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Showing posts with label 80E. Show all posts
Showing posts with label 80E. Show all posts

Thursday 23 November 2017

Download All in One TDS on Salary for Non-Govt (Private) employeesfor the Financial Year 2017-18.

[ This Excel Based Software can prepare at a time Tax Compute sheet +Automatic HRA Calculation + Form 12 BA +  Form 16 Part A&B and Part B for F.Y. 2017-18]


Salary Structure with Tax Deduction Section
Main Data Input Sheet
Automated Tax Computed Sheet
Automated Form 12 BA
Automated Form 16 Part A&B 
Automated Form 16 Part B

Thursday 7 January 2016


For the individuals or company in India, if the gross income is under taxable income, has to pay tax. However with the provisions available in the income tax sections exemptions are given on certain incomes. There are many tax saving options , on which an individual/company can avail tax exemption on total income.
Tax saving planning is one of the main objects for an individual who come under taxable income. Plan early to avoid confusions and analyze the various sections of tax deductions under the Income Tax Act .

We already discussed about the tax deductions under Section 80C (Click here to know about Section 80C deductions). Planning of tax doesn’t end with Section 80C. Apart from 80C several tax emption sections are available in Income tax act. So, its prudent to analyze other tax deductions provided by the Income Tax Act, 1961 and start looking beyond 80C. Here, we take an attempt to understand them briefly to benefit you.

Download Automated Master of Form 16 Part A&B for F.Y.2015-16 [This Excel Utility Can prepare at a time  100 employees Form 16 Part A&B as per new Finance Budget 2015] 


Download Automated Master of Form 16 Part B for F.Y.2015-16 [This Excel Utility Can prepare at a time 100 employees Form 16 Part A&B as per new Finance Budget 2015] 


The premium which is paid towards Mediclaim/Health insurance for self, Spouse, children and parents is considered tax deduction under U/s 80D. The sudden medical expenses incurred for self and family members comes under this section. The maximum amount for claiming deduction is Rs.25,000. The individuals above 60years of age can avail tax deduction Rs 30,000.
If you having dependent who is differently abled, the there is provision to get deduction for expenses on his maintenance and medical treatment. Paying premium for the medical treatment of a dependent physically disabled person, you can avail exemption under the section 80DD. You can get these claim up to Rs 50,000 or actual expenditure incurred, whichever is lesser. For severe conditions this limit exempted up to 1lakh. The exemption applies those, the dependents(parents, spouse, children or sibling) should not have claimed any deduction for self. The diseases like Blindness and Vision problems, leprosy cured, Hearing impairment, Locomotors disability , mental retardness or illness with 40% or more considerable under this section.
The expenditure incurred for the medical treatment of self or your dependents can claim a deduction of up to Rs. 80,000 or the actual amount paid, whichever is less, under the section 80DDB. Dependent can be parents, spouse, children or siblings with completely dependent on you. For a senior citizen this exemption is Rs. 80,000, or the amount actually paid for medical expenses. The individuals who want to claim a deduction under this section need to submit a medical certificate from a doctor working in a government hospital. Diseases like Neurological, Parkinson, Malignant Cancers, AODS, Chronic Renal Failure, Hemophia, Thalassemia covered under this section. The expenses claimed by the insurance companies not considered under this section and cannot be exempted.
The education loan interest for pursuing higher education for self and dependent is completely tax exemptible. The exemption is only for interest on education loan and no deduction on principal paid. The loan education loan for self , spouse or children only. For pursuing full time courses only this loan interest deductible is applicable. This deduction is applicable for a period of eight years or till the interest is paid, whichever is earlier.
The donations given to charitable organizations can get tax deduction u/s 80G. The donations made under philanthropic ground are exempted for 100% of the amount donated while for others its 50% of the donated amount. Receipts issued by the charitable institution with singed , stamped and registration number issued by Income Tax Deparment printed on it , is must and considered for tax deduction. The name on the receipt should match with that on PAN number. The donations made to approved organizations and institutions qualify for deduction. Only donations made in cash or cheque are eligible for deduction.
For salaried individuals as a salary component or self-employed person staying in a rented house does not receive any kind of HRA, they can claim a deduction under 80GG. If you or your spouse or your children having own home can’t get tax deduction under this section. You can claim tax deduction Rs 2000 or 25% of annual income or rent paid 10% of annual income whichever is less.
The individual resident of India, who is suffering from specified disability can get tax deduction u/s 80U In order to avail this deduction one should from disabilities like Blindness and Vision problems, Leprosy cured, Hearing impairment, Locomotor disability, Mental retardation, Autism, Cerebral Palsy . For normal disabilities with 40% or more disabilities the tax deduction is Rs 75,000. For more than 80% disability can avail tax deduction Rs 1,25,000/- .
According to the 80TTA, which is newly introduced in Budget 2012, allows deduction of Rs 10,000 on interest earned on saving bank account.
In the Budget 2013 has introduced a new section 80EE, which gives additional exemption up to Rs 1 lakh on payment of interest on Home loan. The loan which is taken from banks or housing finance companies in the financial year 2012-13 is applicable to this and also the house, which Is not cost more than Rs.40 lakh. The borrower should not own any other property at the time of loan sanction. The additional deduction on interest payment of home loans can be claimed in financial year 2013-14. In case, if you are not able to exhaust the limit in financial year 2013-14, the balance can be claimed in FY 2014-15.

