Taxability of ULIP U/s 80C| with Automated Income Tax Preparations Excel Based Excel Utility for the F.Y.2020-21 as per the New and Old Tax Regime U/s 115 BAC for the F.Y.2020-21

 

Unit linked insurance plans had gotten one of the top picks of high-total assets People in the previous few years. With their EEE include (i..e qualified for 80Cderivations, the exception of reward received, no duty on the amount received at maturity) and returns linked with interest in Value and obligation alongside life cover was everything necessary to draw in financial backers. In any case, this in some way or another additionally affected the Mutual Funds AMC as they felt that there was not a reasonable play at the ground level. Though LTCG on Mutual Funds was made to the burden, the maturity continues from ULIP's remained absolutely excluded. To cover this circle and bring ULIP's at standard with Mutual funds Financial plan 2021 has proposed taxability of thought received from ULIP subject to specific conditions. Allow us to understand top to bottom what these revisions are brought into and ow will mean for us!

You may also, like-Automated Income Tax Preparation Excel Based Software for the Jharkhand StateEmployees for the F.Y.2020-21 with New and Old Tax Regime U/s 115 BAC[This Excel Utility can prepare at time Tax Computed Sheet + Income Tax H.R.A. Exemption Calculator + Salary Structure as per the Jharkhand State Employees Salary Pattern + Automated Arrears Relief Calculation U/s 89(1) with Form 10E + Automated Income Tax Revised Form 16 Part A & B and Part B ]

 

Section 2(14)(b) that characterizes a Capital resource, proposed to be revised as to incorporate the words any unit-linked insurance policy to which exception under the condition (10D) of section 10 doesn't have any significant bearing by virtue of the pertinence of the fourth and fifth stipulation thereof;"; Which means in this way that ULIP's whose total charge surpasses as far as possible shall be treated as a capital resource and consequently continues on maturity shall be treated as capital gains.

 

Section 10(10d) that excludes the returns received on maturity of life coverage policy to be altered to incorporate fourth and fifth stipulation – Gave likewise that nothing contained in this condition shall apply as for any unit-linked insurance policy, given on or after the first day of February 2021, if the amount of expense payable for any of the previous years during the term of such policy surpasses two lakh and 50,000 rupees: Gave additionally that if the charge is payable, by an individual, for more than one unit-linked insurance strategies, given on or after the first day of February 2021, the arrangements of this statement shall apply just concerning those units linked insurance approaches, where the total amount of charge surpass the amount alluded to in the fourth stipulation in any of the previous years during the term of any of those approaches: Gave likewise that the arrangements of the fourth and fifth stipulations shall not make a difference to any whole received on the passing of an individual: Which means accordingly That ULIP's that are given on or after 1, Feb 2021 and have premium surpassing 2.50 lakhs in any previous year during the residency of the policy shall now be charged at the hour of maturity. Special case: Amount received by the candidate at the hour of death. Likewise, section proposes as far as possible on the total premise i..e all out of a premium of all such ULIP's taken by assessee, given on or after the predetermined date.

 

You may also, like-Automated Income TaxPreparation Excel Based Software for the West Bengal State Employees for the  F.Y.2020-21 with New and Old Tax Regime U/s 115 BAC[This Excel Utility can prepare at time Tax Computed Sheet + Income Tax H.R.A. Exemption Calculator + Salary Structure as per the West Bengal State Employees Salary Pattern (As per Ropa 2019) + Automated Income Tax Revised Form 16 Part A & B and Part B ]

 

Section 45 has been proposed to be altered to embed sub-condition 1b Despite anything contained in sub-section (1), where an individual gets whenever during any previous year any amount under a unit-linked insurance policy, to which exclusion understatement (10D) of section 10 doesn't have any significant bearing because of the appropriateness of the fourth and fifth stipulation thereof, including the amount apportioned via reward on such policy, at that point, any benefits or gains emerging from receipt of such amount by such individual shall be chargeable to annual expense under the head "Capital gains" and shall be considered to be the pay of such individual of the previous year in which such amount was received and the personal duty shall be determined in such a way as might be recommended.'; Which means subsequently The capital Gains on ULIP's shall be determined in the time of receipt of maturity/reward and not on due premise.

