Housing Loan Interest Deduction - Section 24B | With Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E for the F.Y.2022-23

 Housing Loan Interest Deduction - Section 24B| Section 24b of the Income Tax Act allows for the

 deduction of interest on mortgage loans from taxable income. The said loan must be taken for the

 purchase or construction or repair or reconstruction of residential property.

 

This deduction is allowed on an accrual basis, not the payment. In other words, interest due for the year is allowed as a deduction whether or not it is paid.

 

The deduction may be claimed for two or more home loans. The deduction may also be claimed for two or more households.

 

To claim the deduction under this section, a person must own the house and the loan must also be in his or her name.

 

Interest inclusions/exclusions

 

Interest includes service fees, brokerage, commission, prepayment fees, etc.

Interest/fines on unpaid interest will not be allowed as a deduction.

 

Type of loan for which the deduction is allowed

 

The deduction will be allowed regardless of the nature of the loan, whether it is a home loan or a personal loan from any person/institution. The loan must be used for the construction, purchase or repair/reconstruction of the house.

 

If a person, instead of taking out a loan from a third party, pays the sale price to the seller in instalments with interest, then that interest is also allowed.

 

Maximum deduction limit

 

These deduction limits apply per appraised and not per property. Therefore, if a person owns two or more homes, the total deduction for that person remains the same.

 

1) On rented property / Considered leased - Rs. 2 million

 

2) Self-Occupied House (SOP) - Rs. 2 million

 

Interest in the pre-construction/acquisition period

 

Pre-construction/acquisition period interest is allowed in five equal instalments from the year of completion of home ownership. This deduction is not allowed if the loan is used for repairs, renovations or reconstruction.

 

The pre-construction/acquisition period begins on the loan date and ends on the last day of the previous fiscal year in which construction is completed.

 

Deduction in case of co-borrower

 

If the mortgage loan is taken together, the deduction is allowed to each co-borrower in proportion to his share of the loan. To make such a deduction it is necessary that the said co-borrower is also co-owner of that property. If the beneficiary is a co-owner but is paying off the entire loan, he or she can claim the deduction of the entire interest paid by the beneficiary.

 

The deduction limit in the case of Autonomous Property is applied individually to each co-borrower. In other words, each co-borrower can claim a deduction of up to Rs. 2 lakhs/Rs. 30,000. No limits apply to the leased property.

 

Interest deduction with HRA

 

The HRA pursuant to section 10(13A) and the interest deduction may be used simultaneously, even if the home owner is in the same city where you reside in a rental property.

 

Form 12BB must be filed with the employer if you want your employer to consider a deduction under this section and therefore deduct lower TDS

Download Automated Income Tax Arrears Relief Calculator U/s 89(1) along with Form 10E from the Financial the Year 2000-01 to Financial Year 2022-23 (Up-to-date Version)

Read More

Section 80U - Tax Exemption for Persons with Disabilities| With Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2022-23

Section 80U - Check Eligibility, Amount of Deduction, How to Claim, Documents, Definitions, For

 F.Y 2022-23 (AY 2023-24), Diagnosed Disease

 

Section 80U Exclusion of Disability

Section 80U of income tax is deductible for those who are unable to work. This section provides a lump sum exemption for a person with a disability based on the severity of the disability, regardless of the amount of the income.

The criteria for entitled this deduction are -.

Taxpayers must be residents.

Must be at least 40% disabled for work.

The disability must also be verified by recognized medical authorities.

 

Exemption of tax under section 80U?

 

This category is allowed to be deleted

Severely handicapped person* one hundred and twenty-five thousand rupees ie. Rs. 1,25,000/-

Disabled person** seventy-five thousand rupees ie. Rs. 75,000/-

 

 

*"severely disabled person" means—

(i) a person with eighty per cent or more of one or more disabilities, as defined in clause (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act; 1995 (1 of 1996); either

 

(ii) a person with a severe disability referred to in clause (o) of section 2 of the National Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Welfare Trust Act, 1999 (44 of 1999).

 

You May Also Like: Automated Income Tax Preparation Excel-Based Software for the Non-Govt Employees for the F.Y.2022-23

 

80U Eligible - Who can claim this deduction?

