Tax Planning for F.Y.2021-22| With Automated Income Tax Preparation Software In Excel All in One Govt & Non-Govt Employees for the F.Y.2021-22

 Tax Planning for F.Y.2021-22| According to the Finance Act,2020, when a person favours a 

the new tax, no specific exemption (such as Section 80C, Section 80D, Section 80G, etc.) 

can be claimed under Chapter VI-A of the Act. It may be claimed that only deductions can be made 

under sub-section (2) of section 80CCD (notice the pension scheme employer contributes to 

the employee's account.

You may also, like- Automated Income Tax Preparation Excel Based Software All in One for the Assam State Employees for the F.Y.2021-22 [This Excel Utility can prepare at a time Tax computed sheet as per new and old tax regime + Individual Salary Structure as per the Assam State Employees Salary Pattern + Auto Calculate H.R.A. Calculation U/s 10(13A) + Automated Income Tax Form 16 Part A&B and Part B for the F.Y.2021-22]

 

Persons with disabilities are exempt from maintenance including medical treatment of a dependent person (Section 80DD of the Act)

 

A resident who spends on the treatment and maintenance of a disabled person gets a retirement of Rs 75,000 and if a dependent is a disabled person and if that dependent is a severely disabled person then INR 125,000

 

Exemption on interest earned on higher education (Section 80E of the Act)

According to the Domestic Tax Act of India, when calculating a person's total income, certain financial institutions (including banks) pay interest separately on loans (tax payable out of their income) / charities for the higher education of themselves / their relatives. Appropriate discount is

You may also, like- Automated Income Tax Preparation Excel Based Software All in One for the Bihar State Employees for the F.Y.2021-22 [This Excel Utility can prepare at a time Tax computed sheet as per new and old tax regime + Individual Salary Structure as per the Bihar State Employees Salary Pattern + Auto Calculate H.R.A. Calculation U/s 10(13A) + Automated Income Tax Form 16 Part A&B and Part B for the F.Y.2021-22]

 

The reduction for interest paid on the loan will be available before the following period:

 

tax year to year for a year where the taxpayer starts paying interest; Or

up to the interest on such loan is paid in full.

 

Discount for rent payment (Section 80GG of the Act)

Individuals who are paying rent for more than 10% of taxable income for a dwelling (furnished/unfinished) but have not received a house rent allowance from the employer can claim a discount of the following:

 

Rent - 10 % of taxable income; Or INR 5,000 per month (or INR 60,000 annually); Or 25 per cent of taxable income

You may also, like- Automated Income Tax Preparation Excel Based Software All in One for the West Bengal State Employees for theF.Y.2021-22 [This Excel Utility can prepare at a time Tax computed sheet as per new and old tax regime + Individual Salary Structure as per the West Bengal State Employees Salary Pattern + Auto Calculate H.R.A. Calculation U/s 10(13A) + Automated Income Tax Form 16 Part A&B and Part B for the F.Y.2021-22]

 

Savings Account Deposit Interest Exemption (80 TTA by Act)

Additional discount up to INR10,000 per annum on interest on deposits (excluding time deposits) in savings accounts at designated banks, co-operative societies and post offices for individuals / HUFs from 2012/13 to tax F.Y. 2012-13.

 

Deposit interest on deposits for senior citizens (Section 80TTBof the Act)

Interest on deposits with specific banks, co-operative societies and post offices (including annual deposits) up to INR 50,000 per annum for senior citizens from tax year / 1999 onwards. However, no waiver will be allowed under section 80TTA in this case

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

 

Exemption for persons with disabilities (Section 80U of the Act)

INR75,000 is available for a disabled resident and a US ছাড় 125,000 discount for a severely disabled resident certified by the medical authorities.

Discount for interest on the home property (a) 24 (b)

Deduction of interest payable on, construction, repair etc. for self-occupied house Rs. 2 lacks.

 

* Where the property has been acquired or constructed with borrowed capital, the interest payable on the borrowed capital for the period at which the property was acquired or constructed prior to the previous year, if any has been deducted by any part thereof. Under any other provision of this Act, under this section deductions, will be made in equal instalments for the previous year and immediately for the following 4 years.

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* If a person owns more than one home during F.Y. the maximum home property loss compared to other fixed income is INR Rs. 200,000 in the same financial year alone. Balance House Assets Decreased Assets Decreased Assets can be advanced for a maximum of 8 F.Y to match the income.

 

* As provided by the Finance Act 2019, the taxpayer may consider the property of two houses owned by them as self-acquired property. Accordingly, there is no need to pay tax on fictitious rent from such second self-occupied / vacant property. In addition, the total tax deduction for interest payable on housing loans for both the mentioned self-occupied / vacant properties will be limited to INR 200,000 / - per tax year.