 

You may also, like-Automated Income Tax Preparation Excel Based Software for the Non-GovtEmployees for the F.Y.2020-21 with New and Old Tax Regime U/s 115 BAC[This Excel Utility can prepare at time Tax Computed Sheet + Income Tax H.R.A. Exemption Calculator + Salary Structure as per the Non-Govt Employees Salary Pattern + Automated Form 12 BA + Automated Income Tax Revised Form 16 Part A & B and Part B ]

 

 

Section 112A that states accommodate the computation of TCG in the event of indicated protections I proposed to be altered, in condition (a), in the initial bit, after the word and figures "section 10", the words, sections, figures and the letter "or under a plan of an insurance company involving unit-linked insurance approaches to which exclusion under provision (10D) of the said the section doesn't matter by virtue of the appropriateness of the fourth and fifth stipulation thereof" shall be embedded. ; Which means subsequently That capital gains determined on the returns, that surpass Rs. 1Lakh shall be available at the pace of 10%, similarly as of Value arranged Funds.

 

You may also, like-Automated Income Tax Preparation Excel Based Software for the Andhra Pradesh State Employees for the F.Y.2020-21 with New and Old Tax Regime U/s 115 BAC[This Excel Utility can prepare at time Tax Computed Sheet + Income Tax H.R.A. Exemption Calculator + Salary Structure as per the Andhra Pradesh State Employees Salary Pattern + Automated Arrears Relief Calculation U/s 89(1) with Form 10E + Automated Income Tax Revised Form 16 Part A & B and Part B ]

 

 

Essence

 

1.         ULIP gave on or after 1 st Feb 2021 with premium (total of all ULIP's given on or after 1 st Feb 2021) surpassing 2.50 lacks during any previous year in the residency of the policy to be charged at the hour of receipt of Maturity continues and reward.

2.         These shall be available in the time of receipt.

 

3.         Bonus received on policy likewise to be burdened.

 

4.         Taxability under the capital gains as they are characterized as a capital resource.

 

5.         Period of Holding to be a year or more to be treated as LTCG and appropriately charged at 10% without indexation advantage on the number of gains surpassing 1 lakhs as given in sec 112A.

 

6.         Bill states that strategy might be endorsed for computation, according to our understanding the Expense of Procurement shall be the number of charges paid.

Download Automated Income Tax Preparation Excel Based Software for the Govt & Non-Govt Employees for the F.Y.2020-21 with New and Old Tax Regime U/s 115 BAC[This Excel Utility can prepare at time Tax Computed Sheet + Income Tax H.R.A. Exemption Calculator + Salary Structure as per the Govt. & Non-Govt. Employees Salary Pattern + Automated Arrears Relief Calculation U/s 89(1) with Form 10E + Automated Income Tax Revised Form 16 Part A & B and Part B ]

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Investments Qualifying for deduction under section 80C as per budget 2019, With Automated 50 Employees Master of Form 16 Part B for F.Y. 2019-20

• Investments Qualifying for deduction under section 80C Max Rs. 1.5 Lakh
• i. Provident Fund (PF) & Voluntary Provident Fund (VPF):
• ii. Public Provident Fund (PPF):
• iii. Life Insurance Premiums:
• iv. Equity Linked Savings Scheme (ELSS):
• v. Home Loan Principal Repayment:
• vi. Stamp Duty and Registration Charges for a home:
• vii. Sukanya Samriddhi Account :
• viii. National Savings Certificate (NSC) (VIII Issue): 
• ix. Infrastructure Bonds:
• x. Pension Funds – Section 80CCC:
• xi. 5-Yr bank fixed deposits (FDs):
• xii. Senior Citizen Savings Scheme 2004 (SCSS):
• xiii. Amount Contributed (for a fixed period of not less than 3 years) by a Central Government employee to his NPS (Tier –II) account (Applicable from the Assessment Year 2020-21):
• xiv. 5-Yr post office time deposit (POTD) scheme:
• xv. NABARD rural bonds:
• xvi. Unit linked Insurance Plan :

