Significant changes in income tax for the F.Y.2021-22| With Auto fill Income Tax Preparation Software All in One in Excel for the Government and Non-Government Employees for the F.Y.2021-22

 Significant changes in income tax which will be effective from 1st April 2021 The new financial year

 is going to start from 1st April The government has planned some major changes for this financial year

 (2021). In the 2021 budget, Finance Minister Nirmala Sitharaman did not provide any relief to the

 middle class and paid the class in terms of income tax. But those who are over 65 years of age are

 exempted from filing income tax returns this time.

 

Note this, this has been already decided to take major action against those who do not file income tax returns. All these changes will be effective from 1 April 2021

 

If any taxpayers do not file an income tax return (ITR) from 1st April, the interest rate on TDS on bank deposits will be doubled. This means that if a person does not come to the income tax outgo slab and file an ITR, the rate of TDS on him will be doubled.

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The changes in income tax will be effective from 1st April 2021

 

        1. Pre-filled ITR form. A major change in ITR forms is expected as per Budget 2021 (Pre-filed ITR). The pre-filled ITR forms will contain information on capital gains, dividend income, interest from bank/post office, etc. on the listed securities. Previously pre-filed ITR forms were available to salaried employees where income was reflected on the basis of Form 16, but now the scope has expanded.

 

2. Interest tax on PF interest earned from the last fund of the payer is exempt from income tax. However, Budget 2021 proposes that the interest on employee contributions to the Provident Fund be Rs. 2.5 lakh should be taxable.

 

      3. Punishment for not linking Aadhaar and PAN. The date fixed for linking Aadhaar and income tax PAN is 31st March 2021. In the case of non-linking, your PAN card will be activated In the case of non-linking, you may be fined. Rupees Ten Thousand under Section 272B of the Income Tax Act. Link the pan to the reservoir

 

4. Income Tax Return (ITR) High TDS / TCS Rate for Non-Filers A new paragraph 206AB (ITR) has been inserted in the Income Tax Act as a special provision for an upper rate of TDS to non-filers of income tax returns. The proposed rate for non-filers is higher among the following: 5% Double the rate or double the effective rate mentioned in the relevant provisions of the law. Similarly, a new section 206CCA has been inserted in the Income Tax Act as a special provision for Income Tax Return (ITR) for TDS for non-filers. Arranging high rates. The recommended rate for non-filers is higher than the following: 5% double the rate specified in the relevant provisions of the law.

 

  5. Billing under LTC Cash Voucher Scheme To get tax benefits under LTC Cash Voucher Scheme, make sure that your employer has submitted the required bills in a proper format including GST amount and seller's GST number (Employer paid on or after March 31, 2021). The scheme is being offered earlier. According to the scheme, an employee has to spend three times the amount considered as LTA rent on goods and services attracting 12% or more GST.

 

6 There is no tax filing for citizens over 75 years of age who are over 75 years of age and whose pension income and interest on fixed deposits come to the same bank and who have only interest income, do not have to file an income tax return. The bank will deduct the income tax he has to pay and submit it to the government.

Relief for super senior citizens

 

Can this Rule apply to super senior citizens? In this regard, Pankaj Mathpal (Managing Director of Optima Money Managers) said that from April 1, 2021, senior citizens above 75 years of age will not have to file ITR. This exemption is given to senior citizens who are dependent on pension or fixed deposit interest. 

 

Income tax law came to the country 160 years ago. In 1860, James Wilson, a British officer, presented the first budget. Added to this is the income tax law. In the first budget of the country, income tax exemption was given to the annual income earners up to Rs. 200. The Income Tax Act of 1961 is still in force in the country. It is corrected from time to time.

Download Automated Income Tax Preparation Excel Based Software All in One for the Government & Non-Government (Private) Employees for the F.Y.2021-22 and A.Y.2022-23

Feature of this Excel Utility:-

 

1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)

 

2) This Excel Utility has an option where you can choose your option as New or Old Tax Regime

 

3) This Excel Utility has a unique Salary Structure for Government and Non-Government Employee’s Salary Structure.

 

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

 

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

 

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

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

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

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

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

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

 expenses.

 

Plan your taxes to save your income

 

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

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

 

About NPS

 

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

 

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

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

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

 

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

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What is Sec 80CCD (1B)?

 

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

 

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

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

 

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

 

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

 

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

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

 

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

 

Partial withdrawal is allowed under NPS but subjects to certain conditions

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

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

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

 

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

 

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

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

Convenience for existing NPS customers

 

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

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

 

Feature of this Excel Utility:-

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

 

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

 

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

 

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

 

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

 

6) Individual Salary Sheet

 

7) Individual Tax Computed Sheet

 

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

 

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

 

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

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Tax Saving Options for A.Y 2022-23 with Automated Income Tax Preparation Software in Excel for the Govt and Non-Govt Employees for F.Y.2021-22

 Tax Saving options for A.Y.2022-23.We all want to save as much money as we can within the law.

 All of us should always pay our income tax because it builds the nation and strengthens the-

 economy. But, wise, planned and strategic investment can help us save some money to pave the

 -way for a financially secure future. Here are some top options that every taxpayer should explore-

 to save their income tax.

 

Five tax saving options under section 80C

To encourage savings, the Government of India offers tax breaks if you invest in certain financial instruments each year. The amounts invested in these classified instruments are deductible from your taxable income.

