Income Tax Department recently launched new Form 12BB. This is the single form to declare HRA, LTA, Section 80, and interest paid on home loans under Sec.24 of IT Act.
Showing posts with label 89(1) arrears relief calculator for F.Y.2016-17. Show all posts
Showing posts with label 89(1) arrears relief calculator for F.Y.2016-17. Show all posts
Sunday 28 January 2018
Friday 9 December 2016
Download All in One TDS on Salary for only Non-Govt ( Private) Employees for F.Y.2016-17 & A.Y.2017-18 [This Excel Utility can prepare at a time your individual Salary Sheet + Individual Tax Compute Sheet + Automatic H.R.A. Calculation + Automatic Form 12 BA + Automatic Form 16 Part A&B and Form 16 Part B for F.Y. 2016-17]
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]
Contribution to Pension Fund to the employees by the employer U/s 80CCD(2)
Contribution to the New Pension Fund up to Rs.50,000/- U/s 80CCD(1B). The deduction has made out of the limit of U/s 80C ( Max Rs.1.5 Lakh)
Download All in One TDS on Salary for Govt & Non-Govt employees for the F.Y.2016-17
Payment of Medical Insurance Premia (Mediclaim) or contribution to Central Government Health Scheme. [Sec. 80D]:
Deductible up to a maximum of Rs. 25,000 (Rs. 30,000 in case the person insured is a senior citizen). Besides, an additional deduction up to Rs. 25,000 (Rs. 30,000 in case the person insured is a senior citizen) [The age limit for a senior citizen from A.Y.2017-18 is 60 years or more] shall be allowable in respect of medical insurance premium for parent(s).
W.e.f. A.Y. 2016-17, the 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 assessee, 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.
Expenditure or Medical Treatment of assessing/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. 80,000 whichever is less. Besides, any amount received under a medical insurance policy shall be reduced by the amount of deduction allowable.
Interest on Loan took 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 pursuing his higher education is deduction without any limit.
Interest on Loan took for the first residential house. [Sec. 80EE]:
The deduction is allowable for interest on housing loan from a bank/housing finance company, for allowable is Rs. 1, 50,000, subject to specified conditions. The deduction is allowable for A.Y. 2017-18 and F.Y. 2016-17 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 the deduction, only if it paid by a mode other than cash.
Expenditure on Rent. [Sec. 80GG]:
Rent paid by an assessee 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 1-4-2016, for A.Y. 2017-18]
Who have not entitled the House Rent from the Employer, they can avail and get the deduction U/s 80GG which max Rs. 60,000/- P.A.
Physical Disability [Sec. 80U]:
Rs. 75,000 for disability and Rs. 1,50,000 for severe disability.
Wednesday 7 December 2016
1 1. The Basic threshold income that is tax-free – 2.5 Lac 2. Section 80 C deduction – 1.5 Lac
Section 80 C includes PF, PPF, Insurance premium, ELSS, Pension plan, FDs, and NSCs. In order to get this tax benefit, you need to make an investment in any of the investment avenues mentioned here.
3. Section 80 CCD (1B) – 0.5 Lac This additional deduction is announced this year. According to this 0.5, Lac investment in NPS will be tax-free.
4. Contribution to NPS by employer Section 80 CCD (2) – 1 Lac In order to get this benefit employer has to register and contribute to NPS. This contribution is restricted to 10% of salary (Basic + DA). The maximum limit is 1 Lac.
Download Automated All in One Income Tax Preparation Excel Based Software for Govt & Non-Govt(Private) Employees for the F.Y.2016-17. [ This Excel based software can prepare at a time your Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure for both of Govt and Non-Govt employees Salary pattern + Automatic H.R.A. Exemption Calculation + Automatic Arrears Relief Calculation with Form 10E from the F.Y.2000-01 to F.Y.2016 + Automatic Form 16 Part A&B and Form 16 Part B in a single Excel based Software for F.Y. 2016-17]
5. Home loan Interest or HRA – 2 Lac U/s 24B AND Rs.1.5 Lakh U/s 80EE, If you have taken the home loan you can take benefit of home loan interest component for tax saving. If you have not taken the home loan you can claim HRA amount for this.
