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

What is the importance of Income Tax Form 16? Understand the details about the topic form 16. In this article first, discuss what is form 16, then its components and its importance. First, what is form 16? Each year each and every employer issues Form 16 salary certificate. This is a certificate under Section 203 of the Income Tax Act that provides details about the tax amount that has been deducted by your employer that is called TDS.

 

 

However it also contains the details of your salary other incomes and tax benefits available and availed by you in the last financial year. This Revised Form 16 has detailed information about the manner of calculating income as per the income tax laws and tax payable on it. May, 31 is the last date for your employer to issue a Form 16 to you. Now we will discuss the components of form 16 helps us understand the tax paid probable tax refund we can get, and can also help in better tax planning, we can do it next year, and most importantly, can also assist us to file our income tax returns

Download Automated Income Tax Revised Form 16 Part A&B for the Financial Year 2020-21 for the F.Y.2020-21 as per New and Old Tax Regime [ This Excel Utility Can prepare at a time 50 Employees Form 16 Part A&B]

 

Form 16 comprises mainly of two sections. Form 16 Part A what has in the Part A of Form 16?. It contains our personal information like our name, address, employers name and address pan of both pans of our employer and receipt number of TDs payment. All this information assists the income tax department to keep a track of money flow from our own as well as our employer's account.

 

In addition, the party provides information like assessment tier, that is a year in which tax liability is computed for the income earned during the previous year. Assessment year here means taxes calculated on the income from first April 2013, to 31st March 2014. It has a summary of  tax deducted by the employer on our behalf.

 

This amount is deducted by the employer from our salary every month as tax and credits the same to the income tax department to know why this TDs is deducted you should watch our video on what is tedious. The most important information in Part A is a tab. That is, tax deduction account number of employer and total tax deducted, as both of this information has to be correctly mentioned in our income tax return, so that if there is any tax credit, we can get that.

 

Now let's discuss Part B. This part of form 16 provides major information that you require to file your income tax return. First of all, the total salary given by the employer in the financial year is mentioned, then prerequisite, or perks is an additional benefit provided by the employer. In addition to the salary. It is any benefit granted free of cost, or at confessional rates, such as rent-free home motorcar facility loans at subsidized rates, etc.

 

Download Automated Income Tax Revised Form 16 Part A&B &B for the Financial Year 2020-21 for the F.Y.2020-21 as per New and Old Tax Regime [This Excel Utility Prepare One by One Prepare  Form 16 Part A&B and Part B]

 

 Then this field, profit in lieu of salary means any payment due to, or received by the employer in connection with the termination of employment. For example, gratuity committed value of pension etc. Then there are allowances. They are the amount paid by the employer, in addition to salary to meet some service requirements such as DNS allowance house rent allowance. Live travel allowance conveyance allowance children's education allowance etc allowance can be fully taxable. Partly or non-taxable. Here the person has got only a child allowance, which is fully tax-deductible. in this case, and hence is deducted from total salary before tax calculations, then here are the details of tax benefits we get on our home loan interest payments as per section 24(B) of Income Tax Act.

 

So after deducting all the expense allowances, and money paid on home loan interest EMI, we get our cross income. Then, deductions are disclosed deductions include those under Section 80 C, 80CCC and 80CCD, whose total sum deductible under these respective sections must not go beyond rupees 1.5 lakhs. In this case, the person has not taken complete rupees 1.5 lac tax benefit in this year, which means has paid higher tax than he or she should have.

Download Automated Income Tax Revised Form 16 Part B for the Financial Year 2020-21 for the F.Y.2020-21 as per New and Old Tax Regime [This Excel Utility Prepare One by One Prepare  Form 16 Part B]

 

Then after this deduction under Section 80 D add and others are also mentioned here, the person has taken, none of them. The entire deductions are then subtracted from gross income so as to arrive at taxable income. Hence, tax is then computed on this amount based on the current tax lap of the IRS, which in this example is this much relief under the section, 89 means, if you have received any portion of your salary in early years, or in advance, you are allowed some tax relief under this. In simple words, you are saved from paying more tax because of delaying payment to you.

 

Now let's go about the importance of form 16 serves as a source document during filing of income tax return, as it comprises details about your income deductions tax calculated and TDs deducted as per income tax rules. It serves as an important document for claiming credit of tax deducted by employers, and you might require it to produce before income tax authorities. If you don't get a credit of TDs properly form 16 can also be used if you wish to apply for home loans, there are some banks that asked for form 16 for income proof form 16 is needed for visa processing as well.

