Income Tax Deduction U/s  80 |Section 80 deduction for the fiscal year 2020-21, A.Y 2021-22 (with budget 2021 amendment)

The Income Tax Department has made various deductions from taxable income under Chapter VI A deduction to encourage savings and investment among the taxpayers. As 80C is the most famous, there are other deductions that help taxpayers reduce their tax liability. Let's understand these deductions in detail:

Section 80C - Deduction on investment

Section 80C is one of the most popular and preferred categories among taxpayers because it allows them to reduce taxable income by incurring tax-saving investments or incurring eligible expenses. It allows taxpayers to deduct a maximum of Rs 1.5 lakh per year from the total income.

The benefits of this deduction can be taken by individuals and HUFs. Companies, partners, LLPs will not be able to avail of this discount.

Under Section 80C includes deposition to , 80CCC, 80CCD (1), 80CCD (1b) and 80CCD (2).

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It is important to note that the total limit for sub-clause for claiming deduction without additional deduction of Rs. 50,000 allowed under 80CCD (1b) is Rs. 1.5 lakhs.

Eligible investment for a tax deduction

80C PPF, EPF, LIC Premium, Equity-Linked Savings Scheme, Basic Payment for Home Loan, Stamp Duty and Registration Charge for Property Purchase, Sukanya Siddhi Yojana (SSY), allows a deduction for investments made in National Savings Certificate ( NSC), ULIP, tax saving FD for 5 years, etc.

80CCC discount for life insurance annual plan.

80CCC allows a deduction for payments for annual pension plans. The amount received from the annual pension or the amount received after the annual surrender, including the interest or bonus earned on the annual, is taxable in the year of receipt.

80CCD (1) Deduction for the contribution of NPS employee under section 80CCD (1) Minimum approved maximum discount among the following

10 10% of salary (if the taxpayer is an employee)

• Total income 20 & (in case of self-employment)

• 1.5 Lakh (Limit allowed under 80C)

Deduction for 80CCD (1b) NPS is allowed to deduct additional Rs. 50,000 for deposit in NPS account

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Section 80 TTA - Interest on Savings Account

Excluded from total gross income for interest on the savings bank account

If you are an individual or HUF, you can claim a maximum deduction of Rs.10,000 against interest income from your savings account at a bank, co-operative society or post office.

Section 80GG - House rented

The deduction is payable for house rent where HRA is not received

If HRA is not available then a Section 80GG discount is available for the rent paid. Taxpayers, spouses or minors should not have a place of employment

B. The taxpayer should not have self-acquired residential property in any other place

C. The taxpayer must live in the rent and pay the rent

d Discount is available to all persons

The lowest deduction available is:

A consistent minus 10% of the total income is rented

B. 5,000 / - per month

C. 25% of Adjusted Total Income *

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Section 80E - Interest on education loan

Deduction for interest on education loans for higher education.

A person is allowed to deduct interest on a loan taken for higher education.

.

Section 80EE - Home Loan Interest

Exemption  on home loan interest for first-time homeowners

If the loan has been taken in the financial year 2016-17, then this discount will be available from F.Y 2017-18. Deduction under section 80EE is available only to homeowners (individuals) who own only one home on the date of loan approval. The value of the property should be less than Rs 50 lakh and the home loan should be less than Rs 35 lakh. Loans taken from a financial institution must be approved between 1 April 2016 and 31 March 2017. An additional rebate of Rs. Loan EMI) approved under section 24 (B).

Section 80D - Medical Insurance

Deduction for premiums paid for medical insurance

You (as an individual or HUF) can claim a rebate of Rs 25,000 for insurance for yourself, your spouse and dependent children under section 80D. An additional deduction of up to Rs 25,000 is available for parental insurance if they are below 60 years of age. If the parents are over 60 years of age, the discount amount is Rs 50,000, which has been increased from Rs 30,000 in the 2018 budget.

In case, both the taxpayer and the parent are 60 years of age or above, a maximum exemption of up to Rs. 1 lakh will be available under this section.

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Section 80U - Physical Disability

Discount for a person suffering from a physical disability

A discount of Rs.75,000 is available for a resident who is suffering from a physical disability (including blindness) or mental retardation. In case of severe disability, one can claim a rebate of Rs. 1,25,000.

Section 80G - Grants

Cuts for donations to social causes

The various grants specified under 80G are eligible to be deducted with or without limitation up to 100% or 50%.

From FY 2017-18, any cash grant above Rs. 2,000 / - will not be allowed as a deduction. Grants above Rs.2000 / - other than cash to qualify for 80G deduction Should be done in any mode.

Section 80 TTB - Interest income

Exemption of interest on deposits Rs. Fifty Thousand for senior citizens to the Savings Bank or Post Office notes the Senior Citizen can not avail U/s 80TTA

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

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 December 09, 2021 by www.taxexcel.net

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 Income tax deduction as per U / s 115 BAC of F.Y.2021-22|Top 9 list of income tax deductions

 as well as exemptions for F.Y 2021-22: You may only entitle the following deductions in the

 running assessment year on deposit and investments done by the previous financial year (F.Y

 2020-21).

Income Tax Deduction for A.Y 2022-23: The Income Tax Return (ITR) filing season has started. The central government has recently extended the deadline for filing ITR for the assessment year 2021-22 from July 31 to 31st December, in view of the second wave of the Kovid-19 epidemic and the problems faced by taxpayers. Now that you have more time to file your tax return, check out the following list of tax deductions that you can claim for various payments, income and investments.