6. Tax-Free Medical Allowance – 15,000 Rs/- The tax-free medical allowance is payable to most of the salaried people. In order to avail this benefit, you need to submit actual bills.
7. Tax Free Transport Allowance – 19,200 Rs/- P.M. & Rs. 3200/- P.M. for More than 80% of Phy.Disabled Persons. Tax-free transport allowance limit is enhanced this year.
8. Medical Insurance – 25,000 Rs/- Medical Insurance premium limit is hiked this year. If you have purchased medical insurance you can avail tax benefit.
9. Medical Insurance of parents – 30,000 Rs/- Premium paid for Medical Insurance of parents can be claimed for the tax deduction. This limit was enhanced this year.
10. LTA – 25,000/- Leave Travel Allowance is given to salaried people every two years. A small amount is taken here for illustration.
Friday 18 November 2016
Income Tax F.Y.2016-17 A.Y. 2017-18, Exemptions, Deductions and Rebate for Salaried Employees under Section 10, Section 24, Section 89(1), Chapter VIA, and Section 87A as per the Finance Bill 2016-17.
Section 80C – Subject to the overall limit of Rs. 1,50,000 under Section 80CCE.
For investments in specified schemes, saving instruments etc.U/s 80C
1) Life insurance premium for policy:
2) Contributions by an individual made under Employees’ Provident Fund Scheme
3) Contribution to Public Provident Fund Account in the name of:
4) Contribution by an employee to a recognized provident fund
5) Subscription to any notified security or notified deposit scheme of the Central Government. For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction. The amount can be deposited by an individual in the name of her girl child or any girl child for whom such an individual is the legal guardian.
6) Subscription to notified savings certificates [National Savings Certificates]
7) Contribution for participation in unit-linked Insurance Plan of UTI:
8) Contribution to notified unit-linked insurance plan of LIC Mutual Fund:
a) in the case of an individual, in the name of the individual, his spouse or any child of such individual
b) in the case of an HUF, in the name of any member thereof
a) in the case of an individual, in the name of the individual, his spouse or any child of such individual
b) in the case of an HUF, in the name of any member thereof
9) Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full-time education of any 2 of his/her children
10) Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both
11) Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)
12) Contribution by an individual to any pension fund set up by any mutual fund.
13) Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions
14) Subscription to any units of any approved mutual fund referred to in section 10(23D), provided the amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to above. 21. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified.
15) Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)
16) 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)
Download Automated Excel Based Income Tax Preparation Software for Govt & Non-Govt Employees for F.Y.2016-17 [ This Excel Utility can prepare at a time Individual Salary Sheet + Individual Tax Compute Sheet + Individual Salary Structure for Govt & Non- Govt employees as per Govt & Non-Govt Salary Pattern + Automatic H.R.A. Calculation + Automatic Arrears Relief Calculation with Form 10e + Automatic Form 16 Part A&B and Form 16 Part B for F.Y.2016-17 ]
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| Employee's Salary Structure |
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| Tax Compute Sheet |
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| Arrears Relief Calculation |
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| Form 16 |
Section 80CCC – Subject to the overall limit of Rs. 1,50,000 under Section 80CCE
Contribution to certain specified Pension Funds such as LIC or other authorised Insurance Companies
Section 80CCD(1) – – Subject to the overall limit of Rs. 1,50,000 under Section 80CCE
Deduction in respect of contributions to National Pension Scheme / System (NPS) notified by Central Government
Limit : 10% of salary in case of employees, 10% of gross total income in case of others
Section 80CCD(1B)
Deduction in respect of the deposit under a pension scheme notified by Central Government (NPS) up to Rs. 50,000/-
Section 80CCD(2)
Deduction in respect of employer contributions to NPS – National Pension Scheme / System – This deduction is available over and above the Rs. 1.5 lakh limit
Section 10 (13A) – Exemption in respect of HRA:
Under Sec. 10(13A), an employee who is in receipt of House Rent Allowance (HRA) can claim exemption, if he does not live in his own house, and pays rent in excess of 10% of his salary for his residential accommodation.
