What is Section 80TTA? Section 80TTA of the Income Tax Act gives a discount to interest income.

 Limits are accessible for certain constraints and limitations. In this article, we have covered everything

 identified with guaranteeing tax exemption because of interest procured

 

Tax exemption on interest income

 

Where a taxpayer's total income remembers any income through interest for the deposit, that income is without tax. The taxpayer should be a different taxpayer, an individual from the Hindu Unified Family or a Hindu Unified Family.

 

The way of acquiring interest should be a deposit with an investment account:

 

A financial organization where the Financial Guideline Act, 1949 (10 of 1949) applies

 

A co-usable society that carries on the financial business. A co-usable land contract bank or a co-employable land advancement bank

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

A mailing station under the Indian Postal Office Act, 1898

 

The assessor can guarantee tax exemption while working out his total income

 

Tax exemption on the interest income from time deposit isn't accessible. A period deposit is a deposit that is payable with a fixed interest rate upon the expiry of a specific timeframe. Subsequently, the exemption can't be given in the accompanying cases:

 

Interest from fixed deposits

 

Interest from repeating deposits

 

No other time deposit

 

The measure of exemption under Section 80TTA of the Income Tax Act

 

The most extreme rebate permitted under 8TTA is Rs 10,000 for one monetary year.

 

In the event that the total interest is under Rs.10,000, the genuine interest is limited.

 

In the event that the total interest is more than Rs 10,000, just Rs 10,000 is permitted as tax exemption

 

The appraiser should consider its total interest from all investment funds financial balances.

 

Qualification to make claims under 80TTA

 

Cutting endorsed under 80TTA

 

The accompanying taxpayers can guarantee derivations under Section 80TTA of the Income Tax Act:

 

Private Taxpayer or Hindu Unified Family (HUF)

 

Indian inhabitants

 

Non-Inhabitant Indians (NRIs) who own NRO Investment accounts

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

 

An element with investment account in an association like a bank, mail centre or co-employable society

 

80TTA markdown

 

The accompanying sorts of taxpayers are not qualified for this rebate:

 

Interest income emerges from any deposit in a bank account. The record is in the interest of or for the benefit of:

 

A firm, or

 

A relationship of people, or

 

A collection of people

 

Then, at that point, no exemption will be given to any accomplice of the firm or any individual from the affiliation or any person of the association. No markdown can be given against the interest income of these taxpayers while computing the total income.

 

Essentially, a firm, AOP or BOI can't guarantee interest limits. Also, the accomplice or part accepts its income from these organizations, AOP or BOI. In this way, they can't guarantee a cut

 

Besides, even senior residents can't guarantee a waiver under the 80TTA. They can guarantee tax benefits inside 80TTB.

 

How to guarantee Section 80 TTA derivation while recording an income tax return?

 

You should first add interest 'income from one more source as interest income. You will then, at that point, need to guarantee tax benefits under Section 80TTA under 80 Exemptions.

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

 

Section 80TTB:-

 

Where a taxpayer's total income remembers any income through interest for the deposit, that income is without tax. The taxpayer should be an occupant of India and a senior resident. A senior resident is a person whose age is sixty years or more whenever applicable to the hour of the earlier year.

 

Ways of procuring interest on deposits:

 

A financial organization where the Financial Guideline Act, 1949 (10 of 1949) applies

 

A co-usable society that carries on the financial business. A co-usable land contract bank or a co-employable land advancement bank

 

A mailing station under the Indian Postal Office Act, 1898

 

The assessor can guarantee tax exemption while working out his total income

 

The greatest passable rebate of 8TTB for a monetary year is Rs.

 

On the off chance that the total interest is not as much as Rs 50,000, the genuine interest is limited.

