January 27, 2023
Automatic Income Tax Preparation in Excel for the Govt &
Private Employees for
F.Y.2022-23 as per U/s 115 BAC
Introducing the new tax regime in the 2020 Financial
Plan, many are not confused about what income tax deductions are available for
them. Let us take a look at the F.Y 2020-21 overview of income tax deductions
under old and new tax regimes.
Tax reform is an important part of fiscal planning.
Either way, when investing or choosing derivatives, our mindset should be to
focus on our financial goals from the start rather than just focusing on tax
savings. From now on, understanding the available choices is essential.
Income Tax Rate F.Y 2022-23 and A.Y 2023-24
You may know that during the 2020 Financial Plan, the
government introduced two types of tax regimes. Accordingly, the income tax
categories are as below.
Overview of Income Tax Deductions F.Y 2020-21 - Under New and Old Tax Regimes
Now, let’s talk about the overview of income tax
deductions for F.Y 2022 - 23. I will break it down into new and old tax regimes
for your straightforward.
An overview of income tax deductions F.Y 2020-21
under the new tax regime
This post, focus on accessible fees.
# Section 80CCD(2) (Give entitlement if the option is
a New tax regime).
Under this section, a commitment by the director on
behalf of the representative to recommended benefit schemes such as EPF, NPS,
and/or Super Commentary Account can be asserted up to a limit of Rs.7.5 lakh.
The company can deposit an amount equal to 12% of the
basic monthly salary of an employee in his EPF account. In addition, the
company can contribute an amount equal to 10% of the employee’s base
compensation to the NPS Tier I account (for central government representatives,
which is currently 14% of Essential + DA effective April 1st, 2019). In a
retirement account, a company can contribute a limit of Rs 1.5 lakh tax-free in
a financial year.
See point-by-point information on NPS Tax Benefits in
"NPS 2020 Tax Benefits - Sec.80CCD(1), 80CCD(2) and 80CCD(1B)".
The 2020 expenditure plan has capped the tax-free
pension account, NPS, and EPF account in the company at a limit of Rs 7.5 lakh
per financial year. Furthermore, the release states that any interest or gains
earned on the excess fund's pledge will also be taxable in the hands of the
representative.
# Section 10(15)(i) (applicable if the road is a New
tax Regime).
Interest on the balance of the savings account of the
center post office is deducted up to Rs 3,500 under Section 10(15)(i) of Income
Tax Act. As far as possible is Rs.7,000 in case of a joint savings account.
# Advice (Not right if the option is a New tax regime)
Boards are tax-free up to Rs 20 lakh during life for
non-government representatives. For government employees, all tips they receive
are tax-free, regardless of how much they earned. (See my post "Tipping -
New Limit Value, Qualifier, Comparison, Taxes, and Calculator")
Under the new tax regime, benefits up to certain
marginal limits (assuming they exist) are also allowed;
• LTA Benefits (Not eligible if the option is New Tax
Regime).
• Waiver of redemption at retirement
• Savings benefits
• Advantages of VRS
• Benefits of NPS deduction
• Education benefits (not entitled if the option is a
New tax regime).
• Payment of grants made in the public interest
# Interest on EPF, SSY, and PPF accounts (Not
entitled if the option is a New tax regime)
Interest earned in an EPF account will still be
tax-free under the new tax regime, as under the old tax regime.
The amount of interest and development earned in the
Sukanya Samriddhi account, and PPF account is tax-free under the old and new
tax regimes.
# Section 87A (Not eligible if the option is a New
tax regime)
Individuals with taxable income up to Rs.5 lakh are
eligible for a tax refund under Section 87A up to Rs 12,500, ensuring that no
tax is payable under the new tax regime.
The main 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 a New or Old Tax
Regime
3) This
Excel Utility has a unique Salary Structure for Government and Private
Employees 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.2022-23 (Update Version)
5) Automated
Income Tax Revised Form 16 Part A&B for the F.Y.2022-23
6) Automated
Income Tax Revised Form 16 Part B for the F.Y.2022-23
7) Individual Salary Sheet
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