income tax deduction under section 80C With Automated Income Tax Revised Form 16 Part B for A.Y.2021-22 as per Budget 2020 ( Old Tax & New Tax Regime)

In chapter VIA of income tax act, 1961, the most widely used option to save tax is section 80C. This section allows an individual and HUF to save tax by investing in or spend on certain specified avenues. The maximum limit up to which you can claim tax deduction under section 80C is Rs 1,50,000 for the financial year 2018-19 and 2019-20.

In this article, we will discuss certain expenses which are allowed as a deduction under section 80C before calculating tax payable on your taxable income. Before discussing please note, you can claim deduction only when you have spent money during the previous year on listed expenses.

Why to claim tax deduction

By claiming tax deduction of up to Rs 1,50,000, you reduce your taxable income by which you will be required to pay less or zero tax. For instance if your gross total income for the financial year 2019-20 is Rs 6,50,000 and you have invested or spent money during the year on specified avenues, then after taking deduction as per your eligibility  you can reduce your total taxable income to Rs 5,00,000. In such case, you will not be liable to pay tax as you will be eligible for tax rebate of Rs 12,500 under section 87A.

Tuition fees for children

Tuition fee paid for children qualifies for tax benefit under section 80C of the IT Act, 1961 within the overall limit of Rs 1,50,000.

Tuition fee that is paid at the time of admission or anytime during the financial year to any registered university, college, school or educational institution based in India qualifies for section 80C tax deduction. It can be a private or government institution.

However, please note only full time education including any play school activities, pre-nursery and nursery classes are eligible. Tuition fee paid for part time courses are not eligible for tax deduction.

Section 80C restricted the deduction for tuition fee to two children per individual. This means you can claim a tax deduction only up to two children. But if both husband and wife are paying tuition fee for their child then each of them will be eligible up to 2 children each.

Following fees paid to registered university, college, school or educational institutions do not covered for section 80C benefits;

·               Development fee

·               Donation

·               Capitation fee

Tax deduction for principal payment of home loans

Section 80C allow repayment of principal amount of home loan as a tax deduction up to the maximum limit of Rs 1,50,000. As discussed in the case of tuition fees, this limit is the total of all eligible deductions allowed under section 80C including contributions to public provident fund, sukanya samridhi yojana, payment of life insurance premium, 5 Years fixed deposits, equity oriented mutual fund, NSC, senior citizen saving schemes, tuition fees etc.

Tax deduction for principal payment of home loan is available for the amount which is paid during the financial year. It does not matter whether payments are related to earlier or future years.

Please note, tax benefits for repayment of principal amount of home loan is allowed only when the construction is complete and the completion certificate has been awarded. This means, deduction will not be allowed under section 80C for repayment of principal amount for those years during which the property was under construction.

In case the assessee transfers the house property on which he has claimed tax deduction under section 80C before the expiry of 5 years from the end of the financial year in which the possession has been obtained by him, then no deduction and tax benefit on home loan shall be allowed under this section. Aggregate amount of tax deduction already claimed in respect of previous years shall be deemed to be the income of the assessee of such year in which the property has been sold. Therefore, assessee shall be liable to pay tax on such income.

Please note, section 80C deduction for payment of principal amount on home loan is allowed only when the loan has been taken for purchase or construction of a new house property. It’s not allowed as a deduction if loan has been taken for repair or renewal or reconstruction of a residential house property.

Stamp duty and registration fee for purchase or construction of home

Amount paid towards stamp duty and registration fees for purchase or construction of home is allowed as a tax deduction under section 80C within the overall limit of Rs 1,50,000. 

It’s not a regular deduction that you get every year. If you have paid, then that amount can be claimed as a tax deduction under section 80C in addition to all other eligible deductions within the limit of Rs 1,50,000.

Apart from these expenses, you can also invest in any or all of the investment options listed under section 80C to get the full benefit of section 80C. Here is a list of the 6 most important investment options listed in section 80C to get tax deduction;

·               Public provident fund – PPF

·               Employee provident fund – EPF

·               Unit linked insurance plan – ULIP

·               Life insurance plan

·               Sukanya samridhi yojana – SSY

·               Equity-linked saving schemes – ELSS

Download And Prepare at a time 50 employees  Salary Certificate Revised Format of Form 16 Part B for the Financial Year 2020-21 and Assessment Year 2021-22

 

 

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What is the Income Tax Form 16? With Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21

 What is Income Tax Form 16?

 

Form 16 is nothing more than a certificate issued by your organization that provides information about the salary you received during the financial year and the amount of TDS deducted from your salary.

