Income tax allowances and deductions for F.Y.2021-22. Salary employees constitute a

 major part of the overall taxpayers of the country and their contribution to tax collection

 is significant. Income tax deductions provide a wide range of tax-saving

 opportunities for the salaried class. With the help of these deductions and deductions,

 one can significantly reduce his taxes.

 

Most valuable as well as common deductions and allowances U/s 80 C are available to salary individuals.

Exemption of allowance

House rent allowance

A salaried person with rented accommodation can avail of the benefit of HRA (House Rent Allowance). It can be fully or partially exempt from income tax. However, if you do not live in rented accommodation and still continue to receive HRA, it will be taxable. If you cannot submit a rent receipt to your employer to claim an HRA, you can claim a waiver at the time of filing your income tax return. So, please keep the rent receipt and proof of any payment for the rent.

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You can claim at least one of the following as an HRA discount.

A. Total HRA received from your employer

B. Rent paid 10% less (basic salary + DA)

C. 40% of salary for non-metro (basic salary + DA) and 50% of salary for metro (basic salary + DA)

Standard deduction

The Finance Minister of India, while presenting the Union Budget 2018, announced a standard deduction U/s 16(ia) amounting to Rs. 40,000 for salaried employees. It was a transport allowance (Rs. 19,200) and medical compensation (Rs. 15,000). As a result, salaried people can get additional income tax exemption. 5,800 in FY2019-1Y.

 

The money limit has been increased by Rs 40,000 to Rs 50,000 in the interim budget 2019.

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Release Travel Allowance (LTA)

The Income Tax Act provides for LTA exemption for salaried employees, which is limited to travel expenses during their holidays. You can claim LTA twice in a four-year block. If a person does not use this discount in the block, he can carry it to the next block. The following are the restrictions applicable to LTA:

LTA is not only the cost of domestic travel and international travel

This type of travel method must be by rail, air travel or public transport

Child allowance 

Children education allowances as part of your salary. Such allowances received by the employer for the education of children is exempt from tax. 

However, the children education allowances for two children @ Rs.100 P.M.

Approved subtraction

Sections 80C, 80CCC and 80CCD (1)

Section 80C is the commonly used option for income tax exemption up to Rs.1.5 Lakh. Expenditure/investment within 80C from income generated due to capital gain is not allowed. This means that if a person's income only includes capital gains, then section 80 cannot be used for tax protection. Some of these investments are eligible for discounts up to a maximum of Rs 1.5 lakh under Sections 80C, 80CCC and 80CCD (1).

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Section 80D exemption limits are:

25,000 for a premium paid for oneself / family.

Rupees 50,000 for premium for senior citizen parents.

In addition, health checks of Rs 50,000 are also approved and covered in the overall range.

Discount up to Rs. 10,000 for medical expenses incurred by senior citizens (years 60 years or more) or senior citizen parents up to Rs.40000/-

The taxpayer can claim a maximum rebate of Rs. 5,000. 50,000 including the amount of premium and medical expenses if he is a senior citizen

(60 years or more). In addition, if he pays the medical bills of his senior citizen parents, he can claim an additional discount of up to Rs 10,000. 50,000.

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Home Loan Interest (Section 80C and Section 24)

Another capital-saving tool is interest on home loans. Max Limit Rs. 2 lakh as a discount for interest on home loans for self-occupied property.

 

In addition to the above, one can claim up to a maximum limit of Rs 1.5 lakh under Section 80C, the main component of repaying a housing loan.

 

Grants (Section 80G)

Section 80G of the Income Tax Act, 1961 proposes deduction of income tax to an appraiser who donates to charities. This discount varies depending on the recipient organization, which means anyone can get a 50% or 100% discount on the amount donated, with or without restrictions.

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 Savings Account Interest Reduction (Section 80TTA)

Section 80TTA of the Income-tax Act, 1961 offers a rebate of up to INR 10,000 on income earned from savings account interest. This discount is available for individuals and HUFs. If the bank's interest income is less than INR 10,000, the entire amount will be deducted.

 

However, if the bank's interest income is more than INR 10,000, the next amount will be taxable.

