Download the TDS on Salary All in One for Govt & Non Govt Employees for Govt and Non-Govt employees for F.Y.2015-16 and A.Y.2016-17 [ This Excel Utility Can prepare at a time your Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automatic HRA Calculation U/s 10(13A) + Automatic Arrears Relief Calculation with Form 10E + Automated Form 16 Part A&B and Part B for F.Y.2015-16]


The Budget 2015 applicable for Financial Year 2015-16   

        The Budget 2015 having high expectations was released by Mr. Arun jaitely, Finance Minister of the new Modi government on the 28th of February 2015. Many people whom i met post budget had same view that it did not meet their expectations. However i feel that mainly this reaction was because the slab rates where not changed or to be precised the slab rates were not Increased. Face the fact, Slab rate for F.Y. 2015-16 cannot be increased further, there is no room for it, as it will not only decrease the government's revenue but will also hamper the economy in a very bad way. the best way was to channelized the fund from governments revenue to some government and Economy helping funds, investments, etc; which Mr. Jaietly knew very well and hence he introduced more Deductions and also raised Limits of the deductions. Just wait and have trust on Government the 4th and 5th year of the modi Government will be a Golden Era for India's Economy... I can Speak on this more but for now let's bring our mind horses back on the Topic "TDS or Taxation on Income From Salaries for F.Y. 2015-16".    


           Keeping apart the main Topic i.e. "TDS on Salary". Let us witness important points in Short, Common and Non technical language related to the Calculation Income from Salaries for TDS and Taxation Purpose for the Financial Year 2015-16 and Assessment Year 2016-17:

1. Medi-claim Premium (Premium on Health Insurance) Section 80D :

      The deduction under this section was available to the assesee for the Insurance premium paid on the health insurance but it was subjected to following Limits (Earlier and Now Revised): Max Rs. 25,000/- and for Senior Citizen Rs.30,000/- as per Budget 2015.


2. Deduction for Medical Expenses on treatment of Specified Diseases (Section 80DDB):

         Deduction u/s. 80DDB has been Raised from Rs. 60,000/- to Rs. 80,000/- only for Senior Citizens, please note that here is no change in limits for Non-Senior Citizens.


3. Deduction for Persons differently abled (Section 80DD and 80U):

       Deductions under section 80DD and 80U are increased as follows: Up to 40% to 80% Rs. 75,000/- and above 80 % Rs. 1.25,000/- as per Budget 2015 for F.Y.2015-16.         


4. Transport Allowance Exempt u/s. 10:

                 Exemption for Transport allowance is allowable as amount received or Fixed amount as below: For General Max Rs. 1600/- P.M. and Phy.Disable Max Rs. 3200/- P.M. for F.Y. 2015-16.

5. Sukanya Samridhi Account (For Girl child) under Section 80C :

            This is an another milestone in the Indian Taxation History. A Historic Scheme which can only exist in India and no other country for the betterment of a Girl Child's Future. This is a must have investment in your Portfolio of investments if you have a girl child below the age of 10 years, however one year grace period is allowed as this is a new scheme; So a Girl Child who is Born between 2.12.2003 & 1.12.2004 can also open an account under this scheme up to 1.12.2015.

           Now talking about the benefits under this scheme; Any amount Deposited in this Account shall be eligible for deduction u/s. 80C i.e. it will be directly deducted form the Total income for the purpose of calculation of TDS or Tax on your income. However Mimimum 1000 rupees and Maximum 1,50,000/- rupees shall be allowed to be deposited per year. Also Interest of 9.2% p.a. received on this account is completely exempted from the Income tax i.e. no tax is payable on interest income arising from the amount deposited in the Sukanya Samridhi Account.

Slab Rates for F.Y. 2015-16 and A.Y. 2016-17....

            For this year even though almost everyone thought that the slab rates will increase giving an opportunity to the individual taxpayer to save some income to fight against unstoppable food inflation the slab rates remain same as given below:

Income tax slab for F.Y. 2015-16 / A.Y. 2016-17
New Income Tax Slabs for A.Y. 2016-2017 for Resident Senior Citizens above 60 years
(FY 2015-2016)
S. No.
Income Range
Tax percentage
1
Up to Rs 2,50,000
No tax / exempt
2
2,50,001 to 5,00,000
10% - Rs.2000 (Credit)
3
5,00,001 to 10,00,000
20%
4
Above 10,00,000
30%
New Income Tax Slabs for A.Y. 2016-2017 for Resident Senior Citizens above 80 years
(FY 2015-2016)
S. No.
Income Range
Tax percentage
1
Up to Rs 5,00,000
No tax / exempt
2
5,00,001 to 10,00,000
20%
3
Above 10,00,000
30%
New Income Tax Slabs for A.Y. 2016-17 for Resident Women (below 60 years)
(FY 2015-16)
1
Up to Rs 2,50,000
No tax / exempt
2
2,50,001 to 5,00,000
10% - Rs.2500 (Credit)
3
5,00,001 to 10,00,000
20%
4
Above 10,00,000
30%
New Income Tax Slabs for A.Y. 2016-2017 for Men & Others (FY 2015-2016)
1
Up to Rs 2,50,000
No tax / exempt
2
2,50,001 to 5,00,000
10% - Rs.2000 (Credit)
3
5,00,001 to 10,00,000
20%
4
Above 10,00,000
30%