 

Section 80TTB

 

Individual taxpayers and Hindu Unified Family (HUF) endorsed uniquely for residents over 60 years old enough

 

Interest procured on deposits with a bank account Interest acquired as it were: - Deposits with a bank account - Fixed Deposit, Term Deposit or Repeating Deposit

 

As far as possible under section 80TTA is Rs.10,000 per annum

 

On the off chance that the total interest is more than Rs 50,000, just Rs 50,000 is permitted as tax exemption

 

The distinction between Section 80TTA and 80 TTB

 

Section 80TTB

 

Individual taxpayers and Hindu Unified Family (HUF) supported uniquely for residents over 60 years old enough

 

Interest acquired on deposits with a bank account Interest procured as it were: - Deposits with an investment account - Fixed Deposit, Term Deposit or Repeating Deposit

As far as possible under section 80TTA is Rs.10,000 per annum

Download Automated Income Tax Preparation Excel Based Software All in One for the Assam State Employees for the F.Y.2021-22 as per Budget 2021[This Excel Utility can prepare at a time your Income Tax Computed Sheet + Individual Salary Structure as per Assam State Employees Salary Pattern + Automatic Calculate H.R.A. Exemption Calculation U/s 10(13A) + Automated Income Tax Revised Form 16 Part A&B and Part B]

On October 22, 2021 by www.taxexcel.net

Share It

No Comments

Read More

 

 Deduction under Chapter VI of the Income Tax Act. Do you have to pay income tax? Well, if you earn

 more than INR 2,50,000 per financial year and are a resident of India, then you are eligible to pay tax.

 Fortunately, tax laws in the country do not work that way. Although you are eligible to pay taxes, there

 are many other calculations that can help you avoid paying any taxes legally.

 

Chapter VI-A of the Income-tax Act has the different sub-sections under section 80 which allow a deductor to claim a deduction from the total income and reduce tax payable amount.

 

India follows a progressive tax system, which means taxpayers will pay higher taxes as their income increases. Another way to look at it the same way, low- to medium-sized taxpayers can save a significant amount of money in taxes.

Established tax slabs help you reach the total financial year that you may have to pay in a fiscal year. But before you start calculating your taxes, it is important to know the final income that is calculated as income tax. And it’s not the same amount you earn.

 

 

Deductions allowed under income tax law help you reduce your taxable income. You can get these discounts only if you have made a tax-saving investment or made a reasonable expense. There are many discounts available under different categories which will reduce your taxable income. One of the most popular is Section 80C of the VIA. Other preferred cuts under Chapter VIA are 80D, 80E, 80G, 80DDB etc. In this article, let’s discuss some important deductions under VIA that a taxpayer can claim

 

Given below the Sub-Sections under Chapter VI-A as per  the Income Tax Act

80C, 80CCD(1),80CCD(1B), 80CCD(2) and 80 CCC and maximum limit of Rs. 1.50 Lakh.

 

80CCC: Contribution to the employee's pension fund. With Section 80C and Section 80CCD (1), the exemption limit is Rs 1.5 lakh.

 

80CCD (1): Exemption to the contribution to Central Government Pension Scheme - In the case of an employee, 14% of salary (Basic + DA) maximum limit is Rs 1.5 lakh.

 

80CCD (1B): In additional amount Rs.50,000/- can be availed against new pension fund except deduction of U/s 80 C limit Rs.1.5 Lakh.

 

80CCD (2): 14% Employers Contribution to the Central Govt employees to the pension scheme. 

 

80D: For medical insurance Premium for below 60 Years Rs. twenty-five thousand and above 60 Years Rs. Fifty Thousand

 

80E: For higher education and there has no limit for deduction as an educational Loan interest.

 

80EE: Deduction in case of interest paid up to Rupees fifty thousand on loan taken for residential house property.

 

80EEA: Deduction can be allowed Rs.1.5 Lakh for the Newly Constructed Building loan interest. additional deduction U.s 24(B)

 

80G: Donations to specific charitable funds, 100% or 50 % as per slab by the CBDT.

 

80GG: Those who do not get House Rent from their employer, can get House Rent Exemption @ Rs. 5000/- p.m. or Rs. 60, 000/- Per annum.