 

And it is an authenticated certificate for income proof. Before we close a few other important information about the form 16 hours. If TDs is not deducted, then it is not mandatory to issue form 16 to the employer. If the organization does not possess the Tan. Then they are not entitled to deduct TDS, and then in this situation, they will obviously not give form 16. Self-employed person cannot acquire form 16.

Download Automated Income Tax Revised Form 16 Part A&B for the Financial Year 2020-21 for the F.Y.2020-21 as per New and Old Tax Regime [ This Excel Utility Can prepare at a time 100 Employees Form 16 Part A&B]

 

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Download Automated Income Tax Revised Form 16 for the F.Y.2020-21 with New and Old Tax Regime

 

 Income Tax Revised Form 16 for the F.Y.2020-21 with New and Old Tax Regime under the New Tax Section 115 BAC

  

This Excel Based Income Tax Revised Form 16 Prepare as per the new and old tax regime. The main highlight the new and old tax regime for taxpayers. It is a simplified tax duty where taxpayers cannot avail the number of concessions and exemptions that they can avail themselves of under the old system of governance.

 

It is currently available as an alchemical scheme for individual and Hindu undivided families; it was unveiled in the previous central budget.

 

Download and prepare at a time 50 Employees Automated Income Tax Revised Form 16 Part A&B For the F.Y.2020-21

 

With the introduction of this tariff structure, various questions have arisen in the minds of the taxpayers about the plan to change it. We solve these few questions here.

 

Which rule saves more taxes?

 

Tax savings will depend on tax income.

For example, you are eligible for an exemption and a deduction of Rs 1.5 lakh. With an estimated annual income of Rs 6,50,000, your tax liability under both governments will be the same (Rs 54,600). For income less than Rs 7.5 lakh, the old system of governance will save more taxes.

 

For income above Rs 8.5 lakh, for example, the new tax duty is beneficial. This is because the tax rate in the new regime increases at a lower rate than in the old regime

 

Download and prepare at a time 100 Employees Automated Income Tax Revised Form 16 Part A&B For the F.Y.2020-21

 

 

What is the difference between the Old and New Regimes?

 

The important difference between the two governments is the tax rate.

 

* Tax exemption U/s 87a available in both systems

 

Another difference in the new tax system is that taxpayers can afford to invest less in discounted investments, which will increase household income.

 

The new system of governance does not require the maintenance and submission of tax protection documents applicable to the old system.

 

Download and prepare at a time 50 Employees Automated Income Tax Revised Form 16 Part B For theF.Y.2020-21

 

 

Can I change my tax regime every year?

 

The tax system can be changed every financial year in case of income from salary, home property, capital gain or other sources. In business or professional earning, this regime can only be selected once for a specific type of business.

 

When should my employer be intimate about my tax regime selection?

 

The employer may be notified of the elected regime at the beginning of the financial year. Once established and informed, governance cannot be changed for years for the purpose of TDS.

 

However, you can switch to other systems when filing an income tax return. In such cases, TDS will be adjusted accordingly.

 

* All tax rates for residential taxpayers under 60 years of age.

 

Download and prepare at a time 1000 Employees Automated Income Tax Revised Form 16 Part B For theF.Y.2020-21

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Deduction U/s 80 C with Automated Income Tax Revised Form 16 for the F.Y.2020-21

Before explain the deduction of 80C, you know about the new Income Tax Section 115 BAC which introduced in Budget 2020. You have to give an option through new Option Form 10-IE as you are willing to Opt-in as New Tax Regime or Opt-in as Old Tax Regime. If you opt-in as New Tax Regime (New Tax Slab), then you can not avail any Income Tax benefits except NPS. But if you opt-in as Old Tax Regime then you can get all the Income Tax benefits as per Income Tax Act. 

Let us look at what section 80 C of the Income Tax Act 1961 is, according to the tax laws, you can claim a deduction of Rs. 1.5 lakh from the total income under Section 80C basically you can reduce up to Rs 1.5 lakh from the total taxable income by saving and investing money in the particulars that are listed under Section 80C towards tax benefits.

This benefit under Section 80C can be availed by individual taxpayers and the Hindu undivided family. Having understood this far. Let us know as to how exactly you could benefit from section 80C, and utilize the exemption Rs. 1.5 lakh that you can.