Friday 13 March 2015

Download Automated Master of Form 16 Part A&B for the Financial Year 2014-15     [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B with all up dated Tax Section and Tax Slab]

Deductions on Section 80C, 80CCC & 80CCD

Section 80C

The deduction under section 80C is allowed from your Gross Total Income. These are available to an Individual or a HUF.
Broadly speaking, this section provides deduction from total income in respect of various investments / expenditures / payments. Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2014-15.
Section 80CCC: Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer
This section provides deduction to an Individual for any amount paid or deposited in any annuity plan of LIC any other insurer for receiving pension from a fund referred to in Section 10(23AAB).
In case the annuity is surrendered before the date of its maturity, the surrender value is taxable in the year of receipt.

Section 80CCD: Deduction in respect of Contribution to Pension Account

Total Deduction under Section 80C, 80CCC and 80CCD(1) cannot exceed Rs 1,50,000. From assessment year 2012-13, employer’s contribution under section 80CCD(2) towards NPS is outside the monetary ceiling mentioned above.

Deductions on Savings Bank Account

Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account

Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office, is allowable w.e.f. 1st April 2012 (Assessment Year 2013-14).

Deductions on House Rent

Section 80GG: Deduction in respect of House Rent Paid

Deduction available is the least of
  1. Rent paid minus 10% of total income
  2. Rs. 2000/- per month
  3. 25% of total income, provided
    • Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
    • He should not be in receipt of house rent allowance.
    • He should not have self occupied residential premises in any other place.

Deductions on Loan for Higher Studies

Section 80E: Deduction in respect of Interest on Loan for Higher Studies

Deduction in respect of interest on loan taken for pursuing higher education. The deduction is also available for the purpose of higher education of a relative w.e.f. A.Y. 2008-09.

Deductions on Rajiv Gandhi Equity Saving Scheme (RGESS)

Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)

The Rajiv Gandhi Equity Saving Scheme (RGESS) was launched after the 2012 Budget. Investors whose annual income is less than Rs. 10 lakhs can invest in this scheme (up to Rs. 50,000) and get a deduction of 50% of the investment.
So, if you invest Rs. 50,000 (maximum amount eligible for income tax rebate is Rs. 50,000), you can claim a tax deduction of Rs. 25,000 (50% of Rs. 50,000).

Deductions on Medical Insurance

Section 80D: Deduction in respect of Medical Insurance

Deduction is available up to Rs. 20,000/- for senior citizens and upto Rs. 15,000/ in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 20,000/- if parents are senior Citizen and Rs. 15,000/- in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 40,000/-. From AY 2013-14, within the existing limit a deduction of upto Rs. 5,000 for preventive health check-up is available.

Deductions on Medical Expenditure on Self or Dependent Relative

Section 80DDB: Deduction in respect of Medical Expenditure on Self or Dependent Relative

A deduction to the extent of Rs. 40,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assessee from any Registered Doctor.

Deductions on Medical Expenditure for a Handicapped Relative

Section 80DD: Deduction in respect of Rehabilitation of Handicapped Dependent Relative

Deduction of Rs. 50,000/- is available on:
  1. expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.
  2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
Further, if the dependant is a person with severe disability, a deduction of Rs. 100,000/- is also available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.
Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.

