KSS Prasad IT Software FY:2021-22 AP Govt Employees

KSS Prasad working as Teacher, who has been preparing Income Tax Software for years along with other prominent IT software by S.Seshaddri SA(MM). In this financial year 2021 he has prepared RSS Prasad IT Software 2021-22 for the use of AP Govt Employees. In Prasad Excel IT Software, it is easy to get month wise payroll particulars an ease. All forms Annexure-I, Annexure-II, Form-16, Form 12BB, Rent Receipt can take A4 Prints and the same can submit to the respect DDO.

Download KSS Prasad IT Software FY 2021-22 Click Here

Things to Remember While Preparing IT Software

1. Exemption of House Rent Allowance

A salaried individual having a rented accommodation can get the benefit of HRA (House Rent Allowance). This could be totally or partially exempted from income tax. However, if you aren’t living in any rented accommodation and still continue to receive HRA, it will be taxable.

If you couldn’t submit rent receipts to your employer as proof to claim HRA, you can still claim the exemption while filing your income tax return. So, please keep rent receipts and evidence of any payment made towards rent. You may claim the least of the following as HRA exemption.

1. Total HRA received from your employer
2. Rent paid less 10% of (Basic salary +DA)
3. 40% of salary (Basic+DA) for non-metros and 50% of salary (Basic+DA) for metros

2. Standard Deduction Rs.50,000/-

The Indian Finance Minister, while presenting the Union Budget 2018, announced a standard deduction amounting to Rs. 40,000 for salaried employees. This was in the place of the transport allowance (Rs. 19,200) and medical reimbursement (Rs. 15,000). As a result, salaried people could avail an additional income tax exemption of Rs. 5,800 in FY 2018-19. The limit of Rs. 40,000 has been increased to Rs. 50,000 in the Interim Budget 2019.

3. Leave Travel Allowance (LTA)

The income tax law also provides for an LTA exemption to salaried employees, restricted to travel expenses incurred during leaves by them. Please note that the exemption doesn’t include costs incurred for the entire trip such as shopping, food expenses, entertainment and leisure among others. You can claim LTA twice in a block of four years. In case an individual doesn’t use this exemption within a block, he/she could carry the same to the next block. Below are the restrictions which are applicable to LTA:
LTA only covers domestic travel and not the cost of international travel The mode of such travel must be either railway, air travel, or public transport

4. Section 80C, 80CCC and 80CCD(1)

Section 80C is the most extensively used option for saving income tax. Here, an individual or a HUF (Hindu Undivided Families) who invests or spends on stipulated tax-saving avenues can claim deduction up to Rs. 1.5 lakh for tax deduction. The Indian government too supports a few as the tax saving instruments (PPF, NPS etc.) to encourage individuals to save and invest towards retirement. Expenditures/investment u/s 80C isn’t allowed as a deduction from income arising due to capital gains. It means that if the in come of an individual comprises of capital gains alone, then Section 80C cannot be used for saving tax. Some of such investments are given below which are eligible for an exemption under Section 80C, 80CCC and 80CCD(1) up to a maximum of Rs 1.5 lakh.

• ife insurance premium
• Equity Linked Savings Scheme (ELSS)
• Employee Provident Fund (EPF)
• Annuity/ Pension Schemes
• Principal payment on home loans
• Tuition fees for children
• Contribution to PPF Account
• Sukanya Samriddhi Account
• NSC (National Saving Certificate)
• Fixed Deposit (Tax Savings)
• Post office time deposits
• National Pension Scheme

5. Medical Insurance Deduction (Section 80D)

Section 80D is a deduction you can claim on medical expenses. One could save tax on medical insurance premiums paid for the health of self, family and dependent parents. The limit for Section 80D deduction is Rs 25,000 for premiums paid for self/family.

For premiums paid for senior citizen parents, you can claim deductions of up to Rs 50,000. Additionally, health checkups to the extent of Rs 5,000 are also allowed and covered within the overall limit.

6. Interest on Home Loan (Section 80C and Section 24)

Another key tax saving tool is the interest paid on home loans. Homeowners have the option to claim up to Rs. 2 lakh as a deduction for interest on home loan for self-occupied property. If the house property is let out, you can claim a deduction for the entire interest pertaining to such a home loan. Please note that from FY 2017-18, the loss from house property that can be set off against other sources of income has been restricted to Rs. 2 lakh. In addition to the above, one can also claim the principal component of the housing loan repayment as a deduction under 80C up to a maximum limit of Rs 1.5 lakh.

7. Deduction for Loan for Higher Studies (Section 80E)

Income Tax Act provides a deduction for interest on education loans. The significant conditions attached to claiming such deduction are that the loan should have been taken from a bank or a financial institution for pursuing higher studies (in India or abroad) by the individual himself or his spouse or children. One may begin claiming this deduction beginning from the year in which the loan starts getting repaid and up to the next seven years (i.e. total of 8 assessment years) or before repayment of the loan, whichever is earlier. Even a legal guardian could avail this income tax deduction.

8. Deduction for Donations (Section 80G)

Section 80G of the Income Tax Act, 1961 offers income tax deduction to an assessee, who makes donations to charitable organizations. This deduction varies based on the receiving organisation, which implies that one may avail deduction of 50% or 100% of the amount donated, with or without restriction.

9. Deduction on Savings Account Interest (Section 80TTA)

Section 80TTA of the Income Tax Act, 1961 offers a deduction of up to INR 10,000 on income earned from savings account interest. This exemption is available for Individuals and HUFs.
In case the income from bank interest is less than INR 10,000, the whole amount will be allowed as a deduction. However, in case the income from bank interest exceeds INR 10,000, the amount after that would be taxable.

10. Additional Deduction for Interest on Home Loan (Section 80EE)

Section 80EE allows homeowners to claim an additional deduction of Rs.50,000 (Section 24) for interest component of the home loan EMI. Provided, the loan must not be for more than Rs 35,00,000 and the value of the property must not be more than Rs 50,00,000. Furthermore, the individual must not have any other property registered under his name at the time the loan is sanctioned.

11. Additional Deduction for Interest on HBA (Section 80EEA)

1. Loan Sanctioned between 1.4.2019 to 31.3.2020 from financial institution /HFC
2. Stamp Duty Value of House Property (HP) not exceed Rs.45 Lakh
3. Not own any residential HP on the date of sanction of loan i.e. 1st time buyer
4. when deduction is allowed under Section 80EEA , not allowable in other section
5. Only to Individual (not for HUF, AOP etc)
6. Rs.1.50 Lakh is over and above Rs.2 Lakh u/s 24, hence total Rs. 3.50 Lakh
7. Carpet area of HP not exceed 60 sqmtr (645 sq ft) in metropolitan cities including Delhi NCR & carpet area not exceed 90 sqmtr (968 sq ft) in any other cities
8. if a person jointly owns HP with spouse and they both paying the installments of the loan, then both of them can claim this deduction
9. Section 80EEA Interest deduction is available from FY 2019-20 (AY 2020-21).

Note The Following

1. Housing for all, the Govt has now extended the interest deduction allowed for LOW-COST housing loans
2. This Section 80EEA deduction is over and above Rs.2 Lakh, hence total upto Rs.3.50 Lakh allowable.