit Trust of India Pension Fund Contribution.

# Subscription of Notified Deposit Scheme / Contribution of any Notified Deposit Scheme Pension Fund of National Housing Bank.

# Investment in Senior Citizen Savings Scheme Rules Maximum Rs 1,50,000 / -

# Time Deposit Rules, 5 years time deposit in an account under Post Office 1981 Maximum Rs 1,50,000 / -

# Contribution to Sukanya Samridhi Account Maximum Rs 1,50,000 / -

* All the above payments have been consolidated without any sub-limit and may be subject to the following conditions. The maximum allowable discount for all of the above payments is Rs 150,000. U/s 80C,

** The reduction in the premium payable for a life insurance policy will only apply to premium payments that do not exceed ten per cent of the actual capital insurance (issued on or after 1 April 2012) and 20 per cent of the actual capital insurance (before 1 April 2012).

The total discount for NPS contributions are Rs 200,000 and are available in two parts:

Within the overall range of INR 150,000 per annum for all cuts listed above;

After the tax year 2014-15, an additional rebate of up to Rs 50,000 per person is available for an individual's contribution to the NPS.

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