Residents who have been certified as a Disabled/Scanned Person by the Medical Authority at any time during the fiscal year will only claim this exemption for themselves. Your living situation determines whether you can qualify for this deduction. NRAs are not eligible for this deduction.

 

The available amount of exemption available u/s 80U?

As mentioned earlier, the amount of the deductible depends on the severity of the condition. So taxpayers with less than 80% handicap get a deduction of Rs.75,000 and highly handicapped taxpayers who are 80% or more get a deduction of Rs. 1, 25,000 in cash. A deduction is a set amount that can be deducted from taxable income. 

What disabilities are covered under Section 80U?

Section 80U has the following disabilities:

Locomotor disability: - This refers to a disability in the muscles or bones of the joints leading to severe restriction of limb movement.

 

Visual Impairment: - Persons with visual impairment that cannot be fully corrected by surgery or standard refractive correction. People with this disability are still able to use their eyes using other devices.

 

Blindness: - Blindness means complete loss of vision or where the field of view is limited to an angle of 20 degrees or worse, or vision of less than 6160 accelerates after corrective lenses.

 

Curing leprosy: - Persons cured of leprosy but still suffering from disability in which they have lost feeling in their legs or arms and paresis in the eyelids and eyes. It also includes the elderly or those with severe disabilities that prevent them from doing vital work.

 

Mental Retardation: Individuals with incomplete or stunted development of mental abilities, resulting in subnormal levels of intelligence.

 

Hearing loss:- Hearing loss of at least 60 decibels

 

Autism:- Autism spectrum disorder is associated with brain development that affects how a person perceives and interacts with others causing difficulties in social interaction and communication.

 

Cerebral Palsy: - CP is a group of movement disorders that occur in early childhood. Signs and symptoms vary between individuals and over time but include poor alignment, tight muscles, weak muscles, and tremors. Problems can include emotions, vision, hearing and speech.

 

Mental Illness: - This applies to other mental disorders

A taxpayer is considered to be not severely disabled if he or she has a disability of 40% or more but less than 80%. However, if the taxpayer has a disability of 80% or more, it is called a severe disability. The limit of the deduction varies depending on the severity of the disability suffered.

 

How do you claim deduction under section 80U?

The person claiming the deduction is liable to submit along with the ITR a copy of the certificate issued by the medical authority in the prescribed form. Practically no document needs to be attached to the ITR, it is advisable to keep the document handy.

Please note that a medical certificate stating the diagnosed disability must be submitted. A certificate with recognized medical authority should be prepared in the prescribed format contained in Form 10 -IA Form can be downloaded from the Income India website -.

Download Automated Income Tax Arrears Relief Calculator U/s 89(1) along with Form 10E from the Financial the Year 2000-01 to Financial Year 2022-23 (Up-to-date version)

Read More

Standard deduction from salary and pensions| With Automated Income Tax Preparation Excel Based Software All in One for the Govt and Non-Govt Employees for the F.Y.2022-23

 Standard deduction from salary and pensions| A standard deduction means a fixed deduction for people

 who receive wages or retirement income. It was introduced in the 2018 budget in lieu of exemptions

 from travel expenses and reimbursement of various medical expenses. In the 2021-22 tax year, the

 default deduction limit is Rs 50,000. In this guide, we'll cover what deductions are available from a

 person's wages and retirement income.

 

The standard deduction for employees

Standard Income Tax Deduction - 2019 Provisional Budget

The standard deduction replaced travel and medical expenses. This gives salaried taxpayers exemption from taxable income without any restrictions. The 2019 draft budget brought many benefits to salaried taxpayers. Among these benefits, one was an increase in the standard deduction. The standard deduction has increased from Rs 40,000 to Rs 50,000, a notable step in favour of taxpayers. This measure will help taxpayers reduce their taxable income at the same time.

 

Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y.2021-22

What is the impact of the standard deduction on retirees?

The decision to allow standard deductions has provided significant benefits for retirees. These pensioners usually did not receive any allowances for transportation and medical expenses. However, the standard deduction will only be allowed for retirees if the pension is taxed as income from wages. If the income is from another source, there is no standard deduction.

 

What is the default deduction limit?

The amount of the standard deduction cannot exceed the amount of wages. The maximum amount of the deduction will be Rs. 50,000 rubles or equal to the amount of the salary, whichever is less.

