Income tax deduction under Sec 80 CCD (1B) Along with Automatic Income Tax Preparation Software in Excel for the Government and Non-Government Employees for the F.Y.2021-22

 Income tax deduction under Sec 80 CCD (1B). According to the rules and regulations of the Income

 Tax Act 1961, payment of income tax is mandatory for every citizen of India. But that doesn't mean

 you have to pay tax on the income you make. In a given financial year. There are several provisions

 under the Income Tax Act that allow you to claim exemptions against certain investments and

 expenses.

 

Plan your taxes to save your income

 

By planning your taxes carefully, you can save a significant amount for your taxation obligations and create an additional source of income for yourself. With the dual benefits of tax savings and income growth, these discounts offer you significant benefits.

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The government introduces new exemptions or amendments from time to time which you must observe closely. One deduction available to you is Sec 80 CCD (1B) which deals with contributions to NPS.

 

About NPS

 

The NPS or National Pension System is a pension scheme available to both government employees as well as private citizens. NPS is one of the most popular options for people looking to build a corpus for their retirement with a regular monthly income.

 

The investment in NPS is a variety of securities and deposition of avenues, including the share market. It is widely regarded as one of the cheapest investment options, including exposure to equity. Since returns are directly related to market performance, there is no guarantee of a fixed amount, but within a specified period, the return from NPS is one of the highest in the market.

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NPS has two types of accounts, NPS Tier 1 and NPS Tier 2.

Tier 1 account: It has a fixed lock-in period until the customer reaches 60 years of age. Partial withdrawal can be made only in certain conditions. Contributions made for Tier 1 are tax-exempt and deductible under section 80CCD (1) and section 80CCD (1B). This means you can invest up to money. Claim a deduction for 2 lakhs and the full amount in an NPS Tier 1 account, i.e. Rs. 1.50 lakh under section 80CCD (1) and Rs. 50,000 under Section 80CCD (1B)

 

Tier 2 Account: This is essentially a voluntary savings account that allows customers to withdraw money of their choice. But contributions made to a Tier 2 account are not eligible for a tax deduction. To open a Tier 2 account, you must first open a Tier 1 account. Contributions to the NPS now qualify under the Tax-Free-Free (EEE) mode where the amount of contributions to the NPS, the income generated and the amount of maturity are all tax-free. According to the latest guidelines, you can withdraw up to 60% at maturity and reinvest the remaining 40% to make an annual purchase that gives you a regular monthly income.

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What is Sec 80CCD (1B)?

 

Section 80CCD of the Income-tax Act deals with deductions made by persons contributing to NPS. As per Section 80CCD, till 2015, a person has to pay Rs. Till was eligible to claim income tax exemption. 1 lakh against the contribution to NPS. In the 2015 budget, the government increased the maximum amount payable for NPS to Rs. 1.50 lakh annually.

 

In addition, a new sub-section 1B has also been introduced, which offers discounts up to extra money. 50,000 / - for contribution to NPS by individual taxpayers. Extra money has been deducted. Benefits of Rs. 50,000 / - and above are available for assessment under Section 80CCD (1B). 1.50 lakh is available as an exemption under section 80CCD (1). Thus, by increasing the maximum limit of discount to Rs. 2.00 lakhs including Section 80CCD (1) + Section 80CCD (1B).

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 Things to keep in mind when claiming a deduction under section 80CCD (1B)

 

Here are some important points about Section 80CCD (1B) that you should be aware of.

 

Extra money has been deducted. 50,000 / - is available for contributions to NPS Tier 1 account only

 

Tier 2 accounts are not eligible to claim deductions under section 80CCD (1B)

Deductions under section 80CCD (1B) are available to salaried persons as well as self-employed persons.

 

You will need to present documentary evidence of the transaction related to your contribution to the NPS

 

Partial withdrawal is allowed under NPS but subjects to certain conditions

The Maximum limit under section 80CCD (1B) is Rs. 50,000 / - and exempt from exemption under section 80C. As a result, you can claim the maximum money discount. 2,00,000 / -

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If the assessee dies, and the nominee decides to close the NPS account, the nominee is exempt from tax.

If the account is partially deducted, only 25% of the contribution is exempt from tax

 

If the appraiser is an employee and decides to close the NPS account or opt out of the NPS, only 40% of the total amount is tax-free.

