Download Automated Income Tax Calculator All in One for the West Bengal Govt Employees for the F.Y.2020-21 and A.Y.2021-22 as per the Budget 2020 with New and Old Tax Regime U/s 115BAC

In the Budget 2020 introduced a new Section 115 BAC for the F.Y.2020-21. This Section 115BAC have an option that you can stay in the Old Tax System along with all the Income Tax Exemptions as per the F.Y.2019-20 and you can Opt in the New Tax Regime Excluding any Exemptions of Income Tax as the previous F.Y. 2019-20 as clearly mentioned in the Budge 2020 U/s 115BAC.

As per the Budget, the New Tax Slab is given below U/s 115BAC which introduced in the Budget 2020.

Income Tax Slab rate for the F.Y.2020-21

Also it is clear that no relaxation to the Senior Citizen in the New Tax Slab as per U/s 115BAC ( New Tax Regime). We Prepared a Unique Income Tax Preparation Excel Based Software only for the West Bengal Govt Employees for the F.Y.2020-21 as per the new Budget 2020 with New and Old Tax Regime U/s 115BAC introduced in the Budget 2020.

Download Automated Income Tax Preparation Excel Based Software All in One for the West Bengal Govt.  Employees for the Financial Year 2020-21 and Assessment Year 2021-22 U/s 115BAC

Feature of this Excel Utility:-

1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.

2) This Excel Utility has the all amended Income Tax Section as per Budget 2020

3) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)

4) Individual Salary Structure as per the West Bengal Govt. Employees Salary Pattern as per ROPA-2019

5) Individual Salary Sheet

6) Individual Tax Computed Sheet

7) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21

8) 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

Automated Income Tax Calculator All in One Govt and Non-Govt Employees for the F.Y. 2020-21 U/s 115 BAC-in Budget 2020 With Government issues clarification regarding Section 115BAC of Income-tax Act, 1961- All you need to know

The CBDT ( Central Board of Direct Taxes)  as of late gave a roundabout furnishing explanation regarding option under section 115BAC of the Income-tax Act, 1961

CBDT Notification about 115 BAC

 Section 115BAC: The recently embedded Section 115BAC of the Income-tax Act, 1961 gives that an individual, being an individual or from a unified family having income other than income from business or calling may pick to be taxed under the section alongside his the arrival of income to be outfitted under sub-section (I) of section 139 of the Act for every year.

Section 115BAC of the Income-tax Act, 1961 gives a concessional rate, however, it is dependent upon the condition that the all-out income will be figured without indicated exclusion or reasoning set off of misfortune and extra devaluation.

Be that as it may, there was an absence of lucidity with respect to whether the arrangements of section 115BAC of the Act are to be considered at the hour of deducting tax or not. A few concerns were gotten with respect to tax to be deducted at source (TDS), which brought up that the deductor, being a business, would not know whether the individual, being a representative, would settle on taxation under section 115BAC of the Act or not, as the option is required to be practised at the hour of recording of return.

Income Tax Section 115BAC for the F.Y.2020-21

Consequently, to the stay away from the disarray and difficulty in such cases, the Focal Leading body of Direct Taxes, in the activity of its forces under section 119 of the Act gave the accompanying explanations:

A representative, having income other than the income under the head “benefit and gains of business or calling” and aiming to select the concessional rate under section 115BAC of the Act, may suggest the deductor of such goal for each previous year.

• The deductor, being the business, will at that point register his all-out income and make TDS consequently as per the arrangements of section 115BAC of the Act.

• On the off the chance that the representative neglects to make such implication, the business will make TDS without thinking about the arrangement of section 115BAC of the Act.

Further, the implication made to the deductor by the representative will just be for the reasons for TDS during the previous year and can’t be adjusted during that year.

• In any case, the insinuation would not add up to practising the option as far as sub-section (5) of section 115BAC of the Act and the individual will be required to do as such alongside the arrival to be outfitted under sub-section (1) of section 139 of the Act for that previous year.

• Hence, option at the hour of documenting of return of income under sub-section (1) of section 139 of the Act could be not quite the same as the insinuation made by such worker to the business for that previous year.

Income Tax New Regime U/s 115BAC

If there should be an occurrence of an individual who has income under the head “benefit and gains of business or calling” additionally, the option for taxation under section 115BAC of the Act once practised for a previous year at the hour of documenting of return of income under sub-section (1) of section 139 of the Act can’t be changed for resulting previous years aside from in specific conditions.

The above explanation by the Focal Leading body of Direct Taxes would apply to such individual with an adjustment that the hint to the business for his situation for resulting previous years must not go amiss from the option under section 115BAC of the Act once practised in a previous year.

Download Automated Income Tax Preparation Excel Based Software All in One for the Government & Non-Govt (Private) Employees for the F.Y.2020-21 and A.Y.2021-22

Feature of this Excel Utility:-

1) This Excel utility prepares and calculates 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 Government and Non-Government Employee’s Salary Structure.

