The main changes in the Income Tax for the Financial Year 2019-20 & Assessment Year 20120-21 as per the Interim Central Budget 2019
1. Increased Tax Rebate u/s 87A: For people with net assessable pay of Rs 5 lakh or less the duty refund would be lesser of expense risk or Rs 12,500 whichever is lower
2. The standard deduction for Salaried and Pensioners expanded from Rs 40,000 to Rs 50,000
3. Section 80 TTA :- from Rs 10,000 to Rs 50,000 on Bank Interest Income
1. Section 80C/80CCC/80CCD
These 3 are the most prominent segments for assessment sparing and have a parcel of alternatives to spare expense. The most extreme exception in joining all the above areas is Rs 1.5 lakhs. 80CCC arrangements with the benefits items while 80CCD incorporates the Central Government Employee Pension Scheme.
You can browse the accompanying for assessment sparing ventures:
1. Employee/Voluntary Provident Fund (EPF/VPF)
2. PPF (Public Provident reserve)
3. Sukanya Samriddhi Account
4. National Saving Certificate (NSC)
5. Senior Citizen's Saving Scheme (SCSS)
6. 5 years Tax Saving Fixed Deposit in banks/post workplaces
7. Life Insurance Premium
8. Pension Plans from Life Insurance or Mutual Funds
9. NPS
10. Equity Linked Saving Scheme (ELSS – prominently known as Tax Saving Mutual Funds)
11. Central Government Employee Pension Scheme
12. Principal Payment on Home Loan
13. Stamp Duty and enlistment of the House
14. Tuition Fee for 2 kids
2. Section 80CCD(1B) – Investment in NPS
Financial limit 2015 has permitted extra exception of Rs 50,000 for interest in NPS. This proceeds with this year as well. We have completed a total investigation which you can peruse by tapping the connection underneath.
Download Automated Income Tax All in One TDS on Salary for Govt & Non-Govt Employees for the Financial Year 2019-20
The feature of this Excel Utility is the following:-
1) This Excel Utility can prepare automatic Tax Calculation as per new Finance Budget 2019
2) The Salary Structure as per the Govt and Private employees Salary Structure.
3) Automated Individually Salary Sheet for each Employee
4) Automated Income Tax Salary Sheet for each Employee
5) This Excel Utility calculate your House Rent Exemption Calculation U/s 10(13A)
6) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E for F.Y. 2019-20
7) Automated Income Tax Form 16 Part A&B for F.Y. 2019-20
8) Automated Income Tax Form 16 Part B for the F.Y. 2019-20
3. Installment of enthusiasm on Home Loan (Section 24)
The intrigue paid up to Rs 2 lakhs on home advance for self-involved or leased home is exempted u/s 24. Prior there was NO point of confinement on intrigue reasoning on leased property. Financial limit 2017 has changed this and now the duty exception limit for intrigue paid on home advance is Rs 2 lakhs, independent of it acting naturally involved or leased. Anyway, for leased homes, any misfortune in abundance of Rs 2 lakhs can be conveyed forward for as long as 7 years.
4. Installment of Interest on Education Loan (Section 80E)
The whole intrigue paid (with no maximum point of confinement) on training credit in a monetary year is qualified for derivation u/s 80E. Anyway, there is no conclusion on primary paid for the Education Loan.
The advance ought to be for training of self, mate or kids just and ought to be taken for seeking after full-time courses as it were. The credit must be taken fundamentally from an endorsed altruistic trust or a monetary organization as it were.
The derivation is material for the year you begin paying your advantage and seven additional years following the underlying year. So in everything, you can guarantee training credit derivation for most extreme eight years.
Download Automated All in One TDS on Salary for Only Private Employees for F.Y. 2019-20
The feature of this Excel Utility is the following:-
1) This Excel Utility can prepare automatic Tax Calculation as per new Finance Budget 2019
2) The Salary Structure as per the Non-Govt Concerned Salary Pattern.
3) Automated Individually Salary Sheet for each Employee
4) Automated Income Tax Salary Sheet for each Employee
5) This Excel Utility calculate your House Rent Exemption Calculation U/s 10(13A)
6) Automated Form 12 B.A.
7) Automated Income Tax Form 16 Part A&B for F.Y. 2019-20
8) Automated Income Tax Form 16 Part B for the F.Y. 2019-20
5. Restorative protection for Self and Parents (Section 80D)
Premium paid for Mediclaim/Health Insurance for Self, Spouse, Children, and Parents fit the bill for derivation u/s 80D. You can guarantee a most extreme finding of Rs 25,000 in the event that you are underneath 60 years old and Rs 50,000 over 60 years old.
An extra derivation of Rs 25,000 can be asserted for purchasing medical coverage for your folks (Rs 50,000 in the event of either guardian being senior residents). This conclusion can be guaranteed regardless of guardians being reliant on you or not. Anyway, this advantage isn't accessible for purchasing medical coverage for in-laws.