 

How is the standard multi-employer deduction calculated?

There is no standard deduction for any reason. employers. The default deduction is the total limit for the full year, not none. employers.

Let's say Mr A worked for 2 employers during the 2019-20 fiscal year. In this case, you may be wondering how much the standard deduction r. might require

Option 1 BRL 50,000

Option 2 R$ 1,00,000 (Rs 50,000 for each employer)

The correct answer is option 1, i.e. Mr And can take advantage of the standard deduction up to Rs. 50,000/-

Download and Prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2021-22 

What is the procedure for the standard deduction in the new tax regime?

The 2020 budget introduces a new tax regime (the tax year 2020-21) under which income will be taxed at lower rates. To take advantage of this option, the taxpayer would have to waive major tax credits and benefits, including the standard deduction.

 

Is the standard deduction part of Section 80C?

No, the standard deduction is not part of section 80C. Both the standard deduction and section 80C follow different rules and regulations that serve different purposes.

The standard deduction is a deduction for medical and travel expenses. While the deduction under section 80C allows you to deduct specific investments and expenses. To learn more about Section 80C

Download Automated Income Tax Preparation Excel-Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2022-23 and A.Y.2023-24

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

Read More

Home loan in case of joint ownership | With Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2022-23

 Home loan in case of joint ownership:

If the mortgage is taken out for the purpose of buying, building, renovating, renovating, or renovating, interest is allowed under section 24 of the Income Tax Act of 1961.

 

However, if the property is owned by a co-owner, the Home Loan Interest deduction is allowed if the property is jointly owned with each of the co-owners.

 

Income Tax Regulation:

Under section 24 of the Income Tax Law, the maximum amount of interest allowed in the case of own property is Rs 2,00,000 per co-owner, subject to actual payment of interest if the following conditions are met;

 

1. A housing loan is issued from April 1, 1999, for the purchase or construction of real estate.

 

2. A loan taken before April 1, 1999, is eligible for a maximum interest deduction up to Rs 30,000 only.

 

3. The acquisition/construction must be completed within three years after the end of the financial year in which the borrowed capital. For example. the loan was taken on July 2, 2015, so the acquisition or construction must be completed before March 31, 2019, i.e. three years from March 31, 2016

 

4. The person must certify that the loan was taken for the purchase or construction of a house, or to repay the principal of a loan previously taken for the purchase or construction.

 

5. However, a maximum deduction of Rs 30,000 and not Rs 200,000 is allowed for repairs, renovations or renovations.

Deduction in case of joint ownership:

For example, if a man and his wife are co-owners of a house, the mortgage interest deduction in case of joint ownership will be Rs. 2,000,000 allowed for husband and wife. Pay attention to the following points in this regard;

 

1. Ceiling Rs. 2,000,000 installed for own housing.

 

2. The persons must be co-owners of the property, and their names must be indicated in the registered deed of sale.

 

3. Your share of the property must be indicated in the act of sale, in the absence of such information, the property is considered equal between all co-owners.

 

4. To claim a mortgage interest deduction, each co-owner must take out a joint loan.

5. If people took a loan from more than one bank, but for the same property, a deduction is also allowed.

 

In addition to the home loan interest deduction, people can claim a deduction of U/s 80C to repay the principal of the home loan, up to a general limit of Rs 1,50,000 per person. You can check the latest Mortgage Loan Interest Rates at Money Control from the link below:

Latest home loan rates.

I hope this post has given you a clear idea of ​​the home loan interest deduction in the case of co-ownership.

 

Start financial planning today if you want to invest in fixed-income real estate with capital gains. The first step is to learn how to manage money in the best possible way.

 

Download Automated Excel Based Income Tax Salary Arrears Relief Calculator U/s 89(1) with Form 10E from the Financial Year 2000-01 to the Financial Year 2022-23 (Updated Version)

Read More

Download Automated All in One Salary TDS for Government and Non-Government Employees for F.Y. 2022-23 and A.Y.2023-24 with income tax benefits on joint home loan

 What is a joint home loan?

