Deduction U/s 80C | With Automated Master of Form 16 Part A&B and Part B for the F.Y.2020-21 as per New and Old Tax Regime U/s 115 BAC.

 

Taxpayers can look for Deduction under Section 80C, which would assist them with decreasing their taxable income. There are a ton of deductions accessible under different sections to assist taxpayers with bringing their taxable income. Every one of these sections caters to a particular kind of investments or costs

 

Section 80C is the main method of saving taxes. It permits taxpayers to diminish their taxable income by making investments and a few costs and hence save money on taxes they pay. Presently, section 80C permits a deduction from net complete income (prior to showing up at taxable income) of up to Rs 1.5 lakh per annum on qualified investments and indicated costs.

You May also, like: - Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21[This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

One can contribute the whole measure of Rs 1.5 lakh in one investment or diversify across more than one. Allow us to become familiar with deductions under Section 80C.

 

Home Loan Principal 

 

•           The Indian government has consistently shown an extraordinary tendency to urge residents to put resources into a house. This is the reason a home advance is qualified for tax deduction under section 80C.

 

Life Insurance Premium

 

Instalment of a premium on extra security strategy gives insurance cover to a taxpayer as well as offers certain tax benefits. The investment in life coverage can be deducted up to Rs 1,50,000.

You May also, like: - Automated Income Tax Revised Form 16 Part A&B for the F.Y. 2020-21[This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B]

 

Provident Fund Investment

 

A provident fund is a retirement fund run by the public authority. They are for the most part obligatory, frequently through taxes, and are funded by both employer and employee commitments. Governments set the standards with respect to withdrawals, including the least age and withdrawal sum. On the off chance that a member bites the dust, their enduring life partner and wards might have the option to keep drawing instalments.

 

Employee's commitment to any provident fund (aside from the unrecognized provident fund) is qualified for deduction under Section 80C up to Rs 1,50,000.

 

Investment in Value Connected Reserve funds Plan (ELSS)

 

•           ELSS funds are value funds that contribute a significant bit of their corpus into value or value related instruments.

 

•           ELSS funds are likewise called tax saving plans since they offer tax exception of up to Rs. 150,000 from your yearly taxable income under Section 80C of the Income Tax Act.

 

•           Further, these plans have a required lock-in time of 3 years.

 

•           Therefore, on recovering the units, investors get long haul capital additions or LTCG. These increases are not taxable up to Rs. 1 lakh in one monetary year. Any LTCG over this cutoff is taxed at 10% of the increases surpassing Rs. 1 lakh without indexation.

You May also, like: - Automated IncomeTax Revised Form 16 Part B for the F.Y.2020-21[This Excel Utility can prepare at a time 50 Employees Form 16 Part B]

 

Investment in (NSC)

 

•           The Public Reserve funds Authentication is a fixed income investment plot that investors can open with any post office.

 

•           An Administration of India activity, it is a reserve funds security that empowers subscribers, generally little to mid-income investors to contribute while saving money on income tax.

 

•           A fixed-income instrument like Public Provident Fund and Post Office FDs, this plan also is a protected and okay item.

 

•           One can get it from the closest post office in their name, for a minor or with another grown-up as a shared service.

 

•           The testaments acquire a fixed interest and accompany a fixed development time of five years. There is no most extreme cutoff on the acquisition of NSCs, however, just investments of up to Rs.1.5 lakh can acquire a tax break under Section 80C of the Income Tax Act.

You May also, like: - Automated Income Tax Revised Form 16 Part A&B and Part B for the F.Y.2020-21[This Excel Utility One by One Form 16 Part A&B and Part B]

 

Investment in Fixed Deposits

 

Any term store with a residency of at any rate five years with a planned bank additionally fits the bill for deduction under section 80C and the premium acquired on it is taxable.

 

Investment Unit-connected Insurance Plan (ULIP)

 

•           Unit Connected Insurance Plan (ULIP) is a blend of insurance alongside investment.

 

•           From a ULIP, the objective is to give abundance creation along with life cover where the insurance organization puts a bit of your investment towards disaster protection and rest into a fund that depends on value or obligation or both and matches with the financial backer's drawn-out objectives.