Deductions on Person suffering from Physical Disability

Section 80U: Deduction in respect of Person suffering from Physical Disability

Deduction of Rs. 50,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 100,000/- shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.

Deduction for donations towards Social Causes

Section 80G: Deduction for donations towards Social Causes

The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G. 80G deduction not applicable in case donation is done in form of cash for amount over Rs 10,000.

Donations with 100% deduction without any qualifying limit:

  • National Defence Fund set up by the Central Government
  • Prime Minister’s National Relief Fund
  • National Foundation for Communal Harmony
  • An approved university/educational institution of National eminence
  • Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
  • Fund set up by a State Government for the medical relief to the poor
  • National Illness Assistance Fund
  • National Blood Transfusion Council or to any State Blood Transfusion Council
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
  • National Sports Fund
  • National Cultural Fund
  • Fund for Technology Development and Application
  • Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund in respect of any State or Union Territory
  • the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
  • The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6,1993
  • Chief Minister’s Earthquake Relief Fund, Maharashtra
  • Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
  • Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
  • Prime Minister’s Armenia Earthquake Relief Fund
  • Africa (Public Contributions — India) Fund

Donations with 50% deduction without any qualifying limit.

  • Jawaharlal Nehru Memorial Fund
  • Prime Minister’s Drought Relief Fund
  • National Children’s Fund
  • Indira Gandhi Memorial Trust
  • The Rajiv Gandhi Foundation

Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income

  • Government or any approved local authority, institution or association to be utilised for the purpose of promoting family planning
  • Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India.

Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income

  • Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
  • Government or any local authority to be utilised for any charitable purpose other than the purpose of promoting family planning
  • Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
  • Any corporation referred in Section 10(26BB) for promoting interest of minority community
  • For repairs or renovation of any notified temple, mosque, gurudwara, church or other place.

Download Automated Master of Form 16 Part A&B for the Financial Year 2014-15     [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B with all up dated Tax Section and Tax Slab]

Wednesday 25 February 2015

Download the Automated Master of Form 16 Part A&B for FY 2014-15 [This Excel Based Software Can prepare at a time 100 employees Form 16 Part A&B] 

Although the CBDT have notified that the Form 16 Part A is Mandatory to download from the TRACES Portal and the Form 16 Part B is mandatory to Prepare by the Employer/Deductor.

But some of the Concerned or Deductor have not known about this New Notification and most of the Concerned have not able to download the Form 16 Part A from the Traces Portal. In this Regard this This Excel Utility can help to serve the Form 16 with Part A& B to the employees.

Main Feature of this Excel Utility :-

  • This Excel Based Software most ease to Generate just like a Excel File.
  • This Utility can Prepare At a time 100 employees Form 16 Part A&B
  • Prevent the double entry of PAN Number and Name of Employee
  • All amended Tax Slab and Section have in this Excel Utility.
  • This Excel Utility can reduce your time to prepare Form 16

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Most of the Tax Payers have yet not known or confused about the Tax Rebate Rs. 2000/- U/s 87A which was started from the Financial Yar 2013-14, can continue in this Financial Year 2014-15 ? Yes This Tax Rebate can also avail in this financial year 2014-15 as per the Income Tax Circular Bearing No. 17-2014 dated 10/12/2014. 

So, have no tension to get the tax rebate Rs. 2000/- from this Financial Year. Also it is noted that the As per the Finance Budget the Tax Slab Raised up to Rs. 23.5 Lakh and the Most Popular Section 80C Raised up to Rs. 1.5 Lakh. The House Building Loan Interest U/s24B also Raised up to Rs. 2 Lakh.

In this Finance Budget most of tax payers are get more tax benefits and save the money from their tax for the Financial Year 2014-15.

The Section 87A Tax Rebate Rs. 2000/- is continue in this financial Year also. The Income Tax Circular's some caption is given below about this Tax Rebate:-

                                                                                                               CIRCULAR NO : 17/2014
F.No. 275/192/2014-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
******
North Block, New Delhi
Dated 10th December, 2014

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2014-15 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.

