How to save income tax for F.Y.2021-22 as per budget 2021. Income tax is a term that always hits

taxpayers.

 

However, these amounts are always reduced with the help of income tax saving strategies. Do you know these strategies? If not, no worries! Let's understand everything little by little. 

Income tax-saving tips

The Government of India provides certain ways to reduce the income tax of the taxpayers. The Income Tax Act,1961 includes some tax savers including mutual funds, insurance premiums, NPS, medical insurance, home loans and more.

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There are some departments that act as a relief for the taxpayers because under these main departments they can save taxes.

 

They can certainly be helpful for many taxpayers, especially the income tax of salaried employees. Income tax exemptions and allowances are a priority in the financial planning of any person or entity.

 

Department investment discount limit

Investments in PPF, PF, Insurance, NPS, ELSS etc. 150,000

80CCD NPS investment 50,000

80D Medical insurance investment for own or parent 25,000 / 50,000

80EE interest on home loan 50,000

80EEA interest on home loan 1,50,000

80EEB electric car loan interest 1,50,000

80E full amount of interest on education loan

24 home loan 200,000 interest payments

10 (13A) house rent allowance (HRA) according to the salary structure

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Therefore, the list below shows the categories and discount limits for each.

How to save income tax under section 80C?

Under Section 80C, there are various investment and expenditure options through which you can get Rs. 1.5 lakh in a financial year. These options are as follows:

National Savings Certificate (NSC)

Natation Savings Certificate (NSC) is an extra tax exemption strategy that comes with a 5-year term. The National Savings Certificate provides a fixed interest rate, which is currently 6.8% per annum.

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The interest earned from this income tax savings account is a decent tax-saving option and under Section 87 A, up to 10 Thousand can be taken as a rebate whose Taxable Income less than 5 Lakh.

Public Provident Fund (PPF)

PPF is one of the income tax protection strategies in India. In PPF, long-term investments can be made over a period of 15 years. You can open a PPF account at the bank and post office with a minimum amount. 500

 

The PPF rate changes quarterly, which is currently 7.1%. The funny thing about PPF is that the interest on PPF is tax-free.

 

Employees Provident Fund (EPF)

12% of the salaries of employees under the Employees Provident Fund are tax-free. It is therefore a beneficial income tax savings scheme for service line individuals.

Salary

 

As the name implies, this income tax protection strategy is for people who finance the education of parents and their children. Again dedication of Rs. 1.5 lakh can be claimed under this income tax-saving strategy.

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Tax deductions do not depend on the child's class or level of education. This income tax savings scheme is for divorced, unmarried parents, or all types of parents who have adopted children.

 

Home loan repayment

In order not to impede income tax on the process of buying your own home, Section 80C introduces a scheme where people who are already paying EMI for their home loan are exempted from paying income tax on their interest.

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What are the other income taxes saving options?

Apart from Section 80C, there are other sections (mentioned earlier) that provide income tax exemption. Here are some of the income tax protection options:

 

The pen has tax deductions for contributions to the National Pension System (NPS). The discount limit is 1.5 lakh.

 

Insurance There are income tax deductions for medical insurance premiums U/s 80D. Max Rs 25,000 below 60 Years of age, and Rs. 50,000 for senior citizens above 80 years.

There is also a tax deduction on home loan interest; You can claim discounts up to money. 50,000 under Section 80EE.

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 August 17, 2021 by www.taxexcel.net

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 Tax benefits on home loans for Co-owners. All joint owners can get tax benefits on a joint home loan 

if certain conditions are met. Let's take a look.

 

It is pertinent to note that ‘ownership of property is a prerequisite for receiving any tax benefit as opposed to property. You may have taken it jointly, but if you do not own the property - you cannot get tax benefits.

 

There are situations where the property is owned by one parent, and the parent and child together take out a loan that is only repaid by the child. In such cases, the child who is not a co-owner is deprived of the tax benefit on the home loan.

Terms of claiming property tax benefits

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You must be a co-owner of the property to be able to claim tax benefits for a home loan, you must be a property owner. In many cases, the loan is taken jointly, but the borrower does not own the property according to the documents. In such cases, you cannot claim tax benefits.

 

You must be a co-recipient for the loan. In addition to being an owner, you must be an applicant according to the loan documents. Owners who are not borrowers and do not contribute to EMI will be deprived of tax benefits.

 

The construction of the property must be completed - tax benefits on the property of a home can only be claimed, from the financial year that the construction of the property is completed. Tax benefits are not available for a property under construction. However, any costs prior to completion are claimed in five equal instalments from the year the construction is completed.

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What are the tax benefits?

 

Each co-owner, who is a co-applicant for the loan, may claim a tax benefit of Rs 2,00,000 U/s 24 B for home loan interest on their income tax return. The total interest paid on the loan is allocated to the owners in proportion to their ownership. Needless to say, the total interest claimed by the owner / or recipient cannot exceed the total interest paid for the loan.

 

For example, let's say Tatul and his wife bought a home on loan and paid Rs 4,50,000 in interest. They have a 50:50 equal share of the property. Ratul can claim Rs 2,00,000 in his tax return, his wife can also claim Rs 2,00,000.

