P.F has increased the tax exemption limit by Rs 5 Lack. As per the Budget 2021, has raised the limit for tax-exempt contributions to the Provident Fund (PF) by Rs 5 lakh (from Rs 2.5 lakh. This increased tax-exempt limit only applies to PF contributions where no employer contributes. The announcement was part of the amended provisions of the 2021 Finance Bill when the bill was passed in the Lok Sabha on March 23.

Download & Prepare at a time 50 Employees Automatic Excel Based Income Tax Revised Form 16 Part B for the F.Y.2020-21 as per new and old tax regime

 

It will not benefit private-sector employees. This is because under the Employees Provident Fund and Miscellaneous Act, 1952, it is mandatory for employees to make a combined contribution (currently 12%) to the EPF account with their own contributions, i.e. 12%. Thus, an employee working in the Non-Government sector may invest a maximum of Rs 2.5 lakh to the EPF and VPF in a financial year, to take interest in the tax-exempt declared budget-2011 effective April 1, 2021. 

For the government employees, the General Provident Fund a self contribution fund where the government not contribute. Rather the government’s contribution goes to the workers ’pension fund. Since the employer (e.g., the government) has no contribution, public sector employees can contribute a maximum of Rs 5 lakh to their PF accounts in a financial year to earn tax-exempt interest.

 

The excess amount of Rs 5 lakh will affect government employees contributing to the General Provident Fund. However, the limit for private-sector employees will continue to be Rs 2.5 lakh as employer employees need to contribute to the future fund.

Download & Prepare at a time 100 Employees Automatic Excel Based Income Tax Revised Form 16 Part B for the F.Y.2020-21 as per new and old tax regime

In the case of private-sector employees, the rules of the EPF project are governed by the Employees Provident Fund Act, 1952. As mentioned above, an employer must make a matching contribution to the Employees Provident Fund. No employee can contribute to his own EPF account without the employer's contribution. However, for Non-Govt employees, ‘the limit of the contribution they can make to continue earning tax-exempt interest in a financial year would be Rs 2.5lakh for both the E.P.F. & V.P.F. in the same financial year.

 

In the budget of 2021, the finance minister wanted an interest tax of more than two and a half lakh rupees on the contribution of the employees. During the announcement of amendments to the Finance Bill on March 23, 2021, the Finance Minister increased the coverage of this officer to five lakh rupees, where the employer did not contribute anything to the fund. Private sector employees will not be affected by this change because the provisions of the Provident Fund Act that apply to the private sector, as well as employees both, contribute to the fund. This change will benefit government employees where five lakh rupees will now be applicable.

Download Automated Income Tax Preparation Excel Based Software All in One for the Government & Private Employees for the F.Y.2021-22 and A.Y.2022-23 as per Budget 2021

 

The main 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) as per Budget 2021

 

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 Private 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

 

7) Individual Salary Sheet

 

On May 21, 2021 by www.taxexcel.net

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Tax collection assumes a significant job in the profits created by your venture thus you should know how the speculation is saddled before you pick one. We list down the most widely recognized speculations and how they are saddled?

• Interest earned in Saving financial balance up to Rs 40,000 is absolved from charge u/s 80TTA. Any intrigue more than Rs 40,000 is added to your salary and exhausted at personal assessment chunk rates.

• Senior resident can guarantee charge exception up to Rs 50,000 on premium pay from bank/post office fixed store, investment account up to Rs 50,000 u/s 80TTA

• This is additionally appropriate for Post Office Savings Account

On January 21, 2020 by www.taxexcel.net

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The assessment Year 2019-20 is here the "Best Tax Saving Investments". Sadly there is no straight response to this. The best speculation is diverse for various individuals and is lined up with their arrival desires, chance-taking capacity, individual conditions, and arrangement with their monetary objectives in addition to other things.

On April 10, 2019 by www.taxexcel.net

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1) Download Master of Form 16 Part B for the Financial Year 2014-15 and Assessment Year 2015-16 [Prepare at a time 50 employees Form 16 Part B]

2) Download Master of Form 16 Part B for the Financial Year 2014-15 [This Excel Utility can prepare at a time 100 employees Form 16 Part B]

Modified Income deduction Under Chapter VIA & 80C as per new Finance Budget 2014

HRA exemption = Least of (40% (50% for metros) of Basic+DA or HRA or rent paid - 10% of Basic+DA)

Transport allowance is exempt up to Rs.800/- per month during the month. (Expenditure incurred for covering journey between office and residence.)  For people having permanent physical disability, the exemption is 1,600/- per month.

Reimbursement of Medical bills are exempt for self and dependent family, up to Rs.15,000/- per annum u/s(5) LTA is exempt to the tune of economy class Train/ Air /Recognised public Transport fare for the family to any destination in India, by the shortest route.

LTA can be claimed twice in a block of 4 calendar years. The current block is from 01.01.2010 to 31.12.2013. For claim, it is must to provide originals tickets etc.

U/s 24 There is an Exemption for interest on housing loan. Exemption is limited to Rs. 2,00,000/- per year if the house is self-occupied; There is no limit if the house is rented out.

U/s 80C- Maximum Exemption up to  Rs. 150000/-  Investments up to Rs. 1.5 lac in PF, VPF, PPF, Employee contribution in NPS,Insurance Premium, Housing loan principal repayment, NSC, ELSS, long term bank Fixed Deposit, Post Office Term Deposit, etc. are deductible from the taxable income. Item wise 80C deduction is given below as per the latest amended by the Finance Budget 2014.

• Provident Fund (PF) & Voluntary Provident Fund (VPF) PF is automatically deducted from your salary. your contribution [12% of Basic] (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest is 8.5% per annum (p.a.) and is tax-free.
• Life Insurance Premiums: Any amount that you pay towards life insurance premium in Life Insurance Corporation (LIC) or any other Insurance CO.for yourself, your spouse or your children can also be included in Section 80C deduction. If you are paying premium for more than one insurance policy, all the premiums will be included. also premium paid for ULIP will also be treated as Premium paid for Life Insurance Policies.
• Unit linked Insurance Plan : ULIP stands for Unit linked Saving Schemes. ULIPs cover Life insurance with benefits of equity investments.They have attracted the attention of investors and tax-savers not only because they help us save tax but they also perform well to give decent returns in the long-term.

• Public Provident Fund (PPF) is one of the best. Current rate of interest is 8% tax-free and the normal maturity period is 15 years. Minimum amount of contribution is Rs. 500 and maximum is Rs. 1,50,000.(New Change) from Budget 2014
• National Savings Certificate (NSC): National Savings Certificate (NSC) is a 5-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is  8.58% compounded half-yearly, i.e. If you invest Rs.100, it becomes Rs.150.90 after five years. The interest accrued every year is liable to tax (i.e. to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.
• Home Loan Principal Repayment & Stamp Duty and Registration Charges for a home Loan The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.
• Tuition  fees  for 2 children  Apart form the above major investments expenses for children’s education (Only Tution Fee (for which you need receipts)), can be claimed as deductions under Sec 80C.
• Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.
• 5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.
• 5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) – which currently offers 7.5 per cent rate of interest –qualifies for tax saving under section 80C. Effective rate works out to be 7.71% per annum (p.a.) as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable.
• Pension Funds or Pension Policies – Section 80CCC: This section – Sec 80CCC – stipulates that an investment in pension funds is eligible for deduction from your income. Section 80CCC investment limit is clubbed with the limit of Section 80C – it means that the total deduction available for 80CCC and 80C is Rs 1.5 Lakh.This also means that your investment in pension funds upto Rs.1.5 Lakh can be claimed as deduction u/s 80CCC. However, as mentioned earlier, the total deduction u/s 80C and 80CCC can not exceed  Rs.1.5 Lakh.
• Infrastructure Bonds: These are also popularly called Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds can also be included in Sec 80C deductions.
• NABARD rural bonds: There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.
• Senior Citizen Savings Scheme 2004 (SCSS): A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. Current rate of interest is 9% per annum payable quarterly. Please note that the interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax.

  

U/s 80CCD -The Finance Act, 2011 provides that contribution made by the Central Government or any other employer to NPS (up to 10 per cent of the salary of the employee in the previous year)shall be excluded while computing the limit of Rs. 1,50,000.The contribution by the employee to the NPS will be subject to the limit of Rs. 1,00,000.

U/s 80CCG - Rajiv Gandhi Equity Savings Scheme is a new exemption available for investment in stock markets (direct equity). Avaialble only for those with gross income less than 12 lacs and only for first time investors in stock market. Exemption available at 50% of investment subject to maximum of Rs.50,000/- invested. Investments are locked-in for three years

U/s 80D Medical Insurance Premium (such as Mediclaim & Critical illness Cover)& Health Check up Upto Rs. 5000, premium is exempt up to Rs. 30,000/ per year (Rs.15,000/- for self,spouse and children ) (Rs. 15000/- for Parents. If the premium includes for a dependent who is (Senior Citizen) above 60 years of age, an extra Rs. 5,000//- can be claimed.

U/s 80DD Deduction in respect of medical treatment of handicapped dependents is limited to Rs. 50,000/- per year if the disability is less than 80% and Rs. 1,00,000/- per year if the disability is more than 80%

U/s 80DDB Deduction in respect of medical treatment for specified ailments or diseases for the assesse or dependent can be claimed up to Rs. 40,000/- per year. If the person being treated is a senior citizen, the exemption can go up to Rs. 60,000/-. but any amount received under Medical Insurance Policy will be reduced from the amount of deduction allowed. The Diseases and ailments specified under rule 11DD are.

1. neurological diseases being demetia, dystonia musculorum deformans, motor neuron disease, ataxia, chorea, hemiballismus, aphasia and parkisons disease,
2. cancer,
3. AIDS,
4. Chronic renal failure,
5. hemophilia, and 
6. thalassaemia.

U/s 80E Interest repayment on education loan (taken for higher education from a university of self & dependents) is completely tax exempt

U/s 80G Donations given for certain charities are tax exempt. Some(NGO,Trust etc.) are exempt to the tune of 50%, whereas Govt funds are 100%.

U/s 80GG If you are not getting  HRA, but living in rented house, an exemption is available. This will be calculated as minimum of (25% of total income or rent paid - 10% of total income or Rs. 24,000/- per year)

U/s 80U who suffers from not less than 40 per cent of any disability is eligible for deduction to the extent of Rs. 50,000/- and in case of severe disability to the extent of Rs. 100,000/-

U/s 80TTA introduced through Finance Act, 2012. Section 80TTA provides a deduction of up to Rs. 10,000 on your income from interest on saving bank accounts.

U/s 87A Tax Rebate Rs.2,000/- who's taxable income less than 5 Lakh.

Click to download Automatic All in One TDS on Salary for Govt and Non-Govt employees with Form 16 Part A&B and Part B for the Financial Year 2014-15

On December 21, 2014 by www.taxexcel.net

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