Taxexcel: Income Tax

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Sunday 2 May 2021

Income Tax Allowance and Deduction F.Y.2020-21.

Salary employees make up the largest share of the country’s overall taxpayers and the contribution they make to tax collection is significant enough. As a result of income tax exemption, there is an opportunity to save tax for the salaried class. With the help of these discounts and rebates and, one can significantly reduce his taxes.

In this article, we try to list some of the big discounts and allowances available to salaried individuals, using which can reduce their income tax liability.

Allowance exemption

House rent allowance

A tenant-based on rent can get the benefit of HRA (house rent allowance).

You can claim the lowest of the following as an HRA discount.

A. Total HRA received from your employer

B. Rent paid less than 10% (Basic Salary + DA)

C. 40% of non-metro salary (basic salary + DA) and 50% of metro salary (basic salary + DA)

Download Automated Income Tax House Rent Exemption Calculator in Excel U/s 10 (13A) as per Income Tax Act

Standard deduction-

The Finance Minister of India, at the time of presenting the Union Budget 2018, the limit was Rs. 40,000 has been increased. The interim budget for 2019 is Rs 50,000.

You may also, like- One by One Preparation Form 16 Part A&B and Part B in Excel for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

Deduction travel allowance (LTA)

The Income-tax Act also provides for LTA exemptions for salaried employees, which restricts travel expenses to their pages. The following are the restrictions applicable to LTAs:

The LTA covers only domestic travel, not the cost of International travel

This type of travel mode must be by rail, air travel or public transport

Approved discount

Sections 80C, 80CCC and 80CCD (1)

Section 80C is the most widely used option for income tax protection. Here, any person or HUF (Hindu Undivided Family) who invests or spends on prescribed tax protection opportunities can claim a rebate of up to Rs 2,000. One and a half lakh rupees for tax exemption. To save taxes. For some such investments up to a maximum of Rs 1.5 lakh is provided under Section 80C, 80CCC, and 80CCD (1).

Life insurance premium

Equity Linked Savings Scheme (ELSS)

Employees Provident Fund (EPF)

Anniversary / Pension Schemes

Home loans are the main payment

Tuition fees for children

Contribute to PPF account

Sukanya Samridhi Account

NSC (National Conservation Certificate)

Fixed Deposit (Tax Savings)

Post office deposit

National Pension Scheme

You may also, like- One byOne Preparation Form 16 Part B in Excel for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

Medical Expenses and Insurance Premiums (Section 80D)

Section 80D is a discount that you can claim for medical expenses. Treatment paid for the health of the self, family, and dependent parents can save tax on insurance premiums.

The limit for Section 80D exemption is:

25,000 for premium for self/family.

. Rs 50,000 for a premium paid for senior citizen parents.

In addition, health checkups up to Rs. 5000 are also allowed and included in the overall limit.

Deduction up to Rs 50,000 on medical expenses incurred by senior citizens (years above 60 years or older) or senior citizen parents, if they are not covered by any medical policy.

The taxpayer can claim a maximum rebate of Rs 50,000 including premium amount and medical expenses if he is a senior citizen

(60 years or more) In addition, if he pays the medical bills of his senior citizen parents, he can claim a rebate of up to an additional five thousand rupees. 5000

Your employer can pay a premium on your behalf and deduct it from your salary. Such premium paid is also eligible for discount under section 80D.

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

Home Interest (Sections 80C and 24B)

Another key tool for tax savings is the interest on the home. Homeowners have the option to claim up to Rs 2 lakh as an exemption for a house building loan interest

In addition to the above, the principal component of a housing loan repayment can also be claimed as a rebate under Section 80C up to a maximum of Rs 1.5 lakh.

Deduction for higher studies (Section 80E)

The income tax law provides exemptions for interest in education. Notable conditions involved in claiming this amount of discount are that it should have been taken from a bank or financial institution for higher studies (in India or abroad) by the person or his spouse.Or children.

Exemption U/s 80G

Section 80G of the Income-tax Act, 1961 offers an income-tax exemption to an appraiser who contributes to a charitable fund. 50% or 100% deduction of donated amount with or without restriction.

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

Savings Account Interest Discount (Section 80 TTA)

Section 80 TTA of the Income Tax Act, 1911 offers Rs.10,000 rebate on income earned from savings account interest.

Home Interest (Section 80EE)

Section 80EE allows homeowners to claim an additional rebate of Rs.50,000/-

Children's allowance

Employers can provide education allowances for your children as part of your salary. Such allowance received by the employer for the education of children is exempt from tax.

