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Saturday, 5 February 2022

Highlights of Budget 2022. No change latest income tax slab rates for F.Y 2022-23 & A.Y 2023-24

after Budget 2022. There are any changes in the income tax rates applicable to individuals? Let's see

the details.

In this post, my focus is to share with you the latest Income Tax Slab Rates and applicable Security Transaction Tax (STT) for FY 2022-23 / the Year 2023-24.

Highlights of Budget 2022

#No change in tax slab

No change in tax slab

# Revised tax filing if you have missed some information

If you have missed sharing certain tax information while filing ITR, you can do so by revising it within 2 years from the end of the relevant assessment year.

Download Automatic Income Tax Arrears Relief Calculator U/s89 (1) with Form 10 E from the F.Y.2000-01 to F.Y.2021-22

What is the income tax slab rates for F.Y 2022-23 & A.Y 2023-24 after Budget 2022? Let's see the details. First, let's understand the difference between gross income and total income.

Many of us get confused in understanding what is gross income and what is total income or taxable income. In addition, we calculate income tax on gross income. This is completely wrong. Income tax will be chargeable on the total income.

Gross total income(GTI) means the total income under the heads of salary, income from house property, profits and gains of business or profession, capital gains or income from other sources.

Total income or taxable income means gross total income less the amount allowed as deduction under section 80C to 80U.

Therefore your total income or taxable income will always be less than your gross total income.

Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y.2021-22 as per new and old tax regime

No changes were proposed with respect to income tax slab rates in this Budget 2022. Hence the old rates will continue for the FY 2022-23/Assessment Year 2023-24.

Here are two types of Income Tax slabs.

1. Who are wishing to claim tax deductions and exemptions?

2. Who are do not wish to claim tax deductions and exemptions.

I explain both the slabs as below.

Now, if you want to opt for the new tax regime, you have to forget about the deductions or exemptions below.

(i) The granting of vacation travel contained in clause (5) of section 10;

(ii) The home rental allowance contained in clause (13A) of section 10;

(iii) Certain indemnities contained in clause (14) of section 10;

(iv) The allowances to MPs / MLA contained in clause (17) of section 10;

(v) The income allowance of a minor in clause (32) of section 10;

(vi) Deduction of the standard deduction, the representation allowance and the labour / professional tax as due

Section 16;

(vii) Interest under section 24 in connection with self-employed or vacant properties in subsection (2) of section 23.

(The loss on the capital of income from real estate properties for rent cannot be attributed to any other title and can be carried forward as per current legislation);

(ix) Further reduction referred to in clause (ii) of paragraph (1) of Article 32;

(x) Deduction under sections 32AD, 33AB, 33ABA;

(xi) Paragraph (ii) or paragraph. Various deductions for donations or scientific research expenses granted

(iia) or subsection (iii) of subsection (1) or subsection (2AA) of section 35;

(xii) Deduction from the family pension under clause (iia) of section 57;

(xiv) Any deductions under Chapter EIA (such as sections 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA,

Download and Prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2021-22 as per new and old tax regime

However, the deduction under

You can apply for subsection (2) of section 80CCD (employer contribution to the employee's account in the notified pension scheme) and section 80JJAA (for new employment).

However, there are some deductions you can still claim using the new tax regime and they are detailed below.

1. Pension benefits, gratuities, etc.

2. Changeover of the pension

3. Leave the collection in retirement

4. Compensation for dismissal

5. VRS Benefits

6. EPFO: Employer Contribution

7. Advantages of withdrawing NPS

8. Scholarship for education

9. Payment of prizes established in the public interest

Download Automated IncomeTax Preparation Excel Based Software All in One for the Government andNon-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

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Friday, 4 February 2022

Standard deduction U/s 16(ia) | Calculating taxable income for an individual involves calculating gross

income. Gross income is the total income under various heads of income. You can reduce your gross

income by taking various deductions and allowances to get the final taxable income. These deductions

can be deducted under sections 80C, 80D or standard income deduction from your salary or

homeownership. Net income after this deduction is subject to tax at the respective flat rate applicable

to the taxpayer.

The standard wage deduction was first introduced in 1974. But the government abolished it in 2005. The government reintroduced it into the 2018 Union budget. After its reintroduction, the government introduced several employee benefits. These include an increase in the standard deduction benefit for the financial year 2021-22. Before discussing the benefits, let's understand what the standard deduction is.

Download & Prepared at a time 100 Employees Automated Income Tax Form 16 Part B for the Financial Year 2021-22 as per new and old tax regime

What do you mean by standard deduction?

There have been many changes in the standard deduction in India under the income tax of India. Starting in the financial year 2019-20, a salaried person can again claim the standard deduction on her income. This deduction is regardless of whether it has an expense or an investment. The government has extended the benefit of the standard deduction through the financial year 2021-22.

Previously, employees could claim travel and medical expenses only after submitting proof. But for the standard deduction, it is not necessary to present proof of expenses. Not only employees, but employers are also at an advantage as they no longer have to process their bills.

Now, there are two types of standard deductions available in India. One is on the homeownership income header while the other is on the salary income header.

Download & Prepared at a time 50 Employees Automated Income Tax Form 16 Part B for the Financial Year 2021-22 as per new and old tax regime

When a person receives rental income from homeownership, they are included in the income from homeownership. The standard deduction for the 2020-21 valuation year under Real Estate Income is 30%.

However, the standard deduction under the payroll is a default deduction. We subtract this from the individual's wage income to reduce the taxable amount. Only a salaried person or a person applying for a pension can benefit from it.

Each employee can request the benefit of the ordinary deduction for the financial year 2021-22. The move provides significant tax breaks for employees. Let's try to understand in detail how the standard deduction in section 16 (IA) benefits the employee.

Standard Deduction in Salary Income

Net salary is the total sum of salary, pension, tip, compensation, commission minus any deductions under section 10 of the Income Tax Act. Section 10 covers allowances such as renting a house and transportation.

Download & Prepared at a time 100 Employees Automated Income Tax Form 16 Part A&B for the Financial Year 2021-22 as per new and old tax regime

The government reintroduced the standard deduction from the 2019-20 valuation year. Previously, the government waived the transportation allowance of Rs 19,200 and the medical allowance of Rs 15,000. Salaried individuals can deduct a fixed amount of Rs 40,000 in the 2019-20 valuation years. But they could no longer deduct transportation and medical allowance.

From AY 2020-21, a standard deduction of Rs 50,000 is available for all salaried individuals. Any medical and travel allowances are not yet applicable.

Please note that the flat-rate deduction for salary cannot, in any case, exceed the amount of the salary. In other words, the maximum amount of deduction you can get under section 16 is Rs 50,000 or less for the salary amount.

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