October 30, 2020

Itax Software

Income Tax Software

Major tax Amendments to the Salaried Persons for F.Y. 2020-21 And New Provisions of Finance Act 2020 With Automated Excel Based all in One TDS on Salary for Govt & Non-Govt Employees for F.Y.2020-21 (Old Regime and New Regime)

All Individuals & HUF can prefer
to
pay tax as per new slab rates without availing
exemptions & deductions for the fiscal year 2020-21
and Assessment Year 2021-22 as per the Budget 2020.
The option has been given to all or any individuals/HUF
to pay tax as per new slab rates (Optional tax regime) on total income computed
without claiming any deductions/exemptions – As per Sec 115BAC inserted by
Finance Act, 2020 -Applicable from FY 2020-21 (AY 2021-22).
Below table summarizes tax rates as
per optional tax regime Vs. old rates:

Total Income (Rs.)
Existing Tax Rates (%)
New Tax Rates (Optional) (%)
0-2,50,000
0%
0%
2,50,001-5,00,000
5%
5%
5,00,001 – 7,50,000
20%
10%
7,50,001 – 10,00,000
15%
10,00,001 – 12,50,000

30%

20%
12,50,001 – 15,00,000
25%
> 15,00,000
30%
• Basic exemption limit for oldster
and super citizen individuals remains unchanged at
Rs.3,00,000 and Rs.5,00,000
• Rebate of tax
(i.e. up to Rs.12,500 if total income doesn’t
exceed Rs.5,00,000) remains unchanged and equally
applicable for resident individual albeit prefer
to
choose new
tax
• No change in surcharge rates. However, surcharge on STT paid capital gains
shall not exceed 15%.
Individuals/HUF who doesn’t
have business income & prefer
to
pay tax as per new regime, option shall be exercised for
every
year at the time of filing of ITR
Allowances/investments not eligible for claiming deductions/exemptions if choose
new tax regime
An Individual/HUF who doesn’t have business income
and choose
new tax regime shall not be eligible to say various
allowances/investments as deductions/exemptions under different heads of income
and
therefore the
same are summarized below:
Allowances/investments eligible for claiming as deductions/exemptions if choose
new tax regime
An Individual/HUF who doesn’t have business income
and choose
new tax regime shall eligible to say the
below mentioned allowances/investments as deductions/exemptions only, under
different heads of income:

Other conditions
i. Option shall be exercised for each year along
side
filing of tax return
ii. No exemption in respect of free coupon/meal vouchers (i.e. taxable within
the
hands of employee as perquisite) – Proposed to amend
Rule 3 of tax
Rules,
Individuals/HUF having business income & prefer
to
pay tax as per new rates, option are often exercised
at any time on or before the maturity of
filing ITR for any AY on or after 2021-22 and applicable for subsequent AY’s
also.
Amounts not eligible for claiming as deductions under the top income
from business or profession
An Individual/HUF having business income and prefer
to
pay tax as per new rates shall not be eligible to
say
various deductions under the top PGBP
and
therefore the
same are summarized below:
Eligible to
say
deduction u/s 80JJAA in respect of additional
employee cost
Not required to pay Alternate Minimum Tax (AMT) and not eligible to
hold
forward and depart of
AMT credit, if any
• Provisions of AMT shall not apply to Individual/HUF having business income
and prefer
to
pay tax as per new regime – Sec 115JC amended by
Finance Act,
• Individual/HUF having business income and choose
new tax regime, shall not be eligible to line
off of brought forward AMT credit, if any and carry
over
and depart of
AMT credit, if any – 115JD amended by Finance Act,
Time limit for loan sanction under affordable housing scheme extended till
31-Mar- 2021 for availing deduction of interest on loan taken by a
private