A home loan where there is more than one borrower is called a joint home loan. Two friends cannot be co-borrowers. In fact, banks sometimes refrain from lending to siblings unless they co-own the property. This also happens in the case where the loan is made with the parents as co-borrowers. It is only in the case of spouses that banks do not require co-ownership of the said property from the co-borrowers.

 

Having a joint home loan is advantageous when both co-borrowers are taxpayers. But keep in mind that to claim income tax benefits on joint home loans, all co-borrowers must be the co-owners. Tax benefits can be claimed in the same proportion as the loan taken by the co-owners.

 

A co-owner who is not a co-borrower is not entitled to income tax benefits. Likewise, a co-borrower who is not a co-owner cannot claim tax benefits. Below are some examples that will make this concept clear.

Fixed amount - Rs 75 lakhs

Loan amount - Rs 60 lakh

EMI for 20 years @ 10% p.a. (reducing) – Rs 57,901/- p.m

 

Case 1 – Husband (H) and Wife (W), both workers and taxpayers. H buys an apartment in his own name and to manage the EMI burden takes out a home loan with W as co-borrower. In this case, even though W is the co-borrower and contributes to the EMI, she would still not be eligible to claim any u/s 80C or section 24 tax benefit. i.e. in all years, only H can claim up to Rs 1 .50 lakh interest and 100% principal or Rs 1 lakh, whichever is less.

 

Case 2 – H and W both purchased a house with 50:50 co-ownership and also jointly took out home loans in the same proportion. In that case, H and W can claim Section 80C and Section 24 income tax benefits in equal proportion. i.e. the full payment of interest and principal will be split evenly on H&W and both can separately claim Rs 1.50 lakh u/s 24 and Rs 1 lakh or 50% of principal, whichever is less

Case 3 – H and W acquire a house with a co-ownership of 75:25 and also take out a joint home loan at the ratio of 50:50. In that case, both H and W can claim Section 80C and Section 24 income tax benefits in proportion to loans. that is, the interest and principal payment will be split 50:50 and both H&W can claim income tax benefit only in that proportion, up to the maximum allowable limit.

 

Please note that in all of the above cases the tax benefits that have been discussed are for the self-occupied house. In the case of a lease or lease on the house, no principal payment, but 100% of interest payment, may be claimed under section 24 by both co-owners in proportion to their loans.

 

Advantages of having a common home loan

1. A big advantage is the income tax benefit that is shared between the co-owners.

 

2. The second advantage is the increased chances of getting the loan and also the increased eligibility of the loan.

 

Disadvantages of having a regular home loan

1. The autonomous property is one that is occupied by the owner for his own housing, and if there is any other property acquired, it will be treated as “Considered leased” and taxed accordingly. Thus, in the case of a condominium, if any of the condominium owners acquire some other property in the same city, they will be treated as “considered to leave”.

 

2. If any of the co-borrowers has bad credit behaviour due to which the home loan repayment is erratic, this will affect the other co-borrower's credit score as well.

 

3. If, due to any dispute, any of the co-borrowers refuses to repay the loan, please be advised that, in accordance with the loan schedule, the liability to repay the loan rests with each co-borrower. borrower. This means that all co-borrowers are required to pay as much as all repayments. A creditor can also sue both co-applicants to recover the debts.

 

4. We are all emotional beings. Under the lure of gaining access to high credit eligibility that can help with the purchase of a large home, we tend to forget how the EMI load will affect other goals.

 

Although banks grant loans to spouses without the obligation of co-ownership, it is advisable for both spouses to have some property. Before becoming a co-applicant, make sure you own some percentage of ownership of the property. Also, if you are a co-borrower, you may be able to draw up and sign an agreement with your spouse about the division of responsibility. This is to avoid any dispute in the future.

Download Automated Income Tax Preparation Excel-Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2022-23 and A.Y.2023-24

 

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

Read More

Know you’re Tax Burden for the F.Y.2022-23 and A.Y.2023-24 by the Excel Based Automated Tax Calculator All in One for the Govt and Non-Govt Employees for the F.Y.2022-23

  

Know you’re Tax Burden for the F.Y.2022-23 and A.Y.2023-24 | As the Financial Year 2021-22 has already gone and the New Financial Year 2022-23 has started from the 1^st April 2022 which will end on the month of 31^st March 2023. So we called the Financial Year 2022-23 and Assessment Year 2023-24.