Download And Prepare At a Time 50 Employees  Automated Income Tax Form 16 Part B (Modified Format) [This Excel Utility Prepare At atime 50 Employees Form 16 Part B in New Format for A.Y. 2020-21]

  The main feature of this Excel Utility:-

1)   Prepare At time 50 Employees  Excel Based  Form 16 Part 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  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

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TAX BENEFITS ON PAYING RENT & TAKING HOME LOAN INTEREST, PLUS AUTOMATED ALL IN ONE TDS ON SALARY FOR GOVT & NON-GOVT EMPLOYEES FOR F.Y 2019-20

As per the latest Central Finance Budget 2019 have some changed along with the Income Tax Slab for the Financial Year 2017-18.The Tax benefits who have already get the House Building Loan, they have also good news in this Central Financial Budget 2019. Now look how to get tax benefits on paying Rent & taking home loan interest :-

---

Click to Download automated All in One Tax preparation Excel Based Software for Govt & Non Govt employees for the Financial Year 2019-20.[ This Excel based software can prepare at a time your Tax Compute sheet + Individual Salary Structure + Individual Salary sheet + Automated HRA Exemption Calculation + Arrears Relief Calculation with Form 10E + Automated Revised Form 16 Part A&B and Revised Part B for Financial Year 2019-20]

 The people who are paying rent for their accommodation or those who have bought or constructed a property by taking home loans are eligible for certain tax benefits. The Tax Benefits that can be availed by you have been discussed in this article which is divided into two parts:


I. If you are paying rent.
II. If you have bought / constructed property by taking home loan.

These are discussed as follows:

I. IF YOU ARE PAYING RENT.

a) Deduction under section 10(13A) for House Rent Allowance.
House Rent allowance (HRA) is received by the salaried class. A deduction is permissible under Section 10(13A) of the Income Tax Act, in accordance with Rule 2A of the Income Tax Rules. You can claim exemption on your HRA under the Income Tax Act if you stay in a rented house and get a HRA from your employer.

The HRA deduction is based on salary, HRA received, the actual rent paid and place of residence. The place of residence is important. For Mumbai, Kolkata, Delhi or Chennai, the tax exemption on HRA is 50 percent of the basic salary, while for other cities it is 40 percent of the basic salary.

The city of residence is to be considered for calculating HRA deduction.

The least value of these is allowed as tax exemption on HRA:

• Actual rent allowance the employer provides as part of salary in the relevant period during which the rental accommodation was occupied
• Actual rent paid for the house, less 10 per cent of basic pay
• 50 percent of basic salary if you reside in Mumbai, Calcutta, Delhi or Chennai, or 40 per cent if you reside in other cities.

The following points need to be kept in mind for availing this deduction:

• In order to claim the exemption, the rent must actually be paid for the rented premises which you occupy.
• Also, the rented premises must not be owned by you. As long as the rented house is not owned by you, the exemption of HRA will be available up to the limits specified.
• For the purpose of this deduction, salary means basic salary and includes dearness allowance, if the terms of employment provide it, and commission based on a fixed percentage of turnover achieved by the employee.
• The deduction is available only for the period during which the rented house is occupied by the employee and not for any period after that.
• It is to be noted that the tax benefits for home loans and HRA are two separate aspects.In case you are paying rent for an accommodation, you can claim tax benefits on the HRA component of your salary, while also availing tax benefits on a home loan.
• You need to submit proof of rent paid through rent receipts, duly signed and stamped, along with other details such as the rented residence address, name of the owner, period of rent etc.

