Tips to save on taxes| With Automated Income Tax Preparation Software in Excel for the Non-Government Employees for the F.Y.2022-23

 Tips to save on taxes|

 

1. Rent paid but HRA not received:

 

You typically receive an HRA as part of your paycheck and treat the HRA as a primary tax-saving plan while you file taxes. However, there may also be a situation where it is not part of the employee's salary. In such a situation, the standard HRA deduction cannot be claimed and the taxpayer will not be able to claim benefits even if they are paying rent. Also, in such cases, the taxpayer must claim a tax benefit under Section 80GG.

 

To provide taxpayer benefits even when they did not receive an HRA, Section 80GG was introduced. Under this section, a taxpayer can claim a rent deduction even if they have not received an HRA. As per the following conditions:

 

That the individual is self-employed or receives a salary.

The HRA was not received at any time during the year for which the Section 80GG deduction was claimed.

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You, your spouse, or the HUF of which you are a member do not own any accommodation where you currently reside.

 

To claim the deduction under Section 80GG, you must file a 10BA form for the rent payment. Less of the following will be considered a deduction under this section:

Rupee.5000 per month.

 

25% of total income (excluding long-term capital gains and short-term capital gains under Section 111A and income under Section 115A or 115D and deductions under 80°C at 80 units).

 Real income is less than 10% of income

 

2. Interest paid on the mortgage loan

To claim the interest component of a home loan as a tax deduction, you must meet the following conditions:

You must obtain a loan to buy or build a house.

The construction of the house must be completed within 5 years after the end of the financial year in which the loan was taken.

 

The interest component paid as part of the loan can be claimed as a deduction under section 24 up to Rs. 2 lakhs This applies in the case of self-occupied properties. In the case of rental property, there is no maximum limit for claiming interest.

In the event that interest is paid on a mortgage loan obtained during the pre-construction period, the pre-construction interest paid may be claimed as a deduction. The discount is available in five equal instalments beginning with the year the property was purchased or construction was completed. However, the maximum is Rs. 2 lakhs

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3- Bank Savings Account Benefits:

The Income Tax Act of 1961 provides for deductions in respect of interest earned on bank savings accounts. Undivided Hindu individuals and families can claim a tax deduction under Section 80TTA on interest earned. This deduction applies to non-senior taxpayers. In the case of the elderly, article 80 TTB applies.

The maximum limit u/s 80TTA is Rs. 10,000. Limit Rs. 10,000 is applied to the total interest earned on the savings bank account held by the resident. No interest above and above Rs. 10,000 is taxed under the heading “Income from other sources”. The tax rate will correspond to the applicable tax bracket. For example, the total interest Amit earned from his savings bank account was Rs. 15,000. But allowed under Section 80TTA will be Rs. 10,000/-

 

On April 1, 2018, Section 80TTB for the elderly appeared. Under the 80TB section, seniors can claim discounts of up to Rs. 50,000 or a specified amount of gross gross receipts.

 

4- Medical expenses for disabled dependents:

Under the provisions of Section 80DD, a taxpayer can claim a deduction if they are caring for disabled dependents. This tax benefit will help reduce the tax liability of a person caring for a disabled person in their dependent family.

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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 employees 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.2022-23 (Update Version)

 

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2022-23

 

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2022-23

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Exemption from bank savings interest U/s 80TTA| With Automated Income Tax Preparation Software in Excel for the Non-Govt Employees for the F.Y.2022-23

 Section 80TTA of the Information Technology Act provides a tax deduction for interest income from

 personal savings. To help you claim your Section 80TTA Income Tax Act deductions, we will discuss

 your eligibility, threshold, inclusions, and exclusions in detail.

 

What is a section 80TTA deduction?

Section 80TTA deduction was established in 1961 and provides for a deduction of up to Rs. 10,000. This law applies to individual savings in banks and individual savings groups under the HUF (Hindu Undivided Family). However, it is ineffective with respect to income from interest on term or term deposits.

Interest Income Deductible under Section 80TTA

Savings income from the following institutions is tax-deductible under section 80TTA of the Income Tax Act:

Bank

Banking cooperative society

Post Office

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What is the maximum allowable deduction under section 80TTA?

The maximum applicable deduction of 80TTA is Rs. 10,000 per year, i.e. any excess of the amount of savings income will be taxable. Here, the calculation is based on the amount of interest accrued from one or more savings accounts of different banks.

 

Interest income is treated as income from other sources. Taxpayers can claim a maximum deduction of Rs. 10,000 of your total gross income and receive taxable income. The applicable tax percentage will then be calculated based on the taxpayer's taxable income.

 

What interest is non-deductible under Section 80TTA?

Interests from the following sources are not allowed in this section -

Fixed deposit.

Duplicate account.