 

Now it is indispensable as well as necessary to calculate your Income Tax liability for the Financial Year 2022-23 as per the Finance Budget 2022. The New and Old Tax Regime U/s 115 has continued for this present financial year. You can change your opinion from Old to New or New to Old Tax Regime this year. Hope all of the Tax Payers are well known about this New and Old Tax Regime U/s 115 BAC.

 

However, we prepare an Excel Based Software for calculating your Income Tax liability for the Financial Year 2022-23 and Assessment Year 2023-24 as per the Finance Budget 2022. This Excel Based software can use by both Government and Private Employees or Concerned also. This Excel Utility is easy to generate just like an Excel File. No need for any calculation of tax which will calculate automatically as per the Income Tax Law. No need to calculate for House Rent Exemption U/s 10(13A as the software can calculate it automatically.

 

Most of the advantage of this Excel Software All in One is that the Salary Arrears Received from the previous years, you can calculate the Arrears Relief by this software as the Automated Income Tax Arrears Relief Calculator has built in this software U/s 89(1) along with Form 10 E.

 

Download Automated Income Tax Preparation Excel-Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2022-23 and A.Y.2023-24

 

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

Read More

Save tax on Income for the A.Y.2023-24| With Automated Income Tax Preparation Software in Excel for the Govt and Non-Govt Employees for the F.Y.2022-23

 Save tax on Income for the A.Y.2023-24|For most people, paying income tax at the end of the tax year

 is a difficult task. Much of the fuss revolves around scheduling insurance, rent, and other receipts in

 such a way as to result in the lowest tax liability possible.

 

Income tax planning doesn't have to be a difficult task if you carefully consider every aspect of your income. While some of the tax-saving methods are very common, if you are in a higher tax bracket, you can turn to non-traditional methods to maximize your savings.

 

Invest more in the National Pension Scheme

If you are an NPS subscriber, you may qualify for tax credits under section 80CCD(1) with a general cap of Rs. 1.5 varnish according to Sec 80 CCE. What you may not know is that you can claim an additional Rs 50,000 deduction under Section 80CCD(1B) Income Tax. So, to save on taxes, increase your contribution to the national pension system.

Download Automated Income Tax Challan 280 for Self or Advance tax

Deductions from the education of children

If you are a parent, you can claim a deduction from the amount spent on school, university, college or any other educational institution. During the financial year, the maximum tuition deduction that can be claimed along with deductions for insurance, reserve fund, pension and other investments is Rs 1.5 lakh. This exemption is for a maximum of 2 children.

 

Wedding gift

A wedding is a big event in India. The couple receives many gifts from guests. Such gifts are exempt from taxation in accordance with section 56(2). Gifts received on the wedding day, whether in the form of a gift, cash or check, are tax-free. This means that you can claim tax relief on gifts received from friends and family.

Channel your investments through your parents

 

Seniors are eligible for special tax credits. You can redirect your investment income if your parents are on a low income. So if you earn Rs 1 Lakh in interest, instead of including it in your taxable income for the year, you can transfer the money to them without paying taxes. You can donate this money to your parents tax-free. They can reinvest in lucrative seniors schemes such as Seniors FD, Seniors Savings Scheme and others.

 

Money spent on donations/charities

Tax deductions can be claimed for charities/donations and charitable endeavours. Depending on the purpose, some donations are eligible for a 100% deduction while others are eligible for a 50% deduction. However, you should keep in mind that only donations made in cash or donations by check are eligible for deductions.

PS: Cash allowed up to INR 2000

Phone and internet expenses

In accordance with Rule 3(7)(ix), telephone reimbursement provided to employees is not taxable. If your office work requires the use of a mobile/telephone/internet connection, you are entitled to a full exemption from billing.

Paying for parental health and health insurance

 

Section 80D allows a taxpayer to claim a deduction of up to INR 25,000. You can pay the insurance premium for yourself and your family. If you pay health insurance premiums to your parents, you may qualify for an additional u/s 80D tax credit.

 

Also, if your parents are not insured by any policy, you can still claim up to Rs.50,000 for medical expenses incurred during the year.

