October 31, 2020

Itax Software

Income Tax Software

Download Automated Income Tax Preparation Excel Based Software All in One for Govt & Non-Govt Employees for F.Y. 2020-21 With Old & New Tax Regime as per Budget 2020

How to do Income Tax Calculation for FY 2020-21? Which Tax Structure to Choose?
Here is the answer to these inquiries!
According
to Budget 2020, you cannot claim any tax deduction or exception if you
plan to opt for a new tax structure. Along these lines, as an individual
taxpayer if you opt for the new tax regime with lessening tax rate you
need to forgo all tax breaks available today. Fortunately, you have the
option to proceed with the old tax structure. A salaried individual can
switch among old and new tax structure.

Firstly,
we will talk about which tax deduction and exception you need to forgo
in case you opt for new tax structure with diminishing the tax rate.
Secondly, we will take a few experiments and do income tax calculation
for FY 2020-21 to realize which tax structure to choose?
Rundown of Tax Deductions and Exclusion not allowed in new Tax Structure
1 Tax Deduction Under Section 80C ( But If you Opt-in as Old Tax Regime you can get this benefit)
The
most popular tax deduction of 1.5 Lakh under section 80C isn’t
applicable for new tax structure. This means you cannot claim any
benefit for the speculation made in the instruments, for example, PF,
PPF, Life insurance premium, school education costs of kids, ELSS, PPF,
NPS and so on.
You can claim deduction under section 80CCD for the employer commitment on account of an employee for NPS. 
2 Tax Deduction Under Section 80D ( But If you Opt-in as Old Tax Regime you can get this benefit)
No
tax deduction is allowed for the medical insurance premium and
preventive health test under section 80D for new tax structure.
3 No LTA Benefits But if you Opt-in as Old Tax Regime you can get this benefits
For
new tax structure LTA – Leave travel allowance exclusion which is
currently available to a salaried employee for twice in a square of four
years isn’t allowed.
4 HRA Exemption U/s 10(13A) ( But If you Opt-in as Old Tax Regime you can get this benefit)
HRA
is house lease allowance. HRA is paid to salaried individuals by an
employer as a part of a salary. The earlier taxpayer was able to claim
HRA up to a certain cutoff. In a new tax structure, it isn’t admissible.
5 Standard Deduction ( But If you Opt-in as Old Tax Regime you can get this benefit)
A standard deduction benefit of Rs.50000 currently available to the salaried taxpayer isn’t applicable in new tax slab.
6 Section 80TTA Benefits ( But If you Opt-in as Old Tax Regime you can get this benefit)
Section 80TTA gives a deduction of Rs.10000 on intrigue income. On a new tax regime, this benefit isn’t available. ( But If you Opt-in as Old Tax Regime you can get this benefit)
7 Section 80DDB Benefits ( But If you Opt-in as Old Tax Regime you can get this benefit)
Benefits
for disability under section 80DDB up to Rs.40000 not available in case
you are planning to opt for new diminished tax structure.
8 Section 80E Education Loan ( But If you Opt-in as Old Tax Regime you can get this benefit)
Tax break reasonable on the intrigue paid on education loan won’t be, claimable under section 80E.
9 Section 80G of Donation ( But If you Opt-in as Old Tax Regime you can get this benefit)
You
had the option to make a donation under section 80G and claim income
tax benefit of equivalent amount. The said deduction isn’t available in
the diminished tax structure.
10 Section 24 Home Loan Intrigue ( But If you Opt-in as Old Tax Regime you can get this benefit)
Under
section 24 of the Income-tax Act, an individual was able to claim a tax
deduction on the intrigue payment on the lodging loan up to a maximum
amount of Rs.200000. This benefit isn’t expanded if you opt for a new
tax structure.
To
put it Old Tax Regime, all deduction applicable under chapter VIA like
section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB,
80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, and so on)
won’t be claimable by those opting for the new tax regime.