 

In the case, income from your annual salary exceeds the limit of the original tax deduction; then, your employer is asked to deduct TDS from your salary and pay it to the Government of India. Employers provide their employees with 16 forms as proof of filing an income tax return. If your annual income is less than the discount limit, no TDS is deducted from your salary.

 

Form 16 Part B

 

Form 16 Part B  is issued annually by the Employer containing information on other income, allowance of exemption, arrears of salary, duty payable, etc., which is usually before 15th June of the following year. This immediately follows the fiscal year where the tax is deducted. No need to worry if you lose your 16 forms, you can get a duplicate issued by your employer without any hiring hassle.

 

Form 16 Part A

 

Listed below are the critical elements of Form 16 Part A:

 

Employer information such as Collection Account Number (TAN), Name, Permanent Account Number (PAN), Tax Exemption etc.

 

Employee Returns to the employee (if any), or the balance of duties payable by the employee.

 

Name Personal details of the employee, such as full name, permanent account number (PAN), etc.

 

All information related to payment of tax such as quantity, invoice number, demand draft number, check number etc.

 

The tax has been deducted as per Section 191A.

 

Recognition of the total number of taxes paid by the employer.

 

• Other information such as salary, total salary, net salary, parks, deductions etc.

 

• Receipt of TDS has been provided.

If you are employed with only one employer in a financial year, that particular employer will publish Form 16 for the entire fiscal year. If you change jobs and are employed with more than one company in a financial year, Formal 16 will be issued to all employers individually for the period for which they were working.

Download and prepare at a time 100 Employees Form 16 Part B for the F.Y.2020-21

Main Feature of this Excel Utility is:-

1) This Excel Utility Calculation of your Income Tax as per new and old tax regime U/s 115 BAC.

2) This Excel Utility can prepare at a time 100 Employees Form 16 Part B in a revised format.

3) Automatic Convert the amount into the In-Words without any Excel Formula

4) This Excel utility Prevent the double-entry of employee’s Pan Number automatically.

5) All the Income Tax Section available as per the Budget 2020 as well as the Income Tax Act 1961

6) This Excel Utility has an Option to choose a New or Old tax regime

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All about Income Tax New Form 16 for salaried employees| With Automatic Preparation Master of Form 16 for the F.Y.2020-21

 

All about Income Tax Form 16 for salaried employees.

Form 16 Key features: - If you are a salaried employee of the  Government or Private, you will be paid after deducting tax from the employer. So Form 16is a certificate issued by your employer which includes personal details of the employee including name, permanent account number (PAN), etc., details of your earnings salary, paid perquisites, and details of allowance payments. Deducts taxes and pays to the government. It contains employer details such as name, permanent account number PAN, TAN, etc. 

This is the basic document required by the employee to file an income tax return because the same should be indicated in the income tax returns which contain a taxable salary under the heading "Salary" in Form-16.

 

Form 16 is now divided into 2 parts - Part A and Part B.

 

Part A contains details of both the employer's TAN (tax exemption and collection account number) and the PAN (permanent account number) of both the employer and the employee. Names and addresses of employers and employees are also mentioned. It also mentions the year of assessment and provides a summary of income tax from your income and submits it to the government according to the quarterly TDS return filed with the employer. The monthly details of TDS deduction and deposit are also certified.

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

Part B is an important part of your Form 16 because contains a consolidated statement of salary for the year. In addition to breaking your salary, the details of the exemption claimed by you under Section 80 of the Income Tax Act have been mentioned. Exemptions under Chapter VIA include details of the amount claimed under Section 80D for EPF, PPF, NSC, Life Insurance Premium, or Health Insurance, Section 80G for donations. It shows your total taxable income and the tax deducted on this national income.

 

Requirement of Form 16 for filing an income tax return: Form 16 is required for filing an income tax return in India because firstly, Form 16 works as an examiner for you to check if your employer has submitted the full amount of TDS he may have. Second, it will enable you to file an income tax return that discloses the exact taxable salary income and various discounts from your salary, such as EPF, Occupational Tax, and TDS.

 

Employer's obligation to provide Form 16: - Obligation of the employer to provide Form 16 to all employees within 31st July of the year of supervision (A.Y), if TDS is deducted, in case no TDS is deducted, the employer will give you a Form 16 Cannot issue The 16 for the day through which he delays the issuance of this certificate, also if you are employed under more than one employer per year, each of your employers will provide you a Form 16.

 

Submitting an income tax return without Form 16: - Even if Form 16 is not issued, you will not be able to avoid the obligation to file an income tax return, so to file an income tax return without Form 16 you need to collect a monthly salary slip and calculate total salary for the year.

 

Note: The amount deposited in your bank statement is after deducting the source tax but you have to fix the gross salary to report the ITR.