Download Automated Income Tax Preparation Excel-Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2022-23 and A.Y.2023-24 

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

Read More

Exemption on rent paid U / s 80GG| With Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2022-23

 80GG is an exemption under chapter VI-A of the Income Tax Act of 1961. It was introduced to help

 those individuals who do not receive any rental allowance but pay rent for their stay. Thus, a person

 can claim a deduction from the rent paid, even if they do not receive a housing allowance.

 

A person to qualify for a deduction under this section must be self-employed or earning a wage. 80GG allows individuals to claim a deduction from paid housing rent. This paid house rental will be for your own residence.

 

80GG deduction

To qualify for this section, the following conditions must be met:

An individual should not receive any housing allowance from their employer.

An individual submitted an application on Form No. 10BA.

Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y.2021-22

The defendant or his spouse or minor child, or the HUF of which he is a member, must not own any residential property in the place where he or she habitually resides or performs official functions, or practices his business or profession.

 

The appraiser shall not own any dwelling in his own dwelling elsewhere, the value of which shall be determined in accordance with section 23(2)(a) or section 23(4)(a).

Simply put, if d. If you are claiming a deduction for an independent property on your income tax return and you are paying rent for a place where you normally live but which you do not own, you will not be able to claim a deduction below 80GG.

 

The residue quantum must be the smaller of the following:

Actual rent paid minus 10 % of the total adjusted rent.

5000r - per month.

25% of total adjusted income.

Exceptions under Section 80GG:

- An individual cannot claim a house rent deduction if the location of the house is where he/she works or does business.

Download and Prepare at a time 50 Employees Form 16 Part A&B for the F.Y.2021-22

 

An individual cannot claim a housing rent deduction if they claim ownership of the housing as a separate property elsewhere. If an individual lives in one city and has a house in another locality or village, it will be considered rented.

 

If an individual lives with his father and mother in his home, he may qualify for a rent deduction under section 80GG. He/she will need to enter into a lease agreement with his/her parents in order to receive a rent deduction. However, the home-owning mother and father must report the rent as income on their tax returns. If the house is jointly owned by the son/daughter, they cannot claim the rent deducted from their taxable income.

 

Frequently Asked Questions on Section 80GG

 

1. What is 80GG Adjusted Gross Income?

 

Adjusted total income refers to income that excludes long-term and short-term capital gains. Only short-term capital gains, which are taxed at a rate of 10% in accordance with section 111A, should be excluded here.

In addition, adjusted total income refers to income less income from 115A to 115D and deductions from 80C to 80U.

Adjusted total income means:

Total gross income minus long-term capital gains minus short-term capital gains subject to tax at the rate of 10% less deductions under sections 80C-80U less foreign company income.

It should be noted that 80GY should not be included in deductions above 80C to 80U.

 

2. What information do I need to provide to claim the u/s 80GG deduction?

Data to be sent:

Appraiser name

PAN

Full address of the property along with postal code

Ownership (in months)

Payment method

Amount paid

Owner's name

lessor's address.

The owner's PAN is mandatory if the rent exceeds INR 1 lakh for the assessment year.

A declaration confirming that no other residential property is owned by the taxpayer himself or in the name of the spouse/minor child or HUF of which he is a member.

Download Automated Excel Based Income Tax Salary Arrears Relief Calculator U/s 89(1) with Form 10E from the Financial Year 2000-01 to the Financial Year 2022-23 (Updated Version)

Read More

Section 80 U - Disability Tax Deduction | Using the Automated U/s 89(1) Income Tax Arrears Exemption Calculator with Form 10 E for Financial Year 2022-23

 Section 80 U - Disability Tax Deduction | Check eligibility, discount amount, how to claim, documents,

 and definitions, for the fiscal year 2022-23

 

The Income Tax Law has defined several qualifying deductions in Chapter VIA. Deductions help reduce tax liability, specific deductions for expenses can be understood as deductions, which the Government of India promotes by providing tax relief on expenses such as those at 80C. etc., while other types of deductions are those granted by the government when certain conditions are met to reduce the tax burden. One of these deductions is provided in Section 80U.

