Download the Automated Master of Form 16 Part A&B for FY 2015-16 [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B for Ass Year 2016-17]

The below given Excel Based Software which can prepare at a time 100 employees Form 16 Part A&B for the Financial Year 2015-16 and Assessment Year 2016-17. As per the Finance Budget 2015-16 have already hike the limit of some Tax Section, but no changes the Tax Slab which is same as per the Financial Year 2014-15 and Assessment Year 2015-16. 

By this unique Excel Software you can calculate your Tax Liability for the Financial Year 2015-16 and you can prepare at a time Form 16 Part A&B  which you can keep this in future and distribute in the end of the Financial Year 2015-16. It also you can change the period of financial year in this Excel Utility. So you can gain and reduce your time for prepare the Form 16 as this prepare Advance in this time.

Some of employees can goes to another Concerned and leave his present working concerned in the middle of the Financial Year, then you must to give the Form 16 to the leaving employees in the middle in the Financial Year. In this regard in this Excel Utility have the facility for changes the Period of Financial Year 2015-16.

For an example :- Mr. A working in the ABLtd. and Mr. A leave the ABLtd. in the month of June 2015 and joined the another Concerned BC Company. Hence the Deductor of AbLtd may give the Form 16 to Mr. A up to his working period in this Concerned. 

This Excel Utility Can prepare at a time 100 employees Form 16 Part A&B for the Financial Year 2015-16 and all the amended Tax Section as per the Finance Budget 2015.

Main feature of this Utility:-

• Auto Calculate the Income Tax for the Financial Year 2015-16 as per Finance Budget 2015-16
• Prepare at a time Form 16 Part A&B with all amend limit of Tax Section 
• You can change the Financial Year at any time if you have to need the changes
• Automatic Convert the Amount in to the In Word
• Prevent the Double entry of Pan Number and Name of Employee
• This Excel Utility can use both of Govt and Non Govt Concerned
• Easily Generate and Easy to install in any Computer 

Download the Automated Master of Form 16 Part A&B for FY 2015-16 [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B for Ass Year 2016-17]                 

On July 04, 2015 by www.taxexcel.net

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To start with, let the  explain what exactly has changed in terms of taxation from the year (i.e.AY 2016-17) As per Budget 2015:

1. Tax slabs have not changed
2. investment limit under sec. 80C also same as previous FY 2013-14 up  to Rs. 1,50,000

All changes this budget have been beneficial for the tax payer. If you are already aware of all the provision for saving income tax, you can skip the remaining part and go directly to the income taxcalculator for FY 2015-16 to compute your income tax liability (or TDS) basis your salary or business income. Others, do read on to know all the different tactics you can use to save on income tax.

Income Tax Slabs

Income tax slabs have been changed this year. Standard deduction limit has been raised to Rs. 2,50,000 for both Male and Female assesses.

1) In Case of General Assesses (Both Male & Female):

Income Bracket	Rate
0 to Rs. 2,50,000	0   %
Rs. 2,50,001 to Rs. 5,00,000	10 %
Rs. 5,00,001 to Rs. 10,00,000	20 %
Above Rs. 10,00,000	30 %

2) In Case of Senior Citizens (Age above 60 years but below 80 years):

Income Bracket	Rate
0 to Rs. 3,00,000	0   %
Rs. 3,00,001 to Rs. 5,00,000	10 %
Rs. 5,00,001 to Rs. 10,00,000	20 %
Above Rs. 10,00,000	30 %

3) In Case of Very Senior Citizens (Age 80 years and above):

Income Bracket	Rate
0 to Rs. 5,00,000	0   %
Rs. 5,00,001 to Rs. 10,00,000	20 %
Above Rs. 10,00,000	30 %

* On final tax amount, a surcharge of 3 %
**No surcharge above 10 lacs.