• An individual is eligible to say deduction of
interest payable up to Rs.1,50,000 on loan taken for purchase of residential
house property for AY 2020-21 and subsequently if the subsequent conditions
are satisfied:
> Loan taken from financial
organization
during 01-Apr-2019 to 31-Mar-2020 (extended
till 31-Mar-2021 – Amended by Finance Act, 2020);
> stamp
tax
value of the property doesn’t exceed
45,00,000
> Individual doesn’t
own any residential house property on the date of
sanction of loan
• Deduction claimed under this section shall not be eligible to
say
as deduction once
more
under the other section under
the
Cumulative employer’s contribution to recognized PF, approved pension
fund
and NPS in more than Rs.7.50
lakhs is taxable within
the
hands of employee as perquisite
• To bring a uniformity in taxation between high earning and low earning
salaried employees in respect of employer’s contribution to recognized PF,
approved pension
fund
and National Pension Scheme, Sec 17(2)(vii) of the
Act was amended vide Finance Act, 2020 by introducing a combined upper cap
limit of Rs.7,50,000 and any excess contribution made by an employer shall be
taxable within
the
hands of employee as
• Further, clause (viia) of sub-section (2) of section 17 introduced to tax
annual accretion by way of interest, dividend or the other amount
of
comparable
nature during the previous year to the
accumulated balance to the extent of contribution included in total income of
the individual as per section 17(2)(vii).
Head-wise summary of Investments/expenses not eligible for claiming as
deduction/ exemption if prefer
to
pay tax as per new rates
S No
Section/ Rule
Deductions/Exemptions
Head of income
1.
10(5)
Leave Travel Allowance (LTA)
Salary
2.
10(13A)
House Rent Allowance (HRA)
3.
10(14)
Allowances covered (for e.g. allowances to meet cost of
living or to meet personal expenses etc.)
5.
16(ia)
Standard deduction of Rs.50,000
6.
16(ii)
Entertainment allowance (to government employees) Max. Rs.
5000/-
7.
16(iii)
Tax on employment (i.e. Professional Tax – PT)
8.
24(b)
Interest on housing loan (Self-occupied/Vacant Property –
Sec. 23(2)) Max Rs.2,00,000/-
House Property
9.
57(iia)
Family Pension
Other Sources
10.
35AD
Capital expenditure on specified business
11.
35CCC
Expenditure on agricultural extension project
12.
80C
LIC Premium, Children Tuition Fees, PF contribution,
Principal component of housing loan etc..,

Chapter – VIA deductions (from Gross Total Income)

13.
80CCC
Contribution to certain pension funds
14.
80CCD(1)
Employee’s contribution to national pension scheme
15.
80D
Health Insurance Premium/Medical Expenditure/Preventive
Health-check up
16.
80DD
Maintenance/medical treatment of dependent disabled person
17.
80DDB
Medical treatment of specified diseases
18.
80E
Interest on loan taken for higher education
19.
80EE
Interest on loan taken for residential house property
20.
80EEA
Interest on loan taken for residential house property (if
not eligible to claim u/s 80EE)
21.
80EEB
Interest on loan taken for purchase of electric vehicle
22.
80G
Donation institutions to certain funds/charitable
23.
80GG
Rent paid (if not eligible deduction u/s 10(13A)) to claim
HRA
 

Free
Download Automated Excel Based Software All in One  For Govt
&Non-Govt employees for the Financial Year 2020-21 and Assessment
Year 2021-22 (Old Regime and New Regime method as per Budget 2020)

Main feature of this Excel Utility
1)    
This Excel utility can prepare at a
time all of the Income Tax Calculation sheet.
2)    
This Excel Utility Prepare Automated
Income Tax Computed Sheet as per Budget 2020 ( New Tax Regime & Old Regime)
3)    
This Excel utility can prepare
automatic Income Tax Computed Sheet for individual Salary Sheet for Govt and
Non-Govt employees
4)    
This Excel Utility can prepare
Automatic Income Tax House Rent Exemption Calculation U/s 10(13A) if you Opt in
Old Tax Regime.
5)    
Prepare automated Income Tax Arrears
Relief Calculator U/s 89(1) with Form 10E from the F.Y. 2000-01 to F.Y. 2020-21
(Amended Version)
6)    
Automated Income Tax Revised Form 16
Part A&B for F.Y. 2020-21
7)    
Automated Income Tax Revised Form 16
Part B for F.Y. 2020-21

8)     
Automatic Convert the amount to the
In-Words without any Excel Formula
.

 Main Data Input Sheet
 Employee’s Details Input Portion
 Deductor’s Details Portion
 Tax Computed Portion
 Salary Structure for both of Govt and Non-Govt Employees
 Automated Revised Form 16 Part A&B
 Income Tax Revised Form 16 Part B
Automated Arrears Relief Calculation U/s 89(1) with Form 10E

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