Taxexcel: How to save Income Tax

Download Automated Income Tax Software in Excel for the Govt & Non-Govt Employees F.Y.2021-22 as per Budget 2021 with how to save income tax

Are you someone who likes Bollywood a lot? Do you think Bollywood life is glamorous? The lives of celebrities always seem exciting and full of glamour. They are always ahead when it comes to clothing, travel, or lifestyle. You must know that these actors are always given a jaw drop, they are paid a lot of money for everything they do, be it movies, music albums, commercials, or performances.

However, people are usually so blinded by these glamorous shows that they often forget that the higher the income, the higher the income tax.

You may also, like- Prepare at a time 50 Employees Form 16 Part B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

Now, are you wondering how much land you will have to pay income tax this year? The following list shows the different tax rates for different categories of taxable income for the fiscal year 2020-2021.

Section 80C- Investments in PPF, PF, insurance, NPS, ELSS, etc. Max Rs.150,000

Section 80CCD-NPS investments 50,000

Section 80D- Investment in medical insurance for self or parents 25,000/50,000

Section 80EE- Interest on Home loan Rs. 50,000

Section 80EEA-Interest on Home loan Rs.1,50,000

Section 80EEB-Interest on electric vehicle loan 1,50,000

Section 80E-Interest on education loan Full amount

Section 24-Interest paid on the home loan 200,000

Section 10(13A)-House Rent Allowance (HRA) as per salary structures

Income tax-saving tips

The Government of India also provides certain ways to reduce the income tax of taxpayers. The Income Tax Act, 1961 covers some tax savers including mutual funds, insurance premiums, NPS, medical insurance, home loans, and many more.

There are some departments that act as relief for taxpayers, as under these main departments, they can save taxes. These categories are 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80CCG, 80G G

They can certainly be helpful for income tax by many taxpayers, especially salaried employees. Exemptions and allowances for income tax are of utmost importance in the financial planning of any person or entity.

Therefore, the following table shows the categories and discount limits for each.

You may also, like- Prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

How to save income tax under section 80C?

Under Section 80C, there are a various investment and expense options through which you can claim a discount within the rupee limit. One and a half lakh rupees in the financial year. These options are as follows:

Equity Linked Savings Scheme (ELSS)

The Equity Linked Savings Scheme is the only mutual fund division that provides tax exemption under the Income Tax Act.

ELSS returns are higher than other income tax saving schemes in the long run because investments are made in the equity market but two things to keep in mind with ELSS are that it cannot be withdrawn for 3 years before the lock-in period and there is high risk because the investment Is in the equity market.

You may also, like- Prepare at a time 100 Employees Form 16 Part B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

Certificate of National Conservation (NSC)

The NSC is another income tax protection strategy that comes with a 5-year term with the National Conservation Certificate providing a fixed rate of interest, which is currently 6.8% per annum.

The interest earned from this income tax protection strategy is a duty-saving option and under Section 80C, Rs. 1.5 lakh can be taken as a discount.

Public Provident Fund (PPF)

PPF One of the strategies to save income tax in India sought In PPF, long-term investment can be made with a term of 15 years. One can open a PPF account with minimum cash at banks and post offices.

PPF rates change quarterly, which is currently .1.1%. The funny thing about PPF is that PPF is interest-free.

Employees Provident Fund (EPF)

12% of the salaries of employees covered by the Employees Provident Fund are tax-free. So it is a beneficial income tax saving scheme for people in the service line.

Senior Citizens Protection Project (SCSS)

The current rate of interest is 7.4% (taxable). However, the discount limit is Rs 2,000. One and a half lakh rupees. This means that this limit can be taken under this scheme of tax exemption.

You may also, like- Prepare at a time 100 Employees Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

Tax exemptions do not depend on the child's class or level of education. This income tax saving scheme is for all types of parents including divorced, single parents, or those who have adopted children.

Home payment

In order not to hinder income tax in the process of buying their own house, Section 60 comes up with a scheme where these people, who are already paying EMI for their home loan, are exempted from paying income tax on interest.

They can claim tax exemption under section 80C.

What are the other income tax saving options?

Apart from Section 80C, there are other sections (mentioned earlier) that provide for income tax exemption. Here is some of the income tax saving options:

There are tax exemptions for contributions to the National Pension System (NPS). The discount limit is 1.5 lakh.

Exemption for medical insurance premiums U/s 80D. It's up to the rupee. 25,000, and Rs. 50,000 for senior citizens.

There is also a tax deduction on home loan interest; You have Rs. 60,000 under Section 80EE.

Download Autofill Income Tax Software in Excel for the Jharkhand State Employees for the F.Y.2021-22 & A.Y. 2022-23 as per Budget 2021

Feature of this Excel Utility are-

1) Auto Calculate your Income Tax liability as per the new system (New and Old Tax Regime) U/s 115 BAC

2) Auto calculate House Rent Exemption Calculation U/s 10(13A)

3) Automated Income Tax Computed Sheet

4) Salary Structure as per the Jharkhand State Employees Salary Pattern.

5) Automated Income Tax Revised Form 16 Part A&B

6) Automated Income Tax Revised Form 16 Part B

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Prepare at a time 100 employees Form 16 Part A&B for FY 2014-15 [Who are not able to download Form 16 Part B from the TRACES Portal,they can use this Form 16 Part A&B for FY 2014-15]

Do you feel that you are paying excess tax? Do you think that you can save tax? Have you not done proper tax planning? Do you want to know the ways of saving tax? We will learn the most useful tax saving method in this post.