Income Tax Exemptions: 

1) Section 80 C Limit  – Unchanged this year (to Rs. 1,50,000)

• Deduction on premium paid for a life insurance policy, taken after 1 April 2012, will be allowed only if yearly premium is less than 10% of sum assured.  If its more than 10% then it will be not eligible for deduction u/sec. 80C
• ELSS (Mutual Fund)
• PPF (upto Rs. 1,50,000)
• EPF
• FD for 5 years
• Pension Plans
• NSC
• Sukanya Samriddhi Account ( Minor Girl Child Scheme) Max Rs. 1.5 Lakh
• Post Office SB
• Infrastructure Bonds
• Expenditure on Children Education (For upto 2 children only for full time education)
• Tuition fees Maximum allowed is Rs. 1,50,000
• Housing loan principal
• Deferred Annuity
• Approved Super Annotation Fund
• 80CC Raised Up to Rs. 1,50,000 [ Pension Fund ]

2) Section 80CCD - Unchanged this year

Deduction under this section can be claimed only if the contribution to your NPS account is made by your employer and the deduction is limited to a maximum of 10% of your basic salary. Returns on NPS are tax free, but withdrawal is still taxable. The deduction under sec 80CCD is over and above the deduction available under sec 80C.

3) Section 80 D –Changed this year

Deduction under section 80D

• Deduction of Rs. 25000/- is allowed if the same is paid as premium for Medical Insurance taken for self / dependents or towards preventive health check-up (max Rs. 5000). In case any of self / dependents is a senior citizen, the deduction allowed is Rs. 30000/-

4) Section 80DD – Unchanged this year

Deduction under section 80DD

• Exemption given for expenditure made for a disabled dependant towards Medical Treatment/Training/Rehabilitation. It also includes the LIC/Insurance premium paid towards maintenance of such dependant.
• Maximum deduction allowed is Rs. 50,000/- in case of normal disability and Rs. 1 Lakh in case of severe disability.

5) Section 80DDB - Unchanged this year

Deduction under section 80DDB

• Exemption given for expenditure incurred on specified disease or ailments such as cancer/aids.
• Maximum deduction allowed is Rs. 40,000/-. In case of Senior Citizens, maximum deduction allowed is Rs. 60,000/-

List of ailments covered:
(i) Neurological Diseases where the disability level has been certified to be of 40% and above,

1. Dementia ;
2. Dystonia Musculorum Deformans ;
3. Motor Neuron Disease ;
4. Ataxia ;
5. Chorea ;
6. Hemiballismus ;
7. Aphasia ;
8. Parkinsons Disease ;

(ii) Malignant Cancers ;

(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;

(iv) Chronic Renal failure ;

(v) Hematological disorders :

1. Hemophilia ;
2. Thalassaemia.

6) Section 80E - Unchanged this year

Deduction under section 80E
Deduction is allowed for repayment of interest component of Higher Education loan. All education after Class 12 is allowed, either vocational or Fulltime. But should be from a school/institute/university recognized by the government.

7) Section 80G - Unchanged this year

• Contribution to exempt charities – 25/50/75/100% depending on the charity and as per approval
• 100% exemption on donation to political parties

8) Section 80U - Changed this year

• Deduction upto Rs. 75,000/- is allowed in case of Permanent Disability.
• In case of Permanent Disability exceeding 80%, maximum deduction allowed is Rs. 1,25,000/-.

9) Section 24B & Section 80EE  - Unchanged this year

• Housing loan interest. Maximum allowed limit raised to – Rs. 2,00,000 (for loans taken after 1 April 1999. For loans before that Maximum Investment Limit was 30,000).
• Additional deduction of Rs. 1 lac will be applicable to persons taking first home loan of up to Rs. 25 lacs for property worth upto Rs. 40 lac. For such persons, the total deduction will be Rs. 2.5 lacs (Rs. 1.5 lac available under section 24(1)(vi) and Rs. 1 lac available under this new section 80EE).
  10) Superannuation - Unchanged this year

Any contribution made by a company to superannuation fund upto Rs. 1,00,000 tax free in the hands of the employee.

11) Conveyance/Transport Allowance - Changed this year

Any Conveyance / Transport Allowance given to an employee is tax free upto Rs. 1600 /- P.M.

12) Medical Allowance - Unchanged this year

Any Medical Allowance given to an employee is tax free upto Rs. 15,000 /- (Supporting Bills required).