4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Update Version)

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

Download Automated Income Tax Preparation Excel Based Software All in One for the Govt and Private Employees for the F.Y.2020-21 With FINANCE BILL, 2020

PROVISIONS RELATING TO DIRECT TAXES

The provisions of Finance Bill, 2020(hereafter referred to as “the Bill”), relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as ‘the Act’), Prohibition of Benami Property Transactions Act, 1988 (hereafter referred to as “PBPTAct”), and Finance Act, 2013, to continue to provide momentum to the buoyancy in direct taxes through tax-incentives, reducing tax rates for co-operative society, individual and Hindu undivided family (HUF), deepening and widening of the tax base, removing difficulties faced by taxpayers, curbing tax abuse and enhancing the effectiveness, transparency and accountability of the tax administration.

Income Tax New Section 115BAC new and Old Tax Regime for the F.Y.2020-21

With a view to achieving the above, the various proposals for amendments are organised under the following heads:—

(A) Rates of income-tax;

(B) Tax incentives;

(C) Removing difficulties faced by taxpayers;

(D) Measures to provide tax certainty;

(E) Widening and deepening of tax base;

(F) Revenue mobilisation measures;

(G) Improving the effectiveness of tax administration;

(H) Preventing tax abuse; and

(I) Rationalisation of provisions of the Act.

Click here to download Full Budget 2020 as well as Finance Bill for the Financial Year 2020.

Download Automated Income Tax Preparation Excel Based Software All in One for the Government & Non-Govt(Private) Employees for the F.Y.2020-21 and A.Y.2021-22

Feature of this Excel Utility:-

1) This Excel utility prepares and calculates 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 Government and Non-Government Employee’s Salary Structure.

4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Update Version)

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

Income Tax Calculator for the F.Y.2020-21
Income Tax Calculator for the F.Y.2020-21
Income Tax Calculator for the F.Y.2020-21
Income Tax Calculator for the F.Y.2020-21

Is Deduction for NPS available under New Tax Section 115BAC as New and Old Tax Regime for the F.Y.202021 With Master of Revised Form 16 for the F.Y.2019-20

Before we begin to understand whether the deduction for NPS under the new tax framework is accessible or not it is basic to understand the sorts of deduction accessible for contribution to a NPS Fund.

Income Tax Section 115BAC for the F.Y.2020-21

Deduction for NPS under the Income Tax Act is accessible just to an Individual under section 80CCD which falls under Chapter VI-A.

The notable highlights of section80CCD for deduction towards contribution to NPS are given underneath:

Download Automated Income Tax Revised Form 16 Part A&B for the F.Y.2019-20&  A.Y. 2020-21 [This Excel Utility can prepare at a time 50 Employees Form 16 Part A and B]

1. The deduction under this section is accessible just for contribution to the ‘New Pension System’ (NPS).

2. The deduction is accessible just to an individual who is-

(I) a focal government employee, or

(ii) a private part employee, or

(iii) an independently employed.

3. The contribution to a NPS account made by the accompanying people meet all requirements for the deduction from the gross absolute income of the assessee or person

(I) by the local government, for a focal government employee,

(ii) by the business of the person, for a private part employee,

(iii) by the individual himself.

Download Automated Income Tax Revised Form 16 Part A & B for the F.Y.2019-20 [ This Excel Utility can prepare at a time 100 Employees Revised Form 16 Part B]

4. There are three kinds of deduction accessible under this section for contribution to the NPS Tier-I account. These are:

(I) Under section 80CCD(1): The deduction is accessible for the entire measure of employee’s or self contribution to the NPS account subject to the accompanying roof

(an) on account of an employee (both focal government and private area), 10& of his compensation of the earlier year,

(b) on account of an independently employed individual, 20% of his ‘Gross Total Income’.

(ii) Under section 80CCD(1B): An extra deduction, subject to a limit of Rs. 50,000 is accessible to a The individual on the off chance that he contributes any aggregate to the NPS Tier-I account in a budgetary year.

(iii) Under section 80CCD(2): An extra deduction under sub-section (2) is accessible for the business’ contribution to the NPS record of the employee. The deduction is constrained to:

(a) 14% of the compensation of the earlier year on account of a focal government employee,

(b) 10%of the compensation of the earlier year on account of some other employee.

Download Automated Income Tax Revised Form 16 Part B for the Financial Year 2019-20 [This Excel Utility can prepare at a time 50 Employees Form 16 Part B]

The powerful Budget year 2020-21 (or the appraisal year 2021-22), there will be two tax regimes for individual income tax purposes.

1. One tax regime called as Old tax regime under which an individual can guarantee all the allowable deductions and exceptions in registering his all-out income and afterwards figures the tax payable according to the tax rates indicated in the important Finance Act. This regime is similar which is proceeded in FY 2019-20 or for AY 2020-21. This technique for calculation of income and tax is proceeded in AY 2021-22 and is named as ‘Old regime of tax’.

2. Another tax regime called a New tax regime under which an individual can pay income tax on his absolute income at a confessional or lower rate when contrasted with Old tax regime. In any case, in the new tax regime, the taxpayer needs to forego certain deductions and exclusions while processing the all-out income and afterwards registers the tax payable according to the tax rates determined in Section 115BAC of the Income Tax Act, 1961. This regime is recently presented from AY 2021-22 or FY 2020-21.

