Popular Tax Exemptions under Chapter VI A for the F.Y.2021-22 | With Tax Software in Excel for F.Y.2021-22

 Popular Tax Exemptions under Chapter VI A for the F.Y.2021-22 as per Budget 2021. The income tax

 deduction is available for the business class person or salaried person.

 

A deduction is a relief provided by the government to taxpayers through which they can legally save their taxes through various platforms such as investing their money, spending allowanceswhich are discounted such as children's tuition fees, donations to recognized institutions, self and dependents' treatment. Expenses, home loan or interest on an electric car, rental etc.

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Popular Tax Exemption under chapter VI A

What are all the possible deductions that can help us save our taxes?

 1. Discount of 80C

This discount is one of the most popular and easy ways out of all other discounts. It is available to certain individuals / HUFs for certain tax-saving investments or eligible expenses. The maximum amount of the limit is Rs. 1,50,000 / -. These are the following potential sources that should be used in full when calculating income tax:

Public Provident Fund (PPF)

L.I.C.Premium, or(ULIP)

Consolidated capital

• Term deposit such as fixed deposit, recurring deposit, post office term deposit (minimum 5 years lock-in period)

Bonds issued by NAB NABARD

Recognized Provident Fund

 Sukanya Samriddhi Yojana

Equity-Linked Savings Scheme (ELSS)

National Pension Scheme (NPS)

National Savings Certificate (NSC)

India Tuition fees are paid up to 2 schools, colleges, universities etc. located in India

Senior Citizens Savings Scheme

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Salary Structure for Bihar State Employees

2. 80D

This discount is available to individuals / HUFs on premiums paid for medical insurance in a mode other than cash.

The maximum amount is Rs. 25,000 / -, if health insurance is for self, wife and dependent children. And additional Rs. 30,000/- For the Senior Citizen above 60 years of age.

 

80CCC

An individual can claim payment for a specific pension plan. It is available only for premiums paid for the Annual Plan of the Life Insurance Corporation of India or for the funds referred to in Section 10 (23AAB). The limit of  (80C, 80CCC, 80CCD (1)).is Rs. 1,50,000 / -

 

80CCD

 Section 80CCD (1) - Contributed to National Pension Scheme (NPS) account 10% of salary (in case of an employee) and 20% of total income (in case of a self-employed person)

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Tax Exemption under chapter VI A

 Section 80CCD (1B) - 50,000 / - (above and above the limit of Rs.1,50,000 / -) for money deposited in the NPS account is allowed for an additional deduction on contributions made by the employee (in case of salaried persons and self-employed)

 

 Section 80CCD (2) - Additional deduction on the contribution up to 10% of the employer's salary (basic salary + allowance). This discount is only allowed for salaried persons.

 

Discount between 80GG

This discount is available if the personal appraiser does not receive a home rent allowance. It is available in the following amount for the cost of rent paid for his own residence-

• 5000 / - p.m.

• Minus 10% of total aggregate income has been paid as rent

25% of total gross income

To take advantage of this section, the assessor must make a declaration on Form 10BA

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Salary Structure

 80 G-

This discount is available up to 100% or up to 50% (with or without limitation) for grantees in approved charities etc.

Cash donations above Rs. 2,000 / - will not be accepted as a deduction.

 

80 E-

A person can get a discount on the interest on loans taken from a financial institution or an approved charity for himself, his wife or children for higher education.

It is available for a maximum of 8 years from the year interest payments begin.

 

 Discount of 80EEB

Discounts are available from a personal appraiser for the interest on a loan taken to purchase an electric vehicle. This could be for personal purposes or for business use. The condition for getting this discount is that the financial institutions have to approve the loan from 01.04.2019 to 31.03.2023.

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Salary Structure of Jharkhand State Employees

14. Discount of 80TTA

Discount up to Rs. 10,000 / - on interest income earned by individual / HUF from Savings Bank, Post Office Savings Account, or Co-operative Bank. This discount is not available for interest earned on term deposits (e.g. fixed deposit, recurring deposit).

 

Discount of u / s 80U

This discount is available for people with disabilities. Cuttable-

. 75,000 / - if disability is 40% - 80%

Severe Rs.1,25,000 / - if severe disability i.e. 80% or more

The assessor must provide a copy of the certificate issued by the medical authority.

General discounts other than discounts from 80C to 80U are available for salaried persons

 

Standard Deduction U/s 16(ia)- 50,000 / - Standard Deduction or Salary Income, whichever is less

Home Rent Allowance - Section 10 (13A) provides at least one of the following exemptions-

Allowance actually received

More than 10% of salary is rented

Sala Salary 50% (in Metro City) / 40% Salary (Non-Metro City)

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Salary Structure for Non-Govt Employees

Child Education Allowance - 100 / - per PM up to 2 children per child

Hostel Allowance - 300 / - PM Hostel expenses up to 2 children per child

Leave Travel Allowances 

Travel expenses in Indiacan be claimed as actual travel discounts on travel expenses paid by the employer on himself or his family. It can be used for two trips performed in a block of four calendar years

 

Interest paid on a home loan- Section 24 ((b) provides a rebate of up to Rs. 2 lakhs on interest paid on the loan taken for acquisition, construction, repair, renewal or reconstruction of the home property. Purchase or construction will be completed within a year. To claim a deduction under this section, the person must own the home property and have a loan in his name.

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Salary Structure for Private Employees

Tax Computed Sheet
Form 12 BA

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