How to take advantage of the House Building Loan in 2022?  The maximum home loan benefit

 that can be claimed as a deduction in India is as follows:

 

Section	Deduction allowed	Allowed for
Section 24	Rs. 2,00,000	Interest repayment
Section 80C	Rs. 1,50,000	Principal repayment
Section 80EEA	Rs. 1,50,000	Interest repayment

 

Therefore, as can be seen from the table above, a deduction for both interest and principal may be required in various sections of the Income Tax Act. These sections, along with the allowable deductions, have been discussed in detail in this article.

Download and prepare One by One Employee Form 16 Part A&B and Part B for the F.Y.2021-22 as per new and old tax regime

Section 80C: Mortgage Loan (Principal) 

The amount paid as a refund of the principal amount of a home loan by an individual / HUF is allowed as a tax deduction under section 80C of the Income Tax Act. The maximum tax deduction allowed under section 80C is Rs. 1.50.000.

 

This tax deduction is the total amount of the allowable deduction under Section 80C and includes the amount invested in a PPF account, fixed deposits for tax savings, stock oriented mutual funds, national savings certificate, savings scheme for seniors etc.

 

This Section 80C tax credit is available on a taxable basis regardless of the year the payment was made. The amount paid as stamp duty and registration tax are also allowed as a tax deduction under Section 80C even if the taxpayer has not taken out the loan.

 

However, a home loan tax credit under this section for the repayment of the principal portion of a home loan is allowed only after construction has been completed and a certificate of completion has been issued. No main deductions are allowed in this section for the years the property was under construction.

Download and prepare One by One Employee Form 16 Part B for the F.Y.2021-22 as per new and old tax regime

 

Also, in case you intend to purchase a property under construction as it is priced lower than a fully completed property, it is also advised to note that GST is also charged on a property under construction. However, the goods and services tax is not levied on fully completed properties.

 

Section 80C  further states that if a taxpayer transfers ownership to a home for which he has claimed a tax deduction under section 80C before 5 years have elapsed since the end of the tax year in which he took possession of it, then no mortgage deductions or tax credits are permitted under section 80C.

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

 
The cumulative amount of the tax credit already claimed in relation to previous years is considered the Taxpayer's Income for the year in which the property was sold and the Taxpayer is required to pay the tax on this income.

 

Tax concessions on the home loan (sum of interest)

 

Home loan tax credit for the payment of interest on a home loan can be claimed as a deduction under section 24 and also the new section 80EEA (as amended by the 2020 budget)

 

Section 24: Income Tax Relief on Interest on a Real Estate Purchase / Building Loan

 

The mortgage tax credit for the payment of interest is permitted as a deduction under section 24 of the Income Tax Act. Subject to Section 24, home ownership income must be reduced by the amount of interest paid on a loan if the loan was taken for the purpose of buying/building / renovating/improving / renovating the property.

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 

The maximum allowable tax deduction under section 24 for property for own use cannot exceed Rs. 2 lakh (increased in the 2014 budget from 1.5 lakh to 2 lakh).

 

Note: if the property has not been occupied by the owner due to the fact that, in relation to the work, business or professional activity carried out elsewhere, it must reside in this other place not owned by him, the amount of the tax deduction, allowed by article 24 is Rs. only 2 lakhs.

 

It is also important to note that this section 24 loan interest tax deduction is debt-deductible, i.e. accrual. Therefore, a Section 24 deduction can be claimed each year even if no payments have been made during the year, unlike Section 80C, which allows for a payment-only deduction.

Download and prepare at a time 100 Employees Form 16 Part B for the F.Y.2021-22 as per new and old tax regime

 

Furthermore, if the property is not bought/built within 5 years from the end of the year in which the loan was taken, the interest rate, in this case, will be reduced from 2 lakh to 30 thousand rupees. (The limit has been increased from 3 years to 5 years starting from the 2016-2017 fiscal year).

 

The amount of the allowable interest payment deduction on a home loan under Section 24 is as follows:

Type of Property	Self Occupied Property		Not-Self Occupied Property
Completion Status	Completed within 5 years	Not completed within 5 years	Completed within 5 years	Not completed within 5 years
Deduction Allowed	Rs. 2,00,000	Rs. 30,000	No Limit	No Limit

 

Deduction for employee ownership {2017 budget update}

 

In the case of a non-self-contained property, the interest paid is reduced by the rent paid to generate income from home ownership. In some cases it can happen that the interest paid exceeds the rent earned, resulting in the loss of home ownership. This loss can be offset against the income of any other manager.

 

The 2017 finance law, promulgated on 1 February 2017, placed a ceiling on the maximum amount of losses on properties that can be offset with other income items. As of the 2017-18 financial year, the loss is no more than Rs. 2 lakhs can be counted from the income of other executives. The unaccredited amount is carried over to future years.

 

Download and prepare at a time 100 Employees Form 16 Part A&B for the F.Y.2021-22 as per new and old tax regime 

Thus, the maximum percentage deduction that can be received for independent ownership is 10,000,000 rubles. 2 lakh, and for dependent property, the loss on parent company property must not exceed Rs. 2 lakh (i.e. rent received - standard deduction - property tax - quick interest must not exceed 2 lakh). In the case of a self-contained property, the interests are higher than Rs. 2 lakhs will be forfeited and cannot be requested as a deduction, while in the event of non-self-ownership the loss from the ownership of the house exceeding Rs. 2 lakhs will be carried over to the following year and can be claimed next year.