Download Automated Income Tax Revised Form 16 Part A&B and Part B for the Financial Year 2020-21 as per new section 115 BAC[This Excel Utility Prepare one by one Form 16 Part A&B and Part B]

As mentioned before, you need to deploy this sum into particulars that are listed as tax savers under Section 80C, and they are many such items. Actually, there are over a dozen avenues through which taxpayers can use to exhaust their tax savings under Section 80C. Each of these items is unique.

Though they all have a common objective, which provides for tax savings on the monies that flow into them each financial year. Let us know the main features of each one of Section 80C.

Download Automated Income Tax Revised Form 16 Part B for the Financial Year 2020-21 as per new section 115 BAC [This Excel Utility Prepare one by one Form 16 Part B]

Public provident fund the public provident fund (PPF) is one of the oldest tax saving item in the country, which was introduced in 1968. It is a long term retirement savings option, which functions like savings, come tax savings medium, the PPF has a minimum tenure of 15 years, which can be extended in blocks of five years as per your wish. The amount deposited during a financial year in the account can be claimed under Section 80C deductions within the 1.5 lakh limit.

Employee’s provident fund (EPF) your contributions in EPF are eligible for tax deductions of up to Rs.1.5 lakh under Section 80C, and the money that you accumulate new Annual Pension Scheme (APS) on the guaranteed interest which is notified at the beginning of the financial year. We provide flexibility to taxpayers. They can withdraw from the account. After the mandatory specified period of five years, like PPF the gains from EPF are also tax-free.

 Download Automated Income Tax Revised Form 16 Part A&B for the Financial Year 2020-21 as per new section 115 BAC [This Excel Utility Prepare at a time 50 Employees Form 16 Part A&B]

National Savings Certificate or NSC, the NSC is a guaranteed income investment scheme that you can open at any post office, the tenure for the scheme is fixed at five years, and the interest rate is guaranteed under the current interest rate on NSC. However, the gains from the NSC returns are taxable as they're added to your income.

Sukanya samriddhi yojana, this scheme is designed to provide a bright future for the girl child, the SSY account can be opened at the post office and recognised banks. the account can be opened before she turns 10 years old, the interest rate offered on this account is guaranteed. The interest earned in this account is tax-free.

Five years of tax savings fixed deposit scheme. This is bank deposits for a five-year term, in which the savings upto Rs. 1.5 lakh in a financial year qualify for a tax deduction under Section 80C. However, like the NSC gains from this deposit are taxable as they're added to your income.

Download Automated Income Tax Revised Form 16 Part A&B for the Financial Year 2020-21 as per new section 115 BAC [This Excel Utility Prepare at a time 100 Employees Form 16 Part A&B]

Senior citizen savings scheme to address the tax-saving needs of senior citizens, the SC SS was introduced by the government for those who are 60 years old or more, when the deposit money will mature after five years from the date of account opening, but can be extended once by an additional three years. In this scheme, the returns are guaranteed.

Equity-linked savings scheme. The (E l SS) is an equity mutual fund category in which investments qualify for tax deductions under Section 80C up to Rs.1.5 lakh in a financial year. The LSS is a market-linked product and doesn't guarantee any returns and comes with a three-year lock-in, which is the shortest among the tax savings options under Section 80C as the LSS is a mutual fund. There is a convenience to start a SIP with the LSS to make tax savings, a regular exercise with just 12,500 rupees SIP each month.

National Pension System, or NPS the NPS is a voluntary retirement scheme, through which you can create a retirement corpus or your old age pension and available to all Indian citizens above 60 Years old. The investments under tier one of the NPS qualify for tax deductions under Section 80 C  up to Rs.1.5 lakh in a financial year, there is an added advantage of saving additional tax with the NPS

Another New NPS U/s 80CCD(1B) subscribers can claim an additional deduction for investments of 250 1000 rupees in a financial year under Section 80 CCD(1B), which is over and above 1.5 lakh rupees deduction under Section 80C, the gains from the NPS investments, as well as the final corpus are fully tax-free.

