What are the benefits and who can claim the benefits of U/s 80U? Section 80U of the Income Tax Act, 1961 provides for a tax deduction for persons with disabilities. as per order to claim a tax exemption U/s 80 U, a person must be certified as a person with a disability by the appropriate medical authority.

 

Who is a disabled person?

Under the Persons with Disabilities (Equal Opportunity, Protection of Rights and Full Participation) Act, 1955, persons with any of the following diseases, including the following 60% disability, will be considered disabled:

Blindness

• Low vision

Leprosy (cure)

• Hearing impairment

Locomotor disability

• Mental retardation

• Mental illness

Autism

Cerebral palsy

Disability law also provides a definition of severe disability that refers to a condition where the disability is 80% or more. A person with multiple disabilities will also be considered seriously disabled.

 

Exemption limit under section 80U

Disabilities: If a person suffers from at least 80% disability, he can claim a tax exemption of up to Rs.75,000 on taxable income U/s  80U.

 

Severely Disabled Person: If a person is suffering from severe disability i.e. 80% disability (from one or more illnesses) he can claim tax exemption up to Rs. 1.25 lakh under section 80U.

 

Disability reduction limit under section 80U

General Disability Rs. 75,000

Severe disability Rs. 1.25 lakhs

You may also, like- Automated Income Tax preparation Software All in One in Excel for the Assam State Employees for the F.Y.2021-22

Necessary proof for required to get this tax benefits U/s 80U

 

Only Medically disability Certificate will be required and no other documents are required, Issued by the medical authority, However, in the case of illnesses such as autism and cerebral palsy, Form 10-IA must be supplemented.

What constitutes a medical authority?

 

The following medical authorities are eligible to issue a medical certificate:

A Civil Surgeon or Chief Medical Officer (CMO) of a Civil Government Hospital

 

A neurologist with MD in Neurology

A pediatric neurologist in paediatrics

You may also, like- Automated Income Tax preparation Software All in One in Excel for the Bihar State Employees for the F.Y.2021-22

 

What if my disability certificate expires this year?

Expires Disability Assessment Certificate, you can not claim a tax deduction U/s 80U

 

Have any difference between Section 80DD and Section 80U?

Although both the departments pay income tax deductions on the basis of disability, the beneficiaries under the respective department are different. Under section 80U, persons with disabilities can claim tax deductions only for themselves. Under section 80DD, dependent family members of persons with disabilities can claim tax exemption. Here, dependent family members include wife, children, parents, siblings of the disabled person.

 

How to claim an exemption under section 80U?

The person claiming the deduction must provide a copy of the certificate issued by the medical authority in the prescribed form along with the ITR. Since there is virtually no need to attach any document to the ITR, it is advisable to keep the document in hand.

 

Please note that the medical certificate must be certified to suffer a disability. With the prescribed form 10-IA 

 

So, it only means that if you are taking cuts under this section, keep a certificate with you which you can take from an authorized medical practitioner.

 

Also, it is advisable to keep medical prescriptions and medical records safe if the Income Tax Department asks about the same in the future.

 

The medical certificate should contain details of the disability of the taxpayer victim.

 

Disability certificates have a certain validity. If the certificate expires in a financial year, deductions can be claimed for that financial year using that expired certificate. However, from the next financial year, a new certificate will have to be adopted in the following year to claim deduction under section 80U.

 

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 as per 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 Calculate House Rent Exemption U/s 10(13A)

 

6) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2021-22

 

7) Automated Income Tax Revised Form 16 Part B for the F.Y.2021-22

On September 29, 2021 by www.taxexcel.net

Share It

No Comments

Read More

 

Tax Rebate Rs. 12,500/- Under section 87 A.The government has yet not altered the basic exemption limit of Rs 2.50 lakh for some time because the government does not want people to get out of the tax net and get an exemption from ITR filing. At the same time, however, successive governments have offered tax breaks for taxpayers up to a certain income limit. At present, tax exemption is available for those whose rebate is not more than Rs 5 lakh. This exemption is available under Section 87A. Let us discuss how this works for you.