Presently
how about we calculate actual tax the benefits by doing Income Tax
Calculation and comparing both the tax structures in various cases.
Case 1 – Salaried Individual claiming regular deduction (80C,80D) and Home Loan Benefits
In
the first case, I will take an example of a salaried individual with an
income of 20 Lakh and 10 Lakh. How about we consider in both the cases
individual takes benefits of standard the deduction Rs.50000, deduction
of Rs.1.5 Lakh under section 80C, Rs.25000 under section 80D and
Enthusiasm on a home loan up to Rs.200000.
Presently
two options are available to the salaried individual. First, he/she can
opt for old tax structure with all above deduction or he/she can forgo
all deduction and opt for new diminished tax structure.
If
an individual has an annual income of 20 Lakh and old tax structure has
opted with tax deductions. Applicable tax is 2.85 Lakh. If a new tax
structure is adopted applicable tax amount is 3.37 Lakh. Similarly, if
annual income is 10 Lakh and old tax structure is adopted applicable tax
is Rs.27500. For a new tax structure, the applicable tax is Rs.75000.
The calculation is given beneath.
Gross Income Rs/-
Tax as per Old Tax Structure Rs/-
Tax as per New Tax Structure Rs/-
Additional Tax Saving Rs/- / Payable
7.5 Lakh
18200
39000
-20800
10 Lakh
70200
78000
-7800
12.5 Lakh
124800
130000
-5200
15 Lakh
202800
195000
7800
20 Lakh
358800
351000
7800
Case 2 – Salaried Individual claiming basic deduction under section 80C, 80D and Standard Deduction
In
the subsequent case how about we assume that salaried individual is
taking full benefits of section 80C, 80D and standard deductions as of
now. Under a new tax regime, these deductions are not applicable. Assume
the income level of an individual is 10 Lakh. If the old tax regime is
chosen payable tax is Rs.70200 then again if the new tax regime is
chosen payable tax is Rs.78000.

Gross Income Rs/-
Tax as per Old Tax Structure Rs/-
Tax as per New Tax Structure Rs/-
Additional Tax Saving Rs/-
7.5 Lakh
54600
39000
15600
10 Lakh
106600
78000
28600
12.5 Lakh
179400
130000
49400
15 Lakh
257400
195000
62400
20 Lakh
413400
351000
62400
Conclusion
From
the above cases example, clearly in the vast majority of the cases, old
the tax rate with deduction offers higher tax benefits. The new
diminished tax rate is beneficial only if you are not claiming any
deductions as of now. (which is very rare)
If you have a home loan and higher income you will get higher tax benefits in the old tax rate compared to a new tax rate.
First, look at the above V.D.O. how to calculate this Excel Utility step by step
Feature of this Excel Utility:-
1)    This Excel Utility most handy and easy to generate just like an Excel File.
2)    This Excel Utility have all the particulars about Government and Non-Government Concern’s Salary Pattern
3)    This
Excel Utility can prepare at a time your Income Tax Computed Sheet +
Automated Income Tax Arrears Relief Calculation U/s 89(1) with Form 10E
From the F.Y.2000-01 to F.Y.2020-21 (Update version)
4)    This
Excel Utility can calculate automatically your House Rent Exemption
Calculation U/s 10(13A) ( If you Opt-in as Old Tax Regime)
5)    This
Excel Utility Prepare Automated Form 16 Pat A&B ( Who are not able
to download the Form 16 Part A from the TRACES PORTAL)
6)    This Excel Utility Prepare Automated Income Tax Revised Form 16 Part B for F.Y.2020-21
7)    The utility has the Individual Salary Structure and Individual Salary Statement 
8)    After filling the First page of this Excel Utility all calculations and all of the Income Tax Forms will be completed.
9)    This Excel Utility can use both of Old Tax Regime and New Tax Regime U/s 115 BAC as per Budget 2020

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