Itaxxsoftware.com: New Income Tax Section 115BAC

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Saturday, 19 September 2020

Deduction U/s 16 with Automated Income Tax Salary Arrears Relief Calculator U/s 89(1) with Form 10E for the F.Y.2020-21

September 19, 2020Automated Income Tax Arrears Relief Calculator for F.Y. 2020-21, Deduction U/s 16, Income Tax Section 16, New and Old Tax Regime for F.Y.2020-21, New Income Tax Section 115BACNo comments

The income chargeable under the head "Salaries" is registered after making the following deductions under Section 16:

1. Standard Deduction;

2. Entertainment Allowance Deduction; and

3. Professional Tax.

1. Standard Deduction [Sec. 16(i)/(ia)] -

• Standard deduction is Rs. 50,000; or

• the Amount of Salary,

Whichever is lower.

2. Entertainment Allowance [Sec. 16(ii)]-

Entertainment allowance may consider if the below conditions:-

(A). In the case of an Administration representative (i.e., a Central Government or a State Government worker), the least of the following is Deductible:

a. Rs. 5,000;

b. 20 % of Basic Salary; or

c. Amount of Entertainment Allowance granted during the earlier year.

In request to determine the amount of entertainment allowance deductible from salary, the following points need consideration:

1. For this reason "salary" avoids any allowance, advantage or other perquisites.

2. Amount actually used towards entertainment (out of entertainment allowance got) is not taken into consideration.

(B). In the case of a Non-Government Representative (including workers of Statutory Corporation and Local Authority), :

Entertainment Allowance is NOT deductible.

3. Professional Tax or Tax on Work [Sec. 16(iii)] -

Professional Tax or Tax on Work, collected by a State under article 276 of the Constitution, is allowed as Deduction.

The following points ought to be kept in see:-

1. Deduction is available just in the year in which professional tax is paid.

2. If the professional tax is paid by the business on behalf of a representative, it is first included in the salary of the worker as a "perquisite" and then the same amount is allowed as a deduction on account of "professional tax" from net salary.

3. If there is no monetary ceiling under the Income-tax Act. Under article 276 of the Constitution, a State Government cannot force more than Rs. 2,500 for each annum as professional tax. Under the Income-tax Act, whatever professional tax is paid during the earlier year, is deductible.

Download Automated Income Tax Arrears Relief Calculator U/s 89(1) along with Form 10Efrom the Financial Year 2000-01 to Financial Year 2020-21 (Up-to-date Version)

Download Automated Income Tax Preparation Excel Based Software All in One for the Govt and Non-Govt (Private) Employees for the F.Y.2020-21 With FINANCE BILL, 2020

July 30, 2020FINANCE BILL 2020, Income Tax Preparation Excel Based Software All in One for the Private Employees for the F.Y.2020-21, New Income Tax Section 115BACNo comments

PROVISIONS RELATING TO DIRECT TAXES

The provisions of Finance Bill, 2020(hereafter referred to as "the Bill"), relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as 'the Act'), Prohibition of Benami Property Transactions Act, 1988 (hereafter referred to as “PBPTAct”), and Finance Act, 2013, to continue to provide momentum to the buoyancy in direct taxes through tax-incentives, reducing tax rates for co-operative society, individual and Hindu undivided family (HUF), deepening and widening of the tax base, removing difficulties faced by taxpayers, curbing tax abuse and enhancing the effectiveness, transparency and accountability of the tax administration.

With a view to achieving the above, the various proposals for amendments are organised under the following heads:—

(A) Rates of income-tax;

(B) Tax incentives;

(D) Measures to provide tax certainty;

(E) Widening and deepening of tax base;

(F) Revenue mobilisation measures;

(G) Improving the effectiveness of tax administration;

(H) Preventing tax abuse; and

(I) Rationalisation of provisions of the Act.

Click here to download Full Budget 2020 as well as Finance Bill for the Financial Year 2020.