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

What is the correct provision?

 

Section 87A was introduced in the Finance Act 2003 which changed from time to time. If your income is not more than 5 lakh, his tax liability is 12,500.

 

Anyone and everyone will not get a chance to get this discount. Although the basic discount limit is Rs. 2.50 lakhs is applicable to all persons residing or non-resident and HUF but exemption under section 87A is available only to one person and even if he is a resident for income tax purposes. So not all HUFs and non-residents are eligible for this discount.

 

Any income should be considered for eligibility criteria?

Taxpayers have always had the misconception that any income should be considered for the purpose of being eligible for this discount. This is the income on which your final tax liability is calculated. So, to begin with, the income considered for this purpose is the income that came after closing all the old loss accounts against the current year's income. Similarly, from net income after this type of loss set-off,

You may also, like - Automated Income Tax Preparation Excel Based Software All in One for the Bihar State GovtEmployees for the F.Y.2021-22

 

You need to reduce all available discounts under different sections of the VIA chapter. There are cuts for various items under Section VIA such as Section 80C (LIP, EPF, PPF, ELSS, Tuition Fee, Home Loan Repayment etc.), Section 80 CCD (NPS), Section 80D (Health Insurance), 80 G (Donation) ) And 80 TTA and 80 TTB (bank interest).

 

This exemption can be adjusted against any tax liability and cannot be adjusted

Not that you can get a discount of up to 100 rupees. Twelve Thousand Five Hundred entitled U/s  87A can be claimed against the tax liability of any nature. This tax exemption can be claimed in the case of long-term capital gains under section 112, the general income taxed at the slab rate. Equity-based schemes of mutual funds in addition to shares.) In addition to short-term capital gains on listed equity shares,

You may also, like - Automated Income Tax Preparation Excel Based Software All in One for the Assam State GovtEmployees for the F.Y.2021-22

 

How do rebates actually work?

 Tax Payers are generally under the impression that if their income does not exceed the minimum threshold amount of Rs. 5 lakhs, he/she will not have to pay any tax. This is because the tax rate for normal income ranges from Rs 2.50 lakh to Rs 5 lakh and the tax liability of 5% on Rs 2.50 lakh comes to exactly Rs 12,500. However, if your income includes taxable income at the rate of 15% (short-term capital gains) or 20% (other long-term capital gains), you will have to pay no more than five lakhs, even if you have income.

You may also, like - Automated Income Tax Preparation Excel Based Software All in One for the Jharkhand StateGovt Employees for the F.Y.2021-22

 

For the income of your income, one lakh out of 5 lakh listed shares have one lakh short-term capital gains and the balance is your regular income. Your tax liability will be Rs. 22,500, including Rs. 7,500 (5% over 1.50 lakhs) + 15,000 (15% over 1 lakhs of short-term capital gains). 12500 / - after discount you have to pay Rs. 10,000 / - and cess even when your income does not exceed the limit of five lakhs.

 Download Automated Income Tax Preparation Excel Based Software All in One for the Andhra Pradesh State Govt Employees for the F.Y.2021-22

On September 28, 2021 by www.taxexcel.net

Share It

No Comments

Read More

 Health insurance policy and tax benefits to cover the cost of medical treatment.

 Deduction in Medical Insurance Premium [Section 80D] 

Pursuant to Section 80D, an individual or HUF may claim a deduction in respect of the following payments:

 

1) Medical insurance premium is paid by the appraiser, person / HUF by any method other than cash.

 

2) Any contribution made by the assessor as an individual to the Central Government Health Scheme or other schemes that may be advertised by the Central Government.

 

3) Money paid by the insurer, to be unique due to preventive health check-ups.

 

4) The medical expenses incurred by the assessor due to being a person / HUF on the health of a senior citizen person are paid if no amount is paid or effectively insured on the health of such person.

You may also, like- 2Auto-Fill Income Tax Preparation Excel Based Software All in One for the Non-Govt Employees for the F.Y.2021-2

In whose name should the policy be adopted or spent? 