6. REBATE OF RS 2000 FOR INDIVIDUALS HAVING TOTAL INCOME UPTO RS 5 LAKH [SECTION 87A]

Finance Act 2013 provided relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income not exceeding Rs 5,00,000/-. The amount of rebate is Rs 2000/- or the amount of tax payable, whichever is lower. This rebate is available for A.Y. 2014-15 and subsequent assessment years.
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Download the Automated Master of Form 16 Part-B for FY 2014-15 [This Excel Based Software Can prepare at a time 100 employees Form 16 Part-B]

Wednesday 10 December 2014

  1.  Summary and Deduction under section 80C for investment in various financial instrument, insurance policy, fixed deposits, etc. Maximum Deduction under Section 80C, 80CCC and 80CCD is Rs.150,000/-Click here to view details of U/s 80C

  2. Deduction under section 80CCA: Discontinued from April, 1992 Income Tax Deduction under section 80CCA for investment in National Savings Scheme or payment to a deferred annuity plan.

  3.  Deduction under section 80CCC for Contribution to pension scheme Maximum Deduction under Section 80C, 80CCC and 80CCD is Rs.150,000/-

 4.Deduction under section 80CCD(2) for Contribution to pension scheme of Central Government.Click here to view the Section 80CCC & 80CCD(2)

 5. Deduction under section 80CCG for Contribution to equity shares or equity mutual fund under Rajiv Gandhi Equity Saving Scheme and maximum deduction under Section 80CCG is Rs.50,000/- (50% of actual investment is entitled)

 6.  Deduction under section 80D for Contribution to medical premium and maximum deduction under Section 80D is Rs.15,000/- & Sr.Citizen Rs. 20,000/- P.A. Click here to view Section 80D

 7.   Deduction under section 80DD for Contribution to medical treatment and maintenance of handicapped dependent and Maximum Deduction under Section 80DD is Rs.100,000/- & Rs 50,000/-.

 8.  Deduction under section 80DDB for Contribution to medical treatment of specified diseases and maximum deduction under Section 80DDB is Rs.60,000/- and Rs 40,000/-
 9.  Deduction under section 80E for interest payment of loan taken for higher education and there is no maximum Deduction under Section 80E so individual can total interest paid on education loan.
 10.  Deduction under section 80EE for interest payment of loan taken for new home for home  loan amount of Rs 25 Lakhs and maximum Deduction under Section 80EE is Rs.100,000/-
 11.Deduction under section 80G for Contribution/Donation to charitable organization and    maximum deduction under Section 80G is 100%  Or 50% of contribution amount to 10% of  10% of adjusted gross total income of the taxpayer.Click here to View the Section 80G

 12. Deduction under section 80GG for payment of rent by individual salaried taxpayer who is not receiving House rent allowance (HRA) and should not own any residential accommodation and maximum deduction under Section 80GG is Rs 2000/- per Month.Click here to view the Section 80GG

 13. Deduction under section 80GGB for Contribution/ Donation to political parties by Indian Company and there is no maximum deduction limit under Section 80GGB so assessee can claim whatever donation he made to political party as deduction u/s 80GGB.

 14. Deduction under section 80GGC for Contribution/ Donation to political parties by tax payer other than Indian Company and there is no maximum deduction limit under Section 80GGC so assessee can claim whatever donation he made to political party as deduction u/s 80GGC.

 15.Deduction under section 80U for disable person. Individual can claim deduction from taxable income based on his physical disability and amount of deduction is dependent on percentage of disability  and maximum deduction under Section 80U is Rs.50,000/- and Rs 100,000/-.Click here to view the Section 80U

Saturday 22 November 2014

Download the above link All in One TDS on Salary for Non-Govt (Private ) employees for the FY 2014-15 which can prepare at a time Tax Compute Sheet + HRA Calculation + Form 16 Part A&B and Part B)

Summary and List of Income Tax Deductions under Section 80C, 80CCA, 80CCC, 80CCD,  80CCG, 80D, 80DD, 80DDB, 80E, 80EE, 80G, 80GG, 80GGB, 80GGC, 80JJAA, 80QQB, 80RRB, 80TTA to 80U of Income Tax Act, 1961. There are different tax saving options i.e. Allowable Deductions/Exemption under Income Tax, are given under chapter VIA of the Income Tax Act, 1961. Summary of different tax saving section under which person can claim deduction or exemption from total Income are given below.

                          Deduction under section 80C for investment in various financial instrument, insurance policy, fixed deposits, etc. Maximum Deduction under Section 80C, 80CCC and 80CCD is Rs.150,000/-

                  Deduction under section 80CCA: Discontinued from April, 1992 Income Tax Deduction under section 80CCA for investment in National Savings Scheme or payment to a deferred annuity plan.