Term deposit.

Savings in non-bank financial companies.

Companies, LLPs and partner firms are not permitted to receive interest payments under section 80TTA.

 

Who is eligible to claim tax credits under Section 80TTA?

The most important factors for compliance with the requirements of Section 80TTA are:

Taxpayers residing in India

Group of persons in HUF

NRI with NRO Savings Account

Age under 60 (Section 80TTA does not apply to older people, they can apply for section 80TTB)

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The deduction under section 80TTA applies to persons whose total income exceeds the taxable base. For example, if your income is Rs. 2,00,000 and your specific interest income is Rs. 50,000 in the reporting year. In this case, you are not eligible to apply for section 80TTA because your total income is below the taxable level.

 

How much tax will you save?

This is a viable question on the internet, what is 80TTA in income tax and how much can you save on it? The maximum amount of tax that can be saved with 80TTA depends on the tax rate that the taxpayer is subject to.

 

If your total income falls under the 20 % tax rate, the maximum amount of tax you can save is Rs. 2000 thousand minus 20,000 thousand 10,000 below 80TTA. Likewise, if you qualify for the 30 % tax rate, the maximum amount you can save is Rs. 3000.

Section 80TTA of the Income Tax Act aims to improve financial management. Thus, it helps people avoid paying taxes on income earned by small savings and large investors, without bothering them to include small amounts of interest in the income tax return process.

You may also like- Automated Income TaxForm 16 Part B for the F.Y.2021-22[This Excel Utility can prepare at a time 100 Employees Form 16 Part B]

 

General issues

✓ How do I get Section 80TTA deductions?

To claim a deduction under Section 80TTA, you must show savings interest income as income from other sources on your ITR file. You should mention this both in the chapters under other sources and in the chapters of deduction.

 

✓ How is 80TTA different from 80TTB?

Both acts are in accordance with section 80 of income tax. Section 80TTA is for a tax deduction on personal savings income and HUFS under the age of 60, whereas; 80TTB applies to the retiree tax deduction.

In addition, 80TTA excludes savings from fixed deposits, while 80TTB includes savings from all sources.

 

✓ Do I need to mention the interest accruing on a savings account balance to receive Section 80TTA benefits?

Yes, it is mandatory to indicate all sources of income from savings interest.

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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 the all amended Income Tax Section as per Budget 2022

 

3) Automated Income Tax Form 12 BA

 

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

 

5) Individual Salary Structure as per the Non-Govt(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.2022-23

 

9) Automated Income Tax Revised Form 16 Part B for the F.Y.2022-23

 

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

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Free Download Automated Master of Form 16 Part A&B for F.Y. 2019-20 and Automated Arrears Relief Calculator U/s 89(1) for F.Y. 2019-20 With Easy Investments to Save Tax u/s 80C

Advantages of Section 80C

You can guarantee most extreme conclusion of Rs 1.5 Lakhs u/s 80C (counting Sections 80CCC, 80CCD) by putting resources into qualified instruments. Sadly ventures and consumption permitted u/s 80C is excessively packed and that settles on the decision hard for the vast majority.

Uses Eligible for Tax Benefit

The initial step is to check all uses which are qualified for charge finding. The following is the rundown:

1. Education costs for up to 2 Children.

The costs on education costs for full time courses for limit of two child is qualified for reasoning u/s 80C. In any case, the reasoning isn't accessible for education cost to instructing classes or private educational costs. The accompanying costs are not considered as education costs – Development Fee, Transport charges, lodging charges, Mess charges, library expenses, Late fines, and so on.

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 The main feature of this Excel Utility:-

1)   Prepare At time 100 Employees  Excel Based  Form 16 Part A&B ( Modified Format of Form 16 Part B Vide CBDT Notification No.36/2019 Dated 12/04/2019 ]

2)   All the Amended Income Tax Section have in this utility as per Budget 2019

3)   You can print individual Form 16 Part Part A&B

4)   Most easy to install just like an Excel File

5)   Easy to Fill the all column

6)   Automatic Convert the Amount to the In-Words

2. Stamp Duty for enrollment of New Home

Stamp obligation and enrollment energizes to Rs 1.5 Lakh can be asserted for conclusion u/s 80C. The installment ought to have been made in the equivalent money related year for which the expense is being paid. for example the conclusion can't be conveyed forward to one year from now. Likewise the house ought to be for the sake of assessee guaranteeing conclusion.

On the off chance that you have paid stamp obligation for new home, you most presumably would debilitate your 80C breaking point for the year and no further speculation may be required.