13) HRA - Unchanged this year

Any House Rent Allowance given to an employee is tax free upto the minimum value of the following conditions (subject to – when an employee can produce rent paid receipts from landlord for the period and if the employee has not availed of tax exemptions for home loan interest / principal repayment):

1. 50% of Annual Basic (40% of Annual Basic in case of non-metros)
2. Actual HRA received
3. Rent Paid – (10% of Annual Basic)
   Calculate HRA Exemption U/s 10(13A) with Excel utility

14) Professional Tax - Unchanged this year

Any Professional Tax deducted from an employee’s salary can be reduced from the annual salary income to arrive at taxable salary.

15) Provident Fund - Unchanged this year

Provident Fund contributions (under section 80 C and subject to an overall investment limit of Rs. 1,50,000 ) deducted from an employee’s salary are tax exempt.

16)80CCG – Direct Equity Investment - Unchanged this year

Under ‘Rajiv Gandhi Equity Savings Scheme‘ – a new equity investor will be able to claim 50% of his investment in direct equity as deduction subject to maximum investment of Rs. 50,000 and provided his taxable income is below Rs. 10 lacs. The investment will be subject to 3 years lock-in.  
Government has notified this scheme (RGESS). Mutual funds and ETFs that invest in BSE100 or CNX 100 stocks or PSUs which are Navratna, Maharatna and Miniratna will qualify under this scheme. These investments can be traded over stock exchange after 1 year of investment. New equity investor has been defined as someone who has opened a Demat account but has not bought any securities till date of notification of this scheme (22 Sep 2012).

17) Section 80TTA – Savings Bank Interest - Unchanged this year

No tax will be charged on interest earned on balance in savings bank account subject to a maximum of Rs. 10,000 per year.

18) Section 87 A [Tax Rebate Rs.2,000/-  - Unchanged this year

On June 21, 2015 by www.taxexcel.net

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The below given Excel Based Software which can prepare at a time 100 employees Form 16 Part A&B for the Financial Year 2015-16 and Assessment Year 2016-17. As per the Finance Budget 2015-16 have already hike the limit of some Tax Section, but no changes the Tax Slab which is same as per the Financial Year 2014-15 and Assessment Year 2015-16.

By this unique Excel Software you can calculate your Tax Liability for the Financial Year 2015-16 and you can prepare at a time Form 16 Part A&B  which you can keep this in future and distribute in the end of the Financial Year 2015-16. It also you can change the period of financial year in this Excel Utility. So you can gain and reduce your time for prepare the Form 16 as this prepare Advance in this time.

Some of employees can goes to another Concerned and leave his present working concerned in the middle of the Financial Year, then you must to give the Form 16 to the leaving employees in the middle in the Financial Year. In this regard in this Excel Utility have the facility for changes the Period of Financial Year 2015-16.

For an example :- Mr. A working in the ABLtd. and Mr. A leave the ABLtd. in the month of June 2015 and joined the another Concerned BC Company. Hence the Deductor of AbLtd may give the Form 16 to Mr. A up to his working period in this Concerned.

This Excel Utility Can prepare at a time 100 employees Form 16 Part A&B for the Financial Year 2015-16 and all the amended Tax Section as per the Finance Budget 2015.
Main feature of this Utility:-

• Auto Calculate the Income Tax for the Financial Year 2015-16 as per Finance Budget 2015-16
• Prepare at a time Form 16 Part A&B with all amend limit of Tax Section 
• You can change the Financial Year at any time if you have to need the changes
• Automatic Convert the Amount in to the In Word
• Prevent the Double entry of Pan Number and Name of Employee
• This Excel Utility can use both of Govt and Non Govt Concerned
• Easily Generate and Easy to install in any Computer 

Download the Automated Master of Form 16 Part A&B for FY 2015-16 [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B for Ass Year 2016-17]

On April 28, 2015 by www.taxexcel.net

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The Finance Budget 2015 has already passed and the Tax Slab has not changed as previous financial year. But some changes have made in this Finance Budget like as Raised the Conveyance Allowance up to Rs. 1600/- P.M. and Phy.Disable/ Blind employees can get the benefits up to Rs. 3200/- P.M.

The Section 80U limit raised up to Rs. 75,000/- for 40% to 80% and above 80% Rs. 1,25,000/- and the Section 80CCC has also raised up to Rs. 1.50.000/- as previous year was Rs. 1 Lakh. Also One new deduction U/s 80C has incorporate " Sukanya Samriddhi Account" which can be get relief up to Rs. 1.5 Lakh for minor girl child below 10 Years.

