Sections 80TTA and 80TTB- How to earn tax-free interest. This can be very frustrating when we are not able to get a full return on our investment. We are talking about interest relief from the income. This article will provide information on how to earn tax-free interest of Rs. 100,000 / - for one year in case of an individual (excluding senior citizens) and in the case of HUF and how to earn Rs.50,000/-

 

In the case of senior citizens, the government introduced 80 TTAs under the Income Tax Act to provide discounts and reliefs up to Rs 10,000 on the interest income from savings accounts under the 80 TTB section. Discount details are as follows:

You may also, like- Prepare One by One Income Tax Form 16 Part A&B and Part B Form the F.Y.2020-21

 

Deduction in case of interest - Session 80 TTA and 80 TTB

Section 80TTA:

1. Where an individual or a Hindu Undivided Family earns interest on a savings account (not a time deposit) -

A banking entity (including any bank or banking institution referred to in section 51 of the Act) that enforces the Banking Regulation Act, 1949 (10 of 1949);

 

 Or

 

A post office defined in section (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),

 

The total amount of ten thousand rupees whichever is less, allowed as a discount from the total income.

You may also, like- Prepare One by One Income Tax Form 16 Part B Form the F.Y.2020-21 

Section 80TTB:

 

1. The upper part of the 80 TTA does not apply to senior citizen exemptions. In the case of senior citizens, exemptions are allowed under Section 80TTB. According to this section, actual interest or Rs. 50,000 whichever is less, earned on a deposit with a bank, co-operative society, or a post office mentioned above, will be available as a deduction in case of F.Y201-1.

 

2. In the case of senior citizens, the deposit may include a deposit in the savings account, a recurring deposit in the account; Double Benefit Deposits, Term Deposits, Monthly Income Certificates, etc. This amount can be deposited by the Assessor before the age of 60 years. Once he has attained the age of 60 years in the previous year, he may claim a rebate in respect of interest earned that year under section 80TTB.

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

 

3. In the case of senior citizens, the interest earned on the deposit is covered but in the case of individuals (other senior citizens) and in the case of HUFs, the interest earned through account keeping is covered only. Further amounts of interest rebate are allowed at Rs.10,000 and Rs.50,000 respectively

 

Treatment of both exemption in Income Tax Return (ITR):

1. The above interest should first be offered as income i.e. it should be added to the total income at the time of filing the return of income and a separate discount should be claimed as described above.

 

2. Discounts need to be calculated under both categories. This means that from all sources there should not be more than a specific discount in the section relating to the nature of interest mentioned above.

 

3. Where income as described in section 80 TTA or 80 TTB is derived from or on behalf of a firm, person, organization or entity, respectively, from any savings account or any deposit of deposit, no discount shall be waived by any partner or association of the firm under this section. The calculation of the total income of a member or a person of the body will be allowed with the consent of such income.

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

 

Definition:

1. Time Deposit: For the purposes of this section (80 TTA), "Time Deposit" means the deposits are repayable after the expiry of a certain period of time. I.e. interest earned on fixed deposit and recurring deposit is not allowed as a discount under this section for individual and HUF (excluding interest included in section 80TTB).

 

2. Senior Citizen: For the purpose of this section (80 TTB), "Senior Citizen" means a person resident in India who is 60 years of age or older at any time during the previous year.

 

Deduction comparisons under both categories are provided below:

Investment Appraisal:

1. In the case of individual citizens (excluding senior citizens) and HUF accounts, a rebate of Rs. 10,000 is allowed. Till now the banks are saving the interest on the bank account so if the annual interest is less than Rs. You can check the latest FD rates in the Economics Times.

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

 

2. In the case of fixed deposits which typically provide interest for a period of more than 180 days, the effective return post-tax will be only 4.2% to 4.9% (assuming a 30% tax falls) buckets and surcharges and HEC extra). This can be a good investment and allows for better liquidity and protection than investing in equity markets or other high-risk investments.

 

3. In the case of senior citizens it includes the issue of total interest on the deposit so it is not advisable for senior citizens to invest in high-risk investments. Deposit interest up to Rs 50,000 is available. It will provide tax-free income through discounts as described earlier.

 

Conclusion - Section 80 TTA and 80 TTB: So go and open an account in a bank that pays maximum interest income for availing this tax exemption as per Section 80 TTA and 80 TTB for maximum interest income.

On May 12, 2021 by www.taxexcel.net

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 Know about Section 203. Certificate of Income Tax Salary Form 16

 

(1) Every person who has deducted tax in accordance with the aforesaid provisions of this the chapter shall, within this period, from the time of payment of credit or payment, within the prescribed period, or as the case may be, from the time of issuance, pay a check to any shareholder for payment of any dividend. Or warrant, the person on whose account such credit has been given or to whom this payment has been made or the check or warrant has been issued, the certificate of duty specifying the amount of the tax deducted, and Description.

 

(2) Every person, as an employer, referred to sub-section (1a) of section 199, within this period, as prescribed, the person whose income has been taxed shall pay the tax to the Central Government. Form 16 A certificate of proof of this and specifies the amount to be paid, the rate at which the tax has been paid and other details as prescribed.

Download and Prepare at a time 50 Employees Form 16 Part B for the Financial Year 2020-21 with new and old tax regime U/s 115 BAC

What's in Form 16? 