 

Section 80EEA: Home Loan Interest Income Tax Relief (First Time Buyers)

 

An interest deduction may be required under section 80EEA and also in excess of the allowable deduction under section 24 Rs. 2 lakh plus Rs. 1.5 lakh allowed under section 80C

 

This Section 80EEA Deduction will only apply in the following cases:

 

This deduction will only be allowed if the value of the stamp duty on the property purchased is less than Rs. 45 lakh.

 

1. The loan must be authorized between April 1, 2019, and March 31, 2021.

The previous 3 sections related to home loan tax credits have been summarized as follows:

Particulars	Quantum of Deduction (Rs.)
	Self Occupied Property	Non-Self Occupied Property
Section 24	2,00,000	No Limit
Section 80C	1,50,000	1,50,000
Section 80EE	1,50,000	1,50,000

 

Download Automatic Income Tax Challan ITNS 280 for the Advance / Self-assessment Tax through any Bank

On March 24, 2022 by www.taxexcel.net

Share It

No Comments

Read More

 

Income Tax Form 16 Download | In accordance with the Income Tax Act, each employer is required to withhold tax (or TDS - deductible at source) at the time of payment of the salary, which is calculated on the basis of the income tax rates in effect for that financial year.

 

Companies usually calculate the tax payable by an employee based on the expected profits and investment returns made by the employee at the beginning or during the year.

 

The TDS deducted in this way by the organization or employer is filed with the Income Tax Department and Form 16, in turn, is the same proof. Employers must issue Form 16 to their employees no later than May 31 of the fiscal year following the fiscal year in which the income was paid and taxes were deducted.

Form 16 components

Download and Prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2021-22

 

One of the most important forms of income tax for employees is Form 16. It contains all the information regarding the salary received by the worker, as well as the tax that has been collected from the deductible salary. 

Form 16 Part A 

In essence, Part A is a summary of the taxes collected by an organization or employer on employment income on behalf of an employee and paid into the government account. This is a certificate duly signed by the employer who deducted the TDS from the employee's salary and handed it over to the income tax department.

 

 

Contains the following details: 

Personal data of the employer and employees. Details such as person and employer name, address data, PAN data of both employer TAN data. (TAN refers to the number assigned to the account in charge of deducting and collecting the tax). These details help the IT department monitor the movement of money from employee and employer accounts. (It should be noted that if an organization does not have a TAN, they are not entitled to a TDS deduction. So, in this situation will not provide form 16

Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y.2021-22

 

The length of time an individual worked for an employer in the relevant tax year.

Summary of wages paid

Payroll tax date

The date the tax was credited to the government account

Summary of taxes deducted and filed quarterly with the Income Tax Department

TDS payment confirmation number

 

This part is created and uploaded via the Department's Income Tax Track Portal. It also provides details such as the BSR code of the bank through which payments are made, challan numbers, etc. for future reference. All pages of Part A must be digitally or manually signed by the detractor.

 

Part B is a summary statement that provides details of the compensation paid, any other income declared by the employee in their organization, the taxes paid and the taxes due, if any. It presents complete and orderly information about an employee's income earned and the benefits and deductions that apply to them, in a prescribed format. The information relating to the employee, such as name and personal number, is also cited in art 

This chapter includes the following information:

Total Salary Received: The salary structure is further broken down into various components such as home rental allowance, vacation allowance, vacation collection, tips and more.

Download and Prepare at a time 100 Employees Form 16 Part A&B for the F.Y.2021-22

 

Permitted Exceptions: In section (10) of the Income Tax Act of 1961, such as allowances granted to employees for travel, housing rental (HRA), expenses for education and accommodation for children, services doctors, etc., are also mentioned in the form of.

 

Gross income: is the sum of wage income received by the employer and any other income claimed by the employee, such as income from home/property, etc. The details of the other income must be provided by the employee to the employer at the time of the stage of providing proof of investment.

 

Wage Deductions: Section 80 C / 80 CCC / 80 CCD includes contributions made to instruments or schemes such as the State Reserve Fund, Life Insurance Policies, Tax Savings Mutual Funds, Pensions, Sukanya Samriddhi and others. The maximum limit for the same is Rs. 1.50.000.

Download and Prepare at a time 100 Employees Form 16 Part B for the F.Y.2021-22

 

There are deductions for other sections such as 80D (premium paid to health insurance or Mediclaim), 80E (payment of interest on school loan), 80G (donations), disability deductions and other applicable sections. Details for all these deductions must be presented by the employee, along with the required supporting documents, to the employer.

 

Net taxable salary: the general deductions are added according to "Chapter IV-A" and deducted from the gross income to calculate the taxable income. Your tax liability is calculated on this amount.

Download and Prepare One by One Form 16 Part B for the F.Y.2021-22

Education Cess and any co-payments

Section 87 Refund, if applicable

Assistance under section 89, if any

The total amount of income tax payable

Tax deduction and applicable payable or refundable residual tax

How important is form 16 for an employee?

 

For an employee, Form 16 is of paramount importance in terms of income tax. The information provided on this form is required to file the tax return.

With this certificate, a taxpayer can easily prepare their Indian tax return on their own without the need for a chartered accountant or financial planner. This is more applicable to individuals whose only source of income is the wages they receive from their organization.

 

Form 16 can be used to verify that taxes have been properly paid to the government. Accounts by comparing the amounts with form 26AS.

Download and Prepare One by One Form 16 Part B for the F.Y.2021-22

 

On March 23, 2022 by www.taxexcel.net

Share It

No Comments

Read More