 

•           Premium paid on ULIPs is qualified for a deduction under Section 80C up to a limit of Rs 1.5 lakhs during a year.

You May also, like: - Automated IncomeTax Revised Form 16 Part B for the F.Y.2020-21[This Excel Utility One by One Form 16 Part B]

 

Education Expenses

 

A parent can guarantee a deduction on the sum paid as educational expenses to a university, school, school or some other instructive establishment. Different segments of expenses like improvement charges and transport charges are not qualified for deduction under Section 80C.

Download Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21[This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B and Part B]

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Income Tax Calculation FY 2020-21 – Which Tax Structure to Select? With Automated Income Tax Revised Form 16 Part A&B and Part B for F.Y. 2019-20

How to do Income Tax The calculation for FY 2020-21? Which Tax Structure to Select?

According to Taxplan 2020, you can't guarantee any assessment reasoning or exclusion on the off chance that you intend to pick a new Income Tax Slab. Along these lines, as an individual citizen on the off chance that you settle on the new assessment system with a decrease charge rate, you have to do without all tax cuts accessible today. Luckily, you have an alternative to proceeding with old duty structure. A salaried individual can switch among old and new assessment structure.

Therefore, we will discuss which charge conclusion and exception you have to do without on the of the chance that you pick new expense structure with the diminishing charge rate. Furthermore, we will step through hardly any exam cases and do annual assessment estimation for FY 2020-21 to realize which duty structure to choose?

In other words, reduce of Tax Deductions and Exemption not permitted in new Tax Structure

1 Tax Deduction Under Section 80C

However, the most well-known duty the finding of 1.5 Lakh under segment 80C isn't appropriate for new expense structure. This implies you can't guarantee any profit for venture made in the instruments, for example, PF, PPF, Life protection premium, school education costs of youngsters, ELSS, PPF, NPS and so on.

You can guarantee a conclusion under area 80CCD for business commitment because of a representative for NPS.

2 Tax Deduction Under Section 80D

No duty finding takes into consideration the clinical protection premium and preventive wellbeing test under segment 80D for new expense structure.

3 No LTA Benefits

For instance, a new Tax Rate of  LTA – Leave travel remittance exception which is at present accessible to a salaried worker for twice in the square of four years isn't permitted.

Download – 100 employees Automated Income Tax Revised Form 16 Part B for the Financial Year 2019-20 [ This Excel Utility can prepare at a time 100 employees Form 16 Part B ]

4 HRA

HRA is house lease recompense. HRA is paid to salaried people my boss as a piece of compensation. Prior citizen had the option to guarantee HRA up as far as possible. In a new assessment structure, it isn't passable.

5 Standard Deduction

A standard conclusion advantage of Rs.50000 as of now accessible to a salaried citizen isn't appropriate in the new assessment section.

6 Section 80TTA Benefits

Above all, Section 80TTA gives the conclusion of Rs.10000 on intrigue salary. On a new assessment system, this advantage isn't accessible.

7 Section 80DDB Benefits

In addition, advantages for handicap under segment 80DDB up to Rs.40000 not accessible in the event that you are intending to select new decreased duty structure.

Download – 50 Employees Automated Income Tax Revised Form 16 Part B for the Financial Year 2019-20 [ This Excel Utility can prepare at a time 100employees Form 16 Part B ]

8 Section 80E Education Loan

Tax reduction passable on the intrigue paid on training advance won't be claimable under area 80E.

9 Section 80G of Donation

After that, you had the option to make a gift under area 80G and guarantee annual tax cut of the identical sum. The said reasoning isn't accessible in decreased expense structure.

10 Section 24 Home Loan Interest

Under area 24 of the Income charge act, an individual had the option to guarantee charge finding on the intrigue instalment on the lodging advance up to a most extreme measure of Rs.200000. This advantage isn't broadened in the event that you pick new duty structure.

Similarly, all derivation material under part VIA like segment 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, and so forth) won't be claimable by those deciding on the new duty system.