 

1. Income from house property

Under section 24 (b), deduction from income from house property is allowed on interest paid on housing loans and housing improvement loans. As per the Income Tax Rules, the upper limit of interest paid on housing loans in the case of self-acquired property is Rs. 2 lakhs.

 

For those who choose to file a return under the new tax system, this will not be deducted from home property income from this year.

 

2. Deposited to LIC Premium, P.F., PPF, Pension Scheme(U/s 80ccd(1b)

• Under section 80C, the deduction may be claimed on investment/payment for life insurance premium, provident fund, PPF, certain equity share subscription, tuition fee, National Savings Certificate, Housing Loan Principal etc.

• Under section 80CCC, deductions may be made to the pension scheme for payments made by LIC or other insurers in an annual plan.

Under section 80 CCD (1), deductions may be sought for payments made under the Central Government Pension Scheme.

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

 

3. Payment for Central Government Pension Scheme

Under section 80 CCD (1B), a waiver of up to Rs.

Under section 80 CCD2, a deduction can be claimed for an employer's contribution to the central government's pension scheme. However, there are two conditions:

If the employer is a PSU, state government or others, the deduction limit is 10% of salary.

• If the employer is central government, the deduction limit is 14% of salary

 

4. Payment for health insurance premiums

Under section 80D, deductions can be made for health insurance premiums and payments made for preventive health check-ups. However, there are several limitations:

• For a spouse or dependent child or patent: Discount of Rs. 25,000 may be claimed. If any person is a senior citizen, the limit is Rs. 50,000. Also, a deduction of Rs 5,000 is allowed for a preventive health checkup. However, this amount is not above the overall limit of health insurance premiums.

• For Senior Citizen can get the benefits Rs.50,000/- Even if no premium is paid for health insurance coverage, a deduction can be claimed for the medical expenses of a senior citizen.

 

5. Pay for maintenance/treatment of disabled dependents

In addition, a rebate of up to Rs. However, the exemption limit for persons with severe disability (80 $ or more) is Rs. 1.25 lakhs.

 

6. Payment for treatment

Under Section 80 DD (1B), a waiver of up to Rs. If the person is a senior citizen, the limit of this discount is 1 lakh rupees.

 

7. Pay interest on education loans

Under section 80E, the total amount paid for interest on one's own or a relative's higher education loan may be deducted.

 

8. Payment of interest on home loan Under section 80EE, a rebate of up to Rs. However, this discount is only available for approved loans between 1st April 2016 to 31st March 2017. Under 80EEA, deduction of up to Rs 1,00,000/-

 

9. Payment of house rent for those who are not getting HRA If HRA is not part of your salary, deduction on rent paid for a house can be claimed under section 80GG. However, only one of the following is allowed as a discount: 10 Rent reduced by 10% of total income before deduction Rs. 5,000 per month 25 Assessment of 25% of total income prior to this deduction.

 

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 December 08, 2021 by www.taxexcel.net

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Tax benefits on home loans. Union Finance Minister Nirmala Sitharaman in her budget speech proposed to extend the deadline for getting additional concessions for repaying interest on home loans till March 31, 2022. This comes after the government extended the deadline to March 31, 2021, in the previous budget.

While a housing loan can help you get a home for yourself, it can also be a costly affair. But the various tax benefits that come with this type of loan help you save money every year. See how you can make the most of these benefits.

Tax Benefits on Home Loans (F.Y 2021-22)

The following table gives you tax benefits under the relevant sections of the Income-tax Act, 1961.

New Update (Union Budget 2021-2022)

Here is an update from the latest budget presented by Union Finance Minister Nirmala Sitharaman on 1 February 2021:

The eligibility period has been extended till March 31, 2022, to claim an additional deduction for the interest of Rs 1.5 lakh on a loan taken to buy an affordable home.

The eligibility to claim tax left for affordable housing projects has been extended for another year. The new deadline is March 31, 2022.

A new tax rebate was proposed for the advertised affordable rental housing projects to promote the provision of affordable rental housing for migrant workers. Home Loan Tax Benefit Under Section 80C - Main Deduction. Section 80C relates to the deduction of principal amount:

For both self-acquired and late-out properties, you can claim a maximum of Rs 1.5 lakh per annum from taxable income on basic payments.

Stamp duty and registration charges may be included. These benefits can avail only one time.

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To claim this, you must first complete the construction of the property.

Your home should not be sold within 5 years of your possession to claim this deduction

If you sell your home within 5 years of occupancy, any deductions claimed will be refunded in the year you sell it. This amount will be added to your income for the year of sale.

Tax benefits under section 80EE

It has been proposed to increase the income tax benefit by Tk 1.5 lakh for paying interest

You can get discounts up to Rs.3.5 lakhs

The benefit can be availed on and above the existing exemption of Rs. 2 lakhs under Section 24 (b)

The value of the property must be less than Rs 45 lakh.

Deduction for a joint home loan

If two or more persons take a housing loan, then each of them is eligible to claim a deduction on interest paid up to Rs 2 lakh. Up to Rs 1.5 lakh, tax can also be deducted on the principal paid for each. However, all applicants must be co-owners of the property to claim this discount. Therefore, a joint home loan can give you more tax benefits.

Tax benefits on home loan for owning a second property.

Under the present provisions, the tax benefit is applicable on interest payable. It has been suggested that the second self-occupied home may also be claimed as a self-occupied one to help borrowers save more on taxes.

Download Automated Income Tax Arrears Relief Calculator U/s 89(1) along with Form 10E from the Financial Year 2000-01 to Financial Year 2021-22 (Up-to-date Version)

On December 07, 2021 by www.taxexcel.net

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