 

For a rented property - In the budget of the year 201, the interest that can be claimed in the case of rented property is limited to the amount that the loss of property of such house is not more than Rs. 2 lakhs.

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Each co-owner can claim a maximum rebate of Rs 1,50,000 for capital payment under section 80C. This is within the overall limit of Rs 1,50,000 under Section 80C.

 

Therefore, as a family, you will be able to take a larger tax benefit as opposed to the interest paid on a home loan when the property is jointly owned and your interest is more than Rs 2,00,000 per annum.

 

There may be a situation where you are paying the entire loan instalment and the co-borrower is not paying any money. In this case, you can claim full interest as a deduction on your income tax return.

 

Joint owners can also claim stamp duty and registration charges for a property. We have a detailed guide to help you maximize your tax benefits when you own a home.

You may also, Like- Automated Income Tax Preparation Excel Based Software All in One for the Non-Govt (Private) Employees for the F.Y.2021-22

Main Feature of this Excel Utility-

@ This Excel Utility can prepare at a time your Tax Computed Sheet with New and Old Tax Regime U/s 115 BAC

 

@ Individual Salary Statures as per the Non-Govt (Private) Employees Salary Pattern

 

@ Automated H.R.A. Exemption Calculator U/s 10)13A)

 

@ Automated Income Tax 12 BA

 

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

On August 16, 2021 by www.taxexcel.net

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  Download Auto-Fill Income Tax Preparation Software in Excel for the F.Y.2021-22 as per Budget

 2021. This Software is simple and user-friendly income tax Software for salaried people. This software

 will work for both the old and new tax slab Regime that was published in 2020. You can calculate your

 tax liability and determine taxable investment options and the appropriate tax system for F.Y 2021-22.

 

Software is created using Microsoft Excel. Simple code of Visual Basic  & Excel  formulas and functions are used to create this software. This Excel-based income tax Software All in One, let's get acquainted with the latest income tax slab for the current financial year 2021-22 and the income tax changes in 2021 budget.

You may also, like- Auto-Fill Income Tax Software All in One for the Non-Government Employees for theF.Y.2021-22[This Excel Utility can prepare at a time Tax Computed Sheet as per new and old tax slab + Automated Income Tax Form 12  BA + Automated Calculate Income Tax House Rent Exemption Calculation U/s 10(13A) + Automated Form 16 Part A&B and Form 16 Part B as per Budget 2021]

 

The income tax slab and income tax rate will remain the same for F.Y 2021-22 (A.Y 2022-23). The change in the budget is that only citizens over the age of 75 are exempted from filing income tax returns if they have income from pensions and interest. No major changes have been made to the income tax rules. Income tax slab for the fiscal year 2021-22. 

Income Tax Slab 1 - High Tax Rate 

If you choose the New Tax Regime then you can not avail of the exemption under Section 80C including Exemption for under Chapter VI A Except for NPS and 80CCD(2)

 

However, there are some discounts that you can still claim using the new tax system and they are like below.

 

Monetization at retirement

Trim compensation

VRS facility

• EPFO: Employer's Contribution

• NPS lift facility

• Education Scholarship

 

Salaried persons can choose any tax slab new or old. They can change between the old Tax Regime and the new tax Regime. If an individual or HUF has business income, the option of switching between tax slabs is not allowed.

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This Income Tax Software in Excel F.Y 2021-22 (A.Y 2022-23) from the link given below and easily calculates your income tax liability. This calculator has two parts. Both are given on separate pages.

 

Episode 1 - Calculate taxes according to higher tax rates

The first sheet contains a calculator for high tax rates, where deductions and discounts are allowed.

 

To calculate your income tax liability according to the higher tax rate, you need to provide input like your total income, discount amount. In addition to this, you need to provide information about the investments you have made under different sections. The sheet has inputs for different sections like 80C, 80D, 80CCD etc.

 

After filling in this detail you have to go to the bottom section where you have to select the applicable tax slab by selecting male/female, senior citizen and very senior citizen options.

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You will immediately see your tax liability on tax liability including the cess section.

Part 2 - Calculate tax according to the lower tax rate

 

The second sheet has a new calculator to reduce the tax rate according to the new tax system, where deductions are not allowed.

 

To calculate your income tax liability according to the new tax rate slab, you only need to provide a single input to your total income.

 

This Excel Based Software will automatically calculate the tax liability and display it in the tax liability including the cess field.

 

Download Auto-Fill Income Tax Software All in One for the Government and Non-Government Employees for the F.Y.2021-22

Feature of this Excel Utility

@ Income Tax Arrears Relief calculation U/s 89(1) with Form 10 E for the F.Y.2021-22

 

@ This Excel Utility can prepare at a time Tax Computed Sheet as per new and old tax slab

 

@ Individual Salary Structure as per Govt & Private Employees Salary Pattern

 

@ Automated 89(1) with Form 10E for F.Y.2021-22

 

@ Automated Calculate Income Tax House Rent Exemption Calculation U/s 10(13A)

 

@ Automated Form 16 Part A&B and Form 16 Part B as per Budget 2021]

On August 14, 2021 by www.taxexcel.net

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