You may also, like- Download and Prepare at a time 50Employees Automatic Revised Form 16 Part A&B for the F.Y.2020-21 as per the new and old tax regime U/s 115 BAC [Who are not able to download Form 16 Part A from the Income Tax TRACES PORTAL]

 

An employee receives various allowances in the form of salary while some allowances such as transport allowance, medical allowance, HRA, etc. are exempt from income tax and the allowance is fully taxable. Therefore, the IT department allows you to deduct deductions from the salary to reach the taxable salary figure.

 

Since you have not received Form 16 from your employer, you need to verify Form 26 AS to know about the TAN and TDS deducted by your employer.

 

If you have income other than salary, add up all the income from home property rental income, capital gain from the sale of assets, income from other sources like interest on bank deposit, RD, FD, etc.

 

Subtract the tax benefit from the above-calculated income such as NSC, LIC, Tuition Fee, PPF, and the payment of principal of the housing loan under Section 80C. Similarly, claims for grants made to charities can be claimed under section 80G, and money paid for premiums of medical insurance policies can be claimed under section 80D.

 

After adding all the income and reducing the tax benefit, the result will be calculated taxable income. Now, calculate income tax on this taxable income using the IT slab rate for F.Y 2020-21.

 

You are now ready to file a tax return. You can now go to the online tax filing site to file your income tax return

Download and Prepare at a time 100 Employees Automatic Revised Form 16 Part A&B for the F.Y.2020-21 as per the new and old tax regime U/s 115 BAC [Who are not able to download Form 16 Part A from the Income Tax TRACES PORTAL]

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Salary Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2020-21

 

Salary Arrears Relief Calculator U/s 89(1) with Form 10E. Have you received any advance salary or arrears of salary? If so, you may be concerned about its tariff provisions. Do I have to pay tax on the total amount? What about the previous year's tax calculations? Taxpayers have this kind of question in mind, here’s what you need to know  

By this time, you have already realized that income tax is calculated on the taxpayer's total income for a given year. Income can be in the form of either salary or family pension or other sources of income.

 

However, there may be situations where you have received arrears of family pension or arrears of salary in the current financial year. It can happen that an income taxpayer receives a portion of his profit or salary in arrears in advance or in any financial year, which increases his total income which in turn increases the tax payable.

 

In such cases, an application can be made and the Assessing Officer may grant relief to the taxpayer. In summary, income tax law ensures that there is equality in the income tax slab rate, and thus, when a portion of the income received is not related to the current year, relief is provided so as not to increase the amount of taxable income.

You may also, like- Automatic Income TaxRevised Form 16 Part B for the F.Y.2020-21 which can prepare at a time of 50Employees Form 16 Part B)

To ensure that you are not burdened with paying additional duties, the Income Tax Department provides Relief U / S 89 (1). If you receive a pension or payment for the previous year, you will not be charged the total amount for the current year. Basically keep you away from paying extra taxes, because there was a delay in paying.

 

You must submit Form 10E to receive benefits under Section 89 (1). What would be the most obvious question in Form 10E?

Details of Form 10E with details on how and why to submit are provided below.

 

What is relief under Section 89 (1)?

When the taxpayer receives:

1. arrears of salary or

2. Advance pay or

3. Family pension arrears

Then such amount is taxable out of the amount received.

However, relief is provided undSalary Arrears Relief Calculator U/s 89(1) with Form 10E. Have you received any advance salary or arrears of salary? If so, you may be concerned about its tariff provisions. Do I have to pay tax on the total amount? What about the previous year's tax calculations? Taxpayers have this kind of question in mind, here’s what you need to know

By this time, you have already realized that income tax is calculated on the taxpayer's total income for a given year. Income can be in the form of either salary or family pension or other sources of income.

 

However, there may be situations where you have received arrears of family pension or arrears of salary in the current financial year. It can happen that an income taxpayer receives a portion of his profit or salary in arrears in advance or in any financial year, which increases his total income which in turn increases the tax payable.

 

In such cases, an application can be made and the Assessing Officer may grant relief to the taxpayer. In summary, income tax law ensures that there is equality in the income tax slab rate, and thus, when a portion of the income received is not related to the current year, relief is provided so as not to increase the amount of taxable income.

To ensure that you are not burdened with paying additional duties, the Income Tax Department provides Relief U / S 89 (1). If you receive a pension or payment for the previous year, you will not be charged the total amount for the current year. Basically keep you away from paying extra taxes, because there was a delay in paying.

You may also, like- Automatic Income Tax RevisedForm 16 Part B for the F.Y.2020-21 which can prepare at a time 100 EmployeesForm 16 Part B)

You must submit Form 10E to receive benefits under Section 89 (1). What would be the most obvious question in Form 10E? Details of Form 10E with details on how and why to submit are provided below.