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Section 80C is one of the most popular tax-saving options among income taxpayers and offers a variety of ways to invest money and save tax every year. The annual limit for claiming tax deduction is currently set at Rs 1.5 lakh. The following devices are widely popular because of the specific benefits of each:

 

1. Public Provident Fund

The current interest rate is 7.1% and this is a safe option if you are looking for a risk-free, stable return in the long run. The minimum validity of PPF accounts opened at selected bank branches and post offices is 15 years and can be extended up to 5 years block.

The amount deposited in the PPF account is deductible from taxable income under section 80C, although partial withdrawals are only allowed from the 7th year. It is mandatory to deposit a minimum of Rs.500 per annum to keep the account active.

 

2. National Pension Scheme (NPS)

NPS is a voluntary pension scheme that is tax-exempt at both maturity and annuity (up to 40%). Contributions to NPS are also deductible from taxable income under section 80C.

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3. Life insurance plan

If you are looking for a healthy investment then the most powerful and difficult instrument. Use it if you are looking for inflation-beating returns, wealth creation and financial security for your family. No material other than the tax benefit under section 80C provides financial protection for your family.

Canara HSBC Oriental Bank of Commerce Life Insurance offers some savings plans and even guaranteed returns to give you peace of mind. In the case of premature death, future premiums are paid by the company (for certain policies) so that the family's lifestyle and education aspirations are not affected.

In addition to investing in National Pension Scheme under Section 80C, there is now an extra opportunity to claim an additional exemption of up to Rupees Fifty Thousand under Section 80CCD (1B). If you have invested Rs 1.5 lakh in life General Provident Fund or Public Provident Fune, you can invest another Rupees Fifty Thousand in National Pension Fund and deduct a total of Rupees Two lakh from your taxable income.

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4. Mediclaim under Section 80D

Health insurance not only protects you from the cost of hospitalization but also saves taxes on premiums paid. This dual benefit is because the premiums paid can be deducted under Section 80D of the Indian Income Tax Act. What's more, you can even include premiums paid for your family and dependent parents.

Up to Rs 25,000 can be deducted from taxable income for health insurance cover for you, your spouse and your dependent children. Also, you are entitled to claim an additional deduction of Rs 25,000 paid for health insurance if your parents are under 60 years of age.

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There is also an incentive to do preventive health check-ups. It has cost Rs 5,000 to get a health check for you, or your family is also eligible to be deducted under Section 80D though under the overall limit.

5. Home Loan - Section 24B

Buying a home with a home loan is not just about building your home or fulfilling your family's dreams. Not only will you save money on constantly rising rents, but you can also save some money that would otherwise have been paid as taxes.

 

A) Home Loan Principal: 

Home loan EMI has two components- principal and interest. The principal component that is paid each year is deductible from your taxable income under section 80C and within the total limit of Rs 1.5 lakh under section 80C.

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b) Interest on home loan: 

If the property is self-acquired, interest up to a maximum of Rs. 2 lakhs is also deductible from the taxable income under section 24B.

 

C) Registry and other charges: 

Whenever you register your property, you are also eligible to claim a deduction of stamp duty and the amount paid for registration.

 

With so many ways to invest and save tax, you must look for the benefits and returns of each before zeroing in on the right one for you. Even with the above options, you can claim a discount of up to Rs 5 lakh from your taxable income. If you fall into the 30% tax bracket, you can save a whopping Rs 1.5 lakh with just the above options!

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

 

Feature of this Excel Utility:-

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

 

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

 

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

 

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

 

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

 

6) Individual Salary Sheet

 

7) Individual Tax Computed Sheet

 

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

 

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

 

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

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Senior Citizen parental’s medical bills can save you taxes| With Auto fill Income Tax Preparation Software All in One in Excel for the West Bengal State Employees for the F.Y.2021-22 as per Budget 2021

 Senior Citizen parental medical bills can save you taxes. With COVID's second wave in full swing,

 health insurance seems like an unavoidable requirement that also gives you tax benefits under Sec 80D.

 

But here’s the catch - health insurance premiums for senior citizens are either too high or unavailable, especially for those with pre-existing conditions. Don't worry - did you know that even your senior citizen's parents' medical bills can save you taxes?

Let's find out how it works

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Medical expenses incurred for senior citizens 60 years of age or older are reasonable.

This waiver claim may include parents (spouses or dependent children) for themselves (senior citizens themselves) or families.

 

The person for whom the discount has been claimed is not covered by any health insurance.

 

All medical expenses, from counselling fees to medications, or the purchase of devices such as hearing aids, are permitted. A proof will be required.

Most importantly - no payments made in cash are allowed.

 

The limit of medical expenses is the same as that allowed for health insurance which is Rs 50,000 per year for parents and Rs. Separate annual Rs. 50,000 for self, wife or dependent children (if senior citizen).

 

This year, as there are plenty of examples of people who spend money on treatments related to covid, make sure you make good use of this facility to save your taxes.

Download Autofill Income Tax Preparation Excel BasedSoftware All in One for the West Bengal Government Employees for theF.Y.2021-22

Main Feature of this Excel Utility:-

 

#This Excel Utility can prepare at a time your Tax Computed Sheet as per Section 115BAC

 

#Auto Calculate House Rent Exemption Calculation U/s 10(13A)

 

#Automated Income Tax Form 16 Part A&B

 

#Automated Income Tax Form 16 Part B

 

# Individual Salary Structure as per W.B.Govt Employees Salary Pattern

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