The new tax regime is discretionary for a taxpayer. At the end of the day, a taxpayer may choose the ‘old regime of tax’ or may settle on the ‘new regime of tax’. Anybody technique for tax regime might be picked by the individual or HUF according to his desire.

Automated Income Tax Revised Form Part B for the F.Y.2019-20 which can prepare at a time 100 Employees Form 16 Part B

Under the new regime of tax, the tax rates are indicated in section 115BAC of the Income Tax Act, 1961.

Under section 115BAC(2)(i), the all out the income of an Individual and a HUF will be figured between Alia with no exclusion or deduction under any of the arrangements of Chapter VI-An other than the arrangements of sub-section (2) of section 80CCD or section 80JJAA.

Section 80JJA is applicable for an assessee having business income and consequently not talked about here.

Section 80CCD(2) as expressed above is identified with the deduction for the business’ contribution to the NPS record of the employee. As expressed above, deduction under section 80CCD(2) is an extra deduction under the old tax regime and it proceeds in the new tax regime.

Download Automated Income Tax Revised Form 16 Part A and B for the Financial Year 2019-20and Ass Year 2020-21 [ This Excel Utility Can Prepare at a time 50 Employees Form 16 Part A&B]

On the face, it is giving the idea that one can get an extra tax deduction for the business’ contribution to the NPS record of the employee in the new tax regime. This is on the grounds that section 115BAC(2)(i) despite the fact that confines any deduction under part VI-A yet permits a deduction under section 80CCD(2) which is considered the business’ contribution to the NPS record of the employee.

Be that as it may, this isn’t the substantiates reality. This deduction has no extra tax advantage. This deduction is given also on the grounds that, under section 15, the business’ contribution to the NPS record of the employee is remembered for the all-out income of the employee as ‘Income from Salary’.

According to section 17(1)(viii), Salary incorporates the contribution made by the Central Government or some another boss in the earlier year, to the record of an employee under an annuity the plot alluded to in section 80CCD.

NPS Tier-1 is the told annuities conspire for section 80CCD.

Henceforth, in the principal the occasion, the whole measure of the business’ contribution to the NPS record of the employee is incorporated as ‘compensation income’ of the employee. From that point, a deduction under section 80CCD(2) is permitted to the accompanying degree

(a) 14 per cent of the compensation of the earlier year on account of a focal government employee,

(b) 10% of the compensation of the earlier year on account of some other employee.

On the off chance that the business’ contribution surpasses the measure of deduction the equivalent gets taxable.

Along these lines, the proportion of deduction open under section 80CCD(2) is from the beginning included as pay income in the total income of the employee. To keep up a vital good ways from taxation of the identical in the ownership of the employee, an additional the deduction is allowed from the total income under section 80CCD(2) and it is continued in the new tax regime.

Download Automated Income Tax Master of Form 16 Part B which can prepare at a time 100 Employees Form 16Part B in Revised Format for the Financial Year 2019-20]

In the event that the measure of a manager’s contribution is equivalent to the measure of deduction, at that point, there are no extra tax advantages to the employee. The position is the equivalent under the old tax regime just as the new tax regime. No extra deduction is permitted as such under the new tax regime.

The image looks ruddy just when section 115BAC is perused in disengagement. In the event that the equivalent is perused with section 17(1)(viii), at that point one will find that there is no ‘extra’ tax advantage under the new tax regime.

It must be recollected that section 115BAC(2) considers deduction under section 80CCD(2) as it were. The extra deduction of Rs. 50,000 for contribution to NPS account by the employee, which is as yet accessible under the old tax regime well beyond the restriction of Rs. 1,50,000, is secured under section 80CCD(1B). Henceforth, the deduction for the equivalent isn’t accessible under the new tax regime on the off chance that one picks to pay tax under section 115BAC.

Download Automated Excel Based Income Tax Calculator All in One for Non-Govt (Private) Employees for the F.Y 2020-21 A.Y 2021-22 as per New introduced Section 115BAC

The minister of finance remarked in Indian Budget 2020 that she had simplified the income tax structure. Unfortunately, this is far from the truth. What has happened is that the budget has given you another option to calculate your taxes. More options mean more complexity.

We have come up with an income tax calculator that incorporates both the existing system and the new tax system. You can fill in the details and find out which one works best for you

If you want to choose the new tax discipline, you will need to waive most of the tax exemptions and exemptions such as standard exemption, Chapter VI exemption, HRA benefits, LTA, home loan interest for self-occupied home etc.

