Deduction under income tax.Section 80C - Deduction on Investment Section 80C is the most preferred 

 category of all income

 taxpayers because it allows taxpayers to deduct from tax liability by investing tax savings and

 collecting eligible expenses.

 

This allows maximum money to be spent 1,50,000 per year from total income. This category may benefit an individual and HUFs, companies, LLPs, firms and partnerships are not eligible to take advantage of this discount. Section 80C also has subsections like 80CCC,80CCD (1), 80CCD (1B), 80CCD (2).

 

All these sections together allow deduction of Rs.1,50,000 but section 80CCD (1B) also allows additional deduction of Rs.50,000.

 

 

Section 80TTA - Interest on Savings Accounts The benefits of this category are only available to one person and HUF, they can claim a rebate of Rs10,000/-. This section can not be entitled to any interest earned from the fixed deposit or any recurring deposit.

 

 

 

Section 80GG - Home Renting Deductions under this section are only available to taxpayers if the house rent allowance is not available. The taxpayer, as well as the taxpayer's spouse or child, shall not self-occupied any residential home in the place of employment.

 

 

The amount of deduction may be a minimum of the following paid rent minus the adjusted total income 10%; 5,000 per month; Consistent 25% of total income.

 

 

Section 80E - Interest on educational loans A deduction under this section may be levied on interest on loans taken for higher education. This loan can be taken for the taxpayer himself or for their spouse or child or for the person for whom the taxpayer is the guardian.

 

 

Section 80EE - Home Loan Interest Under this section, you can get a discount in FY 2017-2018 only if you take a loan in FY 2016-2017. This discount is available only to one homeowner on the date of the loan.

 

The value of the property will be less than Rs 50 lakh and the amount of debt will be less than Rs 35 lakh. They can claim a discount of up to 7 50,000 per year under this section.

 

 

Section 80D - Medical Insurance An individual and HUF can claim deduction under this section, if medical insurance is taken out for oneself, spouse and dependent children, you can claim a rebate of Rs 25,000.

 

An additional deduction of Rs 25,000 is available for insurance for parents below 60 years of age, and if the age is more than 60 years, the deduction can be up to Rs 50,000, this amount has been increased from Rs 30,000 in Budget 2018.

 

 

Section 80U - Physical Disability A deduction of Rs. 75,000 / - under this section is available for a resident who has a physical disability or mental disability. If there is a severe disability, a rebate of Rs. 1,25,000 can be claimed.

 

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

 

4) Individual Salary Structure as per the Non-Govt (Private) Concern’s Salary Pattern

 

5) Individual Salary Sheet

 

6) Individual Tax Computed Sheet

 

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

 

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

 

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

On November 23, 2021 by www.taxexcel.net

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 In the case of a salaried person, there may be occasions when the company may delay payment of

 salary. If this happens, the tax burden for salaried employees may change or increase due to the

 understanding of past arrears paid in the current year. Acknowledging this hardship, the government

 has made provisions to provide relief to salaried employees in case of arrears of salary in a particular

 year. It also covers tax relief pay arrears and advances payments under section 89.

 

Section 89(1) calculates the tax relief available to a salaried employee. Here are some steps to calculate tax relief: 

Step 1:

You will need to calculate the tax payable on the total salary amount, including any arrears or advance payment. The Form 16 that you will receive from your employer will contain details of any arrears or advance payments.

 

You will need to calculate the tax on salary considering standard deduction under section VI such as section 80C for investment deduction, section 80D for health insurance, section 80TTA for interest income, section 80G for grants and any other deduction applicable to the assessee. Taxes including cess must be calculated and based on the existing slab rate.

 

Step 2:

In Step 2, you need to calculate the total tax on your salary income without considering the salary arrears or advance. You will need to subtract this amount from your salary and calculate the tax after executing the deduction as per step 1 calculation.

 

Step 3:

You need to calculate the difference between the tax payable in step 1 and step 2. You will have to pay an extra tax burden due to arrears or salary advances.

 

Step 4:

You need to calculate the total tax payable based on the slabs and rules for the year in which the arrears are related. For example, if your company pays you your salary from 2015-16, you need to calculate your tax based on income from 2015-16 after adding the amount due. The deduction must give an effect for this calculation.

 

Step 5:

The amount of your tax for the year you are in arrears is already available based on past returns. In our example above, the tax paid for 2015-16 can be deducted from your past income tax return.

 

Step 6:

You need to calculate the difference between the actual tax payable from the year of arrears and the tax that will be payable, including the arrears.