Mandatory Deductions

There are some mandatory findings that are qualified for tax break u/s 80C. Check on the off chance that you contribute in any of such derivations:

1. Fortunate Funds (EPF/VPF)

EPF is a necessary finding for most salaried representatives. The reasoning can be 12% of the essential compensation and dearness recompense or Rs 1,800 consistently. Take a gander at your pay explanation to realize what amount have you contributed for the year. Check just your commitment. Business' commitment isn't qualified for charge sparing speculation. You can likewise have some sum contributed through Voluntary Provident Fund (VPF), which can be up to 100% of the fundamental compensation and DA.

2. National Pension Scheme (NPS)

NPS (Tier 1) is obligatory for most Government representatives who joined after 2004. Take a gander at your pay slip to check your reasoning. Again just your commitment is legitimate derivation. Manager's commitment isn't qualified. The beneficial thing is you can utilize this commitment to guarantee extra duty conclusion up to Rs 50,000 under the recently presented Section 80CCD(1B). We have clarified this at the last passage of the post.

Repeating Deductions

There are a few reasonings which happen year on year like home advance reimbursement, protection premium and so forth.

1. Home Loan Principal Amount

Is it true that you are paying home advance? The important segment paid each year is qualified as duty reasoning. For this you can download the duty proclamation from banks' site. On the off chance that not get it from the advance supplier. This would give you a gauge of head and intrigue paid for the money related year.

2. Protection Premium

Have you purchased disaster protection items like ULIP, Endowment Plan or Term Insurance where you have to pay the premium for ensuing years? On the off chance that you need to keep putting resources into a similar you can keep on guaranteeing tax break.

3. PPF (open Provident Fund)

On the off chance that you have PPF account you ought to contribute least Rs 500 out of a monetary year. On the off chance that you don't do, a fine is exacted.

4. Sukanya Samriddhi Account (SSA)

Least store of Rs 1,000 should be made each year else punishment of Rs 50 is collected.

5. NPS

Do you have NPS account? A base commitment of Rs 1,000 is required each monetary year to keep the record dynamic.

For some individuals the 80C reasoning breaking point is come to at this point. In the event that not, browse the rundown beneath relying upon your hazard profile and speculation objectives:

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 The main feature of this Excel Utility:-

7)   Prepare At time 50 Employees  Excel Based  Form 16 Part A&B ( Modified Format of Form 16 Part B Vide CBDT Notification No.36/2019 Dated 12/04/2019 ]

8)   All the Amended Income Tax Section have in this utility as per Budget 2019

9)   You can print individual Form 16 Part Part A&B

10)                     Most easy to install just like an Excel File

11)                     Easy to Fill the all column

12)                     Automatic Convert the Amount to the In-Words

New Investment for 80C

1. Term Life Insurance

Do you have wards? Would they endure monetarily on the off chance that something transpires? Do you have enough life coverage? On the off chance that no go get a term protection first. It's imperative to decide on insurance first.

2. ELSS (Equity Linked Saving Scheme)

Prevalently known as Tax sparing Mutual Fund. These are value based common assets and outstanding amongst other venture alternatives to make riches over the long haul while sparing duty. In the event that you can process the instability of financial exchange, this is the prescribed alternative.

Lock-in Period: 3 Years

•           Among the duty sparing ventures, ELSS has least lock-in time of 3 years.

•           The gains on ELSS Fund is Tax Free.

•           Convenient to purchase and oversee as ELSS can be purchased and recovered on the web.

•           There can be significant instability in returns and you can get negative returns toward the finish of 3 years.

3. PPF (Public Provident Fund)

PPF is another mainstream charge sparing venture choice for 80C, particularly for individuals with no other opportune store.

Lock-in Period: 15 Years. Anyway fractional withdrawal is permitted from seventh year

•           The premium earned on PPF is Tax Free

•           After opening the PPF account, venture should be possible online consistently (for certain banks)

•           Highest Safety – upheld by Govt. of India

•           The lock-in is for a long time however there is halfway liquidity from seventh year on wards.

4. Senior Citizen's Saving Scheme (SCSS)

SCSS is great choice for senior residents (over 60 years old) as it gives ordinary quarterly premium salary legitimately in financial balance.

Lock-in: 5 years

•           Highest Safety – upheld by Govt. of India

•           The financing cost offered is most noteworthy among the little sparing plans

•           The intrigue got is assessable.

•           TDS would be deducted if the all out enthusiasm for a year is over Rs 10,000. Be that as it may, if qualified Form 15H can be submitted to keep away from TDS.

5. Sukanya Samriddhi Account (SSA)

SSA can be opened by guardians of young lady kid subject to specific conditions. SSA can be a decent choice for fixed salary speculation for kid. Anyway you ought to likewise put resources into ELSS or other value shared assets for objectives identified with kid.