 

What is relief under Article 89 (1)?

When the taxpayer receives:

1. arrears of salary or

2. Advance pay or salary Arrears Relief Calculator U/s 89(1) with Form 10E. Have you received any advance salary or arrears of salary? If so, you may be concerned about its tariff provisions. Do I have to pay tax on the total amount? What about the previous year's tax calculations? Taxpayers have this kind of question in mind, here’s what you need to know

By this time, you have already realized that income tax is calculated on the taxpayer's total income for a given year. Income can be in the form of either salary or family pension or other sources of income.

 

However, there may be situations where you have received arrears of family pension or arrears of salary in the current financial year. It can happen that an income taxpayer receives a portion of his profit or salary in arrears in advance or in any financial year, which increases his total income which in turn increases the tax payable.

 

In such cases, an application can be made and the Assessing Officer may grant relief to the taxpayer. In summary, income tax law ensures that there is equality in the income tax slab rate, and thus, when a portion of the income received is not related to the current year, relief is provided so as not to increase the amount of taxable income.

To ensure that you are not burdened with paying additional duties, the Income Tax Department provides Relief U / S 89 (1). If you receive a pension or payment for the previous year, you will not be charged the total amount for the current year. Basically keep you away from paying extra taxes, because there was a delay in paying.

You may also, like- Automatic Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 which can prepare at a time 100 Employees Form 16 Part A&B)

 

You must submit Form 10E to receive benefits under Section 89 (1). What would be the most obvious question in Form 10E? Details of Form 10E with details on how and why to submit are provided below.

 

What is relief under Section 89 (1)?

When the taxpayer receives:

1. arrears of salary or

2. Advance pay or

3. Family pension arrears

Then such amount is taxable out of the amount received.

However, relief is provided, and salary Arrears Relief Calculator U/s 89(1) with Form 10E. Have you received any advance salary or arrears of salary? If so, you may be

concerned about its tariff provisions. Do I have to pay tax on the total amount? What about the previous year's tax calculations? Taxpayers have this kind of question in mind, here’s what you need to know

By this time, you have already realized that income tax is calculated on the taxpayer's total income for a given year. Income can be in the form of either salary or family pension or other sources of income.

You may also, like- Automatic Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 which can prepare at a time 50 Employees Form 16 Part A&B)

 

However, there may be situations where you have received arrears of family pension or arrears of salary in the current financial year. It can happen that an income taxpayer receives a portion of his profit or salary in arrears in advance or in any financial year, which increases his total income which in turn increases the tax payable.

 

In such cases, an application can be made and the Assessing Officer may grant relief to the taxpayer. In summary, income tax law ensures that there is equality in the income tax slab rate, and thus, when a portion of the income received is not related to the current year, relief is provided so as not to increase the amount of taxable income.

To ensure that you are not burdened with paying additional duties, the Income Tax Department provides Relief U / S 89 (1). If you receive a pension or payment for the previous year, you will not be charged the total amount for the current year. Basically keep you away from paying extra taxes, because there was a delay in paying.

 

You must submit Form 10E to receive benefits under Section 89 (1). What would be the most obvious question in Form 10E? Details of Form 10E with details on how and why to submit are provided below.

 

What is relief under Article 89 (1)?

Then such amount is taxable

section 89 (1) to reduce the additional tax burden due to delays in receiving such income.

 

How to calculate relief under section 89 (1)?

 

The steps for calculating relief under section 89 (1) of the Income-tax Act, 1961 are as follows:

1. Calculate the tax payable on the total income including the arrears in the year received.

2. Calculate the tax payable on total income excluding arrears in the year received.

3. Calculate the difference between (1) and (2).

4. Calculate the tax payable on the total income of the year related to the arrears-salary including arrears.

5. Calculate the tax payable on the total income of the year by deducting the arrears

6. Calculate the difference between (4) and (5).

Relief. The amount of relief is the excess amount (3) over (6). If the amount of ()) is more than (3) no relief will be allowed.

What is Form 10E?

 

In order to claim relief under Section 89 (1) of the Arrears Arrested, it is mandatory to file Form 10E with the Income Tax Department. If Form 10E is not filed and relief is claimed, the taxpayer will receive a notice from the Income Tax Department for not filing Form 10E.

 

When do I need to submit Form 10E?

Form 10E must be submitted before filing the income tax return.

Download Automated Income Tax Arrears Relief Calculator U/s89(1) with Form 10 E from the Financial Year 2000-01 to Financial Year 2020-21(Updated Version)

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