Download Automated Income TaxPreparation Excel Based Software All in One for the Government & Non-Govt(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 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.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

One can claim Tax Benefit on both HRA & Home Loan? Download Automated Income Tax Preparation Excel Based software All in One for Non-Govt (Private) Employees for F.Y. 2020-21 as per Budget 2020

May 13, 2020Home Loan Tax Benefit, House Rent Allowance, HRA tax benefit Section 10(13A), Income Tax Calculator for Non-Govt Employees for F.Y. 2020-21, Income Tax Revised Form 16 Part B, New Income Tax Section 115BACNo comments

Would I able to guarantee Tax Benefit for both HRA and Home Loan? – An inquiry which is frequently posed by many citizens. This is for the most part on the grounds that numerous businesses don't permit both tax cuts together in specific circumstances. Tragically this isn't the correct activity.

Both HRA and Home Loan Interest charge segments are irrelevant. You guarantee tax cut on HRA (House Rent Allowance) under section 10(13A) while the tax break on the instalment of enthusiasm on home advance goes under section 24(b). Anyway, there can be issues if both sections are utilized together with the purpose of tax avoidance.

We can have four circumstances for individuals guaranteeing HRA and Home Loan tax cut.

1. Rented house instead of business and claim house in various city

2. Own level in the city of work and remain in a leased house in the same city

3. Own level in the city of business and remain with guardians/kin in a similar city and pay them lease

4. Rented house in various city and possess house at the work environment

1. Leased house instead of business and claim house in various city

This is extremely simple to deal with. You can undoubtedly guarantee tax break on both and NO business has an issue with this game plan.

2. Possess a level in the city of work and remain in a leased house in the same city

DownloadAutomated House Rent Exemption Calculator U/s 10(13A) in Excel

This is a precarious circumstance. The principal sensible inquiry which rings a bell is a reason would any individual owning house in a similar city remains on the lease? Most managers have an issue with this course of action and may not give tax cut on both HRA and Home Loan.

Be that as it may, lawfully you can guarantee tax reduction on both on the off the chance that you can give a substantial purpose behind this course of action. The reasons can be it's progressively advantageous to remain. For example, your the level is on the edges with the practically immaterial open vehicle, you might not have any desire to live there and rather remain near your work environment. The other explanation could be the claimed house is littler for the size of the family. There are misguided judgments that there ought to be the least separation between two houses. This is a fantasy! All you need real motivation to remain on the lease.

Additionally in the event that you move to your new possessed house in a monetary year, its a real activity and you can guarantee HRA for the period you remained on lease and house credit advantage for the whole year. In the event that your boss isn't prepared to give tax cut on both – you can guarantee HRA tax break from the boss and guarantee tax cut on Home Loan while recording your Income Tax return.

The other inquiry is should the claimed house be expected to have a notional lease? The appropriate response is No. In the event that you get a real lease, at that point appear, at exactly that point you have to pay the charge on that.

3. Possess level in the city of business and remain with guardians/kin in a similar city and pay them lease

The the circumstance is comparable as talked about above with the distinction being your landowner or landlord is your nearby relative like guardians/kin. Any such rental exchange is full with doubt thus you ought to be cautious on the off the chance that you utilize this for charge sparing. You should do the accompanying:

1. Actually compensation the lease through Check/ECS and so on and beneficiary should give lease receipt for the equivalent.

2. The proprietor/woman should show this lease as "salary from house property" and pay charges on the equivalent.

There have been situations where lease paid to close family members have been denied tax break by personal assessment office as there was NO proof of real exchange. So remain cautious.

4. Leased house in various city and claim the house at a work environment

There might be a situation where you have leased a spot where your companion/guardians remain (in an alternate city) while you claim a house at the city of your work and remain there. For this situation, you can't guarantee HRA tax cut as HRA is paid for remaining on lease for reason for work. Anyway, you can undoubtedly guarantee home credit tax break.