Friday, 28 January 2022

Download Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E for the

F.Y.2021-22 with details of Section 80TTA of the Income Tax Act

Download Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2021-22.What is Section 80TTA?

As per the Income Tax Act Under Section 80TTA provides for an Exemption for interest income from Bank/Post Office. Discounts are available with a few limitations and limitations. In this article, we have covered everything about claiming a tax deduction because of the interest earned

Tax exemption on interest income

Where the total income of a taxpayer includes any income through interest on the deposit, such income is tax-free. The taxpayer must be an individual taxpayer, a member of a Hindu undivided family, or a member of a Hindu undivided family.

The way to earn interest should be from a deposit with a savings account:

A banking institution where the Banking Regulation Act, 1949 (10 of 1949), applies

A cooperative society is involved in the banking business.

The assessee can claim a tax deduction when calculating his total income

Tax deduction on the interest income from the time deposit is not available.

Therefore, the exemption is not allowed in the following cases:

Interest from fixed deposits

Interest from recurring deposits

No other time deposit

The amount of deduction under section 80TTA of the Income-tax Act

The maximum discount allowed under 8TTA for a financial year is Rs.

Actual interest is discounted if the total interest is less than Rs.

If the total interest is excess than Rupees Ten Thousand, only Rupees Ten Thousand is entitled as tax exemption

The assessee must consider his / her total interest from all savings bank accounts.

Eligibility to claim an exemption under 80TTA

Cutting approved under 80TTA

The below-given taxpayers can be entitled to get the benefits under Section 80TTA of the Income Tax Act:

Private Taxpayer or Hindu Undivided Family (HUF)

Indian residents

Non-Resident Indians (NRIs) own NRO Savings Accounts

Deduction under 80TTA is unauthorized

The following types of taxpayers are not eligible for deduction:

Interest income is received from any deposit in a savings account. The account is owned by or on behalf of:

A firm, or

An association of individuals, or

A body of individuals

Then no exemption will be given to any partner of the firm or any member of the association or any person of the body. These taxpayers will not be allowed to deduct against interest income when calculating total income.

Furthermore, even senior citizens cannot claim a waiver under the 80TTA. They can claim tax benefits under 80TTB.

How to claim Section 80 TTA exemption while filing an income tax return?

First, you add the interest income with your total income. You will then have to claim tax benefits under section 80 deduction under section 80TTA.

Income Tax Section 80TTB only for Senior Citizen above 60 years of age.

Where the total income of a taxpayer includes any income through interest on the deposit, such income is tax-free.

Ways to earn interest on deposits with:

A co-operative society is engaged in conducting banking business.

A post office under the Indian Post Office Act, 1898

The assessee can claim a tax deduction when calculating his total income

A maximum of Rs 50,000 was approved by 8TTB for a financial year.

If the total interest is less than Rs. 50,000, the actual interest is discounted.

The difference between Section 80TTA and 80TTB

Section 80TTA Section 80TTB

Individual Taxpayer and Hindu Undivided Family (HUF) only allowed for senior citizens above 60 years of age

Interest earned on deposits with savings account only: - Deposit with a savings account - Fixed deposit, term deposit or recurring deposit

Exemption limit under section 80TTA Rs.10,000 per annum Exemption limit under section 80TTB Rs.50,000 per annum

Download Automated Income Tax Arrears Relief Calculator U/s89(1) with Form 10 E for the F.Y.2021-22

Share It

No Comments

Thursday, 27 January 2022

Section 80EEA of the Income Tax Act. Additional deduction of interest payment in connection with the

home loan (related to section 80EE and section 24B of the Income Tax Act)

A new section 80EEA has been inserted by the government to allow for the deduction of interest from A.Y 2020-21 (F.Y 2019-20). Existing provisions of section 80EE allow for a deduction of up to Rs 50,000 for interest paid by first-time buyers for a sanctioned loan from a financial institution between April 1, 2016, and March 31, 2017.

Admissibility of amount

The amount of deduction available under this section should be calculated as follows, whichever is less: -

Download and Prepare at a time 50 Employees Form 16 Part A&B for the Financial Year 2021-22

Section 80EEA additional deduction of home loan interest

The actual interest paid or Rs. 1.50.000 / -

This deduction is available in addition to the exemption under section 24B provided other conditions are met.