Lock-in: Deposit to the record to be made for a long time and record develops at 21 years from date of opening

•           The premium earned on SSA is Tax Free and furthermore higher than that offered to PPF

•           50% withdrawal permitted when young lady turns 18 for marriage/advanced education

•           Highest Safety – upheld by Govt. of India

•           No arrangement of Loan or pre-developed withdrawal not at all like PPF

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6. National Saving Certificate (NSC)

NSC can be purchased at present workplaces on spare expense u/s 80c. It is accessible for a long time (NSC VIII) as it were. The intrigue offered is 7.8%.

Lock-in: 5 Years

•           The premium is higher than most expense sparing bank fixed stores.

•           Certificates can be kept as insurance security to get advance from banks

•           No Tax conclusion at source

•           The intrigue gathered for NSC meets all requirements for Sec 80C reasoning in ensuing years

•           Highest Safety – supported by Govt. of India

•           The premium earned is assessable

•           You need to visit Post office for purchasing and recovering NSC units. This can be an issue for individuals who move addresses regularly.

7. Relief from Saving Bank Fixed Deposits Interest Max Rs. 40,000/- and Sr.Citizen Rs. 50,000/- U/s 80TTA

8. NPS (National Pension Scheme)

Some of you may need to contribute necessarily to NPS. For this situation you can take finding up to Rs 50,000 under the recently presented Section 80CCD(1B). And afterward you can pick progressively proficient speculation for 80C.

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All in One Income Tax for Non-Govt Employees for Financial Year 2018-19 & Ass Year 2019-20

Download All in One Income Tax Preparation Excel Based Software for Non-Govt employees for FY 2018-19 [ This Excel Utility at a time Tax Computed Sheet + Individual Salary Structure + Individual Salary sheet + Automatic H.R.A. Calculation + Automated Form 12 BA + Automated Form 16 Part A&B and Form 16 Part B for F.Y. 2018-19 ]

All in One Income Tax preparation Excel Based Software which most popularly known to all of the Taxpayers as well as all Govt and Non-Govt concerned. This All in One Specially designed for the Non-Govt employees in India. 

You can easily prepare your Income Tax computed sheet with the help of universal Salary Structure which Salary structure is fit for any Non-Govt concerned.

The feature of this Utility:-

• Prepare at a time the Tax Computed Sheet + Salary Sheet + Automatic HRA Exemption Calculation
• New Tax Slab for F.Y. 2018-19
• Automated Income Tax Form 16 Part B and Part A&B for F.Y.2018-19
• Automated Form 12 BA
• Automatic Convert the Amount in Words
• All Income Tax Section has amended in this Excel Utility as per Budget 2018

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Automated Amended Form 16 Part B with Form 12 BA for the Financial Year 2017-18 and Assessment Year 2018-19

As per the Income Tax Department's, New Notification Dated 19/2/2013 that the Salary Certificate Form 16 have already Changed the Format of Form 16. In this New Format of Form 16 have two parts one of Part A and another is Part B. In Part A have the details of Tax Deposited into the Central Govt and in Part B have the details of employee's Salary Details. As per the previous format of Form 16 have One Part but this new Amended Form 16 have two parts. Most of the Employer has not known about this new Notification of the CBDT.

Click here to download Automated Form 16 Part B with Form 12 BA for the Financial Year 2017-18 and Assessment Year 2018-19 [This  Excel Based Software  can prepare at a time 50 employees Form 16 Part B with Form 12 BA for F.Y.2017-18] 

Click here to download Automated Form 16 Part B with Form 12 BA for the Financial Year 2017-18 and Assessment Year 2018-19 [This  Excel Based Software  can prepare at a time 50 employees Form 16 Part B with Form 12 BA for F.Y.2017-18]

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Understanding Form 12 BA in Income Tax Rules and Automatic Master of Form 16 with Form 12 BA for Fin Yr 2017-18 and Ass Yr 18-19

Form 16 and Form 12 BA are provided by the employer which was details about the employee's Salary and Value of Perquisite U/s 17(1) and 17(2) of Income Tax Rules, these are useful while calculating Tax Liability and filling Income Tax Return where we look in to the details of Salary in Form 16 and the details of Value of Perquisite U/s 17(2) which provided by the employer to the employee which is shown in this Form 12 BA.

You can easily calculate the employee's Taxable Income and the Tax Payable or Refundable with the Automatic Form 16 Part B and also you can get more one step with this form 16 Part B, that the  Form 12 BA.

Below given the Excel Based Income Tax Salary Certificate Form 16 Part B with Form 12 BA, which most effective for the Financial Year 2017-18 and Assessment Year 2018-19.

Click here to download this utility Automatic Form 16 with Form 12 BA for Ass year  2018-19

 

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All in One Income Tax for Non-Govt Employees for Financial Year 2017-18 & Ass Year 2018-19 with New Income Tax Slab As per Budget 2017.

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