Every year before closing the financial year i. e in the month of March, every employee or business owner needs to make income tax returns. Every taxpayer is aware of the income declaration form and this is used to take the information about various of the employees. In every organization, the employer will take investment declaration forms from their employees along with all supporting documents and they use the date provided in the investment declaration form to fill form 16. Here you can find the income tax Investment declaration form for FY 2021-22 In Excel format.
changes in income tax rules A.Y.2021-22 (F.Y.2020-21):
A)This budget has introduced a new tax regime by introducing new tax slab rates for the FY 2020-21
B)The new tax regime has clearly stated that the tax rates can be availed only if certain deductions and exemptions are not claimed.
C)In the new tax, the regime has continued the following deductions and exemptions:
- 80ccd amounting to Rs. 50,000
- Travel allowance
- Transport allowance (When the employee transfers)
D)The interesting point in the new regime is if the individual opted for the new regime he/she is not allowed to avail deductions.
E)The union has given the option to avail either a new regime or the old regime they can opt for any of the two whichever is beneficial.
F) Dividend is distribution tax is now abolished, now dividend is taxable in the hands of individuals. The only exemption from DDT is the Holding company (parent company) has to pay tax only if the dividend is paid to a subsidiary company (Child Company).
G)Tax rates are reduced to
- 22% to new companies (existing rate 25%)
- 15% to manufacturing companies
- Concessional rate of 15% is extended to power generation companies
H) TDS rate on transactions with non-residents (194 LC) is 5%
I) Cooperative societies have an option to pay tax @22% with no exemption or deduction. and exemption from Alternative minimum tax
J) The threshold limit for a tax audit is increased from 1 Crore to 5 Crores.
Also Read: How to Download Form 16 excel format F.Y.2020-21
How To Fill Investment Declaration Form For FY 2021-22
| Field No | Details |
| Field A | Write your home rent details here. |
| Field B | Here write your home loan details i.e how much you are paying towards a home loan in a financial year. |
| Field C | Here write your medical treatment expenses |
| Field D | Write your investment details such as pension plans, LIC, Mutual Funds, etc. |
| Field E | If you are contributing to govt pension schemes like NPS then write those details here. |
| Field F | Here mention deductions in previous employment salary. |
For all the above-filled details in the investment declaration form for fy 2020-21, you need to submit copies of supporting documents such as bills etc.
If you have any queries on how to fill employee investment declaration form for FY 2020-21 then share those queries in below comments section.
- 1. There is No increase in threshold limit of Rs 2,50,000. It is a rebate under Section 87A increased from RS 2,500 to Rs 12,500. And eligibility of total income not to exceed Rs3,50,000 increased to Rs5,00,000.
- There is a Standard Deduction of Rs.50,000. Which is 40,000 earlier.
- TDS limit on the interest income from bank and post office deposits increased from Rs. 10,000 to Rs. 40,000.
- . Tds will be deducted on rent on exceeding 2,40,000 which was 1,80,000 earlier.
This is not updated as per FY 2018-19 as this format still contains Medical Expenses reimbursement. Author needs to review this form once again. Thanks for the efforts.
It does not provide with an option of new tax regime
if we follow the old regime it’s mandatory if we following the new regime it is not a compulsion to provide it