Exemption u/s 10(13A) is the least of the following
1. Actual amount of HRA received
2. 50% (for Chennai, Mumbai, Kolkata and Delhi) / 40% (for other places) of the Salary for the relevant period
3. Rent paid Less 10% of Salary for the relevant period.
Section 87A – Rebate of Income Tax for Taxable income up to Rs. 5 Lakh
Finance Act 2016 provides for a rebate of Income up to Rs. 5000/- in respect of Persons who have Taxable not exceeding Rs. 5 lakh.
Section 10(14) – Transport Allowance and Children Education Allowance (CEA)
Under Section 10(14), the Budget FY 2016-17 lets you claim Rs. 19,200 tax exemption as transport allowance and Rs. 2,400 tax exemption as Children Education Allowance (CEA) in a financial year.
Section 24(b) – Home Loan
If you have taken a Home Loan, then you can claim a tax deduction on the interest component of the loan under Section 24(b). For self-occupied properties, you can benefit from deductions of up to Rs. 2,00,000.
Section 89(1) – Income Tax relief in respect of Arrears of Salary pertaining to previous years
If arrears of salary has been received in Financial year 2016-17 related to previous years then Relief of Income Tax can be claimed u/s 89(1) by accounting income from arrears in respective years on a notional basis.
Deductions allowed under Chapter VI-A of Income Tax Act
Deduction Limit – Sec 80CCE. As per Section 80CCE, a deduction can be claimed up to Rs. 1,50,000 for the payments / contributions made under Sections 80C, 80CCC and 80CCD excluding U/s 80CCD(2) and 80CCD(1B)
Section 80 CCG
The amount invested in listed shares covered by Rajiv Gandhi Equity Equity Saving Scheme. Deduction of 50% of total investment subject to a maximum of Rs. 25,000 is allowed for 3 consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed shares or list units of equity oriented funds are first acquired
Section 80D
Amount invested in Health Insurance
In the case of Individual, an amount paid: a) For self, spouse and dependent children: Up to Rs. 25,000 (Rs. 30,000 if specified person is a senior citizen or very senior citizen) b) For parents: additional deduction of Rs. 25,000 shall be allowed (Rs. 30,000 if the parent is a senior citizen or very super senior citizen) In the case of HUF, up to Rs. 25,000 (Rs. 30,000 if specified person is a senior citizen or very senior citizen).
The aggregate amount of deduction cannot exceed Rs. 60,000/- in the case of an individual.
Section 80DD
Expenditure incurred for the medical treatment of a dependent (spouse, children, parents, brothers and sisters of the individual) up to Rs. 75,000 (Rs. 1,25,000 in case of severe disability)
Section 80DDB
Expenditure incurred for medical treatment of specified diseases for self, or wholly dependent spouse, children, parents, brothers and sisters up to Rs. 40,000 (Rs. 60,000 in case of senior citizen and Rs. 80,000 in case of very senior citizen)
Section 80E
Interest paid on Educational Loan with no limit
Section 80EE
Interest on loan for acquiring residential house property sanctioned during the financial year 2016-17. The Housing Loan availed should be up to Rs. 35 lakh and should have been availed in the year 2016-17
Section 80G
Deduction in respect of donations to certain funds, charitable institutions, etc.
Section 80GG
Rent paid for residential accommodation from the income of Tax Payer / assessee who is not in receipt of HRA
Least of the following shall be exempt from tax: a) Rent paid in excess of 10% of total income*;
b) 25% of the Total Income; or
c) Rs. 5,000 per month.
Section 80 TTA
Interest on Savings Bank accounts subject to a maximum of Rs. 10,000
Section 80U
Exemption of income tax for an income up to Rs. 75,000 for persons with disability (Rs. 1,25,000 in case of persons with severe disability)Source:
Incometaxindia.gov.in
Incometaxindia.gov.in
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