Below given an Excel Based Software which can Calculate and Prepare the Tax Compute Sheet as per the New Finance Budget 2015.

• This Excel Utility can prepare at a time 50 employees Tax Compute Sheet with Tax Deposited Month Wise or Annually 
• This Excel Utility have all the effect of Budget 2015
• This Excel Utility can preserve for future
• This Utility can easily install in any Computer and easy to generate
• You can get extra benefits by one sheet which can calculate Tax Deduction and Deposited,this sheet may help to submit the synopsis of Tax Deposit to the NSDL monthly or Quarterly or Annually.
• This can use as Advance Tax Calculator with Tax Compute Sheet of each employees 

Click here to Download the Excel Utility  Master of Tax Calculator with Tax Compute Sheet [ This Utility can prepare at a time 50 employees Tax Compute Sheet + Tax Deposit sheet ]

                                  Tax Deposit Sheet

On April 17, 2015 by www.taxexcel.net

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Download Income Tax Calculator for Non-Govt employees  For the Assessment Year 2016-2017 for Individual tax calculation.  

Mr Arun Jaitley,The Finance Minister of India Presented his first full fledged budget today (28 Feb 2015).  There were huge expectations from tax payers from the budget like increase in tax exemption slabs, Higher deductions on interest for housing loans etc.,  But the Finance Minister has chosen not to alter tax slabs during the budget.  Although he hinted about the possibility of revision of tax slabs, it may not be before next budget.

So this Income Tax Calculator which is for Financial Year 2015-16 (FY 15-16) is made with little modification from the previous years Income Tax Calculator .  The major changes proposed in the budget are also incorporate in  the calculator for Financial Year 2015-16 and Assessment Year 2016-17 as per the Central Finance Budget 2015-16.

Major proposals in the union budget for Individual tax payers which are also included in the above income tax calculator for the assessment year 2016-17.  The exemptions and deductions will be applicable if the investments / deductions are from 01 Apr 2015 to 31 Mar 2016.

There are no changes in the tax slabs. Previous tax slabs will remain same.

In spite of huge expectations from individual tax payers for increase in the limit of 80C from existing 1.5 Lakhs to atleast 2 lakhs, No increase is made.  It must be appreciated that this limit is already increased in his last interim budget.  But there is more thought out deduction announced in the budget which is deduction of Rs 50,000 if invested in New Pension Scheme or NPS.  It almost works similar to exemption of 80C but can not be clubbed with other investments like PPF, Insurance Premium, ELSS Mutual Funds or even bank FD.  This is a sort of making people having disciplined investment for their pension scheme which is in fact a good move.  It augurs well for both Investors by rewarding them well in their golden years with pension and making investments available for the Nation.

Similarly, Health Insurance premium is increased from earlier 15000 rupees to 25000 and the same is increased from 20,000 to 30,000 in case of senior citizens.  This will augur well for the people who wish to take complete health plan and paying premiums more than 15000 per annum.

For senior citizen who are above 80 years thus not eligible for health insurance, Rs 30,000 deduction is allowed for medical expenditure. Deduction limit of Rs 60,000 on expenditure of specified diseases is enhanced to Rs 80,000 in the case of senior citizens.

Similarly Investments in Sukanya Samriddhi Scheme are eligible for deduction under section 80C of the income-tax and any both principal and interest will be exempted from tax.

The other concession provided during the union budget, which can also be entered in the income tax calculator is transport allowance.  For salaried people, the exemption limit in case of transport allowance is increased from earlier 800 rupees to 1600 rupees per month.

The Tax Rebate Rs.2000/- U/s 87A will be continue in the FY 2015-16 and Rs.10,000/- can be get relief from tax U/s 80TTA from Savings Bank Interest.

On April 13, 2015 by www.taxexcel.net

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As per the Central Finance Budget 2015, it is clear that the Tax Slab have not changed, but some of the limit of Tax Section has hike and one more deduction has include U/s 80C in the name of Sukanya Samriddhi Account. 

As the financial Year 2015-16 and Assessment Year 2016-17 is just now started and the Advance Tax will be paid for this financial year very shortly. So it is necessary to calculate your Tax Liability

for the Financial Year 2015-16. 