 

Download Automated Income Tax Form 16 Part A&B for the F.Y.2021-22[This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

 

 

These deductions are tax deductible in nature and are therefore reduced from your total income. One of these deductions is available under Section 80U. If the taxpayer is a disabled person, he may claim a deduction under this section and may reduce the total tax payment. Let's understand what this section is about and what discounts it offers:

Section 80U Disability Deductions

Section 80U income tax is a disability deduction. This section provides a lump sum discount for a disabled person based on the severity of the disability, regardless of the amount of the expense.

The conditions to claim this discount are:

Taxpayers must be residents.

Have a disability of at least 40%.

The disability must also be certified by recognized medical authorities.

 

Tax deduction under Section 80U?

Category of discounts allowed

Severely disabled person * One hundred twenty-five thousand rupees ie Rs. 1,25,000/-

Disabled person** Seventy-five thousand rupees, ie Rs. 75000/-

 

 

* Severe disability" -

(1) A person with eighty per cent or more of one or more disabilities, as referred to in Subsection (4) of Section 56 of the Persons with Disabilities (Equal Opportunity, Prevention of Rights and Full Participation) as per Act, 1995 (No. 1 of 1996)); either

(2) The severely disabled person referred to in clause (o) of Section 2 of the Law of the National Fund for the Care of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities of 1999 (44 of 1999).

 

Download Automated Income Tax Form 16 Part B for the  F.Y.2021-22[This Excel Utility can prepare at a time 50 Employees Form 16 Part B]

  

** means "person with a disability": the person mentioned in Clause (t) of Section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act 1995 (1 of 1996), or Clause ( j) of Article 2 of the Law of the National Fund for the Care of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities of 1999 (44 of 1999); 

80U Eligibility - Who can claim this discount?

Residents who are approved at any time during the fiscal year by medical authority to be disabled person/can claim this discount for themselves only. Residential status determines eligibility for this discount. NRIs are not eligible for this discount. 

How much discount is available u/s 80U?

As mentioned above, the amount of the discount depends on the severity of the disability. Thus, taxpayers with less than 80% disability get a deduction of Rs 75,000, and taxpayers with 80% or more severe disability get a deduction of Rs. 1,25,000 lakhs. A deduction is a fixed amount allowed as a deduction from taxable income.

Download Automated Income Tax Form 16 Part B for the F.Y.2021-22[This Excel Utility can prepare at a time 100 Employees Form 16 Part B]

 

What disabilities does Section 80U cover?

Section 80U is entitled to the following types of disabilities:

Locomotor disability: - This refers to disabilities in the muscles of the joints or bones that lead to severe limitations in the movements of the extremities.

 

Vision impairment: - People with an impaired visual function that cannot be completely corrected by surgery or standard refractive correction. People with this disability can still use their vision with the help of other devices.

Blindness: - Blindness means the total absence of vision or when the field of vision is restricted to an angle of 20 degrees or worse, or visual acuity is less than 6160 Snellen after corrective lenses.

 

 

Leprosy recovery: - People who have been cured of leprosy but still suffer from a disability where they have lost feeling in their feet or hands and partial paralysis of the eyelid and eye. It also includes elderly people or those with severe deformities that prevent them from performing any useful occupation.

 

 

Mental retardation: - People who have incomplete or stunted development of mental abilities resulting in abnormal levels of intelligence.

Hearing loss of fewer than 60 decibels

Autism: Autism Spectrum Disorder is associated with brain development that affects the way a person perceives and communicates with others, causing problems in social interaction and communication.

 

Download Automated Income Tax Form 16 Part A&B for the F.Y.2021-22[This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B] 

 

A taxpayer is considered not severely disabled if they are 40% or more but less than 80% disabled. However, if the taxpayer is 80% or more disabled, it is called severe disability. The discount limit varies depending on the severity of the disability. 

How to claim a deduction under Section 80U?

The person claiming the deduction is required to submit a copy of the certificate issued by the medical authority in the prescribed form together with the ITR. In practice, it is not required to attach any document to the ITR, it is advisable to have the document at hand.

Keep in mind that you must present a medical certificate that proves the disability you have suffered. The certificate must be prepared by a recognized medical body in a specific format provided in Form 10-IA and the form can be found on the Income Tax India website

DownloadAutomated Income Tax Arrears Relief Calculator U/s 89(1) along with Form 10Efrom the Financial the Year 2000-01 to Financial Year 2022-23 (Up-to- dateVersion)

Read More