Therefore, taxpayers can claim a total deduction of Rs 3.50 lakh towards home loan interest, if they meet the conditions of section 80EEA.

Who is eligible?

Individual evaluators only.

Section 80EE: Deduction is available on home loan interest in this section. The maximum deduction available as per this section is Rs. 50,000 / - under certain conditions

The cost of the house should be up to Rs. 50 lakh

The loan amount must not exceed Rs. 35 lakh

The loan is expected to be sanctioned from April 1, 2016, to March 31, 2017

Download and Prepare at a time 50 Employees Form 16 Part B for the Financial Year 2021-22

Share It

No Comments

Wednesday, 26 January 2022

Advances or dues received from an employer affect taxes and are reflected in the year of receipt. The exemption under section 89 (1) under the Income Tax Act saves you from the burden of additional tax if you are late in receiving your income.

Download Salary arrears relief calculator U/s 89(1)

To claim compensation under this section, an employee must meet certain conditions. To begin with, Section 89 exemption may be sought on any of the following received during a particular year:

a) Arrears Salary Received from previous financial year

b) Advance withdrawal from the pension fund

c) Free

d) Commuted value of the pension

e) arrears of the family pension

f) Termination from the service

Section 89 (1) - Wage reliefs

The tax is calculated on the total income of the taxpayer earned or received during the year. The Income Tax Act allows you to apply for tax relief under section 89 (1) if the assessor has received a waiver from his "past or early" salary or has received the family pension in arrears.

Tax liabilities for a taxpayer are calculated by the income earner during that financial year. This income can include overdue paid in the current year. Tax rates tend to increase over the years and in such cases the valuer may have to pay more tax. The Income Tax Act provides relief to assessors under section 89 (1) in such situations.

Section 89. seek relief under

An employee entitled to claim exemption under Section 89 must submit Form 10E. It must be filed online on the electronic filing portal of the Revenue Agency. Pursuant to Article 89, paragraph 1, the tax relief is provided by recalculating the tax relating to the year in which the arrears are received and the year from which the arrears are due; And the taxes are adjusted in the year they were due.

Note: Form 10E must be submitted before filing the tax return.

Form 10E. Characteristics of Form 10E contains details regarding an employee's total income and arrears received.

1. The submission of Form 10E is simple and completely digital, available on the electronic portal of the Department of Income Taxes. If you are a new user all you have to do is visit the portal and log into your account or create an account

2. Form 10E is available in the Income Tax Forms section of the portal. Fill out the form carefully and take care of the attachments provided when filling out the form.

3. You must select and fill in the relevant annex (Annex I is for arrears, Annex II for gratuity and Annex III for compensation received in the event of termination of employment).

How to calculate the tax relief under section 89 (1) on wage arrears?

1) Calculate the tax payable on total income, including excess wages, arrears or allowances, in the year in which it is received.

2) Calculate the tax due on total income, excluding any additional remuneration in the year in which it is received.

3) Subtract the calculation obtained from step 2 from the total salary calculation from step 1.

4) Calculate the total income tax, excluding arrears, for the year to which the arrears refer.

5) Calculate the tax due on the total income, including arrears, of the year to which the arrears refer.

6) Now deduct between step 4 and step 5 and find the difference.

7) The amount exceeding Step 6 at Step 3 is the tax relief that will be granted to you, while no relief will be granted if the amount at Stage 6 exceeds the amount at Step 3.

Five things to remember as you apply for relief on arrears

1. Form 10E must be submitted online. All taxpayers who applied for relief in the previous year but did not submit Form 10E will be notified by the Income Tax Department of non-compliance, however, your return will not be available until you submit the form. it will not be processed.

2. Wages are generally taxable on due date or upon receipt, but in the event of default, they are usually declared from a retroactive date, which is why they cannot be taxed on due date.

3. Submit Form 10E before submitting your ITR. When it comes to choosing the assessment year for arrears, you need to choose the assessment year in which the arrears are received.