In most cases, with the new tax system having tax breaks, the taxes will be higher

New Tax Regime – Tax Slabs

Income Tax New Regime U/s 115BAC for the F.Y.2020-21

New Tax Regime – Tax Slab for the F.Y.2020-21

Income Tax Slab for the F.Y.2020-21

Download Automated Income Tax Preparation Excel Based Software All in One for Non-Government (Private) Employees for the Financial Year 2020-21 and Assessment Year 2021-22 as per New and Old TaxRegime U/s 115BAC

Income Tax Calculator for the Non-Govt Employees for F.Y.2020-21
Income Tax Calculator for the Non-Govt Employees for F.Y.2020-21
Income Tax Calculator for the Non-Govt Employees for F.Y.2020-21
Income Tax Calculator for the Non-Govt Employees for F.Y.2020-21
Income Tax Calculator for the Non-Govt Employees for F.Y.2020-21
Income Tax Calculator for the Non-Govt Employees for F.Y.2020-21
Income Tax Calculator for the Non-Govt Employees for F.Y.2020-21

Feature of this Excel Utility:-

1. This Excel utility Calculate your Tax Liability U/s 115BAC ( New and Old Tax Regime) as per your option.

2. This Excel utility have the Salary Structure as per the Non-Government (Private) Salary Pattern

3 This Excel Utility prepare automatic Revised Form 16 Part A&B in a new format

4 This Excel utility prepare automatic Revised Form 16 Part B in a new format

5. Automated Income Tax Form 12 BA

6. This Excel Utility calculate your House Rent Exemption Calculation U/s 10(13A)

7. Individual Salary Sheet

8. Individual Tax Computed Sheet

9. In this Excel Utility have all the Income Tax modified Section as per Budget 2020

Automated Income Tax Arrears Relief Calculator U/s 89(1) With Form 10E For the F.Y.2020-21 ( Amended Version)

Did you get any development salary or arrears of salary? In the event that truly, you may be stressed over the tax ramifications of the equivalent. Do I need to pay taxes on the total amount? Shouldn’t something be said about the tax counts of the earlier year, etc? Taxpayers who have such inquiries in their brain here is all that you have to know.

 At this point, you would have just made sense of that income tax is calculated on the total income of a taxpayer for a specific year. The income can either be as salary or family annuity or different wellsprings of income. In any case, there may be situations where you have gotten arrears of family benefits or pending salary during the current monetary year. It can happen that an income taxpayer gets a piece of his benefit or salary ahead of time or as arrears in any money related year, which builds his total income accordingly increment the payable taxes. In such a case, an application can be made and the surveying official can allow relief to the taxpayer. To summarize it, the Income Tax Act guarantees there is equality in the income tax chunk rates, and hence, when a bit of the income got doesn’t relate to the current year, a relief is conceded with the goal that the taxable income doesn’t increment.

 To guarantee that you are not troubled with making good on extra taxes, the income tax office gives Relief U/s 89(1). In the event that you get any annuity or instalments for the earlier year, you won’t be taxed on the total amount for the current year. Basically getting you far from settling extra taxes, in light of the fact that there was a postponement in instalment.

 To profit the advantages under Section 89(1) you would need to submit Form 10E. What is Form 10E would be the most evident inquiry. The subtleties of Form 10E, alongside how and for what reason to present the equivalent is given in detail underneath.

 What is relief under section 89(1)?

 At the point when the taxpayer gets:

 1.         Arrears of salary or

 2.         Advance salary or

 3.         Arrears of family annuity

 At that point, such amount is taxable in the Financial Year in which it is gotten.

 Be that as it may, relief under section 89(1) is given to diminish extra tax trouble because of deferral in getting such income.

 How to calculate relief under section 89(1)?

 Here are the means to calculate relief under section 89(1) of Income Tax Act, 1961:

 1.         Calculate tax payable on total income remembering arrears for the year in which it is gotten.

 2.         Calculate tax payable on total income barring arrears in the year in which it is gotten.

 3.         Calculate contrast somewhere in the range of (1) and (2).

 4.         Calculate tax payable on total income of the year to which arrears are connected, including arrears.

 5.         Calculate tax payable on total income of the year to which arrears are connected, barring arrears.

 6.         Calculate contrast somewhere in the range of (4) and (5).

 7.         The amount of relief will be the overabundance amount of (3) more than (6). No relief will be permitted if the amount of (6) is more than the amount in (3).

 What is Form 10E?

 For guaranteeing relief under section 89(1) for arrears of salary got, it is required to record Form 10E with the Income Tax division. In the event that Form 10E isn’t recorded and relief is guaranteed, at that point, the taxpayer is well on the way to get a notice from Income Tax office for not documenting Form10E.

Download Automated Income Tax Arrears Relief Calculator U/s 89(1) along with Form 10Efrom the Financial Year 2000-01 to Financial Year 2020-21 (Up-to-date Version)

Income Tax Arrears Relief Calculator U/s 89(1)
Income Tax Arrears Relief Calculator U/s 89(1)
Income Tax Arrears Relief Calculator U/s 89(1)

 

Download Automated Income Tax Calculator All in One for the West Bengal Govt Employees for the F.Y.2020-21 and A.Y.2021-22 as per the Budget 2020 with New and Old Tax Regime U/s 115BAC

In the Budget2020 introduced a new Section 115 BAC for the F.Y.2020-21. This Section 115BAC have an option that you can stay in the Old Tax System along with all the Income Tax Exemptions as per the F.Y.2019-20 and you can Opt-in the New TaxRegime Excluding any Exemptions of Income Tax as the previous F.Y. 2019-20 as clearly mentioned in the Budge 2020 U/s 115BAC.

As per the Budget the New Tax Slab is given below U/s 115BAC which introduced in the Budget 2020.