How it applies :- For example, assume one earns a basic salary of Rs 20,000 per month and rents a flat in Mumbai for Rs 5,000 per month. His actual HRA is Rs 8,000. He is eligible for 50 percent of the basic pay for HRA exemption.
Least of:
Actual HRA received = Rs 8,000
50 percent of basic salary = Rs 10,000
Excess of rent paid over 10 percent of salary, i.e., Rs 5,000 less Rs 2,000 = Rs 3,000.
As such, Rs 3,000 per month is the least and will be the exemption allowable for HRA deduction.

Download Automated Income Tax House Rent Exemption Calculator U/s10(13A) in Excel

b) Deduction under Section 80GG for Rent Paid.
Under Section 80GG, an Individual can claim deduction for the rent paid even if he does not get HRA. Not many people are aware of this deduction. The Max Limit Rs. 60,000/- P.A. or Rs. 5000/-P.M.

Section 80GG allows the Individuals to a deduction in respect of house rent paid by him for his own residence.

Such deduction is permissible subject to the following conditions :-

• The Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act;
• The Individual files the declaration in Form No. 10BA.
• The employee does not own:

  
1.      any residential accommodation himself or by his spouse or minor child or where such Individual is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or
2.      at any other place, any residential accommodation being accommodation in the occupation of the Individual, the value of which is to be determined under Section 23(2)(a) or Section 23(4)(a) as the case may be.

• He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income, subject to a ceiling of 25% thereof or Rs. 5,000/- per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. In other words, eligibility will be least amount of the following :-

  
1.      Rent paid minus 10 percent the adjusted total income.
2.      Rs 5,000 per month.
3.      25 percent of the adjusted total income.

• The deduction will also not be available to an assessee if any residential accommodation is owned by the assessee at any other place, which he is occupying, and the concessions in respect of self-occupied house are claimed by him for that property. In such a case, no deduction will be allowed in respect of the rent paid, even if the person does not own any residential accommodation at the place where he ordinarily resides.

Download All in One TDS on Salary for Non-Govt Employees for the F.Y. 2019-20 With H.R.A. Exemption Calculation U/s 10(13A) +Automated Form 12 BA for F.Y. 2019-20+ Automated Revised Form 16 Part B and Form 16 Part A&B for F.Y. 2019-20

 The feature of this Excel Utility is the following:-

1) This Excel Utility can prepare automatic Tax Calculation as per new Finance Budget 2019
2) The Salary Structure as per the All of Non-Govt(Private) employee’s Salary Pattern
3) Automated Individually Salary Sheet for each Employee
4) Automated Income Tax Salary Sheet for each Employee 
5) This Excel Utility calculate your House Rent Exemption Calculation U/s 10(13A)
6) Automated Income Tax Revised Form 16 Part A&B for F.Y. 2019-20 in New Format
7) Automated Income Tax Revised Form 16 Part B for the F.Y. 2019-20 in New Format
8) Automated Value of Perquisite Calculator with Form 12 BA
II. IF YOU HAVE BOUGHT/CONSTRUCTED PROPERTY BY TAKING HOME LOAN.

a) Deduction available under Section 80 C for Principal repayment of home loan.

As per section 80C an Individual and an HUF can claim principal repayment component of a loan along with other eligible items like Life Insurance Premium, NSCs, EPF, ELSS and stamp duty and registration charges etc.