 

Home Loan Interest (Section 80EE)

Section 80E allows homeowners to claim an additional Rs. 50,000 (Section 2) for the interest portion of the home loan EMI. Subject to the following:

The loan must not exceed Rs. 35,00,000

The cost of the property can not exceed Rs.50,00,000.

The person must not have any other property registered in his name at the time of granting the individual. 

Download Automated Income Tax Preparation Excel Based Software All in One for the Government and Non-Government (Private) Employees for the Financial Year 2021-22 and The assessment Year 2022-23 U/s 115BAC

 

Feature of this Excel Utility:-

1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.

 

2) This Excel Utility has all amended Income Tax Section as per Budget 2021

 

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

 

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

 

5) Individual Salary Structure as per the Govt and Private Concern’s Salary Pattern

 

6) Individual Salary Sheet

 

7) Individual Tax Computed Sheet

 

8) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21

 

9) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21

 

10) Automatic Convert the amount into the in-words without any Excel Formula

On September 26, 2021 by www.taxexcel.net

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80GG - Deduction in paid House Rent. Deduction under Chapter VI-A of the 80GG as per the Income-tax Act, 1961. It has been introduced to provide relief to people who do not receive any house rent allowance but are paying rent for living. Thus, a person can claim a discount for the rent paid even if he does not receive a house rent allowance.

A person must be self-employed or salaried to claim a deduction under this section. 80GG allows individuals to claim deductions in the case of rented houses. Renting such a house would be for his own stay. 

Exemption under section 80GG

 

The following conditions must be met to claim a deduction under this section:

 

That person should not receive any house rent allowance from his employer.

The person has submitted a declaration in Form No. 10BA.

 

• A member should not own any residential home property in the place where he normally resides or performs office duties or is the cause of his business or profession.

 

• The appraiser should not own any residential accommodation in his / her own profession, in any other place, the value of which shall be determined in accordance with Sec 23 (2) (a) or Section 23 (4) (a).

Simply put, if Mr. A, in his income tax return, claims a deduction in the case of self-occupied property and pays rent for a place where he normally resides but not his own, he cannot claim deduction under the 80GG section.

 

The deduction amount will be the lowest of the following:

Subtract 10% of the total income paid for actual rent.

• 5,000 / - per month.

Total adjusted 25% of total income.

Exceptions under Section 80GG:

A person cannot claim a deduction for rent if the location of the house where he/she works or runs a business.

A person cannot claim a deduction for rent if he claims the benefits of the house he owns as self-acquired property elsewhere. If the person lives in one city and has a house in another place or city, it will be considered rent.

 

Any person who lives in their home with his parents, he/she can claim the benefit of rent deduction as per Section 80GG. To deduct the rent he has to make a rental agreement with the parents. However, the mother and father who own the home must show the rent as income on their tax return. If the house is jointly owned by the son/daughter, they cannot claim the benefit of rent deduction on their taxable income.

Frequently Asked Questions of Section 80GG

 

What is the total income collected under section 80GG?

Total income refers to income which is not including long-term and short-term capital gains. Here, only those short-term capital gains that are taxed at 10% of 111A will be excluded.

 

Also, adjusted gross income means income without deductions from 115A to 115D and 80C to 80U.

Combined gross income means: -

Total gross income is subject to tax at 10 deductions under sections 80C to 80U from foreign companies under low long-term capital gains and short-term capital gains.

Note that 80GG from 80C to 80U will not be included in the above cuts.

What details need to be submitted to claim deduction under 80GG?

The details required for submission are:

The appraiser’s name

Pan Card Number

Postal is the complete address of the premises including the postal code

Term (in months)

The means of payment

Pay that amount

Land The name of the landlord

The landlord's address.

The landlord's PAN is mandatory if the rent is more than Rs. 1 lakh for the assessment year.

A declaration confirming that any other home property is owned by the taxpayer in his own name or in the name of his spouse / minor or owned by HUF. 

Download Automated Income Tax Preparation Excel Based Software All in One for the Non-Government(Private) Employees for the Financial Year 2021-22 and Assessment Year 2022-23U/s 115 BAC

 

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1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.

 

2) This Excel Utility has all amended Income Tax Section as per Budget 2021

 

3) Automated Income Tax Form 12 BA

 

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10) Automatic Convert the amount in to the in-words without any Excel Formula

On September 25, 2021 by www.taxexcel.net

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