No changes made in Income Tax Slabs and Rates for FY 2019-20 / AY 2020-21

·    Income Tax exemption limit remains Rs. 2.5 lakh for all Citizens below 60 years.

·    Income Tax exemption limit remains Rs. 3 lakh for Senior Citizens (60 years or above).

·    Income Tax exemption limit remains Rs. 5 lakh for Very Senior Citizens (80 years or above).

On October 05, 2019 by www.taxexcel.net

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During the Budget 2018, Finance Minister inserted a new Section 80TTB. This allows a tax deduction of up to Rs.50,000 with respect to interest income from FDs held by senior citizens. Let see the features of this section.

On January 27, 2019 by www.taxexcel.net

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Budget 2018 was a good budget for Senior Citizens of the country and provided much-needed relief. For income tax purpose, any citizens with age of 60 years or more are considered as the senior citizen. We discuss the new income tax benefits for senior citizens below:

On September 22, 2018 by www.taxexcel.net

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During the Budget 2018, Finance Minister inserted a new Section 80TTB. This allows a tax deduction of up to Rs.50,000 with respect to interest income from FDs held by senior citizens. Let see the features of this section.

FDs or fixed instruments are the major backbones of many of the senior citizens. However, the majority of these fixed instruments are not so tax efficient. Hence, to give some relief to senior citizens Finance Ministry introduced this new Section 80TTB.

This amendment is effective from Financial Year 2018-19 or Assessment Year 2019-20.

Who is eligible to claim the deduction under Section 80TTB?

Senior Citizen who is holding the FDs with Banks, Co-operative Banks and also in Post Offices and earning the interest income from such deposits are eligible to avail the deduction under Section 80TTB.

Here, the meaning of senior citizen is an individual resident in India who is of the age of 60 Yrs or more at any time during the relevant financial year.

Firms, an association of persons or a body of individuals are not allowed to claim the deduction under Section 80TTB.

Also, if a senior citizen claimed the deduction under Section 80TTA (all individuals can claim up to Rs.10,000 deduction against the interest income received from a savings account), then they are not allowed to claim the deduction under Section 80TTB.

On August 10, 2018 by www.taxexcel.net

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During the Budget 2018, Finance Minister inserted a new Section 80TTB. This allows a tax deduction of up to Rs.50,000 with respect to interest income from FDs held by senior citizens. Let see the features of this section.

On August 09, 2018 by www.taxexcel.net

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What is the Maximum Income Tax I can save for this Year (FY 2018-19)? A question I am often asked. Tax laws keep changing year on year, especially in Budget. In this post, we summarize all the tax saving sections

On August 08, 2018 by www.taxexcel.net

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On January 19, 2018 by www.taxexcel.net

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Click here to download Automatic All in One Income Tax Preparation Excel Based Software  for Central Govt employees for F.Y.2016-17 [ This Excel Utility can prepare at a time Tax Compute Sheet + Automatic H.R.A.Exemption Calculation + Automated Form 16 part A&B and Form 16 Part B]

After all the problems in the form of thousands of taxes faced by the taxpayers, in the budget of 2016, a minute relief against income tax has been provided for small tax payers. The rebate enhances from Rs.2000/- to Rs.5,000/- for F.Y.2016-17 which is now available to small taxpayers who have income below Rs. 5,00,000. There are some misconceptions among the people regarding this relief being available to them, this article focuses on the technical point of view for the relief under section 87A.

Conditions of claiming Rebate u/s 87A:

1.   The taxpayer must be a resident individual and is not applicable to NRI.

2.   The income of the taxpayer should not exceed Rs. 5,00,000 after claiming deduction u/s 80C to 80U.

Amount to be claimed:

The taxpayer can claim the rebate u/s 87A if the above two conditions are satisfied. The amount of rebate which can be claimed by the resident individual is 100% of the income tax payable on total income after deduction of 80C to 80U or Rs. 5000/- whichever is lower. This rebate is allowed out of the total income tax payable amount without adding surcharge and education cess.

Effective Date of section 87 A:

Taxpayers can take the benefit of this section from the AY 17-18 i.e. FY 16-17. This section is not applicable for NRI, resident or non-resident HUF/AOP/BOI or any taxpayer other than the resident individual.

Wrong understanding of section 87A

Some taxpayer might end up with the conclusion that when tax payable is below Rs. 2000 or Nil then also they can claim the rebate of Rs. 5000 but as discussed earlier that lower of the 100% of income tax or Rs. 2000 is allowed as rebate cum relief to taxpayers.

