Income tax deduction for salaried employees| With Automatic Income Tax Preparation Excel Based Software in Excel All in One for the Govt and Non-Govt Employees for F.Y.2021-22

 When the overall taxpayers in the country are assessed, the salaried individuals make up a significant

 portion of it. And, their contribution to tax collection is considerable. With this in mind, the rules of the

 income tax deduction for salaried employees provide various opportunities for tax protection.

 

With these discounts and deductions, you can easily reduce your taxes significantly. Thus, if you are a salaried person, it is very important to know every little detail about the cuts. Let's learn more about it

 

Standard Income Tax (Deduction & Exemption) on Employees When presenting the Union Budget 2018, the Indian Finance Minister has proposed Rs. 40,000 is deducted in lieu of medical compensation (Rs. 15,000) and transport allowance (Rs. 19,200).

 

As a result, salaried individuals now earn Rs.9600/- You can get additional income tax exemption 5800 as per F.Y 2018-19. However, in the 2019 interim budget, the amount of Rs. 40,000 has been increased. 50,000 ..

 

Sections 80C, 80CCC, and 80CCD (1)

Undoubtedly, Section 80C is the most used option for salaried employees to get income tax exemption. Under this section, if an individual or a Hindu Undivided Family (HUF) spends or invests in a specific tax saving way, they can get up to Rs. 1.5 lakh.

 

The government also supports certain tax-saving instruments, such as NPS, PPF, and more, to allow individuals to invest and save for their retirement. Investments or expenditures under section 80C are not permitted as deductions for income from capital gains

 

This simply means that if you have a capital gain on your income, you will not be eligible to avail of the benefits of Section 80C. Some investments up to the amount eligible for rebate under Sections 80C, 80CCC, and 80CCD (1). 1.5 lakh is: -

Life insurance premium

Employees Provident Fund (EPF)

Equity Linked Savings Scheme (ELSS)

Pension / Annual Scheme

Home Loan Principal Payment

Children's tuition fees

PPF account

Contribute Sukanya Samridhi Account

NSC (National Savings Certificate)

Fixed Deposit (Tax Savings)

National pension scheme deposited during post office

Home Rent Allowance Discount (HRA)

If you are a salaried person, living in rented accommodation, it may be easier to get the benefits of HRA.

 

The amount can be partially or completely exempt from your income tax. However, if you do not live in rented accommodation and are still receiving HRA benefits, it will be considered taxable.

You may also, like- Automatic Income Tax Preparation Excel Based Software all in one for the West Bengal state Employees for the F.Y.2021-22

 

Holiday Travel Allowance (LTA)

The Income Tax Act also provides an LTA exemption to limit the travel expenses of salaried persons during the period of absence in the workplace.

However, you should keep in mind that this discount does not include the cost of the entire trip, such as food, shopping, leisure, entertainment and more.

 

Also, the allowance only covers domestic travel and not international. The mode of travel must also be airway, railway or public transport

 

Section 80D: Medical insurance

 

Deduction Section 80D is a deduction that you can claim for your medical expenses. That way, you can easily save tax on health insurance premiums that you are paying for yourself, your family or your dependent parents.

 

The limit under this section for deduction is money. 25,000 for insurance premium. If you pay insurance premiums for senior citizens, you can claim a discount of up to Rs. 50,000

 

Moreover, health check-up to money. Also covered in the overall range of 5,000. If your employer pays the premium on your behalf and deducts it from your salary, you can claim a deduction under section 80D.

 

Section 24(b):  home loan Interest Max Rs. 2 Lakh

 

Another primary tax-saving tool is home loan interest. You can claim a discount of up to 7 2 lakh for interest on the loan for self-acquired property

 

Article 80TTA: Deduction on interest earned from a savings account.

 

Under section 80TTA of the Income-tax Act, if you earn income from savings account interest, the deduction available for salaried employees in this regard will be Rs. 10,000

 

However, keep in mind that it is only available to individuals and HUFs.

 

If the income from interest is less than Rs. 10,000, the whole amount can be deducted.

 

Conclusion

The above-mentioned components can facilitate savings by accepting large tax breaks and rebates.

 

So, make sure that you are making the most of these income tax deductions for salaried employees. Also, structure your salary so that you can save more on your taxes.

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