• The overall deduction is restricted to Rs. 1.5 lakh in a year.
• Remember the deduction is only for residential house property and not for commercial property. Besides it is also available only for purchase or construction of a house and not for renovation, additions or repairs on any existing house property.
• You can claim principal repayment if you have taken loan from specified entity like banks, HFCs, Central & State government, LIC, NHB, Public Company or a Public Sector Undertaking. Even a University established by law or a local authority or corporation established under State or Central laws also are covered under the category.
• Moreover in case you sell the house acquired with home loan, within five years from the end of the year in which possession of the house was taken, all the deduction allowed for Principal repayment in earlier years shall be withdrawn. This shall be treated as income of the year in which this property is sold. Moreover no deduction under Section 80 C shall be allowed for principal repayment made during the year.

b) Deduction available under Section 24(b) for Interest payment.
In addition to deduction for Principal, Section 24(b) of the Income Tax Act allows you deduction for interest payable on loan taken to buy or construct a house property, or even for repair or reconstruction of an existing property.

• This benefit is available for residential and commercial property as well.
• It may be interesting to note that even processing fee paid in respect of home loan shall also be treated as interest so you can claim deduction in respect of processing fee paid for taking such loan.
• Even in cases where you prepay your loan, you will be entitled to claim the amount of any prepayment fee paid to the bank for such prepayment. Here you can claim the benefits in respect of loans taken from your friends and relatives besides banks and financial institutions.
• The deduction is available for self-occupied as well as let-out properties too. For self -occupied property, the deduction is restricted to Rs. 2 lakhs p.a. For let-out property, you can claim full interest. If you have more than one self- occupied houses, you have to select one house as self-occupied and the other house/s shall be treated as let-out. In this case you have to offer notional rent for taxation and can claim the full interest payable. So in order to maximize your tax benefits, it is always advisable to treat the property on which interest is lower as self-occupied in case interest payable on any or all of the property is more than Rs.2 lakhs.
• For under construction property, you can only claim the interest deduction from the year construction is complete and possession taken. However in respect of interest paid for the period prior to the year for taking possession, you can claim aggregate of such interest in five equal installments from the year in which construction is completed. There is no reversal of interest benefit even if you sell the house before five years as is applicable for repayment benefits.

Read More

Tax benefits on paying rent & taking Home Loan Interest, Plus Automated All in One TDS on Salary for Govt & Non-Govt employees for F.Y 2019-20

As per the latest Central Finance Budget 2019 have some changed along with the Income Tax Slab for the Financial Year 2017-18. The Tax benefits who have already get the House Building Loan, they have also good news in this Central Financial Budget 2019. Now look how to get tax benefits on paying Rent & taking home loan interest:-

Click to Download automated All in One Tax preparation Excel Based Software for Govt & Non Govt employees for the Financial Year 2019-20.[ This Excel based software can prepare at a time your Tax Compute sheet + Individual Salary Structure + Individual Salary sheet + Automated HRA Exemption Calculation + Arrears Relief Calculation with Form 10E + Automated Revised Form 16 Part A&B and Revised Part B for Financial Year 2019-20]

 

 The people who are paying rent for their accommodation or those who have bought or constructed a property by taking home loans are eligible for certain tax benefits. The Tax Benefits that can be availed by you have been discussed in this article which is divided into two parts:

I. If you are paying rent.
II. If you have bought / constructed property by taking home loan.

These are discussed as follows:

I. IF YOU ARE PAYING RENT.

a) Deduction under section 10(13A) for House Rent Allowance.
House Rent allowance (HRA) is received by the salaried class. A deduction is permissible under Section 10(13A) of the Income Tax Act, in accordance with Rule 2A of the Income Tax Rules. You can claim exemption on your HRA under the Income Tax Act if you stay in a rented house and get a HRA from your employer.

The HRA deduction is based on salary, HRA received, the actual rent paid and place of residence. The place of residence is important. For Mumbai, Kolkata, Delhi or Chennai, the tax exemption on HRA is 50 percent of the basic salary, while for other cities it is 40 percent of the basic salary.

The city of residence is to be considered for calculating HRA deduction.