For Example  Mr. X earns income during the year and after deduction, it comes to Rs. 215000. So tax on Rs. 215000 is Rs. 1500. Rebate allowable will be RS. 1500 or Rs. 5000 whichever is lower. Therefore rebate of Rs. 1500 will be given to the taxpayer and not Rs. 5000.

On November 30, 2016 by www.taxexcel.net

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There are huge changes in income tax rules applicable for FY 2016-17 due to budget 2016-17 changes. In this post, We have covered all the changes in short.

INCOME TAX RULES APPLICABLE FOR FY 2016-17 AY 2017-18:

·         No change in income tax slab for FY 2016-17. Basic exemption limit is same Rs.2,50,000 for non-senior citizen and Rs.3,00,000 for senior citizen & Rs. 5,00,000/- for most Sr.citizen.

      Download Automated 100 employees Form 16 Part B for F.Y. 2016-17 & A.Y.2017-18 [ This Excel utility can prepare at a time 100 employees Form 16 Part B with all amended by the Finance Bill 2016]

·         Increased Exemption U/s 87A Rs.5,000/- from Rs. 2,000/-

·         Additional Rs.50,000 income tax deduction for interest on housing loan is available for the first-time buyer of house U/s 80EE. The loan should not be more Rs.35 lakhs and cost of the house should not be more than Rs.50 Lakhs.

·         Section 80GG deduction is increased from Rs. 24,000 to Rs.60,000.

·         Any payment received from sukanya samriddhi scheme is exempt.

·         For deduction under section 80DDB, the limit is increased from Rs. 60,000 to Rs.80,000.

·         Deduction limit for Section 80D is increased by Rs.10,000 for nonsenior citizen and senior citizen. For General below 60 Years  citizen, the limit is Rs. 25,000 and for a senior citizen, the limit is Rs. 30,000.

·         Deduction limit for section 80DD has been increased from Rs. 50,000 to Rs.75,000. For severe disability, the limit is increased from Rs. 1 Lakhs to Rs.1.25 Lakhs

       Download Automated 100 employees Master of Form 16 Part A and B for F.Y.2016-17 [ This Excel utility can prepare at a time 100 employees Form 16 Part A and B for Financial Year 2016-17 & Ass Yr 2017-18 with all changes by the Finance Bill 2016]

·      

      ·         For contribution to NPS ( National Pension Scheme) under section 80CCD(1),                the limit is increased from Rs. 1.5 Lakhs.

·         Additional deduction up to Rs. 50,000 is allowed for contribution above Rs. 1.5 Lakhs in the national pension scheme. U/s 80CCD(1B)

·         Transport allowance exemption limit has been increased from Rs. 800 to Rs.1,600 P.M. for General and Rs. 3200/- P.M..for Phy.disable person.

On November 17, 2016 by www.taxexcel.net

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Section 87A Rebate Limit Increased to Rs. 5000, Changes in Section 87A by Finance bill 2016, The Finance Budget 2016, Section 87A Rebate Limit Raised to Rs. 5000. Rebate under Sec 87A: With the objective of providing relief to resident individuals in the lower income slab i.e. total income not exceeding Rs. 5,00,000, section 87A is proposed to be amended so as to increase the maximum amount of rebate available from existing limit of Rs.2,000 to Rs.5,000.  Earlier this limit is only available for Rs 2000 now this limit is increased by Rs 3000 and now the Total limit for Section 87A for AY 2017-18 is Rs 5000.  Check more details regarding “Section 87A Rebate Limit Increased to Rs. 5000 – Budget 2016” from below…..

Click here to Download the Automated All in One Income Tax Preparation Excel Based Software for West Bengal Govt employees for F.Y.2016-17& A.Y.2017-18.[ This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure with new amended Interim Relief @ 10% + Automated H.R.A. Calculation + Automatic Form 16 Part A&B and Form 16 Part B with the all amended by the Finance Budget 2016 ]

Section 87A Rebate Limit Increased to Rs. 5000

The existing provisions of section 87A of Income-tax Act, provide for a rebate of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less, from the amount of income-tax to an individual resident in India whose total income does not exceed five hundred thousand rupees.

With the objective to provide relief to resident individuals in the lower income slab, it is proposed to amend section 87A so as to increase the maximum amount of rebate available under this provision from existing Rs.2,000 to Rs.5,000.

This amendment will take effect from 1^st April 2017 and will accordingly apply in relation to the assessment year 2017-18 and subsequent assessment years.

