Income tax exemptions under head salary| With Automated Income Tax Revised Form 16 for the F.Y.2020-21 as per new and old tax regime

 

Income tax exemptions under head salary | Income tax exemption under salary head People who choose the income tax slab under the new tax will not be able to avail some of the popular concessions and exemptions under the Income Tax Act, 1961. To go under the new tax system:

- Section 80C - Rs. 1,50,000 / - (e.g., Insurance, PPF (Public Provident Fund), National Conservation Certificate etc.)

- Section 80D - Rs. 25,000-50,000 / - (Medical)

- Standard discount - 50,000 /

- Discount Allowance (LTA)

- Home Rent Allowance (HRA)

- Interest for housing 24(B)

You may also, like-Automated Income Tax Preparation Excel Based Software All in One for theNon-Govt (Private) Employees for the F.Y.2021-22 as per Budget 2021[This Excel Utility prepare at a time your Tax Computed Sheet as per new or Old Regime + Individual Salary Structure as per the Non-Govt Employees Salary Pattern + Automated H.R.A. Calculation U/s 10(13A) +Automated Form 12 BA + Autofill Form 16 Part A&B and Part B] 

Different tax saving methods:

1) House Rent Allowance (HRA)

Paid people living in rented houses/apartments can claim a reduction in the amount of tax on the house rent allowance or HRA. 

The discount available in the lowest of the following amounts:

Actual HRA receipt;

50% of the basic salary of those who live in metro cities (40% of non-metro); Or

Rent pays less than 10% of the basic rent basic salary

You can claim a discount on home loans and HRA interest together.

You can claim HRA while staying with your parents.

 Example: Rahul works in an MNC in Gurgaon and gets a monthly salary. 12,00,000 annually and lives in a proprietary house with his parents in Delhi. Even though he is living in a private home, he can get income tax benefits from the company to pay the housing allowance. All he has to do is pay the rent monthly to his parents and send the rent receipt to HRT. His parents must show the rent he paid on their income tax return. But they can save a lot as a family.

Download Automated Income Tax H.R.A. Exemption Calculator U/s 10(13A) in Excel

2) Home tax benefits

Each borrower provides interest as well as key ingredients for the loan. The Income Tax Act provides benefits for both components

 

Part of interest: You can claim a maximum of Rs. 2,00,000/- discount (expense) for home loan interest The house is self-occupied or in a vacant position. However, if the house is rented, you can claim a discount on the amount of interest paid without the above limit. This discount can be adjusted against your salary income, thereby reducing your overall tax liability.

You may also, like-Automated Income Tax Preparation Excel Based Software All in One for the BiharState Government Employees for the F.Y.2021-22 as per Budget 2021[This Excel Utility prepare at a time your Tax Computed Sheet as per New or Old Tax Regime + Individual Salary Structure as per the Bihar State Employees Salary Pattern + Automated H.R.A. Calculation U/s 10(13A) + Autofill Form 16 Part A&B and Part B] 

Main Component: You can claim a maximum of Rs. 2,000 / -. 1,50,000 / - as exemption under section 80C for the original component. This is consistent with the overall income and consequently reduces the overall tax liability.

Tax Seller Fact: If the joint loan is taken jointly, the holders can claim a rebate of up to Rs 10,000 each. 2,00,000 / - each as well as Rs. 1,50,000 / - each in their separate tax return.

 

3) Discounts under Section 80C, 80CCC, 80CCD and 80D Invest Investment-Discount on 80C Maximum limit Rs. 1,50,000 / -: 80C PPF, EPF, LIC accepted in premium towards, payment of the principal amount for stamp duty and registration charge for purchase of property, Sukanya Smriti Yojana (SSY), National Savings Certificate (NSC) allows a discount for investment, Exemption for Senior Citizen Savings Scheme (SCSS), ULIP, tax saving FD for 5 years, infrastructure bonds etc. N NPS: 80 CCD (2) Additional limit Rs. 50,000 / -: 60 CCD (2) allows additional rebate of Rs. 50,000 / - for money deposited in the NPS account by the employee. Discount for  Mediclaim: 80D You can claim a discount of Rs.25000/- below 60 years of age and Rs. 50000/- for the above 60 years

 

Additional discounts for parental medicals are available up to Rs 25,000 if they are under 60 years of age. The exemption limits a Maximum of Rs. 50,000 for Senior citizensabove 60 Years of age.

Download Autofill Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime (This Excel Utility can prepare at a time 50 Employees Form 16 Part A and B) [Who are not able to download the Form 16 Part A from the Income Tax Department, they can use this Excel Utility]