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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Download Automated Income Tax Form 16 Part A&B for 50 employees for F.Y.2018-19 With Save More Tax – Use these less known Income Tax Deductions For F.Y.2018-19

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

Save More Tax – Use these less known Income Tax Deductions

Save Tax through your Family Member

One of the simplest ways to save tax is through your family member parents, in-laws, wife, and children. You might be surprised that how it works? Let me explain, in this method you need to give away a portion of your fund to the family member as a gift or loan.

If you have any close family member or relatives who fall in NIL or lower tax bracket then you can save taxes by gifting/transferring your investment in their name. You need to open a separate income tax file on their name. Tax implication arising due to the above is explained below.

Example 1 – Let’s consider the example of businessmen or self-employed who are earning 10 Lakh from a business. He can pass on his profit/earning to his children/wife. He can show this as salary income for running a business. His taxable income will be reduced by that amount. His children (major)/Wife needs to file separate income tax return and pay taxes as per tax slab. If an amount is less than taxable limit liability will be NIL.

Example 2 – Let’s consider an example of a married couple where a husband is salaried and earning 10 Lakh per annum as salary income. Wife is a homemaker. Husband decided to give 2 Lakh as a gift to his wife. Wife makes an investment in the tax-exempted instrument such as ELSS, PPF etc.

As the husband is giving 2 Lakh, his taxable income is not reduced to 8 Lakh. Husband needs to pay taxes on full amount 10 Lakh (Salary Income). Wife will be exempted from tax on receiving a gift. Any income earned via investment on will be totally her income and will not be taxed under clubbing provision.

Download the Automated Income Tax Form 16 Part A&B which can prepare at a time 50 Employees Form 16 Part A&B for F.Y.2018-19 [ Who are not able to download the Form 16 Part A from the Traces Portal, they can use this Excel Utility for F.Y.2018-19]

Section 80GG Deduction on Rent Paid

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

Section 80TTA and 80TTB for bank interest

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

Section 80G for Charitable Deduction

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

Interest on Loan has taken for higher education under 80E

Income tax section 80E allows you to claim benefit on interest paid for education loan. If you have taken an education loan don’t forget to make claim for interest deduction. This deduction is allowed for a 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 claimed for income tax deduction under section 80 DDB. The maximum amount permissible under this section is Rs.40000. The limit for 80DDB for the senior citizen is Rs.60000. You will need certificate 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 buying a second house you can claim 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.

A premium for Health Insurance under 80D

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

Amount Invested in NPS under section 80CCD

Most of the people are not aware 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 additional Rs.50000 in NPS and get income tax deduction under section 80CCD. This benefit is available for investment in NPS only.

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