Most of the tax changes is given below for the Financial Year 2015-16 :-

1. Section 80D is hike the max limit Rs. 25,000/- for below 60 years and Rs.30,000/- for Sr.Ctzn.
2. Section 80U has raised the Max limit Rs. 25,000//-
3. Section 80DDB hike the Max Limit Rs. 80 thousand
4. Section 80 the Travelling Allowances has hike the Max Limit Rs. 19200/- P.A.
5. Section 80CCC has hike the Max Limit Rs. 1.5 Lakh as the previous year's was Rs. 1 Lakh

The taxexcel.net has prepared a Excel Based Advance Tax Calculator for Govt and Non Govt employees for the Financial Year 2015-16 and Assessment Year 2016-17 with the Automated Arrears Calculator with Form 10E since FY 2000-01 to 2015-16 and Automated House Rent Exemption Calculation U/s 10(13A). This Excel Utility can use both are Govt and Non-Govt employees with Salary Structure.

Main Input Sheet

Salary Structure 

Tax Compute Sheet

Arrears Relief Calculator

Download the Excel Based Tax Calculator for FY 2015-16

On April 09, 2015 by www.taxexcel.net

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To start with, let the  explain what exactly has changed in terms of taxation from the year (i.e.AY 2016-17) As per Budget 2015:

1. Tax slabs have not  changed
2. investment limit under sec. 80C also same as previous year

All changes this budget have been beneficial for the tax payer. If you are already aware of all the provision for saving income tax, you can skip the remaining part and download Advance income taxcalculator for FY 2015-16 to compute your income tax liability (or TDS) basis your salary or business income. Others, do read on to know all the different tactics you can use to save on income tax.

Income Tax Slabs for the Financial Year 2015-16

Income tax slabs have been changed this year. Standard deduction limit has been raised to Rs. 2,50,000 for both Male and Female assesses.

1) In Case of General Assesses (Both Male & Female):

Income Bracket	Rate
0 to Rs. 2,50,000	0   %
Rs. 2,50,001 to Rs. 5,00,000	10 %
Rs. 5,00,001 to Rs. 10,00,000	20 %
Above Rs. 10,00,000	30 %

2) In Case of Senior Citizens (Age above 60 years but below 80 years):

Income Bracket	Rate
0 to Rs. 3,00,000	0   %
Rs. 3,00,001 to Rs. 5,00,000	10 %
Rs. 5,00,001 to Rs. 10,00,000	20 %
Above Rs. 10,00,000	30 %

3) In Case of Very Senior Citizens (Age 80 years and above):

Income Bracket	Rate
0 to Rs. 5,00,000	0   %
Rs. 5,00,001 to Rs. 10,00,000	20 %
Above Rs. 10,00,000	30 %

Income Tax Exemptions: 

1) Section 80 C Limit  – Unchanged this year (Max  Rs. 1,50,000)

• Deduction on premium paid for a life insurance policy, taken after 1 April 2012, will be allowed only if yearly premium is less than 10% of sum assured.  If its more than 10% then it will be not eligible for deduction u/sec. 80C
• ELSS (Mutual Fund)
• PPF (upto Rs. 1,50,000)
• EPF
• FD for 5 years
• Pension Plans
• NSC
• Sukanya Samriddhi Account ( Minor Girl Child Scheme) Max Rs. 1.5 Lakh
• Post Office SB
• Infrastructure Bonds
• Expenditure on Children Education (For upto 2 children only for full time education)
• Tuition fees Maximum allowed is Rs. 1,50,000
• Housing loan principal
• Deferred Annuity
• Approved Super Annotation Fund
• 80CC Raised Up to Rs. 1,50,000 [ Pension Fund ]

2) Section 80CCD - Changed this year

Deduction under this section can be claimed only if the contribution to your NPS account is made by your employer and the deduction is limited to a maximum of 10% of your basic salary. Returns on NPS are tax free, but withdrawal is still taxable. The deduction under sec 80CCD is over and above the deduction available under sec 80C Max Rs.1.5 Lakh

3) Section 80 D –Changed this year

Deduction under section 80D

• Deduction of Rs. 25000/- is allowed if the same is paid as premium for Medical Insurance taken for self / dependents or towards preventive health check-up (max Rs. 5000). In case any of self / dependents is a senior citizen, the deduction allowed is Rs. 30000/-

4) Section 80DD – Unchanged this year

Deduction under section 80DD

• Exemption given for expenditure made for a disabled dependant towards Medical Treatment/Training/Rehabilitation. It also includes the LIC/Insurance premium paid towards maintenance of such dependant.
• Maximum deduction allowed is Rs. 50,000/- in case of normal disability and Rs. 1 Lakh in case of severe disability.