 

After reaching the age of 60 as tax-free income, the assessor will be able to withdraw 60% of the total amount. The remaining 40% is tax-free if it is used to purchase an annual plan. Section 80CCD (1B) gives you an excellent opportunity to save a substantial amount on your taxation obligations.

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This way you can not only reduce your current tax liability but also work towards creating a significant corpus for your retirement. Please note the above points before taking any action regarding your NPS account regarding Section 80CCD (1B).

Convenience for existing NPS customers

 

Presently  NPS members can also avail of deduction under Section 80CCD (1B) in addition to deducting Rs 1.5 lakh under Section 80C. They can claim an additional Rs 50,000 rebate on their contribution under section 80CCD (IB). They can split their NPS contributions and claim partially at 80C and the remaining 80CCD (1B), with a maximum tax deduction of Rs 2 lakh. See NPS tax benefits here:

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

 

Feature of this Excel Utility:-

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

 

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

 

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

 

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

 

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

 

6) Individual Salary Sheet

 

7) Individual Tax Computed Sheet

 

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

 

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

 

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

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New and Old Tax Regime U/s 115 BAC and Option form 10-IE for the F.Y.2021-22

 New and Old Tax Regime U/s 115 BACand Options form 10-IE for the F.Y.2021-22. The Finance Act,

 2020 introduces a new tax regime. The finance minister has declared the Income new tax slab for the

 F.Y.2021-22.

Therefore, the Ministry has proposed two sections for the new tax slab:

 

Section 115BAC: New tax rate for individual and HUF income

 

Section 115BAC: New tax rate on income of cooperative society.

New Tax Slab Rate for the F.Y.2021-22

Some key points in this section: -

Tax The new tax system is applicable/available from A.Y. after 2021-22.

Income The new income tax system applies to every person regardless of their age, meaning the tax slab also applies to senior citizens and super senior citizens.

Tax New tax system is in place.

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An A discount is available of Rs. 12,500/- for those whose total income is less than Rs 5 lakh.

The exemption is not allowed when opting for the new tax regime: - 

Salary deduction standard for salaried taxpayers;

Leave Travel Allowance (LTA);

• House Rent Allowance (HRA);

• Children's education allowance;

• Other special allowances [Section 10 (14)]; 

Family Depreciation from family pension income;

Interest on housing loan on the self-occupied property or vacant property (Section 24); 

Chapter VI-A deductions;

Other Discounts or discounts for any other grants or allowances;

Loss does not stop any loss or underestimation of the previous year;

Not permitted except in section (iia) of sub-section (1);

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Discount for SEZ unit u / s 10AA;

In the case of self-occupied property, you cannot claim a discount on interest for a housing loan. 

Deductions are allowed when choosing a new tax regime: -

Deduction under section 80CCD (2)(employer's contribution to your pension account);

80 80JJAA (additional staff costs)

Different Transport Allowance (Dibbing) for different eligible employees;

Duties Transport allowance for discharge of government duties;

Travel No allowance for travel/travel/transfer costs;

Certain Daily allowance paid to employees on certain conditions.

If you want to revert between old and new tax slabs: 

Business Personal business income: - People with business income have the option to move to a new system once in a lifetime. This means that once a person chooses a new tax system and then wants to move to the old system, such a person cannot choose a new tax slab without having any business income. 

A person who is salaried and has no business income: - A person who has a salary income other than personal income has the option to choose between the old tax slab and the new tax slab every year, i.e. he can change the regime from year to year.

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Taxpayers can file 'Form 10-IE' electronically from the Income Tax e-filing portal. You can submit the form under digital signature or with Electronic Verification Code (EVC). If Form 10IE is not submitted, the department will calculate the tax on the basis of the old/existing tax system. 

Last date for submission of Form 10IE

Having business income: before the due date of ITR submission. Salary Income: Before or before the due date of ITR submission.

Form 10IE Submission Frequency: - 

A person's business income: twice, once to use the new tax system and the second time to go back to the old regime.

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A person who is salaried and has no business income: - Every year, he has the option to file a 10IE year form. 

Form Content: -

Below are the basic details required to file Form 10IE:

The person's name / HUF

Confirmation of whether the person or HUF has any income or profits from the business and profession.

