How to choose New or Old tax regime as per 2021| With Auto-fill Income Tax Revised Form 16 Part B
for the F.Y.2020-21 as per U/s 115BAC
How to choose New or Old tax regime as per 2021|The Finance Bill 2020 gives individuals, HUFs, business owners and/or professionals the opportunity to make discounts for 2021-22 financial year. However, this discount will be subject to certain conditions.
Let's first look at discounted discount rates –
Note the following points -
1. The new tax is an "alternative". (You can choose any of the one new and old tax regime through a new option from 10-IE
2. Paid employees are allowed to switch between new and old tax systems year after year, but this option is not available to business owners or professionals. They will have to fix anyone tax system permanently for future years. They have no choice but to switch year after year.
3. To claim taxes under the new tax regime, there are a few exemptions and they should not be claimed when filing an ITR. (The list is given below.)
4. However, some exemptions are allowed under the new tax regime. (The list is given below.)
You may also, like- Automated Income Tax Preparation Excel Based Software All in One for the Govt & Non- Govt Employees for the F.Y.2021-22 as per Budget 2021
List of exemptions that cannot be claimed under the new tax rate –
1. Exemption and/or exemption in case of house rent allowance, professional tax etc. as allowance and permission.
2. Discounts under Chapter VI-A such as PF, PPF, Mediclaim, Housing Loan Repayment, Grants etc.
3) Exemption under section 80 CC
4) Depreciation cannot be claimed under Section 32 of the Income Tax Act, 1961
5. Concession under section 24 (b) (i.e. interest on repayment of housing loan)
6. Exemption under section 57 (iia)
Earlier. Losses from previous assessment years are no longer allowed.
The new tax regime still lists discounts -
1. Daily allowance is given by the employers on certain conditions.
2. No allowance for travel or transfer expenses.
3. Providing transport allowance for the disabled
Discounts on contributions to the pension account
The main feature of this Excel Utility-
1) Auto calculate your tax as per new and old tax regimes which verify your own creation calculation of tax
2) This Excel Utility can protect or prevent the double-entry of employees Pan Number
3) This Excel Utility can prepare at a time 50 Employees Form 16 Part B
4) All the income Tax Section has in this Utility.