The least value of these is allowed as tax exemption on HRA:

• Actual rent allowance the employer provides as part of salary in the relevant period during which the rental accommodation was occupied
• Actual rent paid for the house, less 10 per cent of basic pay
• 50 percent of basic salary if you reside in Mumbai, Calcutta, Delhi or Chennai, or 40 per cent if you reside in other cities.

The following points need to be kept in mind for availing this deduction:

• In order to claim the exemption, the rent must actually be paid for the rented premises which you occupy.
• Also, the rented premises must not be owned by you. As long as the rented house is not owned by you, the exemption of HRA will be available up to the limits specified.
• For the purpose of this deduction, salary means basic salary and includes dearness allowance, if the terms of employment provide it, and commission based on a fixed percentage of turnover achieved by the employee.
• The deduction is available only for the period during which the rented house is occupied by the employee and not for any period after that.
• It is to be noted that the tax benefits for home loans and HRA are two separate aspects.In case you are paying rent for an accommodation, you can claim tax benefits on the HRA component of your salary, while also availing tax benefits on a home loan.
• You need to submit proof of rent paid through rent receipts, duly signed and stamped, along with other details such as the rented residence address, name of the owner, period of rent etc.

How it applies :- For example, assume one earns a basic salary of Rs 20,000 per month and rents a flat in Mumbai for Rs 5,000 per month. His actual HRA is Rs 8,000. He is eligible for 50 percent of the basic pay for HRA exemption.
Least of:
Actual HRA received = Rs 8,000
50 percent of basic salary = Rs 10,000
Excess of rent paid over 10 percent of salary, i.e., Rs 5,000 less Rs 2,000 = Rs 3,000.
As such, Rs 3,000 per month is the least and will be the exemption allowable for HRA deduction.Download Automated Income Tax House Rent Exemption Calculator U/s10(13A) in Excel

b) Deduction under Section 80GG for Rent Paid.
Under Section 80GG, an Individual can claim deduction for the rent paid even if he does not get HRA. Not many people are aware of this deduction. The Max Limit Rs. 60,000/- P.A. or Rs. 5000/-P.M.

Section 80GG allows the Individuals to a deduction in respect of house rent paid by him for his own residence.

Such deduction is permissible subject to the following conditions :-

• The Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act;
• The Individual files the declaration in Form No. 10BA.
• The employee does not own:

1.      

1.      any residential accommodation himself or by his spouse or minor child or where such Individual is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or

2.      at any other place, any residential accommodation being accommodation in the occupation of the Individual, the value of which is to be determined under Section 23(2)(a) or Section 23(4)(a) as the case may be.

• He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income, subject to a ceiling of 25% thereof or Rs. 5,000/- per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. In other words, eligibility will be least amount of the following :-

1.      

1.      Rent paid minus 10 percent the adjusted total income.

2.      Rs 5,000 per month.

3.      25 percent of the adjusted total income.

• The deduction will also not be available to an assessee if any residential accommodation is owned by the assessee at any other place, which he is occupying, and the concessions in respect of self-occupied house are claimed by him for that property. In such a case, no deduction will be allowed in respect of the rent paid, even if the person does not own any residential accommodation at the place where he ordinarily resides.

Download All in One TDS on Salary for Non-Govt Employees for the F.Y. 2019-20 With H.R.A. Exemption Calculation U/s 10(13A) +Automated Form 12 BA for F.Y. 2019-20+ Automated Revised Form 16 Part B andForm 16 Part A&B for F.Y. 2019-20

 The feature of this Excel Utility is the following:-

1) This Excel Utility can prepare automatic Tax Calculation as per new Finance Budget 2019

2) The Salary Structure as per the All of Non-Govt(Private) employee’s Salary Pattern

3) Automated Individually Salary Sheet for each Employee

4) Automated Income Tax Salary Sheet for each Employee 

5) This Excel Utility calculate your House Rent Exemption Calculation U/s 10(13A)

6) Automated Income Tax Revised Form 16 Part A&B for F.Y. 2019-20 in New Format

7) Automated Income Tax Revised Form 16 Part B for the F.Y. 2019-20 in New Format

8) Automated Value of Perquisite Calculator with Form 12 BA

II. IF YOU HAVE BOUGHT/CONSTRUCTED PROPERTY BY TAKING HOME LOAN.

a) Deduction available under Section 80 C for Principal repayment of home loan.

