Download Automated Master of Form 16 Part A&B for FY 2014-15 [This Excel Utility can prepare at a time 50 employees Form 16 Part A&B for FY 2014-15 with all amended Tax Slab and Section]
Brief the tax section with deduction
Entertainment Allowance:
The first deduction which you claim from salary is
Entertainment Allowance. Entertainment allowance received is first included in
the employee’s income and then a deduction is allowed in case of government
employees, for a sum equal to 1/5th of salary (excluding all allowances,
benefits and other perquisites) or Rs. 5,000, whichever is less.
Professional Tax:
Tax on employment by whatever name called, levied by a State
under Article 80C 276 of the Constitution shall be
allowed as a deduction. [Sec. 16(iii)]
Deductions Permissible under
Chapter VI-A:
Certain deductions are
available from the gross taxable income, under sections 80C to 80U. Important
deductions are:
Deposit/Contribution to Life Insurance Premium,
deferred annuity, contributions to provident fund, subscription to certain
equity shares or debentures, bank deposits under notified scheme, 5 years POTD,
Senior Citizen Saving Scheme, etc. [Sec. 80C]
Contribution
to LIC Pension Plan (Jeevan Suraksha) or Pension Fund of other insurance
companies. [Sec. 80CCC]
Contribution
to notified Pension Scheme by employees of Central Government or any other
employer or by any other individual. [Sec. 80CCD]
Investment in listed equity shares (w.e.f
1-4-2014) A.Y.2014-15 [or listed units of equity-oriented mutual funds] under
Rajiv Gandhi Equity savings Scheme. [Sec. 80CCG]
Payment of Medical Insurance
Premia (Mediclaim) or contribution to Central Government Health Scheme. [Sec.
80D]:
Deductible upto a
maximum of Rs. 15,000 (Rs. 20,000 in case the person insured is a senior
citizen). Besides, an additional deduction upto Rs. 15,000 (Rs. 20,000 in case
the person insured is a senior citizen) [The age limit for a senior citizen
from A.Y.2013-14 is 60 years or more] shall be allowable in respect of medical
insurance premium for parent(s).
W.e.f.
A.Y. 2013-14, deduction can also be availed for any payment for preventive
health check-up of the assesses, his family and parents, subject to a limit of
Rs. 5,000 within the aforesaid ceilings.
Expenditure on medical
Treatment etc. and deposit for maintenance of handicapped dependents. [Sec.
80DD]:
A deduction is allowed
to compensate for any expenditure incurred by an assesses, during a year, for the
medical treatment (including nursing), training and rehabilitation of one or
more handicapped relatives wholly dependent on him, and for amount deposited in
an approved scheme of LIC or UTI, for the benefit of a handicapped dependent. A
fixed deduction of Rs. 50,000 is allowable, in aggregate for any or both the
purpose specified above, irrespective of the actual amount of expenditure
incurred. As per the Finance Budget 2015 this Limit has hike up to Rs. 75,000/-
Expenditure or Medical
Treatment of assess/dependant relative [Sec. 80DDB]:
Deduction for the amount
of expenditure incurred or Rs. 40,000, whichever is less, is allowable for any
year during which expenditure is actually incurred for the medical treatment of
specified diseases or ailments for the assesses himself or a dependent
relative. If the patient is a senior citizen the deduction allowable shall be
the expenditure incurred or Rs. 60,000 whichever is less. Besides, any amount
received under a medical insurance policy shall be reduced from the amount of
deduction allowable.
Interest on Loan taken for
Higher Education. [Sec. 80E]:
Any amount paid by way of interest on a loan
taken from any financial institution or any approved charitable institution for
the purpose of pursing his higher education, is deduction without any limit.
Interest on Loan taken for
first residential house. [Sec. 80EE]:
Deduction is allowable
for interest on housing loan from a bank/housing finance company, for allowable
is Rs. 1, 00,000, subject to specified conditions. The deduction is allowable
for A.Y. 2014-15 and A.Y. 2015-16 only.]
Donation for Charitable
Purposes [Sec. 80G]:
There are a number of donations in respect of
which deduction is permissible under Sec. 80G. Deduction @ 50% is available for
donation to Jawaharlal Nehru Memorial Fund, Prime Minister Drought Relief Fund,
[National Children’s Fund] Indira Gandhi Memorial Trust or Rajiv Gandhi
Foundation etc. 100% deduction is allowed for donations to National Defense
Fund, Prime Minister’s National Relief Fund, [National Children’s
Fund,]National Foundation for Communal Harmony, Chief Minister’s/Lt. Governor’s
Relief Fund etc. Deduction is granted subject to the prescribed maximum ceiling
and on furnishing of appropriate certificate from the done organization.
Donation of a sum exceeding Rs. 10,000 shall be
eligible for deduction, only if it paid by a mode other than cash.
Expenditure on Rent. [Sec.
80GG]:
Rent paid by an assesses not owning a house and
not in receipt of house rent allowance u/s 10(13A) for residential
accommodation whether furnished or unfurnished, is deductible subject to the
prescribed ceilings. [w.e.f 1-4-2014, for A.Y. 2014-15]
Donations to specified
institutions/associations for Research or for Rural Development [Sec. 80GGA]:
Donation of a sum
exceeding Rs. 10,000 shall be eligible for deduction, only if it paid by a mode
other than cash.
Physical Disability [Sec. 80U]:
Rs. 50,000 for
disability and Rs. 1, 00,000 for severe disability.As per the Finance Budget the Limit of 80U now enhance up to Rs. 75000/- and for disable persons Rs. 1,25,000/-