On August 01, 2016 by www.taxexcel.net

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Free Download Automated All in One TDS on Salary for Govt & Non-Govt. Employees for the Financial Year 2015-16 [ This Excel Utility can prepare at a time Tax Compute Sheet + Salary Sheet + Salary Structure + HRA Calculation + Arrears Relief Calculator + Form 10E +Form 16 Part A&B + Part B ]

Income tax department offers HRA tax exemption for those individual tax payer who stays in a rented house. Section 10(13A) of the income tax act allows the exemption of HRA. Employee can claim for HRA exemption if he or she lives in a rented house. To be eligible for claim of HRA deduction, an employee must be paying for the rent to his landlord and maintain the receipts which state that he has been paying for his rental expenditure. If an employee stays in his own house there is no tax deduction on HRA.  

Download HRA Calculator

 

Following points to be considered for Calculation of HRA exemption.

1. Amount equal to 50 percent of Salary where residential house is situated in Mumbai, Delhi, Kolkatta or Chennai or Amount equal to 40 percent of Salary for other places.

2. House Rent Allowance received by the Employee

3.  Excess of Rent paid over 10% of Salary.

Salary includes Basic Salary + Dearness Allowance + Commission on fixed percentage of turnover achieved by an Employee.

Minimum of point no. 1, 2 & 3  is exempted.

For Example,

Basic Salary (Rs 5000/- per month —— Rs. 60, 000/- yearly),
Dearness Allowance (Rs. 1000/- per month —- Rs. 12, 000/- yearly).
Actual Rent Paid (Rs 2000/- per month —— Rs 24000/- yearly),
HRA received by Employee (Rs. 2000/- per month —- Rs. 24, 000/- yearly)
City: Mumbai

1.  50% of  Salary (Basic + DA) = Rs. 36,000/-

2. Rent Received = Rs. 24,000/-

3. Rent paid in excess of 10% of Salary (Basic + DA) =  Rs. 16, 800/-,

Hence, Rs. 16800/- would be exempt and the rest Rs 7,200/- would be included in gross salary for tax calculation.

Documents needed to claim HRA includes rent receipts, rental agreement, PAN details of the landlord.

On December 17, 2015 by www.taxexcel.net

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Download & Prepare at a time 100 employees Form 16 Part B in Excel for the Financial Year 2014-15 and Assessment Year 2015-16

Just put your Gross Salary Income and Deduction from Salary in Salary Sheet which Salary Sheet prepared for the Both of Govt and Non Govt - employees.This Excel Based Software can Prepare more than 1000 employees form 16 just a moment.

First you can prepare 100 employees Form 16 with the Automatic Calculation of all Income Tax Calculation and Tax Liability as per the Income Tax Slab for the Financial Year 2014-15 and Assessment Year 2015-16.

If you have in your hand this type of Excel Based handy Software, have no problem to prepare more than 1000 employees Form 16 within a short period.

                           Snapshot of Tax Deductor Sheet

Snapshot of Tax Deduction Sheet as per Tax Section (Modified)

           Snapshot of Automated Form 16 Part B in Excel

Feature this Utility :-

• No need to manual Calculation for Tax Liability
• No need to Manual type the Amount to Word, this will convert the amount to in words automatically.
• All the Income Tax Section have in this Utility, which some fit for Govt concerned and some fit for Non- Govt Concerned both.
• This Utility can use the Both of Govt and Non Govt Concerned.
• Easy to understand and easy to Save in your Computer

Download this Utility from the below link: 

Download Master of Form 16 Part B ( Prepare at a time 100 employees Form 16 Part B)

On June 04, 2015 by www.taxexcel.net

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Download & Prepare at a time 100 employees Form 16 Part B in Excel for the Financial Year 2014-15 and Assessment Year 2015-16

Now time is prepare the Income Tax Salary Certificate Form 16 Part B for the Financial Year 2014-15, Just put your Gross Salary Income and Deduction from Salary in Salary Sheet which Salary Sheet prepared for the Both of Govt and Non Govt - employees.This Excel Based Software can Prepare more than 1000 employees form 16 just a moment.

First you can prepare 100 employees Form 16 with the Automatic Calculation of all Income Tax Calculation and Tax Liability as per the Income Tax Slab for the Financial Year 2014-15 and Assessment Year 2015-16.

If you have in your hand this type of Excel Based handy Software, have no problem to prepare more than 1000 employees Form 16 within a short period.