However, the employee can claim a maximum of Rs 1200 children per year per chile for a Maximum 2 Child & Hostel Allowances Rs.300 P.M. or 3600/- Per Year.

Prepare At a time 100 Employees Form 16 Part B in Excel for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC

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Wednesday 14 April 2021

Complete guide in Income Tax form 16 for the F.Y.2020-21

What is Form 16?

When the payer pays for the payer, according to the income tax department, a certain amount of the total amount paid for the payer should be deducted and paid to the income tax department. This is called tax deduction at source or TDS. Here, the payer is the deductible and the payer is the deductible.

After paying this amount to the deductible income tax department, the taxpayer will need to confirm a TDS certificate to declare all taxes deducted from total income according to their source.

Form 16 Part A is a TDS certificate that specifies the amount of money deducted, the nature of the payment and the TDS deposited or paid in the TDS deposit section. This form is issued when TDS is deducted for the payment of salary-allowance such as professional fees, rent payment, interest on bank fixed deposits etc.

Format of Form 16 Part A

As per the Income Tax Section 203 the Salary Certificate Form 16 to issued to employees as per the Income Tax Act. The individual has to file Form 16 at the time of filing the income tax return. Form 16 contains the following details as follows:

Employer's Name: This section contains the names and addresses of the cutters or payers who deduct the amount of TDS from the total discounted income.

Discount name and address: In this section, the details of the person receiving income from the employer or cutter are included.

Detector Detection Details: This section contains the cutting pan and TAN number.

Deduction Identification Details: This section contains the PAN details of the discounters. This PAN number is very important because it indicates that the tax is credited to the exempt party.

Total arrears: This section shows the amount received as payment to the issuers.

The amount deposited with the Income Tax Department and Amount deducted as TDS: The corresponding amount is calculated based on the total income of the exemption.

How to fill out Form 16A

Enter the name and address of the subtraction. When filling in the address details, make it a point to enter the pin code as well.

Enter the subtraction TAN details. The TAN number is usually lettering. It starts with four alphabets, then has five digits and ends with one alphabet.

Next, enter the Employer's pan details. The PAN number is also alphanumeric. It starts with four alphabets, then ends with five digits and one alphabet.

Fill in four recognition numbers.

Next, enter the type of payment - whether the type of payment is professional or contracted.

The form contains the relevant code for all types of payments. Enter the appropriate code in the Payment section.

Next, enter the name of the discount, i.e., the person from whose income the TDS is deducted.

Enter the discount PAN number in the appropriate column.

Enter the appropriate time. This section will contain the financial form for which you want to get in Form 16. For example, for the current fiscal year, you must enter as of 1st April 2020 - 31st March 2021.

After filling in all the details above, enter the details of the TDS deductions.

The amount of TDS should be indicated in words.

How to get to Form 16?

Generally, the TDS deductor has to issue Form 16A to the exemption from whose income the TDS has been deducted.

Form 16 is issued for the current financial year. This document shows the total income of the deductible from the source of salary and the total tax deducted from that income in the given financial year.

Taxpayers can get Form 16A from the Income Tax Department website, where they have the option to download the Form 16A PDF.

The download in Form 16 takes place in editable PDF format.

When is Form 16 required?

If a person has other sources of income after deducting TDS on the income applicable under Form 1 16A required when filing an income tax return for the given financial year, they have to pay Form 1 at the time of filing the income tax return.

Generally, financial institutions and banks ask for income tax documents in Form 16 for verification when the person applies for a loan such as personal loan, vehicle loan, housing loan, consumer, etc.

The difference between Form 16 and Form 16A

The employer issues a Form 1 for the income tax certificate deducted from the source on the salary of their employees and submitted it to the Income Tax Department. On the other hand,

Form 16 is issued to certify the TDS deducted from the individual salary income.

Employers should issue their Form 1 if their employees' annual salary income exceeds 250,000 and the appropriate TDS is deducted. TDS will be applicable as per the income tax slab. For salary income, TDS is to be deducted at the rate of 10% of the payer who pays. The details of this tax are shown in Form 16.

For employees, the tax deduction limit is Rs. 250,000. TDS is deducted if the annual income limit is exceeded. This discount is mentioned in Form 16, On the other hand, TDS is deducted on salary income if the income exceeds the limit of Rs. 30,000.

Form 16 is issued annually, and Form 16 is issued quarterly.

You can successfully file your income tax return by knowing these details about Form 16 Part A.

Download & Prepare at a time 50 Employees Income Tax Form 16 Part B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC