Standard deduction U/s 16(ia) | With Automatic Income Tax Preparation Software in Excel (All in One for the Govt & Non-Govt employees F.Y.2021-22) + (Automatic Income Tax Master of Form 16 Part B for F.Y.2021-22

 Standard deduction U/s 16(ia) | Calculating taxable income for an individual involves calculating gross

 income. Gross income is the total income under various heads of income. You can reduce your gross

 income by taking various deductions and allowances to get the final taxable income. These deductions

 can be deducted under sections 80C, 80D or standard income deduction from your salary or

 homeownership. Net income after this deduction is subject to tax at the respective flat rate applicable

 to the taxpayer. 

The standard wage deduction was first introduced in 1974. But the government abolished it in 2005. The government reintroduced it into the 2018 Union budget. After its reintroduction, the government introduced several employee benefits. These include an increase in the standard deduction benefit for the financial year 2021-22. Before discussing the benefits, let's understand what the standard deduction is.

Download & Prepared at a time 100 Employees Automated Income Tax Form 16 Part B for the Financial Year 2021-22 as per new and old tax regime

What do you mean by standard deduction?

 

There have been many changes in the standard deduction in Indiaunder the income tax of India. Starting in the financial year 2019-20, a salaried person can again claim the standard deduction on her income. This deduction is regardless of whether it has an expense or an investment. The government has extended the benefit of the standard deduction through the financial year 2021-22.

 

Previously, employees could claim travel and medical expenses only after submitting proof. But for the standard deduction, it is not necessary to present proof of expenses. Not only employees, but employers are also at an advantage as they no longer have to process their bills.

 

Now, there are two types of standard deductions available in India. One is on the homeownership income header while the other is on the salary income header.

Download & Prepared at a time 50 Employees Automated Income Tax Form 16 Part B for the Financial Year 2021-22 as per new and old tax regime

 

When a person receives rental income from homeownership, they are included in the income from homeownership. The standard deduction for the 2020-21 valuation year under Real Estate Income is 30%.

 

However, the standard deduction under the payroll is a default deduction. We subtract this from the individual's wage income to reduce the taxable amount. Only a salaried person or a person applying for a pension can benefit from it.

 

Each employee can request the benefit of the ordinary deduction for the financial year 2021-22. The move provides significant tax breaks for employees. Let's try to understand in detail how the standard deduction in section 16 (IA) benefits the employee.

 

Standard Deduction in Salary Income

Net salary is the total sum of salary, pension, tip, compensation, commission minus any deductions under section 10 of the Income Tax Act. Section 10 covers allowances such as renting a house and transportation.

Download & Prepared at a time 100 Employees Automated Income Tax Form 16 Part A&B for the Financial Year 2021-22 as per new and old tax regime

 

The government reintroduced the standard deduction from the 2019-20 valuation year. Previously, the government waived the transportation allowance of Rs 19,200 and the medical allowance of Rs 15,000. Salaried individuals can deduct a fixed amount of Rs 40,000 in the 2019-20 valuation years. But they could no longer deduct transportation and medical allowance.

 

From AY 2020-21, a standard deduction of Rs 50,000 is available for all salaried individuals. Any medical and travel allowances are not yet applicable.

 

Please note that the flat-rate deduction for salary cannot, in any case, exceed the amount of the salary. In other words, the maximum amount of deduction you can get under section 16 is Rs 50,000 or less for the salary amount.

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

Feature of this Excel Utility:-

 

1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)

 

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 Non-Government 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

Read More

Auto-Fill Income Tax Preparation Software in Excel for the Govt and Non- Govt Employees for F.Y. 2021-22. With details of under section 10 for salaried employees

 Auto-Fill Income Tax Preparation Software in Excel for the Govt and Non- Govt Employees.Section

 10 for salaried employees under the Income-tax Act includes various allowances ranging from house

 rent and travel allowance to research / academic allowance and uniform allowance.

 

Salary employees receive a certain amount of money or other allowances in addition to their salary for the specific needs of the employees. Most allowances are a fraction of the total income unless they are subject to certain exemptions under the Income Tax Act. Employees are paid allowances for their services or for working in unusual circumstances.

 

As per Income Tax Act U/s 10 many allowances include.

 

Section 10 (14)

Under the Special Allowance Act of Section 10 (14), an exemption is given on the basis of the amount used by the employee for a specific purpose. Exemption depends on the following factors:

 

Amount of allowance.

The actual amount used for the purpose for which the allowance was granted.

Section 10 (14) (i)

Under section 10 (14) (i), a waiver is given in the amount received as allowance or in the amount spent on certain duties, which may be the figure below.

Allowances under this category are:

You may also, like- Automated Income Tax Preparation Excel Based Software All in One for the Non-Government Employees for the F.Y.2021-22[This Excel Utility can prepare at a time your Tax computed Sheet + Salary Structure as per the Non-Govt Employees Salary Pattern + Automatic Calculation House Rent Exemption U/s 10(13A) + Automatic Income Tax Form 16 Part A&B and Part B + Automatic Form 12 B.A. as per new and old tax regime] 

• Daily Allowance: Employees are paid daily allowance during travel or transfer time. Such allowances are paid when the employee is not in a place of normal responsibility.

Travel Allowance: Travel Allowance bears the costs related to travel or transfer while on duty. This allowance includes travel expenses when moving to another location, including packaging or transportation of a private building.

 

Transport Allowance: Allowance for transportation is paid to the employees in case of spending time travelling for office duties. However, the employer does not pay for travel from home to work because it is not considered an official responsibility. This allowance comes under a different category called ‘Transportation Allowance’ and it is not tax-free.

 

• Uniform Allowance: When the allowance is paid for the purchase or maintenance of a uniform, it must be worn while on duty. This allowance can be chosen only when the office responsibilities determine a certain uniform.

You may also, like- Automated Income Tax Preparation Excel Based Software All in One for the Assam State Government Employees for the F.Y.2021-22[This Excel Utility can prepare at a time your Tax computed Sheet + Salary Structure as per the Assam State Govt Employees Salary Pattern + Automatic Calculation House Rent Exemption U/s 10(13A) + Automatic Income Tax Form 16 Part A&B and Part B] 

 

Generally, it is not necessary to submit a statement of expenditure under this category of allowance unless the expenditure is inappropriate or unreasonable in respect of the responsibilities performed by the employee. Most of the time, you don't need to keep documentary evidence and a general declaration meets the purpose.

 

Section 10 (14) (ii):

Under this section, allowances are paid to employees for working under a certain condition during their tenure. The amount of discount is the amount received as allowance or the mentioned limit, whichever is less.

 

The types of allowances and discounts given in this section are listed below:

1. Compensation allowance for working in high altitude or hilly areas Rs.800/- p.m.

Siachen area of J&K - 7000 rupees per month

Ordinary place 1000 mtr or above - 300 rupees

 

2. Scheduled or Tribal or Agency Area Allowance: Rs.200 p.m.

You may also, like- Automated Income Tax Preparation Excel Based Software All in One for the Andhra Pradesh State Government Employees for the F.Y.2021-22[This Excel Utility can prepare at a time your Tax computed Sheet + Salary Structure as per the Andhra Pradesh State Govt Employees Salary Pattern + Automatic Calculation House Rent Exemption U/s 10(13A) + Automatic Income Tax Form 16 Part A&B and Part B + Automatic Form 12 B.A. as per new and old tax regime] 

For duty in the border area or remotest area or any difficult/turbulent area:

Allowance from Rs.200 to Rs.1300 is exempted under Rule 2BB. 

4. Allowance for children's education:

100 for each child and a maximum of two children. 

5. Allowance for working in a transport system for personal expenses while performing duties:

70% of allowance up to Rs.10,000/- 

6. Area allowance:

Area of Nagaland, J&K, HP, UP, UP, Sikkimand Manipur - Rs.2,200 per night 

7. Allowance for hostel expenses of employee's children:

Rs.100/- in the education for each child up to two children. 

8. Allowance paid to the Armed Forces for anti-militant cases:

3900 per month. 

9. Travel allowance for physically disabled employees:

1600 per month. 

10. Transportation allowance for travel between work and accommodation:

1600 in the afternoon. 

11. Specific areas of West Bengal, North-East, Rajasthan, J&K, UP and HP - Rs.800/-

12.Island duty allowance has been provided to the Armed Forces in Andaman and Nicobar and Lakshadweep:

3250 per month. 

13. Allowance for working in underground mines:

800 per month. 

14. Special Compensatory Highly Active Area Allowance:

200200 in the afternoon. 

15. Allowance for Armed Forces at High Altitude:

9000 - 15,000ft - Rs.1060 pm

15,000 feet above - 1600 pm

Download Automated Income Tax Preparation Excel Based Software All in One for the Government and Non-Government(Private) Employees for the Financial Year 2021-22 and Assessment Year 2022-23U/s 115BAC

 

Feature of this Excel Utility:-

1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.

 

2) This Excel Utility has all amended Income Tax Section as per Budget 2021

 

3) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2021-22 (Updated Version)

 

4) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)

 

5) Individual Salary Structure as per the Govt and Private Concern’s Salary Pattern

 

6) Individual Salary Sheet

 

7) Individual Tax Computed Sheet

 

8) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2021-22

 

9) Automated Income Tax Revised Form 16 Part B for the F.Y.2021-22

 

10) Automatic Convert the amount in to the in-words without any Excel Formula

Read More