5) Section 80DDB - Unchanged this year

Deduction under section 80DDB

• Exemption given for expenditure incurred on specified disease or ailments such as cancer/aids.
• Maximum deduction allowed is Rs. 40,000/-. In case of Senior Citizens, maximum deduction allowed is Rs. 60,000/-

List of ailments covered:

(i) Neurological Diseases where the disability level has been certified to be of 40% and above,

1. Dementia ;
2. Dystonia Musculorum Deformans ;
3. Motor Neuron Disease ;
4. Ataxia ;
5. Chorea ;
6. Hemiballismus ;
7. Aphasia ;
8. Parkinsons Disease ;

(ii) Malignant Cancers ;

(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;

(iv) Chronic Renal failure ;

(v) Hematological disorders :

1. Hemophilia ;
2. Thalassaemia.

6) Section 80E - Unchanged this year

Deduction is allowed for repayment of interest component of Higher Education loan. All education after Class 12 is allowed, either vocational or Fulltime. But should be from a school/institute/university recognized by the government.

7) Section 80G - Unchanged this year

• Contribution to exempt charities – 25/50/75/100% depending on the charity and as per approval
• 100% exemption on donation to political parties

8) Section 80U - Changed this year

• Deduction upto Rs. 75,000/- is allowed in case of Permanent Disability.
• In case of Permanent Disability exceeding 80%, maximum deduction allowed is Rs. 1,00,000/-.

9) Section 24B & Section 80EE  - Unchanged this year

• Housing loan interest. Maximum allowed limit raised to – Rs. 2,00,000 (for loans taken after 1 April 1999. For loans before that Maximum Investment Limit was 30,000).
• Additional deduction of Rs. 1 lac will be applicable to persons taking first home loan of up to Rs. 25 lacs for property worth upto Rs. 40 lac. For such persons, the total deduction will be Rs. 2.5 lacs (Rs. 1.5 lac available under section 24(1)(vi) and Rs. 1 lac available under this new section 80EE).
  10) Superannuation - Unchanged this year

Any contribution made by a company to superannuation fund upto Rs. 1,00,000 tax free in the hands of the employee.

11) Conveyance/Transport Allowance - Changed this year

Any Conveyance / Transport Allowance given to an employee is tax free upto Rs. 1600 /- P.M.

12) Medical Allowance - Unchanged this year

Any Medical Allowance given to an employee is tax free upto Rs. 15,000 /- (Supporting Bills required).

13) HRA - Unchanged this year

Any House Rent Allowance given to an employee is tax free upto the minimum value of the following conditions (subject to – when an employee can produce rent paid receipts from landlord for the period and if the employee has not availed of tax exemptions for home loan interest / principal repayment):

1. 50% of Annual Basic (40% of Annual Basic in case of non-metros)
2. Actual HRA received
3. Rent Paid – (10% of Annual Basic)
   Calculate HRA Exemption U/s 10(13A) with Excel utility

14) Professional Tax - Unchanged this year

Any Professional Tax deducted from an employee’s salary can be reduced from the annual salary income to arrive at taxable salary.

15) Provident Fund - Unchanged this year

Provident Fund contributions (under section 80 C and subject to an overall investment limit of Rs. 1,50,000 ) deducted from an employee’s salary are tax exempt.

16)Sukanya Samriddhi Account for Monor Girl Child under 12 years - Newly Include this deduction U/s 80C, Max Limit Rs. 1,50,000/-

As per the Finance Budget 2015 newly include in the Section 80C in the name Sukanya Samriddhi Account which only availed below 12 years Girl Child.

17) Section 80TTA – Savings Bank Interest - Unchanged this year

No tax will be charged on interest earned on balance in savings bank account subject to a maximum of Rs. 10,000 per year.