Income Tax Slab for the F.Y.2020-21

Also, it is clear that no relaxation to the Senior Citizen in the New Tax Slab as per U/s 115BAC ( New Tax Regime). We Prepared a Unique Income Tax Preparation Excel Based Software only for the West Bengal Govt Employees for the F.Y.2020-21 as per the new Budget 2020 with New and Old Tax Regime U/s 115BAC introduced in the Budget 2020.

Income tax Section 115BAC for the F.Y.2020-21

 Download Automated Income Tax Preparation Excel Based Software All in One for the West Bengal Govt  Employees for the Financial Year 2020-21 and Assessment Year 2021-22 U/s 115BAC

Feature of this Excel Utility:-

1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.

2) This Excel Utility has the all amended Income Tax Section as per Budget 2020

3) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)

4) Individual Salary Structure as per the West Bengal Govt Employees Salary Pattern as per ROPA-2019

5) Individual Salary Sheet

6) Individual Tax Computed Sheet

7) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21

8) 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

Income Tax Calculator for the West Bengal Govt Employees for the F.Y.2020-21
Income Tax Calculator for the West Bengal Govt Employees for the F.Y.2020-21
Income Tax Calculator for the West Bengal Govt Employees for the F.Y.2020-21
Income Tax Calculator for the West Bengal Govt Employees for the F.Y.2020-21

Download Automated Income Tax Calculator All in One for the Govt and Private Employees for the F.Y.2020-21 and A.Y.2021-22 as per the Budget 2020 with New and Old Tax Regime U/s 115BAC

In the Budget 2020 introduce a new Section 115 BAC for the F.Y.2020-21. This Section 115BAC have an option that you can stay in the Old Tax System along with all the Income Tax Exemptions as per the F.Y.2019-20 and you can Opt-in the New Tax Regime Excluding any Exemptions of Income Tax as the previous F.Y. 2019-20 as clearly mentioned in the Budge 2020 U/s 115BAC.

As per the Budget the New Tax Slab is given below U/s 115BAC which introduced in the Budget 2020.

Income Tax Slab for the F.Y.2020-21

Also, it is clear that no relaxation to the Senior Citizen in the New Tax Slab as per U/s 115BAC ( New Tax Regime).

Income Tax Old Tax Rate

Download Automated Income Tax Preparation Excel Based Software All in One for the Government and Non-Government (Private) Employees for the Financial Year 2020-21 and assessment Year 2021-22 U/s 115BAC

Feature of this Excel Utility:-

1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.

2) This Excel Utility has the all amended Income Tax Section as per Budget 2020

3) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (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

Which Slab Rate to Choose FY 2020-21 Old or New? Know Opt in Opt out standards for salaried and business, derivation not permitted section 115BAC

How to opt for new tax the system according to section 115BAC?

The Finance Act 2020, has presented a new section 115BAC, according to this arrangement the assessee has an option whether to pay tax according to new chunk rates or the old piece rates. In the event that the assessee opts for the new tax system, at that point the assessee needs to renounce a portion of the tax concessions under the current income tax act.

How to opt for new or old plan under the Income Tax Act?

This arrangement is made appropriate for the Individual/HUF and the individual can practice the option at the hour of documenting the arrival of income. The people gaining under income pay and business can opt for the option under 115BAC as under:

1.Salaried individual (counting income from Pension, Bank Interest, Hosue Rent, Other Income)

In the event that the individual assessee is a salaried representative, at that point, he opt the plan on a yearly premise. It implies the individual can change to his preferred tax system in the following year. For opting the plan, the worker needs to offer announcement to the deductor of his goal to opt for old or new tax plot according to his decision. Upon such implication, the business will register his all-out income and make TDS subsequently as per the arrangement of section 115BAC of the demonstration. The announcement made by the worker can’t be changed. Anyway, at the hour of recording Returns, he can again pick once again.

•Business or Profession Income (benefit and Gains from Business or Profession)

On the off chance that the individual is winning business income, he can practice his option under section 115BAC at the hour of recording the arrival of income the option once practised can’t be pulled back in resulting evaluation year in regard of the assessee with Business Income. On the off chance that he choose to pull back, it would be permitted only a single time and he can never be picked again

What are the Slabs rates under the new Income tax system Section 115BAC for FY 2020-21?

SITotal IncomeRate of Tax
1Up to Rs. 2,50,000Nil
2From Rs. 2,50,001 to Rs. 5,00,0005 per cent.
3From Rs. 5,00,001 to Rs. 7,50,00010 per cent.
4From Rs. 7,50,001 to Rs. 10,00,00015 per cent.
5From Rs. 10,00,001 to Rs. 12,50,00020 per cent.
6From Rs. 12,50,001 to Rs. 15,00,00025 per cent.
7Above Rs. 15,00,00030 per cent.

Slab rates as per the old the income tax regime for FY 2020-21:

If the individual opts for old tax regime then has to pay tax as per below slab rates:

SITotal IncomeRate of Tax
1Up to Rs. 2,50,000Nil
2From Rs. 2,50,001 to Rs. 5,00,0005 per cent.
3From Rs. 5,00,001 to Rs. 10,00,00020 per cent.
4Above Rs. Rs. 10,00,00030 per cent.