As per section 80C an Individual and an HUF can claim principal repayment component of a loan along with other eligible items like Life Insurance Premium, NSCs, EPF, ELSS and stamp duty and registration charges etc.

• The overall deduction is restricted to Rs. 1.5 lakh in a year.
• Remember the deduction is only for residential house property and not for commercial property. Besides it is also available only for purchase or construction of a house and not for renovation, additions or repairs on any existing house property.
• You can claim principal repayment if you have taken loan from specified entity like banks, HFCs, Central & State government, LIC, NHB, Public Company or a Public Sector Undertaking. Even a University established by law or a local authority or corporation established under State or Central laws also are covered under the category.
• Moreover in case you sell the house acquired with home loan, within five years from the end of the year in which possession of the house was taken, all the deduction allowed for Principal repayment in earlier years shall be withdrawn. This shall be treated as income of the year in which this property is sold. Moreover no deduction under Section 80 C shall be allowed for principal repayment made during the year.

b) Deduction available under Section 24(b) for Interest payment.
In addition to deduction for Principal, Section 24(b) of the Income Tax Act allows you deduction for interest payable on loan taken to buy or construct a house property, or even for repair or reconstruction of an existing property.

• This benefit is available for residential and commercial property as well.
• It may be interesting to note that even processing fee paid in respect of home loan shall also be treated as interest so you can claim deduction in respect of processing fee paid for taking such loan.
• Even in cases where you prepay your loan, you will be entitled to claim the amount of any prepayment fee paid to the bank for such prepayment. Here you can claim the benefits in respect of loans taken from your friends and relatives besides banks and financial institutions.
• The deduction is available for self-occupied as well as let-out properties too. For self -occupied property, the deduction is restricted to Rs. 2 lakhs p.a. For let-out property, you can claim full interest. If you have more than one self- occupied houses, you have to select one house as self-occupied and the other house/s shall be treated as let-out. In this case you have to offer notional rent for taxation and can claim the full interest payable. So in order to maximize your tax benefits, it is always advisable to treat the property on which interest is lower as self-occupied in case interest payable on any or all of the property is more than Rs.2 lakhs.
• For under construction property, you can only claim the interest deduction from the year construction is complete and possession taken. However in respect of interest paid for the period prior to the year for taking possession, you can claim aggregate of such interest in five equal installments from the year in which construction is completed. There is no reversal of interest benefit even if you sell the house before five years as is applicable for repayment benefits.

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Top Beneficial Income Tax Deductions for Salaried Individuals for F.Y. 2018-19 With Automated 100 employees Income Tax Master of Form 16 Part B for F.Y.2018-19

Salaried persons are a unit offered several tax deductions on the taxation they purchase the regular payment that they get which has the fundamental regular payment also because the allowances and pensions that they get from their leader or the organization that they supply their services to.

Deductions that Salaried individuals area unit Subject To

•           Tax Saving Mutual Funds

Tax saving mutual funds has taxation deductions on them, because the name itself suggests. The ELSS – Equity coupled Savings theme investment company has tax deductions offered beneath the Section eighty CCD and Section eighty 300 of the taxation Act. Taxes may be saved by the salaried people WHO have a restricted financial gain each month.

•           Employee Provident Fund

The worker provident fund provides AN employee AN quantity of cash and it's thought of to be a locality of the regular payment financial gain that they receive. AN taxation deduction is on the market on the worker provident fund that is taxed. These exemptions area unit given for the staff to avoid wasting extra money and promote the set up. The Section eighty 300 and eighty CCD give the taxation deduction beneath this.