• PAN number

• Address

Birth Date of Birth / Date of Inclusion

Business Nature of Business / Occupation (Mandatory in case of business income)

Confirmation in 'Yes / No' whether the taxpayer referred to in sub-section (1A) of U/s 80LA has any unit in IFSC (International Financial Services Center). Suppose the answer is yes, then the details of the unit have to be provided.

Previous Any previous Form 10IE has been filed.

• Declaration 

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Main Feature of this Excel Utility-

1. This Excel Utility can prepare at a time your Income Tax computed Sheet as per your Option New or Old Tax Regime

 

2. Individual Salary Structure as per all State Govt and Non-Govt Employees Salary Pattern

 

3. Automated Income Tax H.R.A. Exemption Calculation U/s 10(13A)

 

4 Automated Salary Arrears Relief Calculator U/s 89(1) with Form 10 E for F.Y.2021-22

 

5. Automated Income Tax Form 16 Part A&B and Part B as per Budget 2021]

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Tax benefits to the salaried persons as per Budget 2021 | With Auto-fill Income Tax Preparation Software All in One in Excel for the F.Y.2021-22 as per Budget 2021

 Tax benefits to the salaried persons as per Budget 2021| Here is the list of Tax benefit deductions 

available to Hindu Undivided Family (HUF) assessee in Income tax act on various  Investments / 

Payments / Incomes in Income tax return for F.Y 2020-21 A.Y 2021-22

 

Section 24(b) – Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. 

 

In the case of self-occupied property, the upper limit for deduction of interest paid on housing loans is Rs.2 lakh. However, this deduction is not available for a person opting for New Tax Regime.

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Interest on loan u/s 24(b) allowable are tabulated below 

Nature of Property	When the loan was taken	Purpose of loan	Allowable (Maximum limit)
Self-Occupied	On or after 1/04/1999	Construction or purchase of house property	Rs 2,00,000
	On or after 1/04/1999	For Repairs of house property	Rs 30,000
	Before 1/04/1999	Construction or purchase of house property	Rs 30,000
	Before 1/04/1999	For Repairs of house property	Rs 30,000
Let Out	Any time	Construction or purchase of house property	Actual value without any limit

 

The amount of tax exemption specified under VIA in the chapter on income tax law

 

These exemptions will not allow any taxpayer to opt for the new tax regime U/s 115 BCA exemptions, except for the grant exemption U/s 80 CCD (2) which will be applicable for the new tax regime.

 

1. 80 C, 80 CC, 80 D (1) The combined discount limit is Rs.1,50,000

 

80C: Life Insurance Premium, Provident Fund, Subscription for Fixed Equity Shares, Tuition Fee, National Savings Certificate, Housing Loan.

  

2. Health insurance premium for any member for preventive health checks included above this limit and Rs. 250 for preventive health check-up (Rs. 50,000 if any person is a senior citizen)

 

2a. 80D discount for medical expenses for a senior citizen, Rs. 50,000 discount if no premium of health insurance coverage is paid for a member

 

80 DDB discount for payment of Rs. 4.04,000 for treatment of HUF member (Rs. 1, 00,000 if senior citizen)

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5. 80G Grants per grant to certain funds, charities, etc.

 

Grants are eligible for discounts under the following categories without any limit

 

Note: No concession will be allowed in case of grant in cash payment of Rs. 2000 / - under this section.

 

80. 60GGA discount for grants for scientific research or rural development grants.

Research associations or universities,

College or other institution for scientific research Sociology

 

Or statistical research associations or institutions for rural development

Conservation of natural resources or forest conservation

PSU or

 

Local authority or an association or

 

An institution approved by the National Committee to manage any eligible project

 

Forest Rural Development National Urban Poverty Alleviation Fund Notified as set up by Central Government and fund as notified by Central Government

 

Note: No concession will be allowed in case of cash grants of more than Rs.2000 / - under this section or if the total gross income includes profit / business / occupation.

 

80 TTA discount on interest on deposits in bank accounts of non-senior citizens

 

Download Automated Income Tax Preparation Excel Based SoftwareAll in One for the Government and Non-Government (Private) Employees for the F.Y.2021-22 as per Budget 2021

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

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

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