Download Automated Income Tax Preparation Excel Based Software All in One for the Govt and Non-Govt Employees for the F.Y.2020-21

Income Tax Calculator All in One for the F.Y.2020-21

List of deductions Not Allowed/disallowed under new tax regime Section 115BAC for FY 2020-21?

If the taxpayer opts for paying tax as per the new slabs rates then the assessee must forgo the below-listed deductions and exemptions:

Sr noDeductions or Exemptions not allowedAmount of deduction/ Exemptions
1House rent allowance u/s 13ALower of 40%/ 50% Of (Basic+ DA+ Turnover commission) or Actual amount received or Rent paid Minus 10% of (Basic+ DA+ Turnover commission)
2Leave travel allowanceThe exemption is available only on the actual travel costs i.e., the air, rail or bus fare incurred by the employee
3Food couponsUpto Rs. 50 Per meal is exempt the excess is taxable under salary
4Children Education allowanceMax Rs. 100 per month per child upto Maximum 2 child
5Helper allowanceFully Exempt
6Special compensatory allowanceFully Exempt
7Border area allowanceFully Exempt
8Tribal areas allowanceRs. 200 per month
9Transport allowance for employees of transportLower of the amount received X 70% or Rs. 10000 pm
10Travelling allowanceFully Exempt
11Island duty allowanceFully Exempt
12Uniform allowanceFully Exempt
13Research allowanceFully Exempt
14Leave encashment benefitLower of Rs. 3,00,000 per annum or Annual leave encashment amount or The average salary of last 10 months or Salary per day X utilised leave (Considering maximum 30 days allowed leave per year)
15Reimbursement of medical expense u/s 17(2)Amount of expense incurred on treatment in a government hospital or Employers hospital or Government recognised hospital
16Any allowance granted to an employee to meet the hostel expenditure on his childMax Rs. 300 per month per child up to Maximum 2 child
17Compensatory Field Area AllowanceFully Exempt
18Compensatory Modified Field Area AllowanceFully Exempt
19Underground Allowance for mine workersMax Rs. 800 per month
20Daily allowance by any person by reason of his membership of Parliament or of any State Legislature or of any Committee thereof u/s 10(17)Fully Exempt
21Entertainment allowance u/s 16For government employees only: Lower of 20% of Basic salary or Actual amount received or Maximum Rs. 5000
22Profession tax u/s 16Maximum Rs. 2,500
23Interest on Housing loan u/s 24(2) with respect to self-occupied propertyMaximum Rs. 2,00,000
24Standard deduction u/s 16Maximum Rs. 50,000
25Deduction with respect to Specified investment under 80CMaximum Rs. 1,50,000
26Deduction with respect to Contribution to NPS u/s 80CCD(1B)Maximum Rs. 50,000
27Deduction with respect to mediclaim premium or medical expenses u/s 80DMaximum Rs. 50,000 / Senior Citizen then Rs 75,000
28Deduction with respect to medical treatment of handicapped relative u/s 80DDMaximum deduction Normal disability =75,000 and for Severe disability = 1,25,000
29Deduction with respect to the treatment of specified disease u/s 80DDBMaximum deduction Lower of Actual expenses or Maximum Rs. 40000 for other and 100000 for senior citizen
30Deduction with respect to Interest on Education Loan u/s 80EInterest amount for 8 consecutive years
31Deduction with respect to donation to trust or political parties under section 80GAmount of donation
32Deduction with respect to donation to trust or political parties under section 80GGC100% of Donation made
33Deduction with respect to interest on savings account u/s 80TTALower of Amount of saving interest or Rs. 10,000
34Deduction with respect to interest on Deposits to senior citizens u/s 80TTBLower of Amount of interest or Rs. 50,000
35Additional Deduction for Interest on Home Loan u/s 80EEMaximum Rs. 50,000
36Additional Deduction for Interest on Home Loan u/s 80EEAMaximum Rs. 1,50,000
37Deduction for Interest on electric vehicle loan u/s 80EEBMaximum Rs. 1,50,000
38Deduction for handicapped assessee under section 80UNormal= 75,000 or Severe= Rs. 1,25,000
39Deduction for Royalty from books under section 80QQBLower of Eligible royalty or Rs. 3,00,000
40Deduction for Royalty from patent under section 80RRBLower of Eligible royalty or Rs. 3,00,000
41Deduction for donation to scientific research Organisation under section 80GGA100% of the Amount of donation
42Deduction under section 80GG for rent paid other than HRALower of Rs. 5000 per month or 25% of Adjustment gross total income or Rent paid- 10% of Adjustment gross total income
43Deduction u/s 80JJA with respect to Income from collecting and processing biodegradable waste100% of the profit of the business
44Deduction under section 57 with respect to family pensionLower of Rs. 15,000 or 1/3 rd of the amount of pension received
45Deduction u/s 10(32) In Case of Income from Minor ChildMaximum deduction of Rs. 1500 per child
46Deduction u/s 10AA with respect to income of SEZ unitThe maximum deduction is 100% of profits for 1st 5 years of business and 50% of profits for the next 5 years of business
47Deduction of deprecation as per section 32Amount of depreciation as per rate schedule of the income tax act
48Deduction u/s 32AD for investment in new Plant and Machinery in notified backward area15% of the actual cost of new plant and machinery installed
49Deduction with respect to the specified business under section 35AD100% of the profit from specified business
50Deduction with respect to expenditure on agricultural extension project u/s 35CCC150% of the expenditure allowed on agricultural extension
51Deduction with respect to tea, coffee, rubber business u/s 33ABLower of Actual amount deposited in NABARD a/c or 40% of PGBP before this deduction
52Deduction with respect to petroleum and natural gas business u/s 33ABALower of Actual amount deposited in site restoration account or 20% of PGBP (before the deduction)
53Deduction with respect to contribution to outsiders to IIT national laboratory for scientific research under section 35(2AA)150% of the contribution paid
54Deduction with respect to expenditure on scientific research u/s 35100% deduction for Revenue and capital expenditure incurred for scientific research