                           Snapshot of Tax Deductor Sheet

Snapshot of Tax Deduction Sheet as per Tax Section (Modified)

           Snapshot of Automated Form 16 Part B in Excel

Feature this Utility :-

• No need to manual Calculation for Tax Liability
• No need to Manual type the Amount to Word, this will convert the amount to in words automatically.
• All the Income Tax Section have in this Utility, which some fit for Govt concerned and some fit for Non- Govt Concerned both.
• This Utility can use the Both of Govt and Non Govt Concerned.
• Easy to understand and easy to Save in your Computer

Download this Utility from the below link: 

Download Master of Form 16 Part B ( Prepare at a time 100 employees Form 16 Part B)

On May 12, 2015 by www.taxexcel.net

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Free download Automated All in One TDS on Salary for Private Employees for the Financial Year 2014-15 [ This Excel Utility can prepare at a time Tax Compute Sheet + Salary Sheet + Salary Structure + HRA Calculation + Form 16 Part A&B and Part B ]

Income tax department offers HRA tax exemption for those individual tax payer who stays in a rented house. Section 10(13A) of the income tax act allows the exemption of HRA. Employee can claim for HRA exemption if he or she lives in a rented house. To be eligible for claim of HRA deduction, an employee must be paying for the rent to his landlord and maintain the receipts which state that he has been paying for his rental expenditure. If an employee stays in his own house there is no tax deduction on HRA. Download HRA Calculator

Following points to be considered for Calculation of HRA exemption.

1. Amount equal to 50 percent of Salary where residential house is situated in Mumbai, Delhi, Kolkatta or Chennai or Amount equal to 40 percent of Salary for other places.

2. House Rent Allowance received by the Employee

3.  Excess of Rent paid over 10% of Salary.

Salary includes Basic Salary + Dearness Allowance + Commission on fixed percentage of turnover achieved by an Employee.

Minimum of point no. 1, 2 & 3  is exempted.

For Example,

Basic Salary (Rs 5000/- per month —— Rs. 60, 000/- yearly),
Dearness Allowance (Rs. 1000/- per month —- Rs. 12, 000/- yearly).
Actual Rent Paid (Rs 2000/- per month —— Rs 24000/- yearly),
HRA received by Employee (Rs. 2000/- per month —- Rs. 24, 000/- yearly)
City: Mumbai

1.  50% of  Salary (Basic + DA) = Rs. 36,000/-

2. Rent Received = Rs. 24,000/-

3. Rent paid in excess of 10% of Salary (Basic + DA) =  Rs. 16, 800/-,

Hence, Rs. 16800/- would be exempt and the rest Rs 7,200/- would be included in gross salary for tax calculation.

Documents needed to claim HRA includes rent receipts, rental agreement, PAN details of the landlord.

On February 07, 2015 by www.taxexcel.net

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Prepare at a time 100 Employees Form 16 Part B for the Financial Year 2014-15 ( This Excel utility can prepare at a time 100 employees Form 16 Part B with Salary Structure)

Finance Act 2013 has introduced the rebate U/s. 87A and in this section it has not restricted the exemption to any particular Financial or Assessment year. Further in Recently Presented Budget 2014 by Finance Minister Arun Jaitley  section 87A was not been amended.

So in our view Rebate U/s. 87A is Available to Resident Individuals , whose total income does not exceed 5 Lakh rupees in even for Financial Year 2014-14 and for Subsequent Years.

Calculate your Tax with All in One TDS on Salary for Govt and Non-Govt employees with Tax Rebate Rs.2000/- U/s 87A ( This Excel utility can prepare at a time Tax Compute Sheet + Arrears Relief Calculation U/s 89(1)+Form 16 + HRA Calculation U/s 10(13A) + Form 16 Part A&B and Form 16 Part B)

Extract of Section 87A is as follows :-

The following section 87A shall be inserted after section 87 by the Finance Act, 2013, w.e.f. 1-4-2014 :

Rebate of income-tax in case of certain individuals.

87A. An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.

Click here to download Automatic Form 16 Part A&B for the Financial Year 2014-15 ( This Excel Utility can prepare at a time 100 employees Form 16 Part A&B)

On November 22, 2014 by www.taxexcel.net

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Download Excel Utility

Click above link to download the All in One Income Tax Calculator with Automated Form 16 Part B and Part A&B for the Private employees for the Financial Year 2014-15

Section 87A after Budget 2014

The existence of section 87A after budget 2014, since there were no words on the section 87A in the budget, many of our readers are eager to know whether the section 87A still exists or faded away like section 80EE.??

There is good news for all assessees who are getting benefited by section 87A because it will continue to give benefit this year also. Since section 87A is neither withdrawn nor was it for a particular year like section 80EE, so it still holds the ground. Even the Online Tax Calculator present on the Income Tax Site also calculates tax after taking tax rebate u/s 87A into account.

