Income tax allowances and deductions for F.Y.2021-22. Salary employees constitute a
major part of the overall taxpayers of the country and their contribution to tax collection
is significant. Income tax deductions provide a wide range of tax-saving
opportunities for the salaried class. With the help of these deductions and deductions,
one can significantly reduce his taxes.
Most valuable as well as
common deductions and allowances U/s 80 C are available to salary
individuals.
Exemption of allowance
House rent allowance
A salaried person with rented accommodation can avail of the benefit of HRA (House Rent Allowance). It can be fully or partially exempt from income tax. However, if you do not live in rented accommodation and still continue to receive HRA, it will be taxable. If you cannot submit a rent receipt to your employer to claim an HRA, you can claim a waiver at the time of filing your income tax return. So, please keep the rent receipt and proof of any payment for the rent.
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You can claim at least
one of the following as an HRA discount.
A. Total HRA received
from your employer
B. Rent paid 10% less
(basic salary + DA)
C. 40% of salary for non-metro (basic salary + DA) and 50% of salary for metro (basic salary + DA)
Standard deduction
The Finance Minister of
The money limit has been
increased by Rs 40,000 to Rs 50,000 in the interim budget 2019.
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Release Travel Allowance
(LTA)
The Income Tax Act
provides for LTA exemption for salaried employees, which is limited to travel expenses
during their holidays. You can claim LTA twice in a four-year block. If a person does not use this discount in the block, he can carry it to the next
block. The following are the restrictions applicable to LTA:
LTA is not only the cost
of domestic travel and international travel
This type of travel method must be by rail, air travel or public transport
Child allowance
Children education allowances as part of your salary. Such allowances received by the employer for the education of children is exempt from tax.
However, the children
education allowances for two children @ Rs.100 P.M.
Approved subtraction
Sections 80C, 80CCC and
80CCD (1)
Section 80C is the
commonly used option for income tax exemption up to Rs.1.5 Lakh.
Expenditure/investment within 80C from income generated due to capital gain is
not allowed. This means that if a person's income only includes capital gains,
then section 80 cannot be used for tax protection. Some of these investments
are eligible for discounts up to a maximum of Rs 1.5 lakh under Sections 80C,
80CCC and 80CCD (1).
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Section 80D exemption
limits are:
25,000 for a premium paid
for oneself / family.
Rupees 50,000 for premium
for senior citizen parents.
In addition, health
checks of Rs 50,000 are also approved and covered in the overall range.
Discount up to Rs. 10,000
for medical expenses incurred by senior citizens (years 60 years or more) or
senior citizen parents up to Rs.40000/-
The taxpayer can claim a
maximum rebate of Rs. 5,000. 50,000 including the amount of premium and medical
expenses if he is a senior citizen
(60 years or more). In
addition, if he pays the medical bills of his senior citizen parents, he can
claim an additional discount of up to Rs 10,000. 50,000.
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Home Loan Interest
(Section 80C and Section 24)
Another capital-saving tool is interest on home loans. Max Limit Rs. 2 lakh as a discount for interest
on home loans for self-occupied property.
In addition to the above,
one can claim up to a maximum limit of Rs 1.5 lakh under Section 80C, the main
component of repaying a housing loan.
Grants (Section 80G)
Section 80G of the Income
Tax Act, 1961 proposes deduction of income tax to an appraiser who donates to
charities. This discount varies depending on the recipient organization, which
means anyone can get a 50% or 100% discount on the amount donated, with or
without restrictions.
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Section 80TTA of the
Income-tax Act, 1961 offers a rebate of up to INR 10,000 on income earned from
savings account interest. This discount is available for individuals and HUFs.
If the bank's interest income is less than INR 10,000, the entire amount will
be deducted.
However, if the bank's
interest income is more than INR 10,000, the next amount will be taxable.
Home Loan Interest
(Section 80EE)
Section 80E allows
homeowners to claim an additional Rs. 50,000 (Section 2) for the interest
portion of the home loan EMI. Subject to the following:
The loan must not exceed
Rs. 35,00,000
The cost of the property
can not exceed Rs.50,00,000.
The person must not have any other property registered in his name at the time of granting the individual.
Feature of this Excel
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1) This
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2) This
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3)
Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the
F.Y.2000-01 to F.Y.2021-22 (Updated Version)
4)
Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
5)
Individual Salary Structure as per the Govt and Private Concern’s Salary
Pattern
6)
Individual Salary Sheet
7)
Individual Tax Computed Sheet
8)
Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
9)
Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
10)
Automatic Convert the amount into the in-words without any Excel Formula