Deductions and exemptions allowed under new tax regime Section 115BAC for FY 2020-21?

The below list of exemptions and deductions are allowed under new tax regime:

Sr noDeductions or Exemptions not allowedAmount of deduction/ Exemptions
1Exemptions with respect to gratuity under section 10(10)Lower of Last drawn salary X no of years employed X 15/26 or Rs. 20 Lakhs or Actual gratuity received
2Exemptions with respect to commuted (lumpsum) pension u/s 10(10A)For government employees= Fully exempt and other employees= if gratuity is received by the employee then 1/3 rd of the commuted pension is exempt else 50% of the commuted pension is exempt
3Exemptions on Maturity proceeds of Life insurance u/s 10(10D)Fully exempt
4Deduction under section 80CCD(2) with respect to Contribution by employer to NPSLower of employer contribution or Maximum 10% of the Salary
5Interest on Housing loan u/s 24(2) with respect to let out propertyWhole amount of interest on housing loan

What is Section 115BAC? Calculate Your Income Tax Labiality As per the new section 115BAC for the F.Y.2020-21 with the Excel Based Tax Calculator All in One for the Govt & Non-Govt Employees for the F.Y.2020-21

Section115BAC is the newly inserted section in the Income Tax Act, 1961 that deals with the new income tax regime. This section and alternate tax regime was introduced in Union Budget 2020 and are applicable to individuals and Hindu Undivided Families (HUFs) only. A key feature of this new regime is that the income tax slab rates have been significantly reduced. However, the new rates come at the cost of various key income tax exemptions and deductions, which are currently available under the old (existing) income tax regime.

The following table shows the new slab rates as per Section 115BAC.

Annual Income New Income Tax Slab Rate
Nil to Rs. 2.5 lakhExempt
Above Rs. 2.5 lakh to Rs. 5 lakh5%
Above Rs. 5 lakh to Rs. 7.5 lakh 10% 
Above Rs. 7.5 lakh to Rs. 10 lakh15% 
Above Rs. 10 lakh to Rs. 12.5 lakh20% 
Above Rs. 12.5 lakh to Rs. 15 lakh25% 
Above Rs. 15 lakh30%

Download Automated Income Tax Revised Form 16 Part B for the Financial Year 2019-20 [This Excel Utility can prepare at a time 50 Employees Form 16 Part B]

What are the eligibility criteria for the new tax regime?

In AY 2021-22, individuals and HUFs will have the option to pay income tax as per the new (reduced) income tax slab rates provided their total income for the relevant FY satisfies the following conditions.

  • The declared income does not include any business income.
  • It is calculated without any exemptions or deductions provided under the following  
  • Chapter VI-A except those u/s 80CCD/ 80JJAA,
  • Section 24b,
  • Clause (5)/(13A)/(14)/(17)/(32) of Section 10/10AA/16,
  • Section 32(1)/ 32AD/ 33AB/ 33ABA,
  • Section 35/ 35AD/ 35CCC,
  • Clause (iia) of Section 57.
  • It is calculated without setting off losses from any earlier assessment year (AY) due to the above-mentioned deductions or from house property.
  • It is calculated without claiming any depreciation under clause (iia) of Section 32.
  • It is calculated without any exemption or deduction with respect to any allowances or perquisites. 

Download Automated Income Tax Revised Form 16 Part A&B for the Financial Year2019-20 [This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

Automated Income Tax Revised Form 16 Part B for the F.Y.2019-20

 Deductions and exemptions not allowed under Section 115BAC

The following table shows the major income tax deductions and exemptions that have been disallowed under the new income tax regime. Please note that the new regime is optional in FY 2020-21 and you may opt for the old (existing) regime, where all of the following deductions can be claimed.