Download Automated Income Tax Preparation Excel Based Software All in One for the Government & Non- Government (Private) Employees for the F.Y.2020-21 and A.Y.2021-22 

Feature of this Excel Utility:-

1) This Excel utility prepares and calculates your income tax as per the New Section115 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.2020-21 (Update Version)

5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21

6) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21

7) Individual Salary Sheet

 

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Exemption from Interest from Bank/Post Office U/s 80TTA, with automated Income Tax Revised Form 16 Part A&B and Part B for the F.Y.2020-21

Section 80TTAexemption from Bank/Post Office Savings Interest. The provisions of Section 80TTA of the Income Tax Act might be perused as under:-

 

Exemption i.e. interest on deposits in the investment accounts according to the provisions of Section 80TTA.

 

#          Where the gross all out income of an assessee (other than the assessee alluded to in Section 80TTB for Senior residents), being an individual or a Hindu unified family, remembers any income via interest for deposits (not being time deposits) in a bank account with—

 

# 1. Banking Company: Interest earned from a banking company to which the Banking Guideline Act, 1949 (10 of 1949), applies (counting any bank or banking foundation alluded to in section 51 of that Demonstration);

 

# 2. Co-operative Society: Interest earned from a co-operative society occupied with carrying on the matter of banking (counting a co-operative land contract bank or a co-operative land improvement bank); or

 

# 3. Post Office: Interest earned from a Post Office as characterized in condition (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),

You may also, like-Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 with new and old tax regime [This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B with all amended Income Tax Section]

In the event that the above conditions are fulfilled the accompanying exemption will be permitted according to Section 80TTA:

 

1.         # for a situation where the measure of such income doesn't surpass in the total Rs.10,000 the entire of such sum; and

 

2.         # in some other case, Rs.10,000.

 

Further where the income alluded to in this section is gotten from any store in an investment account held by, or for the benefit of, a firm, a relationship of people or an assortment of people,

 

No deduction will be permitted under this section in regard to such income in computing the all-out income of any accomplice of the firm or any individual from the affiliation or any person of the body.

You may also, like-Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21 with new andold tax regime [This Excel Utility can prepare at a time 50 Employees Form 16 Part B with all amended Income Tax Section]

 

Here “Time Deposits " imply the deposits repayable on expiry of fixed periods for example Repeating Deposits and Fixed Deposits.

 

The relevance of exemption under section 80TTA?

 

Section 80TTA sets a few boundaries that choose exemption of tax on saving account interest up to a measure of Rs.10,000 (10,000) in particular. Along these lines, it is a lot of clear that Section 80TTA permits saving of tax on interest income earned from "Investment accounts" as it were.

 

Subsequently, Section 80TTA doesn't permit other interest income got from Banks, Monetary establishments from different instruments, for example, Repeating Deposits, Fixed Deposits, Company Deposits are not qualified for getting the advantages of Section 80TTA exemption.

 

In this way, an individual or an individual from HUF can guarantee a deduction of tax on interest income up to Rs.10,000/ – got from the accompanying:

 

# From a saving account kept up in a Bank;

 

# From investment account kept up in a Post office;

 

# From a saving, account kept up with a Co-operative Society doing banking business.

 You may also, like-Automated Income Tax Revised Form 16 Part A&B and Part B for the F.Y.2020-21 with new and old tax regime [This Excel Utility prepare One by One Form 16 Part A&B  and Part B with all amended Income Tax Section]

 

Special cases: However interest earned from Fixed Deposits, Repeating Deposits, Time Deposits kept up with Banks, Monetary foundations, Co-operative Social orders, Post office, are not qualified for tax deduction under this section.

 

Who can guarantee 80TTA Deduction?

 

According to the provisions of Section 80TTA just individual and individuals from Hindu Unified Family can guarantee deductions of Rs.10,000 for interests earned on deposits held in the bank accounts as it were.

 

Further, it ought to be remembered that 80TTA deduction is taken into consideration the greatest measure of Rs.10,000 for interest income earned from all the bank account through and through kept up for the sake of the assessee.

You may also, like-Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 with new and old tax regime [This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B with all amended Income Tax Section]

 

Is 80TTA material for non-occupants?

 

According to Section 80TTA, there are no limitations on Non-occupants to guarantee income tax exclusion on interest income earned from Investment account. Nonetheless, the most extreme measure of the deduction is restricted to Rs.10,000 just combining all investment account together.

 

Would we be able to guarantee both 80TTA and 80TTB?

 

The appropriate response is basically No. As Section 80TTB is appropriate for Senior Residents as it were. According to Section 80TTB, a senior resident is permitted to guarantee exemption Under Section 80TTB up to the greatest measure of Rs.50,000 in a year, for interest income( from R.Ds, F.Ds, Time Deposits) got from A Bank, Monetary foundation, Co-operative Banks however not from a Company's F.D.