Thus assessee having gross total income between Rs.2.5 lakh to Rs.5 lakh are still able to reduce their tax liability by Rs 2,000. Essentially, there is NIL tax liability for annual incomes up to Rs.2.70 lakh. Calculate your Income tax by this Excel Based Income Tax Preparation Software for the Financial Year 2014-15

Now the tax will be calculated for the current year after giving effect to section 87A.

Click below link to download the All in One Income Tax Calculator with Automated Form 16 Part B and Part A&B for the Private employees for the Financial Year 2014-15 

Download Excel Utility

On November 21, 2014 by www.taxexcel.net

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Download All in One Master of Form 16 Part B For FY 2014-15 ( This Excel Based Software can prepare at a time 50 employees Form 16 Part B with Individual Salary Structure + Individual Salary Sheet )

Medical expenses  provides in tax benefits

Medical expenses are reality of your life. That is medical expenses is basic need of your family life, like food, shelter, education, etc. You cannot plan your medical expenses, both in terms of timing and amount. You cannot avoid and control your medical expenses, but you can take heart from the fact that your medical expenses do provide tax exemptions thereby reducing your taxes.

Process to claim tax benefit on your medical expenses is -

1. Awareness – Know the various income tax sections available to claim tax benefits on your medical expenses
2. Documentation – Keep records of your medical expense, like medical bills, doctor prescription, etc
3. Benefit Period – Medical expenses tax exemption are on financial year basis. That is your tax exemptions need to be claimed within the financial year in which your medical expenses occurred. Medical expenses cannot be carried forward to subsequent financial year for claiming tax exemptions in subsequent financial year
4. Expense Reporting – Submit all your medical expenses data and documents to your company payroll or CA before end of financial year. So that your exemptions for tax savings is accommodated in your taxation before the end of financial year. Do not wait till end of financial year, and then try to claim tax refund from Income Tax Department. As getting tax refund is tedious and takes its own time running into months to years

Income Tax Section 10 – Your Medical Treatment Expenses Reimbursement

Download Tax Calculator for the Financial Year 2014-15

• Section 10 provides exemption for your medical treatment expenses, provided you have medical reimbursement as perquisite from your employer. That is your medical reimbursement exemption is applicable only when medical reimbursement is part of your salary package
• Exemption is provided on medical treatment expenses on you and your family members for any disease. Expenses on cosmetic treatment and eye-glasses are not included
• Exemption limit is Rs 15,000 per year
• Your medical reimbursement amount should be supported by your medical bills and prescriptions corresponding to the medical bills

Income Tax Section 80D – Your Health or Medical Insurance Premium

• Section 80D provides exemption for your health insurance premium. Health insurance is a must in today’s uncertain and stressful life with increase in cost and availability of quality medical treatment
• Exemption limit -
  • For you & your family – Rs 15,000 per year
  • For parents – Another Rs 15,000 per year. If your dependent parents are senior citizen, then this exemption limit is Rs 20,000
• Your medical insurance premium should be paid through cheque to claim the exemption. This exemption is not available for premium paid through cash or demand draft

Income Tax Section 80DDB – Your Medical Treatment Expenses

• Section 80DDB provides exemption for medical treatment expenses on you and your dependent patient for certain diseases
• Exemption limit is Rs 40,000 per year. If you or your patient is a senior citizen then this exemption limit is Rs 60,000
• You need to submit Form 10I, issued by a specialist doctor working in Government hospital certifying the disease and criticality of the disease, to claim this exemption
• The list of diseases covered are – Dementia, Dystonia Mascular Deformans, Motor neuron disease, Ataxia, Chorea, Hemiballisums, Aphasia, Parkinson disease, Malignant cancers, AIDS, Chronic reneal failure, hematological disorders, hemophilia and Thalassaemia

Income Tax Section 80DD – Your Expenses on Physically Disabled

• Section 80DD provides for exemption for expenses on your physically disabled dependent
• Exemption is allowed for your expenses on -
  • Medical treatment – Medical treatment expenses including nursing, training and rehabilitation of your handicapped dependent
  • Annuity payment – Payment or deposit under an approved scheme of LIC or UTIproviding annuity or lump sum amount to your handicapped dependent in event of your death
• You need to submit Form 10IA, issued by Government Doctor certifying the physical disability, to claim this exemption
• Exemption limit is Rs 50,000 each year. If the disability is severe as certified by the Government doctor, then the exemption is R 75,000

Click to download Master of Form 16 Part A&B ( This Excel Utility can prepare at a time 100 employees Form 16 Part A&B for the Financial Year 2014-15)

On November 09, 2014 by www.taxexcel.net

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