Major Deductions under Chapter VIA (u/s 80C, 80CCC, 80CCD, 80DD, 80DDB, 80E, 80EE, 80EEA, 80G, 80IA, etc)House Rent Allowance (HRA) u/s 10(13A)Home Loan Interest u/s 24(b)
Standard Deduction Leave Travel Allowance u/s 10(5)Deduction for Donation or Expenditure on Scientific Research
Allowances u/s 10(14)Deduction for Entertainment Allowance and Employment/Professional Tax u/s 16Depreciation u/s 32(iia)
Deductions u/s 32AD, 33AB, 33ABA, 35AD, 35CCCExemption for SEZ unit u/s 10AADeduction from Family Pension u/s 57(iia)

Deductions allowed under Section 115BAC

While most of the income tax deductions have been discontinued under the new income tax regime (as mentioned in the earlier section), the following deductions are allowed:

Deduction u/s 80CCD(2) (employer’s contribution to your pension account)Deduction u/s 80JJAA (additional employee cost)Transport Allowance for Differently Abled Employees (Divyang)
Conveyance Allowance for Performance of Office DutiesAny Allowance for the Cost of Travel/ Tour/ TransferDaily Allowance given to Employees under Certain Conditions

Know More: Deductions Allowed Under the New Income Tax Regime

Important points to consider about the new tax regime

  • Section 115BAC of the Income Tax Act deals with the new income tax slab rates, which are applicable only for individuals and Hindu Undivided Families (HUFs).
  • Although the new regime comes with significantly reduced slab rates, it takes away a major chunk of tax deductions and exemptions that could be availed under the old regime. 
  • The new income tax regime is optional, and you can still opt for the old (existing) regime.
  • You cannot opt for the new regime if you have any business income in the applicable FY.
  • The rates of surcharge and cess in the new income tax regime are the same as those in the old (existing) regime.
  • The option to pay income tax as per the new regime can become invalid for the relevant financial year, if the individual or HUF fails to satisfy any of the conditions mentioned in Section 115BAC. 

Download Automated Income Tax Revised Form 16 Part A&B and Part B for the Financial Year 2019-20 [This Excel Utility can prepare One by One Form 16 Part A&B and Part B ]

Income Tax Revised Form 16

 Old tax regime vs. the new tax regime 

The old (existing) tax regime allows for a variety of income tax deductions and exemptions and hence is suitable for most of the taxpayers. However, the new tax regime may prove beneficial to those who have not significantly invested in various tax-saving schemes, such as Employee Provident Fund (EPF), Equity Linked Savings Scheme (ELSS), Life Insurance, National Pension Scheme (NPS), National Savings Certificate (NSC), tax-saving Fixed Deposit (FD), etc. Moreover, the standard deduction of Rs. 50,000 for salaried individuals and HRA allowance also do not apply under the new tax regime. 

Let us understand how the total tax payout is affected under the two regimes through the following table. We have considered an income tax deduction of Rs. 1.5 lakh u/s 80C, Rs. 25,000 u/s 80D and Rs. 50,000 as a standard deduction when computing tax using the existing income tax slab rates. Thus, the total deduction amounts to Rs. 2.25 lakh.

Net Income(Rs.)Taxable IncomeTax OutgoDifference Between the Total Tax Outgo(Old Regime – New Regime)
Under the Old Regime (Deduction of Rs. 2.25 lakh) Under the New Regime (No deduction)Under the Old RegimeUnder the New Regime
7 lakh4.75 lakh7 lakh0*37,500-37,500
10 lakh7.75 lakh10 lakh70,20078,000-7,800
15 lakh12.75 lakh15 lakh2,02,8001,95,000+7,800
30 lakh27.75 lakh30 lakh670,8006,63,000+7,800

*After applying income tax rebate up to Rs. 12,500 under Section 87A of Income Tax Act, 1961.

Thus, the new regime u/s 115 BAC may prove beneficial for the high-income group with minimal investment in tax-saving investments. However, the old (existing) regime may be better suited to the low-to-middle income group if they make sufficient investments in various tax-saving schemes. Hence, there is no set formula to decide between the two regimes. One must calculate the total tax outgo as per both the old and new slab rates before deciding whether to adopt Section 115BAC slab rates or not.

Download Automated Income Tax Preparation Excel Based Software for the Govt and Non-Govt(Private) Employees for the Financial Year 2020-21 as per the New Tax System New and Old Tax Regime U/s 115BAC which is introduced by the Budget 2020

Automated Income Tax Calculator for the F.Y.2020-21
Automated Income Tax Calculator for the F.Y.2020-21
Automated Income Tax Calculator for the F.Y.2020-21
Automated Income Tax Calculator for the F.Y.2020-21
Automated Income Tax Calculator for the F.Y.2020-21
Automated Income Tax Calculator for the F.Y.2020-21
Automated Income Tax Calculator for the F.Y.2020-21
Automated Income Tax Calculator for the F.Y.2020-21

 FEATURE OF THIS EXCEL UTILITY

1) Income Tax Calculate as per the New and Old Tax Regime as per U/s 115BAC

 

2) Automated Income Tax Arrears Relief Calculation U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21

 

3) Automated Income Tax House Rent Exemption Calculation U/s 10(13A)

 

4) Individual Salary Structure as per the Govt and Non-Govt Employees Salary Patterns

 

5) Automated Individual Salary Sheet

 

6) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21

 

7) Automated Income Tax Revised Form 16 Part B for the F.Y.2020

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