In the case of a person, in the case of a medical insurance policy taken in his own name, or in the name of his / her spouse, his / her parents and his / her dependent children. In the case of HUF, a policy can be taken regarding the health of any member of such HUF.

 

The reduction due to medical expenses will be allowed only when it will be spent for the health of the above persons who are senior citizens. ‘Senior Citizen means a person living in India, who is sixty years of age or older, at any time relevant to the previous year.

 

The amount of deduction

(1) In the case of an individual, the amount of deduction cannot exceed:

A. Rupees Twenty Five Thousand as total, in case of the deposit amount of medical insurance premium or any payment made for a preventive health check (*). [This discount is available for the benefit of the valuer, his / her spouse or dependent children]

 

B. 25,000, in total, in case of payment of medical insurance premium or any payment made for preventive health examination (*). [This discount is available if payment is made for the benefit of the designated parent.]

 

C. A total of Rs. 50,000 / - for the health of the assessor, his / her spouse or dependent children or parents. [This deduction is available if the payment is made for the benefit of a senior citizen and no insurance is paid for or affects the health of such person.]

 

D. A total of Rs 50,000 for medical expenses for the health of any parent of the rupee appraiser.

 

(*) The total amount spent for preventive health check-up of the assessor, his family and parents cannot exceed Rs. 5 thousand.

 

Note: In the aforesaid sections of a and b, an additional discount of Rs.5000/-

You may also, like- Auto-Fill Income Tax Preparation Excel Based Software All in One for the Assam State Government Employees for the F.Y.2021-22 

Payment method

Payment should be made by any method other than cash (however, money can be made in cash for preventive health check-ups).

 

Illustration

Mr. Raja (age 40 years) paid the following amount for the financial year 2021-22:

1) Payment of medical insurance premium in his policy 15,000.

 

2) Payment of medical insurance premium in his wife's policy 4,000.

 

3) Payment of medical insurance premium.

 

4) Payment of medical insurance premium in the policy of her eldest daughter who is self-employed and not dependent on her. 5 thousand.

 

5) The Payment of premium insurance of medical policy of his parents (resident and 68 years old), Rs. 18,000 on his father's policy and Rs. 18,000 on his mother's policy. Both Mr. Depending on the king's brother.

 

6) Pay 3,000 for the cost of preventive health check-ups (for his own check-up and his wife's check-up).

 

Reduction in the cost of training/treatment of a dependent, disabled person [Section 80DD]

You may also, like- Auto-Fill Income Tax Preparation Excel Based Software All in One for the West Bengal State Employees for the F.Y.2021-22 

A resident / HUF, bearing the maintenance costs of relative dependents, a disabled person, may claim deduction under section 80DD. Discounts are available on any of the following:

 

The Cost of medical treatment (including nursing), for persons with disabilities.

 

Disability means: -

This type of person suffers from a specific disability which usually includes blindness, low vision, leprosy, hearing impairment, loco motors disability, mental retardation and mental illness [see section 2 (i) of. Act, 1995

You may also, like- Auto-Fill Income Tax Preparation Excel Based Software All in One for the Jharkhand State Govt Employees for the F.Y.2021-22 

Severely disabled person means: -

1. Persons with one or more disabilities of 80% or more, whose persons with disabilities are equal to Section 56 (4) (equal opportunity, protection of rights and full participation) Act, 1995 (1 of 1996); Or 

The amount of deducting

If the taxpayer has incurred any of the expenses mentioned in (a) or (b) above, then Rs. The amount of such expenses is available regardless of 75,000. However, if the dependent is suffering from a serious disability (e.g., 80% or more disability), the discount amount will be Rs. 1,25,000.

Download Auto-Fill Income Tax Arrears Relief Calculator U/s89(1) from the F.Y.2000-01 to F.Y.2021-22 ( Updated Version)

 

On September 27, 2021 by www.taxexcel.net

Share It

No Comments

Read More