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

 

* The Finance Act of 2020 proposes that where taxpayers opt for a new tax discipline, no exemption will be available for interest payments and principal payments. Moreover, any foreclosure loss will not be available for set-off against income from home property. * Under the Finance Act, 2020, it is proposed to offer a rebate of R 150,000 on interest on affordable housing, i.e. housing loans below INR 4.5 Lakh (for approved loans from 1 April 2019 to 31 March 2020) and extended loans approved for 1 March 2021.

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

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ELSS vs. ULIP - Which tax-saving option is better? With Automated Income Tax Preparation Software All in One in Excel for the All State Govt Employees & Non-Govt Employees (Private) for the F.Y.2021-22 as per Budget 2021

 ELSS vs. ULIP - Which tax-saving option is better? The most popular and beneficial tax saving 

the method adopted by individuals is the use of exemptions approved under section 80C. Section 80C 

allows a rebate of up to Rs 1.5 lakh per person per annum is invested in certain financial instruments. 

There are various financial instruments approved for this purpose and investments made in any one of them can be claimed as a discount under Section 80C.

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Some investment gives a return on investment when others give the different type of money return. The most popular investment gives a fixed return like fixed deposits and PPF accounts but also gives a lot of money from the  ELSS Mutual Fund and ULIP.

 

Apart from these, a person can also claim a waiver for the registration charges paid for the purchase of property and insurance premiums paid for a life insurance policy.

 

However, in this article, we will mainly discuss ELSS Mutual Funds and ULIPs and which of these 2 is better.

 

ELSS Mutual Fund

An ELSS Mutual Fund means Equity Linked Savings Scheme Mutual Fund and these funds are basically investments in this fund that can be claimed as a discount under Section 80C

 

In other words, investments made in other types of mutual funds cannot be claimed as discounts under section 80C and investments made only in ELSS tax saving mutual funds can only be claimed as a maximum of Rs. 1.5 lakh per year.

These ELSS tax savings mutual funds have a mandatory lock-in of 3 years and an investor cannot prematurely invest in these funds before 3 years. In addition, the ELSS fund must invest 65% of its total assets in the stock market.

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

ULIP's an investment plan and invested money also deduction U/s 18 C maximum Rs. 1.5 lakh

 

ULIPs are an investment and insurance plans in the sense that they give you the dual benefit of returning the invested capital and provide an insurance cover to the investor. ULIP has a longer lock-in period than ELSS with a lock-in period of only 3 years. This means that no investor can redeem his investment before 5 years from the date of investment.

 

ELSS Mutual Fund vs. ULIP – Which is better?

 

Both ELSS are mutual funds, as well as ULIP money invested in the stock market and the proceeds from such investments are shared with investors.

 

However, along with the return on investment, ULIP's offer of insurance is that it looks like a lucrative deal for investors and this is why investors are sometimes tempted towards ULIPs compared to ELSS mutual funds.

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However, the truth of the matter is that the returns generated by ELSS mutual funds are much better than the returns generated by ULIP. This is not a one-sided case and in all cases, it has been observed that the returns generated by ELSS mutual funds are much better than those of ULIP.

 

Some investors believe this is true because ULIPs also offer insurance benefits and are therefore willing to compromise on the return on investment. While this is somewhat true, since investors are also receiving insurance benefits, the returns from ULIPs are not too small for any investor to consider investing.

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And so instead of investing in ULIPs, if the same investor puts some money into ELSS and balances the purchase of term insurance - he will not only get a better return on his investment but also a higher cover insurance policy.

 

For an example: -

 Case 1: Invest Rs100 in ULIPs

 

 Case 2: Invest Rs 90 in ELSS Mutual Fund and the balance is Rs 10/- In Term Insurance

 

In the 2nd case, the returns generated will be much higher than in the 1st case and the sum insured will also be higher. In both cases, the amount of investment is the same i.e. Rs. 100 but in the 2nd case - the income is expected to be higher. In both cases, the duty will remain the same till the exemption as term insurance can also be claimed as exemption.

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The higher returns generated in 2 cases have been observed and observed in almost all cases in the past and will continue in the future due to the innate nature of ULIP.

 

 

A very large proportion of the money collected as commissions is paid to ULPs and hence the amount they have for investment is less. ELSS Mutual Funds do not pay such high commissions and the amount they have after paying the commission is much higher and hence the income generated by the investors is also higher.

 

Since the commissions paid by ULIP are very high, most bankers will try to sell you ULIP by showing you pink pictures. They will try to show and prove that ULIPs are better than ELSS but it is true that ELSS + term insurance is always muchbetter than ULIPs.

You may also, like- Automated Income Tax Preparation Software All in One in Excel for the Govt & Non-Govt(Private) Employees for the F.Y.2021-22

Main Feature of this Excel Utility-

# This Excel Utility can prepare at a time your Income Tax Computed Sheet

# Individual Salary Structure

# Individual Salary Sheet

# Automated Income Tax Arrears Relief Calculation U/s 89(1) with Form 10 E for F.Y.2021-22

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

# Automated Income Tax Revised Form 16 Part A&B as per Budget 2021]

# Automated Income Tax Revised Form 16 Part B as per Budget 2021]

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