The Income Tax Slab Rates remain unchanged for the Financial Year 2019-2020. However, Individuals with Taxable Income up to Rs 5,00,000/- per annum may avail Tax Credit up to Rs 12,500/-
under Section 87A on the Income Tax payable. Thereby, implying that
Individuals with Income up to Rs 5,00,000/- will not have any Tax
Liability for the Financial Year 2019-20 and Assessment Year 2020-2021.
Standard Deduction benefit has been increased to Rs 50,000/- for the
Financial Year 2019-20. For FY 2019-20, Income Tax Deductions and
The exemption is available to reduce the Taxable Income, allowing
Individuals to minimize the Tax Implications
Income Tax Deductions and Exemption available under various Sections and the investment options available to the Individuals.
Income Tax Deductions U/S 80C
Income
Tax Deduction and Exemption is available to the Individuals under
Section 80C, 80CCD, 80CCC up to the extent of Rs 1,50,000/-. These sections are now effectively clubbed under Section 80C with the aggregate deduction ceiling of Rs 1,50,000/-. Investment options for
Income Tax Deduction and Exemption under Section 80C have been shared in the form of an image (pic above). Please refer to the link shared below to know in detail about the Investment plans.
Repayment
of Principal of House Loan taken is also eligible for Deduction along with Registration Fee and Stamp Duty paid towards the same. However, the benefit is restricted to the maximum deduction limit of Rs 1,50,000/-.
Provided the Individual does not transfer the property before expiry 5
years from the Financial Year in which it was obtained.
The deduction on Registration Fee and Stamp Duty is also available to Individuals who have not availed Home Loan.
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Income Tax Deductions U/S 80 CCD (1b)
Investment
up to Rs 50,000/- is eligible for deduction up and over the deduction
available U/S Section 80C on Contribution made to National Pension Scheme (NPS) and Atal Pension Yojana (APY).
Individuals may invest in both the schemes and avail cumulative deduction up to Rs 50,000/- on the investment.
Income Tax Deductions U/S 80D
Further deductions up and above the Deductions availed U/S 80C & 80CCD (1b) is available U/S 80D on payment made towards Health Insurance Premium.
It covers the premium paid on the Health Insurance cover for self and family. Deduction of Rs 25,000/- can be availed for the premium paid for
Self, Spouse, and dependent children. The deduction goes up to Rs
50,000/- on the premium paid towards the Mediclaim Insurance for Senior
Citizen parents.
Income Tax Deductions U/S 80DDB
Tax Deduction to the extent of Rs 40,000/-
incurred as treatment cost for specified medical disease for Self or
dependent relative is also available. In the case of Senior Citizens,
the limit goes up to Rs 1,00,000/-.
This
the deduction is available only in cases of specified diseases such as
Cancer, Kidney Failure, AIDS, Hemophilia, AIDS, Dementia, Neurological
Disorder, etc.
Tax Deduction U/S 80E
The
the deduction is also available on the education loan for higher studies
(Graduation or Post Graduation) in the fields of Medicine, Engineering,
Management, or Science. The deduction is available from the 1st year and subsequently for the next 7 years. The deduction is available on the EMI paid as interest on the loan.
Free Download Automated Income Tax Form 16 Part A&B and Part B for the F.Y. 2019-20 and A.Y.2020-21 [ This Excel Utility can prepare One by One Form 16 Part B and Part A&B for F.Y. 2019-20 in New Form 16 format.]
Tax Deduction U/S 80G
Deductions
are also available for the donations made to notify NGO’s, Charitable
Institutions are eligible for 50% or 100% deduction as provided under
the act. However, the maximum limit to the deduction claimed is 10% of
the Adjusted Gross Total Income after claiming other deductions.
Some of the Prescribed Notable Institutions where 100% Deduction is available without qualifying limit:
National Defense Fund
Prime Minister Relief Fund
Swacch Bharat Kosh
National Sports Fund
National Children’s Fund
Tax Deduction U/S 80GG
Deduction available in respect of House Rent Paid, the least of the following:
Rent paid less than 10% of the total income.
Rs. 5000/- per month. (Maximum Deduction available is 60,000/-)
25% of total income, provided that
Assessee
or the spouse or minor child should not own residential accommodation
at the place of employment, or anywhere else and is not receipt of House
Rent Allowance. The deduction is available provided the Individual,
does not receive any benefit of deduction U/S 10 (13A) for House Rent
Allowance.
Tax Deduction U/S 24(b)
Deductions
up to Rs 2,00,000/- is available on the interest paid on the Loan availed for purchase/construction of self-occupied House Property.
However, the acquisition and construction of such house property should
be completed within 5 years from the end of the Financial year in which
Home Loan was taken. The sum should be borrowed on or after 01/04/1999
to be eligible for deduction.
As announced in the Budget 2019 for FY 2019-20, Additional Deduction of Rs 1,50,000/- is available on affordable housing up to the value of Rs 45 lakhs. The deduction is applicable to loans taken up to 31st March 2020.
Free Download Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E From the F.Y. 2000-01 to F.Y. 2019-20
Tax Deduction U/S 80DD & U
Deduction
of Rs 75,000 U/S 80DD is available to meet the expenses and medical
treatment of the disabled dependent person. In case of severe disability
(more than 80%), the Deduction limit is raised to Rs 1,25,000/-.
Deduction
of Rs 75,000 U/S 80U is available to meet the expenses and medical treatment of Resident Individual (Self). In case of severe disability
(more than 80%), the Deduction limit is Rs 1,25,000/-.
Tax Deduction U/S 80TTA/B
Deduction
from Gross Total Income up to a maximum of Rs. 10,000/-, in respect of
interest on deposits in a savings account (not time deposits) with a
bank, co-operative society or post office.
The interest-free income has been extended up to Rs 50,000/- in the case of Senior Citizens under Section 80TTB.
Tax Deduction U/S 80EE
Additional Deduction of Rs 50,000/- on interest paid on a home loan is available for 1st time home buyers on loans up to 35 lacs, provided the value of the house does not exceed 50 lacs. This deduction is up and above the Rs
2,00,000/- available on account of interest paid on loan. The deduction is available per Financial Year till the period the loan has been fully repaid.
The
a loan should be sanctioned by a Financial Institution or Housing Finance
The company, provided Loan must be sanctioned between 01/04/2016 to
31/03/2017.
Income Tax Deductions and Exemptions under Section 80C to 80U discussed taken into consideration.
Download All in One TDS on Salary for Government and Non-Government Employees for the F.Y.2019-20 and A.Y.2020-21 With Automated Arrears Relief Calculator U/s 89(1) with Form 10E for F.Y. 2019-20
The feature of this Excel Utility is the following:-
1) This Excel Utility can prepare automatic Tax Calculation as per new Finance Budget 2019
2) The Salary Structure as per the Government and Non-Government (Private) employee’s Salary Pattern
3) Automated Individually Salary Sheet for each Employee
4) Automated Income Tax Salary Sheet for each Employee
5) This Excel Utility calculate your House Rent Exemption Calculation U/s 10(13A)
6) Automated Income Tax Form 16 Part A&B for F.Y. 2019-20 in New Format
7) Automated Income Tax Form 16 Part B for the F.Y. 2019-20 in New Format
8) Automated Income Tax Arrears Relief Calculator U/s 89(1) With Form 10e for F.Y. 2019-20 (Updated Version)