 

If the tax difference due to arrears exceeds the tax difference from the salary arrears year, the additional sanction is given as relief under section 89. For example, if in 2019-20 there are additional taxes due to arrears of 5,000 and from 2017-18 there are additional taxes with arrears of money. 4,000, then relief of Rs. 1,000 will be paid to the taxpayer.

 

To get this relief, the taxpayer must fill out Form 10E

Know to abut Form 10 E

You can fill up Form 10E online by logging in to the Income Tax e-filing website and going to the Income Tax Forms section. The Income Tax website has rules and guidelines on how to fill out Form 10E. Details of the form are required such as:

Name and address of the employee

Pan

Residential status

• Salary arrears or advance received

Paying gratuity

Payment by the employer in case of termination of employment before the expiry of the notice

Commuted pension payment

It must be signed by the employee.

Detailed information on salary arrears or advances is also required to calculate relief.

Actual salary received  in arrears

Additional tax for the current financial year

Excess tax in arrears year

Differential tax or additional tax paid due to arrears or advance pay

Relief under section 89

In addition to salary arrears or advances, the form also deals with relief in the case of gratuity, termination compensation or commuted pension.

Form 10E income tax must be filled and submitted online. Salary employees will get relief only after filling the form. The process is fairly simple and can be easily done online to get tax relief.

Download Auto Calculate Income Tax Arrears Relief Calculator U/s 89(1)with Form 10 E from the F.Y.2000-01 to F.Y.2021-22(Updated Version as per Budget 2021)

On November 22, 2021 by www.taxexcel.net

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 Budget 2020 has introduced a new section 115BAC income tax law, where an individual has the option

 to choose between the old tax rate and the new tax-deductible rate regardless of the prescribed

 deduction or deduction.

 

To address such questions, the Central Board of Direct Taxes (CBDT) has issued a clarification through Circular No. C1 of 2020 stating that an employer, based on the information received from an individual employee, considers the source tax deduction (TDS) calculation. Should be. The provisions of section 115BAC, as applicable.

 

Section 115BAC of the Income-tax Act

 

The new section 115BAC of the Income-tax Act, 1961 provides that an individual, an individual or an undivided Hindu family (HUF) who has income other than income from occupation or business, may exercise the option of levying a tax of the previous year. The return of his / her income under section 115 BAC should be submitted for each year under section 139 (1) of the Income-tax Act.

The acknowledgement rate given under section 115 BAC is subject to the condition that the total income needs to be calculated without specific deductions or deductions, set-off losses, and additional depreciation.

 

Key points of CBDT clarification in Section 115BAC

 

The key points of the clarification issued by CBDT are as follows:

If the taxpayer is an employee and has income other than income from his company. He wants to get a rebate rate under section 115 BAC which should be notified to the detector every previous year.

 

If the employee fails to provide the information, the employer will have to do TDS without considering the provisions of section 115 BAC.

 

A new optional tax system

 

Under the Finance Act, 2020, a new optional tax system has been provided for individuals and HUFs, including modified tax slabs and rates. Satisfied with the stipulated condition, an individual or HUF may choose to calculate tax on total income without considering the prescribed deduction or deduction when filing his income tax return according to the new slab rate, instead of the existing tax system.

Learn more about the new Section 115 BAC person and the tax rate applicable to HUF

 

Tax evasion from salary

 

It is noteworthy that every employer responsible for paying salaries is required to withhold tax on such salaries paid to their employees based on the rate at which the F.Y was paid. The rate of deduction of income tax from the income assessed under the heading of 'salary' is the actual tax rate. In this regard, there is a lack of clarity on whether an employer can consider a new tax system when tax withholding.

 

Information on the choice of a new tax system by an employee

 

In this regard, the CBDT has made it clear that an income taxpayer must inform his employer of his intention to choose a new tax system at a discounted rate without considering the prescribed deduction or deduction. Such information, once generated by an employee, cannot be changed in the relevant financial year. As a result, the employer has to calculate the total income and deduct TDS as per the new tax system.

 

If the employee does not provide any information to the employer, the employer will have to calculate the full income and deduct the TDS according to the old tax system.

 

Informing the employer would not be tantamount to using the option under section 115BAC (5) of the Act. Thus, the option to file a return within that period may differ from the information provided by the employee to his employer for that particular financial year.

 

Section 115 BAC for taxpayers with business income

 

Furthermore, in the case of a taxpayer's business income, the once used option will be applicable for all subsequent financial years and such taxpayers must notify the employer, as applicable. The information provided once cannot be changed for the next financial year except in the prescribed circumstances.

 

Conclusion

 

The clarification issued by the CBDT clarifies the ambiguity regarding the role of the employer in calculating the TDS on salary.

 

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 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.2021-22

 

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

 

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

 

On November 20, 2021 by www.taxexcel.net

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