 

Thus, in straightforward words, the Income Tax Act doesn't permit one to appreciate deduction both under Section 80TTA and 80TTB individually. Senior residents guaranteeing deduction U/S 80TTB can not appreciate the advantages given under section 80TTA.

Download Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21 with new and old tax regime [This Excel Utility can prepare at a time 100 Employees Form 16 Part B with all amended Income Tax Section]

 

 

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All about Income Tax Exemption for the F.Y.2020-21 as per U/s 115 BAC| With Automated Income Tax Revised Form 16 for the F|Y 2020-21

 

In this article discuss about Income Tax Exemption for the F.Y.2020-21 as per U/s 115 BAC| Since the Financial Year 19-20 has approached its conclusion, the books of accounts should be shut| So everybody should look for on guidance from their expense experts for charge saving choices as your earlier year's income will be burdened in the current F.Y 20-21 or A.Y. 20-21| Also It is noted that the all of the benefits can be entitle to the tax payers who are opting the Old Tax Regime U/s 115 BAC|

 

Since the Coronavirus flare-up has been an obstruction to large numbers of our financial challenges, here are some straightforward and fast tips that might want to share| Beginning with the first:-

 

1. Section 80C deductions well, it's a bundle of different qualified deductions that one is searching for. It includes various alternatives like LIC, PPF(Public Fortunate Asset), Suknaya Samridhi Account, Shared assets, Fixed Deposit and so on In any case, before that, it might want to clarify what is the deduction? A deduction is something which reduced the taxable income. The assessment is determined on the net taxable income which is gotten by deducting the gross total income with this deduction. 

You may also like:- Automated Income Tax Preparation Excel Based Software All in One for the Government and Private Employees for the F|Y2020-21[This Excel Utility can prepare at a time Income Tax Compute Sheet + Individual Salary Structure + Automated H.R.A. Calculation U/s 10(13A) + Automated Income Tax Arrears Relief Calculation U/s 89(1) with Form 10E + Automated Income Tax Revised Form 16 Part A&B and Form 16 Part B as per the new and old tax regime U/s 115 BAC]

2. Section 80CCCthis is only your annuity reserves. You can claim this deduction by adding to any benefits plans.

 

3. Section 80CCD(1) all things considered, this deduction deals with interest in Atal Annuity Yojana and commitment towards Public Benefits Plan. Atal Annuity Yojana is a retirement arranged plan which turns out ordinary revenue to investors after their retirement. This section applies to both independently employed and salaried individuals. In the section that you are a salaried representative, at that point, you can claim the greatest deduction of 10% of your salary which incorporates basic salary and dearness allowances| In the event that you are an independently employed individual, at that point, you can claim a deduction up to 20% of your gross salary for example basic salary and dearness allowances | There's likewise extra section 80ccd1 (b), which gives you an extra tax deduction of Rs.50,000 for invest to NPS account|

 

4. Section 80CCD (2) this section deals with the invest to NPS account by the business | Other than adding to the EPF account as we had seen before in section 80C, the business can add to the NPS account of his/her employees too | Under this, the promise by the business would be as per the following:-

14% of salary if there should arise an occurrence of the Government representative (whichever is lower) and 10% of salary in the event of others(whichever is lower)|

 

 

5. Section 80D, 80 DD, 80 DDB These sections especially deals with health protection charge and health consumption (upto Rs. 1,00,000), Health  treatment of a ward with disability (Typical Disability :Rs. 75,000/ - , Extreme Disability: Rs. 1,25,000) and determined sicknesses (senior citizens: upto Rs. 1,00,000 Others: upto Rs. 40,000) respectively|

You may also like: - Automated Income Tax Revised Form 16 Part A&B for the F|Y 2020-21[This Excel Utility prepare at a time 50 Employees Form 16 Part A&B as per the new and old tax regime U/s 115 BAC]

 

6. Section 80E, 80EE,&80EEA these sections deals with the interest installments towards advanced education loan, Home loan, first time home buyers individually| The deduction under section 80 E can be claimed exclusively after loan reimbursement begins| Highlight be noted is that a person reimbursing the loan can just claim the deduction under this section| There's no most extreme or least deduction limit| 

 

Section 80EE deals with interest on lodging loan with a deduction up to Rs. 50,000 subject to certain conditions| Exemption U/s 80EEA interest on home loan for first time home purchaser| While section 24(B)  permits interest deduction of Rs.2,00,000, section 80EEA permits extra deduction of Rs.1,50,000 to home buyers.

