New tax regime under Section 115BAC
The Finance Minister Smt. Nirmala Sitharaman has introduced her second Budget on first February 2020. A new optional individual tax conspire has been proposed to vide a recently embedded section i.e., 115BAC for the Individuals and HUF.
From the evaluation, the year 2021-22 (FY 2020-21), individual and HUF taxpayers have an option to select taxation under the section 115BAC of the Act gave them choose to forego the predefined deductions and exceptions.
The option to pay tax at lower rates will be accessible just if the all-out income of the assessee is registered without guaranteeing following exceptions or deductions:
a) Leave Travel concession [Section 10(5)]
b) House rent allowance [Section 10(13A)]
c) Official and individual stipends (other than those as might be recommended) [Section 10(14)]
d) Allowances to MPs/MLAs [Section 10(17)]
e) Allowances for the income of minor [Section 10(32)]
f) Deduction for units built up in Special Economic Zones (SEZ) [Section 10AA];
g) Standard Deduction [Section 16(ia)]
h) Entertainment Allowance [Section 16((ii)]
I) Professional Tax [Section 16(iii)]
j) Interest on lodging advance [Section 24(b)]
k) Additional devaluation in respect of new plant and hardware [Section 32(1)(iia)];
l) Deduction for interest in new plant and apparatus in told in reverse regions [Section 32AD];
m) Deduction in respect of tea, espresso or elastic business [Section 33AB];
n) Deduction in respect of business comprising of prospecting or extraction or creation of oil or flammable gas in India [Section 33ABA];
o) Deduction for gift made to affirmed logical research affiliation, college school or other establishments for doing logical research which could conceivably be identified with business [Section 35(1)(ii)];
p) Deduction for instalment made to an Indian organization for doing logical research which might be identified with business [Section 35(1)(iia)];
q) Deduction for gift made to the college, school, or other organization for doing research in sociology or factual research [Section 35(1)(iii)];
r) Deduction for gift made for or use on logical research [Section 35(2AA)];
s) Deduction in respect of capital consumption brought about in respect of certain predefined businesses, i.e., cold chain office, warehousing office, and so forth. [Section 35AD];
t) Deduction for use on farming expansion venture [Section 35CCC];
u) Deduction for family Pension [Section 57(iia)]
v) Deduction in respect of specific incomes other than indicated under Section 80JJAA, 80CCD(2) and deduction under section 80LA for Unit situated in IFSC [Part C of Chapter VI-A].
Furthermore, on the off chance that the assessee has business income, this option will be practised prior to the due date for outfitting the profits of income. When the assessee has practised the option for an earlier year, it can’t be hence pulled back for the equivalent or some other earlier year. The option once practised for any earlier year can be pulled back just a single time in ensuing earlier year (other than the year in which it was worked out) and from there on, he will never be qualified to practice this option again aside from where such individual stops to have any business income.
Notwithstanding, if the assessee doesn’t have business income, the option must be practised alongside the arrival of income for each earlier year. On the off chance that an assessee, in the wake of choosing Section 115BAC, guarantees any of recommended deduction or remittance in an earlier year, at that point the option to pay tax at concessional rate will get invalid for that year.
Download Automated Income Tax Preparation Excel Based Software All in One for the Non-Government(Private) Employees for the Financial Year 2020-21 and Assessment Year 2021-22 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 the all amended Income Tax Section as per Budget 2020
3) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
4) Individual Salary Structure as per the Non-Govt (Private) Employees Salary Pattern
5) Individual Salary Sheet
6) Individual Tax Computed Sheet
7) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
8) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
10) Automatic Convert the amount into the in-words without any Excel Formula