•           Hostel Facilities Allowance

In case the kid of a salaried individual is obtaining their education by staying at a hostel facility throughout the course of their education, then they're subject to obtaining a hostel facilities allowance. The allowance for the hostel facilities area unit coupled to the allowance for the education of the kid. This allowance may be a a part of the regular payment and thence is ratable. These taxes area unit exempted beneath the taxation Act.

•           Annuity or Pension Schemes

An taxation deduction is on the market on the Pension schemes or regular payment schemes that a private takes up. On pension schemes, a private receives come back on the investments that they create. The come back is taken into account as AN financial gain that falls beneath the class of “income from different sources”. This financial gain is rat able And a salaried individual is subject to obtaining an taxation deduction on that. The section eighty 300 and eighty CCD of the taxation Act provides this tax exemption.

Download Automated Income Tax Salary Certificate Form 16 Part B for Financial Year 2018-19 and Ass Year 2019-20 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B for F.Y. 2018-19]

•           House Loan

During the tenure of the use of a private in a company, they may wish to buy a house. And this may need them to require up a loan. The leader can give them with a loan. The house loan is provided just in case the worker needs to amendment their residence throughout the course of their work on the corporate. Now, the taxation deduction that a private gets is on the interest of the house loan that is on the market beneath the taxation Act. there's a very important purpose that you just all ought to confine mind; it's that the taxation deduction can solely be provided just in case the house being purchased is to be occupied by the worker.

•           Child Education Allowance

An worker is additionally subject to obtaining AN allowance for kid education which is able to facilitate them to coach their kid and supply them with the right tools like books and provides. The allowance that a private get to be able to educate their kid is additionally thought of as AN financial gain which financial gain is taxed. One will avail a tax exemption on the kid education allowance beneath the taxation Act. The allowance can solely be provided for two kids of the individual throughout the tenure of their employment at the organization.

•           Tax Saving mounted Deposits

The taxation Act’s Section eighty CCD and Section eighty 300 give tax exemptions to the people WHO have place their cash into mounted deposits. this can be an excellent investment possibility for salaried individuals as they will save cash by saving taxes.

•           Tax Exemption on allowance for House Rent

Employees area unit subject to obtaining AN allowance for house rent in order that they will have an area of keep throughout the period of their job. This allowance may be a a part of the regular payment financial gain that a salaried individual gets. So, this financial gain is ratable. And, if AN financial gain is ratable, it would even have tax exemption on that, counting on the character. The house rent allowance is exempted from tax that is allowed by the taxation Department. The house rent allowance tax write-off is on the market beneath the Section eighty GG of the taxation Act in Bharat. If you're a private staying with their oldsters, you'll additionally get the house rent allowance tax write-off by paying them rent through a rent agreement; this additionally helps you to avail the house rent allowance.

•           Life premium

A insurance set up that a private takes up provides out AN quantity of corpus to the set up holder by the payment of taxes. The premiums area unit to be taxed beneath the taxation act. But, beneath the taxation Act provides for the taxes to be subtracted beneath the Section eighty 300 also as eighty CCD. The premium tax exemptions very facilitate a private to avoid wasting up cash and additionally get come back at identical time.

•           Allowance for Transportation

An worker gets a transportation allowance in order that they will commute to and fro their geographic point throughout the tenure of their employment at the actual organization. The allowance for transportation is additionally a locality of the regular payment that AN worker gets. Transportation allowance helps a private to simply pay that cash on comfy transportation which will get them to their geographic point quick and in time. This allowance is taxed ANd there area unit an taxation deduction is on the market on that beneath the taxation Act. during this case, the staff needn't give the receipts as they need to commute.

Salaried staff  have loads of taxation deductions that they will avail beneath the Sections of the taxation Act. financial gain taxes ought to be filed properly and among the date in order that the deductions, exemptions and returns may be processed.

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