 

7. Section 80G, 80GG, these sections is identified with gifts| Gifts surpassing Rs. 10,000 ought not to be made in real money| Section 80 GG is for house rent paid| You can claim this deduction just on the off chance that you don't benefit HRA from your employer, if there should be an occurrence of salaried employees| The measure of deduction can be the least of the accompanying 3 conditions:-

 

a) Rs.5000 p.m. Or then again Rs.60,000 yearly.

 

b) 25% of total income

 

c) Sum acquired in the wake of deducting 10% of income from the sum paid as rent in the particular F|Y.

 

8. Section 80TTA and 80 TTB It's about interest acquired on the bank account and on Fixed Deposit separately| The interest deduction for a bank account is permitted simply up to Rs. 10,000 above which it will be taxable| 80TTB is valuable to senior residents (60 years or more) deduction is permitted up to Rs.50,000 past which it is taxable|

 

9. Section 80U this is for those taxpayers who are physically disabled| Typical disability, a deduction up to 75,000/ -, Extreme Disability, a deduction upto 1,25,000 permitted.

 

Conclusion: All the deductions under section 80C ought not to surpass the total furthest reaches of 1,50,000 for claiming of deduction| The standard deduction for the salaried class has been expanded from Rs. 40,000 to 50,000|

Download Automated Income Tax Revised Form 16 Part A&B for the F|Y 2020-21[This Excel Utility prepare at a time 100 Employees Form 16 Part A&B as per the new and old tax regime U/s 115 BAC]

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Is NPS deduction allowed under New Tax Regime? With Automated income Tax Revised Form 16 for the F.Y.2020-21

It is most unique question, is NPS deduction can be allowed under the new tax regime? Let’s make out about this topic. 

In the budget, 2020, you have to forego most of the deductions including public sector, 80C. But some deductions including employer contribution on account of NPS can still avail if you opt for a new tax regime.

Taxpayers can get tax exemption, under 80CCD, In case the employer is contributing towards employee’s NPS account, which is mandatory for Government employees, and who has joined the services after first July 2014 and voluntary retirement for those who are working in the private sector and the detection will be up to 10% and basic does the irrespective pick from the new limit qualifies for the new tax slabs.

Download Automated Income Tax Revised Form 16 Part A&B for the Financial Year 2020-21 as per the New and Old Tax Regime U/s 115 BAC. [This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

 

Already we knew that NPS has two accounts, which will Tire One and Tire two, which is mandatory for retirement, and type two is optional, and type two comes with withdrawal facility also towards MPS contribution for Central Government employees. The limit is 14% in our nation's alone. Employees can opt through the newly introduced Income Tax Form 10-IE to, to reach at a salary person to opt for this reduction. So now we will see the new tax slabs for the F.Y. 2020-21.

 

However, in another income tax rule change proposing budget 2020, the employers contribution by employee’s contribution exceeding some kind if I like you name a year, towards MPS superannuation fund and the EPF will be taxable from the employee’s deposit. That was about our NPS tax benefit.

Download Automated Income Tax Revised Form 16 Part A&B for the Financial Year 2020-21 as per the New and Old Tax Regime U/s 115 BAC. [This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B]

 

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How to calculate your tax for the F.Y.2020-21as per Income Tax Act.

How to calculate your tax for the F.Y.2020-21 as per Income Tax Act. As per the new Budget 2020 introduced a new section 115 BAC, where given two option that is one is New Tax Regime ( New Tax Slab) and another is Old Tax Regime ( Old Tax Slab). If you opt-in the New Tax Regime then you can not entitled any benefits of Income Tax Section except NPS,or if you Opt-in as Old Tax Regime, then you can get all the Tax Benefits as per the Income Tax Act. As given below:-

Let's begin with a few basics. Income tax is the most popular form of tax which is levied on an individual's income. The term individual applies to not just a person but also includes Hindu undivided family company cooperative societies and trusts. In this article, we will focus on personal income tax, as that is what impacts most of us, the government levies taxes on your taxable income.