(3) Form 16- Part A and Part B have two parts when the primary information of the employer and the employee such as name, address, PAN and TN details, tenure with the employer, a summary of deduction of TDS in Part A and in Part B details of Tax Deductions and Income- It has been found that there is any other income taxable income under the title of 'salary' in part B.

 

(4) Lastly, it will carry the total income figures (earned in the previous year) and apply to it. "Part A must be created and downloaded through the TRACES PORTAL. Part A of Form 16 also has a unique TDS Certificate Number. And Part B is prepared by the employer.

Download and Prepare at a time 100 Employees Form 16 Part B for the Financial Year 2020-21 with new and old tax regime U/s 115 BAC 

 Conclusion

In addition to salary income, an employee can also have other income. Once you have received Form 16 but have not declared any other income to the employer (and therefore no TDS has been deducted), you can show it when submitting the income tax return, the last date of which currently stands July 31.

On March 15, 2021 by www.taxexcel.net

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Necessary of Income Tax Form 16.

 

Form 16 is the most indispensable tax documents for both a salaried person and his employer. In this article, we have covered every topic related to Form 16.

 

What is Form 16?

 

Form 16 is a document issued to the salaried persons of their employer at the time of a hodgepodge of duty from the salary of the employee. Simply put, it is a recognition that you have submitted your deductible to the Income Tax Department.

 

Form 16 is an important document issued under the provisions of the Income Tax Act, 1961. Form 16 details how much tax has been deducted from the source (TDS) on your employer's salary as the salary is deducted for the financial year. In short, it can be said that Formal 16 is a document of proof of TDS deducted and submitted by your employer.

 

Download One by One Prepare Automated Income Tax Revised Form 16 Part A&B and Part B For the F.Y.2020-21[This Excel Utility prepare One by One Form 16 Part A&B and Part B]

 

 Why is Form 16 required?

 

Form 16 is an important document like this:

Proof acts as proof that the government has deducted taxes from your employer.

Tax assists the Income Tax Department in the process of filing your income tax return.

 

Many banks and financial institutions demand Form 16 for verification of individual certificates at the time of using form 16.

 

Who issues Form 16?

 

The Income Tax Act orders the employer to have a TAN number and deduct tax on the employee's salary and issue Form 16. If your tax is not stuff deducted, your employer may refuse to requite you Form 16.

Download One by One Prepare Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21[This Excel Utility prepare One by One Form 16 Part B]

 

 Will Form 16 be issued?

 

It must be issued for June 15 of the year for which it is stuff issued. For example, for F.Y 2017-18, the due stage for issuance of Form 16 was June 15, 2018. If an employer delays or fails to submit Form 16 within the specified date, he continues to default liable to pay a penalty of Rs 100 per day till the date.

 

How to read/understand your Form 16?

 

Form 16 is very easy to understand and learn how to fill out. It is divided into two-part - Form 16 Part A and Form 16 Part  B.

 

Form 16 Part A: This Part A mandatory to download from the Income Tax TRACES PORTAL

 

This part of Income Tax Form 16 includes the details of payment of employer, employee, TDS. It displays the quarterly details of your taxes submitted to the government. Here are some of the details:

 Name and write of the employer

Employer's pan and tan.

Name and write of the employee

Employee pan

Tax statement paid by the employer.

Download and prepare at a time 50 Employees Automated Income Tax Revised Form 16 Part B For the F.Y.2020-21[This Excel Utility can prepare at a time 50 Employees Form 16 Part B]

Form 16 Part B:- This Part B prepare by the Employer/Deductor.

 

This section shows a detailed numbering of income, based on which taxes are unswayable and deducted by your employer. It includes salary deductions, various discounts, discounts (if any) and tax calculations you have earned without considering all items based on the current income tax slab rate.

 

A. Gross Salary (1): Form 1. This section requires details of salary as per the provisions of Section 1 (1), underage of salary and any goody received in lieu thereof.

B. Discounts and Solatium Considered (2): Prior to this part of the form, the combined information of all exemptions under Section 10 was required, but with the introduction of the new Form 16, a list of solatium has been provided, and details need to be filled in. The list of solatium is as follows:

 Travel exemption or assistance under section 10 (5)

Death-cum-Retirement Gratuity under Section 10 (10)

The modified value of the pension under section 10 (10a)

Cash equivalent to leaving pay encashment under section 10 (10AA)

House rent wage under section 10 (13A)

Amount of any other exemption under section 10

 

C. Total value of salary received from the employer (3): This part of the form calculates the total salary received with solatium and other permissions.

 

D. Exemptions under Section 16 (ia): Budget 2018 announces standard deduction in lieu of transport and medical expenses received by employees. In the new Form 16, a separate section has been introduced for the standard deduction. All unbeliever columns are listed below:

 Standard exemption under section 16 (ia)

Entertainment wage under section 16 (II)

16 Tax on employment under 16 years of age (iii)

E. The value of total exemption under section 16 (5)

 

Download and prepare at a time100 Employees Automated Income Tax Revised Form 16 Part B For the F.Y.2020-21[This Excel Utility can prepare at a time 50 Employees Form 16 Part B]

 

On March 02, 2021 by www.taxexcel.net

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