HUFs can likewise guarantee this derivation for a premium paid for safeguarding the soundness of any individual from the HUF.
To benefit derivation the premium ought to be paid in any mode other than money. Financial limit 2013 had presented derivation of Rs 5,000 (with in the Rs 25,000/30,000 point of confinement) is additionally considered preventive wellbeing checkup for Self, Spouse, subordinate Children, and Parents. Its proceeded to this year as well.
6. Treatment of Serious ailment (Section 80DDB)
Cost brought about for the treatment of certain illness for self and wards gets a conclusion for Income charge. For senior natives, the finding sum is up to Rs 1,00,000; while for all others it's Rs 40,000. Ward can be guardians, life partner, youngsters or kin. They ought to be completely reliant on you.
Download Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10e from the F.Y. 2000-01 to F.Y.2019-20 [ Not for Sr.Citizen)
To guarantee the expense exception you need authentication from master from Government Hospital as evidence for the illness and the treatment. In the event that the costs have been repaid by the insurance agencies or your manager, this reasoning can't be claimed. In the instance of fractional repayment, the equalization sum can be asserted as a derivation
Ailments Covered:
• Neurological Diseases
• Parkinson's Disease
• Malignant Cancers
• AIDS
• Chronic Renal disappointment
• Hemophilia
• Thalassemia
8. Physically Disabled Tax payer (Section 80U)
The citizen can guarantee to find u/s 80U in the event that he experiences certain inabilities or maladies. The derivation is Rs 75,000 if there should arise an occurrence of typical inability (40% or greater handicap) and Rs 1.25 Lakh for serious incapacity (80% or greater inability)
A declaration from nervous system specialist or Civil Surgeon or Chief Medical Officer of Government Hospital would be required as evidence for the affliction.
Handicaps Covered
1. Blindness and Vision issues
2. Leprosy-restored
3. Hearing disability
4. Locomotor handicap
5. Mental impediment or sickness
6. Autism
7. Cerebral Palsy
9. Physically Disabled Dependent (Section 80DD)
In the event that you have subordinate who is contrastingly abled, you can guarantee derivation for costs on his support and therapeutic treatment up to Rs 75,000 or genuine consumption brought about, whichever is lesser. The breaking point is Rs 1.25 Lakh for serious handicap conditions for example 80% or a greater amount of the incapacities. Ward can be guardians, companion, youngsters or kin. Additionally, the ward ought not to have guaranteed any finding for self inability u/s 80DDB.
To guarantee the tax break you would require inability authentication issued by the state or focal government medicinal board.
You can likewise guarantee charge exception on premiums paid for extra security strategy (in citizens' name) where the crippled individual is the recipient. In the event that the impaired ward terminates before the citizen, the approach sum is returned back and treated as salary for the year and is completely assessable.
40% or a greater amount of the following Disability is considered for the motivation behind duty exclusion
1. Blindness and Vision issues
2. Leprosy-relieved
3. Hearing impedance
4. Locomotor inability
5. Mental hindrance or sickness
6. Autism
7. Cerebral Palsy
10. Gifts to Charitable Institutions (Section 80G)
The administration urges us to give to Charitable Organizations by giving expense reasoning to a similar u/s 80G. A few gifts are exempted for 100% of the sum gave while for others its half of the gave sum. Likewise, for most gifts, the greatest exclusion you can guarantee is restricted to 10% of your gross yearly pay. It would be ideal if you note that lone gifts made in real money or check are qualified for reasoning. Gifts in kind like giving garments, sustenance, and so on isn't secured for expense exception.
How to Claim Sec 80G Deduction?
1. A marked and stepped receipt issued by the Charitable Institution for your gift is a must
2. The receipt ought to have the enlistment number issued by Income Tax Dept imprinted on it
3. Your name on the receipt should coordinate with that on PAN Number
4. Also, the sum gave ought to be referenced both in number and words
13. House Rent in the event that HRA isn't a piece of Salary (Section 80GG)
In the event that, you don't get HRA (House Rent Allowance) as a compensation part, you can at present case house lease finding u/s 80GG. The citizen might be either salaried/retired person or independently employed.
To benefit this you have to fulfill the accompanying conditions:
1. The lease paid ought to be more than10% of the salary
2. No one in the family including life partner, minor youngsters or self should possess a house in the city you are living in. In the event that you possess a house in various city, you need to think about rental salary on the equivalent
The House Rent derivation is lower of the 3 numbers:
1. Rs. 5,000 every month [changed from Rs 2,000 to Rs 5,000 in Budget 2016]
2. 25% of yearly salary
3. (Rent Paid – 10% of Annual Income)
You have to fill structure no 10BA alongside the assessment form structureTAG:-
