Save tax for salaried people,Central Budget 2021 results

Exemption from ITR filing for senior citizens aged 75 years and above, only pension and interest income.

 

B. The Income Tax Department has introduced pre-filled ITR with additional details to facilitate the return filing process.

C. The deadline for submission of delayed and amended returns has been reduced to 3 months. This means that the IT department has to process the returns and send a notice under section 143 (1) by 31st December.

 

Picture of tax exemption

 

 It is important to understand what your tax slab and each of your pay segregation elements mean. This can help you determine how to save tax.

 

Category I - Understanding your payslip

Basic salary

It’s a specific component of your paycheck and it forms the basis of other parts of your paycheck, hence the name. For example, HRA is defined as the percentage of this basic salary (as considered by the company). Your PF is deducted 12% of your basic salary. This is usually a large portion of your total salary.

House rent allowance

 

Salary earners, who live in rented houses/apartments, can claim house rent allowance or HRA for a tax deduction.  The Income Tax Act prescribes a procedure for calculating HRA which can be claimed as an exemption.

 

Download Auto Home Rental Calculator U / s 10(13A) in Excel

 

Case Study: Manika works at an MNC in Nagpur she's the company pays her a house rent allowance. But she does not live in a rented house because she lives with her parents.

 

How can Manika use this allowance?

Malaika can rent to her parents and claim the allowance if they own the land they currently live on. All he has to do is enter into a rental agreement with his parents and transfer money to them every month.

 

Also, keep in mind that your HRA will be fully taxable if you receive and do not rent an HRA.

 

Holiday travel allowance

Paid workers can get concessions for travelling in India under LTA. Discount only for the shortest distance on one trip. This allowance can only be claimed for a trip taken with your wife, children and parents, but not with other relatives. This special discount depends on the actual cost, so if you don't really make the trip and don't cover these costs, you can't claim it. Submit a bill to your employer to claim this discount.

 

Bonus

Performance Incentive, whatever its name may be, is 100% taxable. Performance bonuses are usually linked to your valuation rating or your performance over a period of time and are based on company policy.

 

Employee Contribution to Provident Fund (PF)

Future Fund or PF is a social security initiative of the Government of India. Both the employer and the employee make an equivalent contribution of 12% of the employee's basic salary per month towards the employee's pension and provident fund. About 8.65% interest is accrued from FY 2018-19 (previously it was 8.55% for FY 2017-18). This is a retirement benefit that must be paid by companies with more than 20 employees in accordance with the EPF Act, 1952.

Standard deduction

 

Standard deduction U/s 16(ia) was first reintroduced in the 2018 budget. This deduction replaces transportation allowance and medical allowance. Employees can now claim a flat for Rs. 50,000 (before Budget 2019, it was Rs. 40,000) deducted from the total income, resulting in lower tax costs.

 

Professional tax

Occupational tax or employment tax is a tax levied by a state, just like the income tax levied by the central government. The maximum amount of professional tax that can be levied by a state is Rupees Two Thousand Five Hundred. It is usually deducted by the employer and submitted to the state government. On your income tax return, professional tax is deducted from your salary income.

 

Relief under section 89 (1)

If you have to get any arrears salary you can avail this section 89(1)

Calculate tax relief yourself

A. Calculate the tax payable on the total income including the additional salary in the year received.

 

B. Calculate the tax payable on the total income after deducting the extra salary in the year received

C. Calculate the difference and steps 1 and step 2

D Calculate the tax payable on the total income of the year related to the arrears including E Calculate the difference between step 4 and step 5

F The additional amount in step 6 in step 3 is the tax relief that will be granted.

Note that if the amount in step 6 exceeds the amount in step 3, no relief will be allowed.

 

Download Automated Income Tax Preparation Excel Based Software All in One for the Government and Non-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 the 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 in to the in-words without any Excel Formula

 

On November 30, 2021 by www.taxexcel.net

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 Section 80 CCD: Deduction for NPS Contribution |Chapter-A of the Income-tax Act provides for various exemptions for contributions to pension schemes. These exemptions are available under Section 80C, Section 80CCC, and Section 80CCD and can be claimed at the time of filing an income tax return. This article focuses primarily on exemptions approved under Section 80 CCD. For exemptions under Section 80C and Section 80CC. 

Deduction under 80 CCD

There is a provision of 80 CCD for exemption of income tax for contributions to the National Pension Scheme (NPS) and for contributions to the notified pension scheme. Discounts under this section are available to individuals only and not to HUFs. Individual claims under this section may be residential or non-residential.

You may also, like- Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y.2020-21

Section 80 CCD (1): Grant of NPS Scheme for Contribution by Individual

Exemption under Section 80CCD (1) is not only available to salaried persons; salaried persons can also contribute to the NPS scheme and get relief for the same.

The maximum amount allowed as exemption under Section 80CCD (1) is: -

 

In case of employees: 10% of his salary for the financial year (salary includes value-added allowance but excludes all other allowances and permits)

In case of non-employees: 10% of total income in F..Y (increased from F.Y 2017 to 20%)

 

Section 80 CCD 2015 Budget Amendment

Earlier, the amount of exemption allowed for contributions to NPS was limited to Rs 1 lakh [Section 80 CCD Sub-section 1A]. However, to encourage people to contribute to the NPS, the maximum amount allowed to be invested in the National Pension Scheme has been increased from Rs 1 lakh to Rs. 1.5 lakh.

You may also, like- Download and Prepare at a time 100 Employees Form 16 Part B for the F.Y.2020-21

 

In addition, a new sub-section 1 B has been introduced in the budget 2015 announced by Arun Jaitley to provide additional discounts for any amount payable, for which Rs. 50,000 50,000 for contributions by any individual assessors under NPS. 

This is an additional advantage. Benefits above Rs 50,000 and above. A rebate of Rs 1.5 lakh can be claimed under Section 80C. Therefore, it can now be claimed under Section 80C + Section 80CCD that the total exemption. 2 lakh rupees.

 

Section 80 CCD (2): Deduction on NPS scheme for contribution by employer

If an employer contributes to the NPS scheme on behalf of the employee and is availed by the employee, the amount under which the employer contributes by the employee may also be waived under section 80CCD (2).

You may also, like- Download and Prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2020-21

 

The contribution made by the employee himself in the NPS scheme will be allowed as a discount under section 80 CCD (1) and the contribution made by the employer in the NPS scheme will be approved as a discount under section 80CCD (2).

 

The concession approved under section 80CCD (2) will be allowed for the contribution of employers up to 10% of the salary of the individual.

 

Receives tax refunds on money from the National Pension Scheme

The contribution made by the NPS scheme will be returned to the employee as a pension after retirement or by surrendering the policy (as it may be).

 

At the time of withdrawal from the NPS account, 60% of the accumulated balance can be withdrawn and he will be exempted from tax. An annuity will be purchased from the balance of 40% amount.

 

Budget 2017 Update: Exemption will also, be allowed for partial withdrawal without exceeding 25% of the  contribution made by the employee under certain conditions under the Pension Fund Control and Development Authority Act.

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

 

Feature of this Excel Utility:-

 

1) This Excel utility prepares and calculates your income tax as per the New Section115 BAC (New and Old Tax Regime)

 

2) This Excel Utility has an option where you can choose your option as New or Old Tax Regime

 

3) This Excel Utility has a unique Salary Structure for Government and Non-Government Employee’s Salary Structure.

 

4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2021-22 (Update Version)

 

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2021-22

 

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2021-22

On June 04, 2021 by www.taxexcel.net

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