October 27, 2020

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Income Tax Software

Free Download Automated Income Tax Form 16 Part B for F.Y.2018-19 With income tax exemption for F.Y18-19 & Ass Yr 2019-20

A tax-payer who
has taken benefit under Section 80TTB cannot take tax benefit under Section
80TTA, because benefits under Section 80TTB and Section 80TTA are exclusive.

As Union Finance Ministry in Budget 2018 has introduced
several changes in regards to income tax filing, we tell you in detail what you
should remember to claim deductions during Income Tax Return (ITR) filing.


Only a few weeks are left for the completion of
FY18, and after that you have to file income tax for the financial year 2018-19
(FY19), we tell you about many benefits offered by the government under
different sections of IT Act where you can claim deductions during Income Tax
Return (ITR) filing.


Here is a list of sections that you should know
about Income Tax Act for FY19.


Section 80C
Although this section remains the same since
last budget announcement, yet there is a list of 14 instruments through which
you can claim tax deductions.

These instruments include Employee Provident
Fund (EPF), Public Provident Fund (PPF), National Savings Certificate (NSC),
payment towards children’s tuition fees, ELSS, National Pension System (NPS),
Life Insurance policy premiums, deposits in the Sukanya Samriddhi Yojana, etc.

Under this section, any individual or a Hindu
Undivided Family (HUF) can claim deductions up to Rs 1,50,000 for FY19.

Section 80CCD
An individual can claim deduction under this
section for contribution to pension account. They are:

Employees contribution: If an individual has
made deposits in his/her pension account, then maximum deduction is 10% of
salary (in case of an employee) or 10% of gross total income (in case of
self-employed) or Rs 1,50,000 whichever is less.

Contribution to NPS: A new section 80CCD (1B)
has been inked – which allows an additional deduction of up to Rs 50,000 for
deposits made by a taxpayer in their National Pension Scheme (NPS) account.
Also similar benefit is available for Atal Pension Yojana.

While in case of employer’s contribution to NPS
account, section CCD (2) allows additional deduction of up to 10% of the salary
of an employee. It may be noted that there are no monetary ceiling on this

Section 80CCG
Although deduction under this Section has been
withdrawn due to discontinuation of the Rajiv Gandhi Equity Saving Scheme
(RGESS), some investors can still claim benefit under it.

RGESS was eliminated from April 1, 2017, thus,
no deduction under Section 80CCG will be allowed from AY 2018-19. However, if
an investor has invested in the RGESS scheme in FY 2016-17 (AY 2017-18), they
can claim deduction under this Section until AY 2019-20.

Deduction is lower of 50% of the amount invested
in equity shares or Rs 25,000 for three consecutive Assessment Years.

Download Automated Income Tax Form 16Part B for F.Y.2018-19 and Ass Year 2019-20 [ This Excel Utility can prepare
Income Tax Form 16 Part B for One by One ]

 Section 80D

The government has proposed to increase the tax
deduction benefit to Rs 50,000 for senior citizens for a cover of Rs 10 lakh.

An individual having health policy of senior
citizen for a cover of Rs 10 lakhs may cost around Rs 35,000 to R  40,000
(Age range 61-64 Years) and it may go higher with a higher age group.

So, Rs 50,000 deduction benefit will provide a
big benefit to elderly taxpayers.

While in case, you pay a Health Insurance
premium on behalf of your parents, this section provides an additional
deduction benefit of up to Rs 20,000. While for uninsured, super senior
citizens (over 80 years old) medical expenses, up to Rs. 30,000, are allowed as

Section 80DDB
Deduction under this one is available for
rehabilitation of handicapped dependent relative.

It has been proposed in Budget to increase the
limit for treatment of critical illness of a specified disease to Rs 1 lakh for
all senior citizens. Earlier, tax exemption of Rs 60,000 for senior citizens
and Rs 80,000 for very senior citizens was available.

Also, tax exemption of Rs 40,000 can be claimed
for medical treatment of special ailments like cancer, AIDS, thalassaemia, etc.
However, this one is allowed only for individuals below 60 years.

Section 80TTA
Under IT Act, Section 80TTA is titled as
‘Deduction in respect of interest on deposits in savings account’.

You can claim exemption on up to Rs 10,000
received as interest on your savings account deposits.

The savings account can be held in any of the
financial institution like Bank, Cooperative society and Post office.

You can claim exemption on any number of savings
accounts as long as the total amount you are seeking exemption on is less than
Rs 10,000.

It may be noted that section 80TTA can be
applied only in case of savings accounts and not on term deposits, fixed
deposits or recurring deposits.

Considering that tax benefit is not applicable
on interest earned through Fixed Deposits, recurring deposits or interest
income on corporate bond, the Budget proposed tax benefit on them to Rs 50,000
from previous Rs 10,000 in a financial year for senior citizen.

Section 80GG

Such section is applicable for rent paid during
the time when House Rent Allowance is not received. Also, the taxpayer, spouse
or minor child should not own residential accommodation at the place of

Going ahead, a taxpayer should not have
self-occupied residential property in any other place.

Section 80G
Under IT Act, Section 80G is available for
contributions made to certain relief funds and charitable institutions.

One can enjoy 100% tax deduction and are not
subject to any qualification limit being met.

Schemes that qualify for 100% deduction are
–  National Defence Fund, Prime Minister’s National Relief Fund, The National
Foundation for Communal Harmony, and National/State Blood Transfusion Council.

50% tax deduction can be claimed if donations
are made under trusts like Prime Minister’s Drought Relief Fund, National
Children’s Fund and Indira Gandhi Memorial Fund.

Section 80GGB
This one is allowed to Indian firms for amount
invested to any political party or an electoral trust.

Moreover, deduction is available only if the
donation made to a political party registered under Section 29A of the
Representation of the People Act. Contribution is defined as per Section 293A
of the Companies Act, 1956.

Section 80E
An eligible person can get tax benefits under
section 80 (E) of the IT Act if you have taken a loan for higher studies for
self, spouse, children or your legal ward.

However, tax deduction benefit is only
applicable for the interest paid on the Education Loan and eliminating the
principle amount.

Deduction for the interest on loan starts from
the year in which an individual has started repaying the loan. The deduction is
available only for 8 years.

It may be noted that Education Loan must be
taken from a scheduled commercial bank or an eligible financial institution.

Section 24(b)
On every interest paid on your home loan, you
can claim a tax deduction under this section.

In case of self-occupied properties, a taxpayer
can claim up to Rs 2,00,000 benefit under this section.


This replaces medical reimbursement and
travel/conveyance allowance.

At present, you can get medical benefits
reimbursed from employer to the extent of Rs 15,000. Conveyance allowance can
be Rs 1,600 per month, effectively Rs 19,200 per annum.

This standard deduction of Rs 40,000 will
replace the aforementioned benefits. The maximum tax benefit goes up from Rs
34,200 to Rs 40,000 per annum.


A new section (80TTB) has been proposed. Under
this section, interest income up to Rs 50,000 is exempt from tax. This benefit
is applicable only to senior citizens.

The interest income can be on savings accounts,
fixed deposits or recurring deposits. Such income shall be on deposits with
banks, co-operative banks and post office.

Tax-payers, who are not senior citizens, can
avail tax benefit of Rs 10,000 for interest income on savings bank account
under Section 80TTA. There is no change for taxpayers less than 60 years of

It is mentioned here that a tax-payer who has
taken benefit under Section 80TTB cannot take tax benefit under Section 80TTA
as the benefits under Section 80TTB and Section 80TTA are exclusive.

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