Indeed, you or anyone else has the scope of saving tax. There are many ways which can cut your tax outgo. Today I will tell you the 10 best tips of tax saving.

1. Save Tax Through Salary Restructuring

There may be many expenses which you are doing because of your job. If you leave your job today, many of your expenses will end. Such as you wear a uniform just for the sake of your job. You travel to the office daily only for the job. You may be entertaining clients and spending over them to fulfill your job. You must be reading certain newspapers, magazines or books for your job purpose.

If you leave the job such expenses would end. It means, these are forced expenses and your employer should pay for them. Such expenses should go to the account of employer expense. Since you are only medium of such expense this should not be part of the income.

Talk to your employer and ask to restructure your pay. You should get perks and allowances for such expense. This should not be part of your salary.

These perks and allowances or non taxable if incurred actually. However, you need to give proof of these expenses to avail tax-free allowances.

Some Allowances Which Save Tax

· Conveyance

· Driver

· Newspaper, Books and Magazine

· Medical Treatment

· Uniform Allowances

· Telephone and Mobile

· Personality Development

· Office Entertainment

However, these allowances are given according to the grade. You can’t ask all of them. Your employer will decide the eligibility of allowances. You can only demand.

2. Save Tax On Rent Payment U/s 10(13A) Click to Download HRA Calculator U/s 10(13A)

We get a job in a different city or place. We go there to do our job. If the company does not give us accommodation we have to rent out. We live in rented house because of our job. Therefore, expense of rent should be deducted from the taxable income.

Employers do give some part of your remuneration as House Rent Allowance (HRA). You subtract this HRA from your gross income. However, you cannot take full benefit of HRA for tax saving. There is a formula for the HRA tax benefit.

You can deduct the lowest of these from gross income.

· Actual HRA given by the employer

· 50% of the basic salary plus DA if the employee is situated in Delhi, Mumbai, Kolkata and Chennai. Else, 40% of the basic salary plus DA.

· Actual house rent paid by you, minus 10% of basic salary+DA.

HRA gives you big tax saving. Ask your employer to keep the provision of HRA in your salary structure.

Also, Don’t forget to take rent receipts from your house owner. If your total rent of a financial year exceeds 1 lakh then you need to give copies of registered lease agreement and copy of the homeowner’s PAN card.

You can also give the rent to your parents. But you have to complete all the formalities of lease as stated above.

3. Leave Travel Allowances and Medical Expense U/s 80D

Click to download Master of Form 16 Part B for Govt & Non Govt employees for FY 2014-15 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B for AY 2015-16]

Some personal expenses are also eligible for exemptions. These Expenses are deducted from your gross salary. Your employer may give you part of your salary as medical allowance. Check with the HR department.

If you produce an actual bill of medical expenses, this allowance becomes tax-free. So, Start collecting medical bills. However, it is limited to Rs 15,000 in a financial year. You can give receipts of medical expense of your dependents as well.

Your employer can give you leave travel allowance as well. You are entitled to tax-free leave travel allowances,U/s 10

· It is also limited to two times in a block of 4 years.

· The travel should occur while you are on the leave.

· It should be within India.

· Travel should be from the shortest route.

· You can claim the maximum for AC-I of the train journey and economy class of air travel.

4. Invest And Reduce Taxable Income,U/s 80C[ Click to view details of deduction U/s 80C]

Certain investments give your tax rebate. These investments come under section 80C of deductions. The amount invested is deducted from your taxable income. Many of such investments come under EEE category. It means you need not to give tax at the time of investment, earning and redemption. However, There is a maximum limit for 80C deductions. It has become 1.5 lakhs after the budget of 2014.

List of Investments Which Saves Tax

· Contribution to EPF account · Deposit in PPF account · Investments in tax saving mutual funds i. e. Equity Linked Saving Scheme (ELSS) · Deposit in tax saving FD · Investment in National Saving Certificate (NSC) · Deposit into Senior Citizen Saving Scheme

There are some expenses which also give a deduction for tax saving. I have listed here only investments.

Download Automatic Form 16 Part A&B and Part B for FY 2014-15 [ This Excel utility can prepare One by One Form 16 Part A&B and Part B for AY 2015-16]

5. Expenses Eligible For Tax Saving

Under the limit of 1.5 lakh deduction there are some expenses as well.

· Tuition fees for self and children

· Insurance scheme premium

· Home loan principal payment- Home loan EMI has two-part, principal and interest. Principal part gives tax saving benefit under section 80C.

These expenses and above mentioned investment in aggregate should not exceed 1.5 lakh limit.

6. Medical Insurance Deduction,U/s 80D

Medical Insurance expense gives you the deduction, over and above the 1.5 lakh limit. You can save tax for the health insurance premium of your family and dependent parents. Also, health checkup can also give you tax saving. You can deduce these expenses from your total taxable income.

· Up to Rs 15,000 for the health insurance of self and family. You can also include health checkups of up to Rs 5,000 within this limit.

· Up to Rs 15,000 for the health insurance of parents. If they are above 60 years, This limit goes up to 20,000.

Click here to Download Master of Form 16 Part B for FY 2014-15 [ This Excel Utility Can prepare at a time 100 employees Form 16 Part B for FY 2014-15]

7. Enjoy Tax Benefit On Home Loan Interest Payment U/s 24B

Home loan interest payment enjoys separate tax saving. The limit of deduction for home loan interest payment is increased to 2.0 lakhs U/s 24B in the first Modified budget. This deduction can give you a very big tax saving. However, the loan amount should be big to get the full benefit.