Income Tax Calculator All in One for the Private Employees for F.Y. 2021-22 with a comprehensive list of budgets 2021

Income Tax Calculator All in One for the Private Employees for FY2021-22 with a comprehensive list of Budgets 2021

Union Finance Minister Nirmala Sitharaman presented the Union Budget in Parliament on Monday (2^nd February 2021).

The Finance Minister gave a big boost to the healthcare and infrastructure sector in the 2021 Union Budget. There has been no change in income tax slab this year.

However, some important proposals have been made, which can affect a person's personal finances and tax aspects.

In this post, we have tried to put the important budget 2021-22 proposals in one place.

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A detailed list of the proposed budget 2021-22 for F.Y 2021-22 / A.Y 2022-23

1) The latest income tax slab rate is 2020-22 April

Below is the income tax slab structure as per the new tax discipline. People who are reluctant to pay taxes under the new minimum personal income tax will have to cancel almost all the tax breaks that you are claiming in the old tax structure.

Income tax slab for the financial year 2022-23

2) Collection of interest tax of EPF

Until now (F.Y 2020-21), interest earned on employee-generated EPF contributions is completely tax-free.

However, with effect from 1 April 2021, the tax-free interest of more than Rs.5 Lacks. This also applies to private PF trusts.

As of 1^st April 2021, Rs. 5 lakh in the Provident Fund recognized by an employee is taxable under the provisions of Bill 2021.

Employee If the contribution of the employee is more than Rs.5 lakhs, the interest earned on the extra money from 1st April 2021 is taxable.

Note that additional interest of this amount (Rs. 2 lakhs) is not taxable in subsequent assessment years.

3) Maturity tax goes beyond ULIPs

Maturity obtained from the ULIP policy (taken after February 1, 2021) will be tax-free only if the total annual premium on them does not exceed Rs. 2.5 lakhs.

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Thus, gains in ULIP equity funds (e.g. for exempt ULIPs) will be taxed at 15% (short term) or 10% (long term). If it is a ULIP debt fund (for exempt ULIPs), the profits will be taxed at your applicable slab rate (short term) and the index for long-term profits.

There will still be a tax deduction for UTIP from ULIP regardless of the amount of premium paid. The proposal does not affect the tax treatment of death benefits.

4) There is no ITR filing for senior citizens

Senior citizens aged 60 years and above who have only pension/interest income from bank/post office are not required to file income tax returns. Although banks will waive the applicable duty. The criteria for exemption from filing ITR from 1st April 2021, are:

Senior Citizen should be a resident and must be 75 years of age or older for the financial year for which tax must be paid.

He/she must get a pension and interest income from the same bank.

Your banker will deduct the taxes applicable to your income.

Only some banks are accepted for this purpose.

Bank In this case the bank has to make an announcement.

5) IT Exemption for Paying Interest on Home Interest (Sector 80EEA)

An additional income tax exemption of Rs 2.5 lakh on affordable loans will be extended for one more year, u / s 80EEA. The Interest exemption of Rs 1.5 lack (US 80 EEA) may be increased for the loan is taken up to March 31, 2022. This Exemption cannot be claimed if you choose a new tax slab.

Additional tax exemption of Rs. 1.5 Lacks only for first-time homeowners. In that case, if you have an existing residential property, you cannot claim the tax benefit U / S 80EEA.

Note that your property should have a maximum stamp duty value of Rs. 45 lakhs (stamp duty value). Only such property falls under the category of ‘affordable housing. Note that this is the standard of registration and not the "standard of contract". Most property deals will have white and black money ratios (although this is not legally allowed).

Download Automated Income Tax Preparation Excel Based Software All in One for the Non-Government (Private) Employees for the Financial Year 2021-22 and Assessment Year 2022-23U/s 115BAC