Taxable incomeis defined as the income of an individual minus any allowable tax deductions. In simpler words. this is the amount of one's total income, which is subject to income tax. As much as this taxable income may seem simple to get to it is a process laced with calculations and adjustments made with various tax deductions tax exemptions and tax rebate. So now let's look at how you get to this taxable income.

Also you may like:- Automated Income Tax Calculator All in One for the West Bengal Government Employees for the Financial Year 2020-21 as per new and old tax regime

Step One:- calculate your gross income, start by writing down the annual gross salary that you get. This will include all the components of your salary including HRA, LTA special allowances, etc. Next, take out the exemptions provided on the salary components. The major exemptions you get are HRA that is house rent allowance and LTA, which is live travel allowance for HRA. Remember you can claim HRA only if you live in a rented house. If you have your own accommodation or live with your parents, then HRA is fully taxable. Also, the tax exemptions under HRA is taken as the lowest of the following amounts

Actual HRA received

50% of basic plus D.A. for persons living in the metro,

40% living in Non-Metro Cities,

Actual rent paid less 10% of basic plus D.A.

After removing these exemptions available to you the actual exemption of H.R.A.

Also you may like:- Automated Income Tax House Rent Exemption Calculator U/s 10(13A)

Remove the standard deduction of Rs.50,000 given to all by the government. Now you will arrive at your net salary. Next, you need to add income, you might have received from other sources. This could be rental income interest earned from deposits capital gains you might have seen, etc.

Step Two: - Remove deductions to arrive at your taxable income, the government encourage taxpayers with incentives to reduce their tax liability by providing avenues, where they could reduce their taxable income, next, you deduct investments or expenses eligible under section 80C.

Also you may like:- Automated Income Tax Calculator All in One for the Andhrapradesh State Government Employees for the Financial Year 2020-21 as per new and old tax regime

The biggest section and this is section 80C, wherein you can claim Rs.1.5 lakh deduction under various investments like as PPF, LSS, mutual funds, Sukanya samriddhi yojana, Premium paid for term insurances are some of the most popular ways to claim this deduction. Also, if you have a home loan, the principal amount paid between in the financial year can be claimed as a deduction in this section for taxpayers.

Who are investing in the NPS, there is an additional Rs. 50,000 deduction they can avail under Section 80 CCD (1B), which is over and above, 1.5 lakh rupees limit under Section 80C. Next, you can claim deductions under Section 80 D of the Income Tax Act on the premium paid towards medical insurance. Unlike the umbrella of 1.5 lakh rupees limit under Section 80 C, which can be availed by all taxpayers section add limit depends on the age of the insured, and the age of family members included in the insurance. If you'd like to know more about deductions under Section 80 C and section 80 D on these topics.

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Now, given the tax have introduced section 80TTA to provide a deduction of Rs.10,000 on the interest income from a savings account from Bank or Post Office.

Next, if you have an education loan. You can claim deduction on interest component paid.

Apart from this, if you have a home loan. The interest portion of the EMI paid for the financial year can be claimed as a deduction, up to a maximum of Rs.2 lakh under Section 24. This is over and above the deduction on the principal portion under Section 80C.

Step three:-You will arrive at the net taxable income by subtracting all the eligible deductions from the gross taxable income; you will arrive at your total income on which income tax will be levied based on the income tax law you fall in.

At this juncture, you should know the applicable income tax rates and tax slabs to the relevant financial year.

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Step Four:- Calculate your taxes. After arriving at your net taxable income, you are required to calculate and pay taxes as per the slab and rates applicable for the first 2.5 lakh rupees of your taxable income,

In case your total income after deductions doesn't exceed 5 lakh rupees, you can claim rebate under the section, 87A of Rs.12,500.

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One more thing. If your total income is between 50 lakh and 1 crore rupees, then you need to pay a surcharge of 10%. and if your income is between 1 crore, and above then you have to pay 20% surcharge.

Tax liability. Also, as you can see tax deductions can help you save a lot of tax, and there are some great avenues to help you not only achieve this but also help reduce stress around finances. So go ahead and download the Automated Income Tax Calculator for the Salaried Persons by clicking on the link below and get a personalized tax saving plan.

Download Automated Income Tax Preparation Excel Based Software All in One for the Government and Non-Government (Private) Employees for the Financial Year 2020-21 and Assessment Year 2021-22 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 the all amended Income Tax Section as per Budget 2020

3) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (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.2020-21

9) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21

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

 

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