Taxexcel: 89(1) arrears relief calculator for F.Y.2018-19

Showing posts with label 89(1) arrears relief calculator for F.Y.2018-19. Show all posts

Friday, 31 May 2019

Everybody gets stressed amid the period of accommodation of salary charge. A few people will in general contract attorneys to spare the most extreme measure of cash. Meanwhile spending plan of the year 2019, there were different assessment proposition that would modify the lives of almost 30 million Indian salaried and beneficiaries. While no changes have been made in the expense piece, however because of assessment recommendations kept in this financial limit, individuals who get not as much as Rs. 5 lakh will get a full duty discount. For individuals procuring more than Rs. 5 lakhs, different alterations have been executed to diminish the weight of their expense.

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Monday, 1 October 2018

Budget 2018 has created a significant impact on personal finance, in respect of investments, savings, and taxes. It is important to think beyond Section 80C to maximize your income tax benefits. Also, you must align your investments with your tax-saving instruments to get absolute benefits.

Here we have a complete list of tax deductions you can claim under the Income Tax Act, this financial year 2018-19.

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Sunday, 9 September 2018

Transport allowance is withdrawn by CBDT, i.e. provisions relating to exemption of ‘Transport Allowance’ of Rs. 1,600 pm for salaried individuals/ employees to meet their commuting costs between residence and office, stands withdrawn from 1 April, 2019 (FY 2018-19/ AY 2019-2020). It may be noted that reintroduction of Standard Deduction by the Finance Act, 2018 has resulted in getting transport allowance withdrawn.

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Click here to Download the Automated Income Tax Preparation Excel Based Software All in One TDS on Salary for Government & Non-Government (Private) Employees For F.Y.2018-19 and Ass Year 2019-20 as per the new Finance Budget 2018-19

[ This Excel Utility can prepare at a time your Tax Computed Sheet + Individual Salary Sheet + Individual Salary Structure as per the Salary Structure for Govt & Non-Govt employees + Automated H.R.A. Calculation + Automated Arrears Relief Calculator with Form 10E for F.Y.2018-19 + Automated Income Tax Form 16 Part A&B + Automated Form 16 Part B for F.Y.2018-19]

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Medical and Transportation Allowances Subsumed into Standard Deduction

Standard Deduction: Budget 2018 has not cheered the Salaried Class at all, neither the tax slab is changed nor the deduction limit under section 80C is hiked. The tax rebate of Rs.5,000 has been reduced to Rs.2,500 and that too up to the taxable income of Rs.3,00,000 which was earlier up to Rs.5,00,000.

The only changed proposed for the salaried class is the reintroduction of Standard Deduction of Rs.40,000. This standard deduction was the part of income tax act but was done away with in Union Budget 2005-06 by P. Chidambaram by introducing medical and transportation allowances, but now from Assessment Year 2019-20, both medical allowances and transportation allowance are subsumed into the standard deduction of Rs.40,000.

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Monday, 23 July 2018

As per section 89(1) of the Income Tax Act, 1961 relief for income tax has been provided when in a financial year an employee receives the salary in arrears or advance. As per Rule 21AA of the Income Tax Rules, 1962, Form 10-E has been prescribed for claiming the relief.

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Budget Impact on the Salaried Class

Budget 2018 is rolled out and how! Mixed feelings for most people, except for the salaried class. The budget has not made any changes to the tax slabs of salaried individuals, leading them to sing the blues, in a chorus. Given the pattern from the last few years, there were similar expectations this year too. Even though that did not happen, the Finance Minister has proposed to reintroduce the “standard deduction” from the gross salary of individuals.

The amount of standard deduction proposed to be Rs 40,000, will replace the existing transport allowance of Rs 1600 per month and medical allowance of Rs 15,000 per annum which are usually deducted from the gross salary and claimed as an exemption. So, no changes in tax slabs is not a total loss, since the standard deduction of Rs 40,000 will replace medical allowance of Rs 15,000 and transport allowance of Rs 1600 per month i.e. Rs. 19,200 per annum, so the effective additional benefit would be an additional income exemption of Rs 5,800.

Furthermore, FM Jaitley proposed to hike the cess by 1%, in the name of Health Cess, making it effectively 4% ‘Health and Education Cess’. As of now, an education cess of 3% was levied on personal income tax, after the budget announcement it soared high to a 4%. While this move may help the government in meeting the healthcare and education needs of the rural families, it is certain that the tax liability of both individuals and corporate will increase.

Let’s have a look at the tax proposals made in the Budget 2018 for the Salaried Class

The Income Tax Slabs for the Assessment Year 2019-20 would continue to be as follows

For Individuals (resident or non-resident) upto 59 years
Upto 2,50,000	NIL
2,50,001 – 5,00,000	5%
5,00,001 – 10,00,000	20%
10,00,001 & Above	30%

For resident individuals who are 60 years and above but below 80 years
Up to 3,00,000	NIL
3,00,001 – 5,00,000	5%
5,00,001-10,00,000	20%
10,00,001 & Above	30%

For resident individuals who are 80 years and above
Up to 5,00,000	NIL
5,00,001 – 10,00,000	20%
10,00,001 & Above	30%

Surcharge too has not undergone any change from that of AY 2018-19

Income from Rs 50,00,001 – 1,00,00,000	10% of tax
1,00,00,001 & Above	15% of tax

In a nutshell:

A resident individual is entitled to rebate u/s 87A if his total income does not exceed Rs. 3,50,000. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less

‘Health and Education Cess’ charged at 4% replaces ‘Education Cess’ and ‘Higher & Secondary Education Cess’ earlier charged at 3%

A Standard deduction of Rs 40,000 from the taxable Salary replaces the transport allowance and the miscellaneous medical Reimbursement. This will result in an additional income exemption of up to Rs 5,800/-

Click here to Download Automated TDS on Salary for Govt & Non- Govt employees for F.Y.2018-19 and A.Y.2019-20 with Automated Arrears Relief Calculator with Form 10E from F.Y.2018-19 and A.Y. 2019-20 as per new Finance Budget 2018 [ This Excel Based Software can prepare at a time Tax Computed Sheet + Individual Salary Structure as per Govt & Non-Govt Salary Pattern + Automated H.R.A. Calculation U/s 10(13A) + Automated Form 16 Part B + Automated Form 16 Part A&B + Automated Arrears Relief Calculation from F.Y.2000-01 to F.Y.2018-19 with Form 10E]

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Wednesday, 4 July 2018

Prepare at a time Income Tax Computed Sheet + Automated Individual Salary Sheet + Salary Structure as per Private employees Salary Pattern + Automated H.R.A. Exemption Calculation + Automated Form 12 BA + Automated Form 16 Part A&B and Forn 16 Part B for F.Y.2018-19.