                         Deduction under section 80CCC for Contribution to pension scheme Maximum Deduction under Section 80C, 80CCC and 80CCD is Rs.100,000/- Deduction under section 80CCD for Contribution to pension scheme of Central Government.

             Deduction under section 80CCG for Contribution to equity shares or equity mutual fund under Rajiv Gandhi Equity Saving Scheme and maximum deduction under Section 80CCG is Rs.50,000/-

                          Deduction under section 80D for Contribution to medical premium and maximum deduction under Section 80D is Rs.15,000/-

                         Deduction under section 80DD for Contribution to medical treatment and maintenance of handicapped dependent and Maximum Deduction under Section 80DD is Rs.100,000/- & Rs 50,000/-.

                          Deduction under section 80DDB for Contribution to medical treatment of specified diseases and maximum deduction under Section 80DDB is Rs.60,000/- and Rs 40,000/-

                     Deduction under section 80E for interest payment of loan taken for higher education and there is no maximum Deduction under Section 80E so individual can total interest paid on education loan.

                      Deduction under section 80EE for interest payment of loan taken for new home for home loan amount of Rs 25 Lakhs and maximum Deduction under Section 80EE is Rs.100,000/-

                      Deduction under section 80G for Contribution/Donation to charitable organization and maximum deduction under Section 80G is 100% of contribution amount to 10% of 10% of adjusted gross total income of the taxpayer.

                      Deduction under section 80GG for payment of rent by individual salaried taxpayer who is not receiving House rent allowance (HRA) and should not own any residential accommodation and maximum deduction under Section 80GG is Rs 2000/- per Month.

.                      Deduction under section 80GGB for Contribution/ Donation to political parties by Indian Company and there is no maximum deduction limit under Section 80GGB so assessee can claim whatever donation he made to political party as deduction u/s 80GGB.

                      Deduction under section 80GGC for Contribution/ Donation to political parties by tax payer other than Indian Company and there is no maximum deduction limit under Section 80GGC so assessee can claim whatever donation he made to political party as deduction u/s 80GGC.

                    Deduction under section 80JJAA for additional wages paid to new workmen in factory and maximum deduction under Section 80JJAA is 30% of additional wages paid to new workmen in factory.

                     Deduction under section 80QQB for income from royalty to author for lump sum consideration for the assignment or grant of any of his interests in the copyright of any book being a work of literary, artistic or scientific nature, or of royalty or copyright fees in respect of such book and maximum deduction under Section 80QQB is Rs.300,000/-

                      Deduction under section 80RRB Any individual who is resident in India having a patent and receiving any income by way of royalty for that registered patent can claim maximum deduction of Rs 300,000/- from his gross total income for that royalty income.

                      Deduction under section 80U for disable person. Individual can claim deduction from taxable income based on his physical disability and amount of deduction is dependent on percentage of disability  and maximum deduction under Section 80U is Rs.50,000/- and Rs 100,000/-.

Wednesday 29 October 2014

Click here to Download the Value of Perquisite (Loan) Calculator U/s 17(2)

Interest free loan/Loan at concessional rate of interest :
If a loan is given to an employee (or any member of his household), interest
thereon is a perquisite chargeable to tax. It is taxable in hands of all employees (whether specified or not) on the following basis :

1) Find out the ‘maximum outstanding monthly balance’ (i.e. the aggregate  outstanding balance of each loan as on the last day of each month)
2) Calculate interest on loans charged at the rate applicable  to the similar loans as prescribed by State Bank of India  as on the 1st day of April of the relevant previous year  (e.g. 1st April 09 for A Y 2010-11) on the amount derived
                       in step 1                                                                    XXX

3) Less: Interest on loans charged by Employer, if any                XXX

4) Balance amount is the taxable non- monetary
 perquisite on concessional loans                                                        XXX
Note: Exemption is given to the above rule in case of following situations :

1. When the amount of the original loan in the aggregate does not exceed Rs. 20,000/-.

2. If a loan is taken for medical treatment in respect of diseases specified in  Rule 3A.(the exemption is not available to the amount of the loan that has been reimbursed to the employee under any medical insurance
scheme.)

Click here to Download the Value of Perquisite (Loan) Calculator U/s 17(2)