How to do
Income Tax Count for FY 2020-21? Which Tax Structure to Choose U/s 115 BAC?
According to Financial plan 2020, you
can't claim any tax deduction or exception on the off chance that you intend to
pick a new tax structure. Along these lines, as an individual taxpayer on the
off chance that you choose the new tax system with diminishes tax rate you have
to swear off all tax breaks available today. Luckily, you have an alternative to proceeding with the old tax structure. A salaried individual can switch among old and
new tax structure.
Right off the bat, we will discuss which tax
deduction and exception you have to renounce on the off chance that you settle
on new tax structure with decrease tax rate. Also, we will step through hardly
any exam cases and do income tax figuring for FY 2020-21 to realize which tax
structure to choose?
1 Tax Deduction Under Section 80 C
The most mainstream tax deduction of 1.5 Lakh under section 80C isn't
material for new tax structure. This implies you can't claim any profit for
venture made in the instruments, for example, PF, PPF, Disaster protection
premium, school education costs of kids, ELSS, PPF, NPS and so forth.
You can claim deduction under section 80 CCD for the business
commitment because of representative for NPS.
2 Tax Deduction Under Section 80 D
No tax deduction is considered the clinical protection premium and
preventive wellbeing test under section 80D for new tax structure.
3 No LTA Advantages
For new tax structure LTA – Leave travel stipend exclusion which is right
now available to a salaried representative for twice in a square of four years
isn't permitted.
4 HRA
HRA is house lease stipend. HRA is paid to salaried people by the manager as
a piece of compensation. The prior taxpayer had the option to claim HRA up as far
as possible. In new tax structure it isn't passable.
5 Standard Deduction
A standard deduction advantage of Rs.50000 as of now available to
the salaried tax payer isn't appropriate in new tax piece.
6 Section 80TTA Advantages
Section 80TTA gives a deduction of Rs.10000 on intrigue income. On new tax
system of this advantage isn't available.
7 Section 80DDB Advantages
Advantages for handicap under section 80DDB up to Rs.40000 not available
on the off chance that you are intending to choose new diminished tax
structure.
8 Section 80E Instruction
Credit
Tax break allowable on the intrigue paid on training credit won't be
claimable under section 80E.
9 Section 80G
You had the option to make gift under section 80G and claim income tax
advantage of the identical sum. The said deduction isn't available in the decreased tax
structure.
10 Section 24 Home Credit
Intrigue
Under section 24 of the Income-tax act, an individual had the option to
claim tax deduction on the intrigue instalment on the lodging credit up to a
greatest measure of Rs.200000. This advantage isn't expanded on the off chance
that you choose new tax structure.
So, all deduction material under part By means of 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 selecting the new tax system.
Conclusion:-
In a large portion of the cases
old tax rate with deduction offers higher tax benefits. New diminished tax rate
is helpful just in the event that you are not claiming any deductions starting
at now. (which is uncommon)
On the off chance that you have home
advance and higher income you will get higher tax benefits in old tax rate
contrasted with new tax rate.
Feature of this Excel Utility:-
1) This
Excel utility prepares and calculate your income tax as per the New Section 115
BAC (New and Old Tax Regime)
2) This
Excel Utility has an option where you can choose your option as New or Old Tax
Regime
3) This
Excel Utility has a unique Salary Structure for All the Non-Government (Private) Employee’s Salary Structure.
4) Automated
Income Tax Form 12 BA
5) Automated
Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
6) Automated
Income Tax Revised Form 16 Part B for the F.Y.2020-21
7) Individual Salary Sheet