 

80TTA: Deduction up to Ten Thousand in case of interest on Savings Bank Account in case of Assessors other than Resident Senior Citizen.

 

80TTB: Deduction in interest on deposits up to Fifty Thousand in the case of resident senior citizens.

 

80U:  For physically disable person can get Rs. 75,000/- Discount and for senior citizens above 60 years of age Rs.1,25,000/-

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 October 21, 2021 by www.taxexcel.net

Share It

No Comments

Read More

 

Tax benefits for the F.Y2021-22 as per Budget 2021. Income Tax Reduction for A.Y 2022-23: See the list of tax deductions below that you can claim for various payments, income and investments.

The following exemption is available for opting for the Old Tax Regime only.

 

1. Income from home property

Exemption from house building loan Interest U/s 24 B Maximum Rs.2 Lakh for self-acquired property

 

For those who have chosen to file a return under the new tax system, this exemption from income from the home property will not be available from this year.

 

2. Life Insurance Premium paid or  P.F. or PPF, Pension Scheme U/S 80C Maximum Rs.1.5 Lakh. If you opt-in new tax regime, you can not avail of this exemption U/s 80C

 

U/s 80CCC, For the pension scheme in the annual plan.

U/s 80 CCD (1), Central Govt Pension Scheme which contributes by the employee. 

If you choose the old tax regime, then you can claim the following exemptions like as the previous financial year 2020-21 

You may also, like- Automated Income Tax Salary Arrears Relief Calculator U/s 89(1) with Form 10 E from theF.Y.2000-01 to F.Y.2021-22(Updated Version)

1. Income from home property

According to the income tax Section 24(B), the maximum home loan interest deduction is Rs 2 lakh for self-acquired property.

For those who have chosen to file a return under the new tax system, this exemption from income from the home property will not be available from this year.

 

 

2. Life Insurance Premium paid or paid for  P.F, PPF, Pension Scheme U/s 80C

 

Under section 80CCC, a claim for LIC or any other insurer's annual plan for a pension scheme may be claimed.

 

Under Section 80 CCD (1), a claim for payment of money paid under the Central Government Pension Scheme can be made.

 

 

Note: Under Section 80C, Section 80CCC, Section 80 CCD (1), a total lump sum exemption of only Rs 1.5 lakh can be claimed.

 

3. U/s 80CCD(1B) additional deduction Rs. 50,000/-for the  Pension Scheme

 

Under Section 80 CCD2, for contribution by the employer to the employee's pension fund, However, there are two conditions:

If the employer is PSU, state government or others, the deduction limit is 10 %  and if the person is the central government then the deduction will be 14% of salary.

 

4. Pay for health insurance premiums

Under section DD, waivers may be claimed for health insurance premiums and payments made for preventive health check-ups. However, there are several limitations:

 

For self-spouse or dependent children or patent: Rs. 25,000 discount can be claimed and senior citizens above 60 years of age can get a benefit of Rs.50,000/- U/s 80D. Although premiums are not paid on health insurance coverage, deductions may be claimed for the medical expenses of a senior citizen.

 

5. Pay for maintenance/treatment of disabled dependents U/s 80D

 a rebate of up to Rs.25,000/- for below 80% and above 80% disabled can get benefit Rs.1,25,000/-

 

6. Pay for treatment

Under Section 80 DD (1B), deductions of up to Rs.40,000/- and for the Senior Citizen Rs. 1,00,000/- can be avail.

 

7. Pay interest on education loan U/s 80E

U/s  80E, a higher education loan can be taken on one's own or a relative's waiver of the total amount paid for interest payments.

 

8. Paying rent for those who are not getting HRA from the employer, they can get a benefit on the house rent Maximum Rs.60,000/- P.A.

Download Automated IncomeTax 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 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 Form 12 BA

 

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

 

5) Individual Salary Structure as per the Non-Govt(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.2021-22

 

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

 

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

On October 18, 2021 by www.taxexcel.net

Share It

No Comments

Read More