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What is deduction 80JJAA?

What is deduction 80JJAA?

Section 80JJAA is a facility for claiming a deduction for the recruitment of new or additional employees. This deduction of the Income Tax Act can be claimed by all assessees for creating employment generation opportunities.

How is 80JJAA deduction calculated?

In the case of 1st year of Business all the emoluments paid to their employees are eligible for the deduction without considering the fact that whether those payments are made in cash or any other mode. Calculate the deduction u/s 80JJAA for PY 2018-19? = (32+20+20+40+20+20+10+20+25) = Rs 2,07,000.

What is Section 80CCD 2 and 80JJAA?

Employer’s contribution to NPS under section 80CCD (2) and 30% salary of new employment under section 80JJAA are still claimable. Section 80C – Contributions made to various investments like life insurance, Equity Linked Savings Schemes (ELSS), EPF, PPF and NSC, etc. for up to a maximum of INR 1,50,000.

How much is exemption for 80D?

Deduction for the premium paid for Medical Insurance You (as an individual or HUF) can claim a deduction of Rs. 25,000 under section 80D on insurance for self, spouse and dependent children. An additional deduction for insurance of parents is available up to Rs 25,000, if they are less than 60 years of age.

On which income deduction U S 80G is not allowed?

In-kind contributions such as food, material, clothes, medicines etc. do not qualify for deduction under section 80G. From Financial Year 2017-18 onwards: Any donations made in cash exceeding Rs 2,000 will not be allowed as a deduction.

What is Section 115BAB?

The Taxation Laws (Amendment) Ordinance, 2019 passed on 20 September 2019 has inserted Section 115BAB offering a low tax rate of 15% (plus surcharge and cess) to new manufacturing companies. This is done to promote the new manufacturing start-ups.

What is the 80CCD limit for 2020 21?

There is no upper cap in terms of the amount on this tax deduction. This deduction is over and above the ceiling limit of Rs 1.5 lakh provided under Section 80C and the limit of Rs 50,000 under Section 80CCD(1B). In the new tax regime, the benefit under Section 80CCD(2) is still available for the benefit of taxpayers.

How much tax is exempt from NPS?

To encourage investment in NPS, Section 80CCD(1B) of the Income-tax Act allows an additional deduction of Rs 50,000 over and above the Rs 1.5 lakh available under Section 80CCE. *It is assumed that contribution to NPS by the employee does not exceed 10% of the employees’ salary.

Is proof required for 80D?

There is no proof or documentation needed to avail 80D deductions.

Who can claim 80D deduction?

Individual and Hindu Undivided Family (HUF) can claim deduction from taxable income under Section 80D. A person can claim a deduction for the health insurance premium and expense incurred towards preventive health checkup for self, spouse, dependent children and parents.

Can I claim 80G deduction through my employer?

Claiming deduction under Section 80G in Form 16 In case donation is made to funds which have a maximum limit of 10% of Gross Total Income, deductions in such cases cannot be claimed through the employer. Deductions for such donations can only be claimed at the time of filing of income tax returns.

How do I claim 80G exemption?

Section 80G of the Indian Income Tax Act allows you a tax deduction on donations made to any charitable organization….To be able to claim this deduction the following details have to be submitted in your Income Tax Return:

  1. Name of the Donee.
  2. PAN of the Donee.
  3. Address of the Donee.
  4. Amount of Contribution.