Download – 100 Employees Automated Income Tax Revised Form 16 Part A&B for the Financial Year 2019-20 [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B ]

Income Tax Calculation FY 2020-21 (AY 2021-2022)

Now let’s calculate actual tax benefits by doing Income Tax Calculation and comparing both the tax structures in various cases.

Case 1 – Salaried Individual claiming common deduction (80C,80D) and Home Loan Benefits

In first case I will take example of salaried individual with income of 20 Lakh & 10 Lakh. Let’s consider in both the cases individual takes benefits of standard deduction Rs.50000, deduction of Rs.1.5 Lakh under section 80C, Rs.25000 under section 80D and Interest on home loan up to Rs.200000.

Now two options are available to the salaried individual. First he/she can opt for old tax structure with all above deduction or he/she can forgo all deduction and opt for new reduced tax structure.

Download – 50 Employees Automated Income Tax Revised Form 16 Part A&Bfor the Financial Year 2019-20 [ This Excel Utility can prepare at a time 50 employees Form 16 Part A&B ]

If individual has annual income of 20 Lakh and old tax structure is opted with tax deductions. Applicable tax is 2.85 Lakh. If new tax structure is adopted applicable tax amount is 3.37 Lakh. Similarly, if annual income is 10 Lakh and old tax structure is adopted applicable tax is Rs.27500. For new tax structure applicable tax is Rs.75000. Calculation is given below.

Case 2 – Salaried Individual claiming common deduction under section 80C, 80D and Standard Deduction

Gross Income Rs/-	Tax as per Old Tax Structure Rs/-	Tax as per New Tax Structure Rs/-	Additional Tax Saving Rs/- / Payable
7.5 Lakh	18200	39000	-20800
10 Lakh	70200	78000	-7800
12.5 Lakh	124800	130000	-5200
15 Lakh	202800	195000	7800
20 Lakh	358800	351000	7800

In the second case, we should expect that salaried individual is taking full advantages of area 80C, 80D and standard derivations starting at now. Under a new assessment system, these conclusions are not material. Assume the salary level of individual is 10 Lakh. In the event that the old assessment system is chosen payable duty is Rs.70200 then again if

New tax regime is selected payable tax is Rs.78000.

Download – One by One Prepare Automated Income Tax Revised Form 16 Part A&B and Part B  for the Financial Year2019-20 [ This Excel Utility can prepare One by One employees Form 16 Part A&B and Part B ]

Case 3 – Salaried Individual not claiming any deduction or exemptions

In third case let’s assume that salaried individual is not claiming any deduction of exemptions as of now. So, under new tax regime he/she will get benefit of reduced tax rates and he/she needs to pay less taxes. Suppose income level of individual is 15 Lakh. If old tax regime is selected payable tax is Rs.257400 on the other hand if new tax regime is selected payable tax is Rs.195000 only.

ross Income Rs/-	Tax as per Old Tax Structure Rs/-	Tax as per New Tax Structure Rs/-	Additional Tax Saving Rs/-
7.5 Lakh	54600	39000	15600
10 Lakh	106600	78000	28600
12.5 Lakh	179400	130000	49400
15 Lakh	257400	195000	62400
20 Lakh	413400	351000	62400

Download – One by One Prepare Automated Income Tax Revised Form 16 Part B and Part B  for the Financial Year 2019-20 [ This Excel Utility can prepare One by One employee's Form 16 Part B and Part B ]

In conclusion,

From the model of the above case clearly in the greater part of the cases old expense rate with derivation offers higher tax reductions. New diminished expense rate is advantageous just in the event that you are not guaranteeing any reasoning starting at now. (which is uncommon)

In the event that you have home advance and higher pay, you will get higher tax cuts in old assessment rate contrasted with new expense rate.

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Save More Tax – Use these less known Income Tax Deductions As per the Finance Budget 2019, With Automated Master of Form 16 Part B in Revised Format for the F.Y. 2019-20

One of the most popular section when it comes to income tax saving is 80C. People are enlightened of 80C and use this section fully when it comes to Income tax deductions. But many times taxpayer forgot other misogynist income tax deductions which can reduce their tax burden. In this post, we will take a squint at less known income tax deductions which can be used to save increasingly tax.

Section 80GG Deduction on Rent Paid

Under section 80GG, an individual can requirement a deduction for the rent paid. This is workable only if you are not getting HRA from your employer. This section is workable only for self-employed or salaried. You will be unliable to requirement up to Rs.5000 per month or 25% of total income or very rent paid in glut of 10% of total income (whichever is less).

Section 80TTA and 80TTB for wall interest

Section 80TTA of the income tax act offers a tax deduction on interest income earned from deposits or saving wall account. Interest income earned from savings worth up to Rs.10000 is deductible from the gross income. A new section 80TTB is introduced this year. The new section is workable to senior citizen. As per 80TTB up to Rs.50000 is unliable to be deducted from the gross income of senior citizen.

Download And Prepare At a Time 100 Employees  Automated Income Tax Form 16 Part A&B (Modified Format) [This Excel Utility Prepare At a time 100 Employees Form16 Part A&B in New Format for A.Y. 2020-21]

 

  The main feature of this Excel Utility:-

1)   Prepare At time 100 Employees  Excel Based  Form 16 Part A&B ( Modified Format of Form 16 Part B Vide CBDT Notification No.36/2019 Dated 12/04/2019 ]

2)   All the Amended Income Tax Section have in this utility as per Budget 2019

3)   You can print individual Form 16 Part Part A&B

4)   Most easy to install just like an Excel File

5)   Easy to Fill the all column

6)   Automatic Convert the Amount to the In-Words

Section 80G for Charitable Deduction

Suppose you have made a donation to the charitable organization or to the unrepeatable relief fund in last financial year. You can requirement the deduction of this value under section 80G and save increasingly tax. There are a unrepeatable set of organizations/institutions donation to them offers 100% deduction. You can take wholesomeness of this section.

Interest on Loan taken for higher education under 80E

Income tax section 80E allows you to requirement goody on interest paid for education loan. If you have taken education loan don’t forget to make requirement for interest deduction. This deduction is unliable for maximum eight years or till the interest is fully paid.

Section 80DDB for Medical Treatment

An expense incurred for the treatment of specified diseases such as AIDS, Cancer, Thalassemia etc can be personal for income tax deduction under section 80 DDB. The maximum value permissible under this section is Rs.40000. The limit for 80DDB for the senior resider is Rs.60000. You will need document Form 10-I from a qualified medical practitioner for this.

Interest payment for Home Loan of Second House

If you have taken a home loan for ownership a second house you can requirement up to 2 Lakh per year towards interest payment. This as per income tax section 24b. If you have rented a second house you need to declare income from that. If second house is rented or not rented you need to declare one house as deemed rented and other as self-occupied.

Download And Prepare At a Time 100 Employees  Automated Income Tax Form 16 Part B (Modified Format) [This Excel Utility Prepare At atime 100 Employees Form 16 Part B in New Format for A.Y. 2020-21]

  The main feature of this Excel Utility:-

7)   Prepare At time 100 Employees  Excel Based  Form 16 Part B ( Modified Format of Form 16 Part B Vide CBDT Notification No.36/2019 Dated 12/04/2019 ]

8)   All the Amended Income Tax Section have in this utility as per Budget 2019

9)   You can print individual Form 16 Part  B

10)                     Most easy to install just like an Excel File

11)                     Easy to Fill all column

12)                     Automatic Convert the Amount to the In-Words

Premium for Health Insurance under 80D

You can requirement deduction up to Rs.25000 for health insurance premium paid (for self, spouse, and children). If health insurance is taken for senior resider payment you can requirement deduction up to Rs.30000.

Amount Invested in NPS under section 80CCD

Most of the people are not enlightened of section 80CCD of NPS. You can invest up to 1.5 in NPS under section 80C to avail tax benefits. Apart from this you can invest spare Rs.50000 in NPS and get income tax deduction under section 80CCD. This goody is misogynist for investment in NPS only.

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