18) Section 87 A [Tax Rebate Rs.2,000/-]  - Unchanged this year

Download Advance income taxcalculator for FY 2015-16

On April 01, 2015 by www.taxexcel.net

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Download Advance Tax Calculator for the Assessment Year 2016-17 with new Amended as per Finance Budget 2015

Income Tax Exemptions and deductions, give you plenty of opportunities to save tax. By using wisely these exemptions and deductions, you can reduce your tax out-go. In this post, I am listing the available exemptions, and deduction under income tax act.

Allowances Exempted Under Section 10 of Income Tax Act 1961

1. House Rent Allowance (HRA) 

You get a  job and shift to another city. Because of your job, you live in a different place. You are forced to live in a rented accommodation. The rented flat is not by choice but because of the duty. Hence, the expense on rent is because of your job. You can’t avoid this, even if you wish. Therefore, government exempt the rent from income tax. However, your employer must pay the  house rent allowance. 

          Exemption of HRA is a  minimum of these three.         

           Actual HRA received.                           

                              Rent paid less 10% of salary.

                            40% of Salary (50% in case of Mumbai, Chennai, Kolkata, Delhi).  In this case, salary is basic plus dearness allowance (basic+DA).Download HRA Calculator

Leave Travel Allowance :- LTC or LTA is exempted if the same is actually spent

Transport Allowance

You daily go to your office or workplace from you house. You also spend on the local transport. This expenditure is also forced upon you. Therefore, the government has exempted transport allowance from the income tax, provided your employer gives you the transport allowance. As per the Finance Budget 2015 Raised this  tax exemption is Rs 1600/- Per Month.

Children Education Allowance

Children Education allowance in also exempted from income tax. Your employer must give this allowance for availing the tax exemptions. It is Rs. 100 per month per child up to a maximum of 2 children.

Hostel Allowances [ For One Children Rs. 300 P.M.]

This is another tax exemption related to your child’s education. It is Rs. 300 per month per child up to a maximum of two children.

Income Tax Exemption on Interest Paid on Housing Loan U/s 24B

This Exemption  is also related to your accommodation because of the job. After shifting to a different place, you may opt  for your own house instead of rented accommodation. If you take  home loan for the house, the interest payment is  tax exempted. You can get maximum exemption of  Rs 2 lakh on  housing loan interest.  There are some conditions for this exemption.

The house should be self-occupied. You may get this exemption if your home is under  construction. however the  construction should complete within 3 years.

Tax Deduction Under Section 80C

The Government wants to encourage some certain types of investments and expenses. To achieve this goal it gives the benefit of tax deductions. There are many investments and expenses under section 80C, 80CCC and 80CCD. However, the total deductions under this section are limited to Rs 1.5 lakh.

·                                 Employee Provident Fund

·                                 Pension/ Annuity Schemes

·                                 Life insurance premium

·                                 Tax Saving mutual fund (ELSS)

·                                 Home loan principal payment

·                                 Tuition fees of children

·                                 PPF Account Contribution

·                                 National Saving  Certificate

·                                 Tax-saving fixed Deposit

·                                 Sukanya Samriddhi Scheme ( For below 10 Years Girl Child)

·                                 Post office time deposits

Section 80CCC: Deduction For Annuity Plan

You can also get a deduction for the annuity plan of insurance companies. There are some limitations on this deduction.

·                                 You can’t contribute more than 10% of your salary or gross income.

·                                 You can’t enjoy the deduction of more than Rs 1 lakh in a year.

Section 80CCD(1) :  Contribution For Pension Plan

Similar to annuities, contribution in pension plans is also eligible for tax deduction. For example contribution to National Pension Scheme (NPS) will get deduction benefit under this rule. It is also limited to 10% of salary or 10% gross income (if not salaried).

Section 80CCD(2): Contribution To Pension Plan By employer

This section gives you extra tax saving opportunity. If your employer contributes into your pension plan, it would be also tax-free. This contribution does not come under the overall limit of 1.5 lakh.

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

 This scheme also gives you the extra tax saving. To avail this benefit, you must be   the first-time investor in the share market. Your annual income should not be      more than Rs 10 lakh. You can invest up to Rs 50,000 under this scheme.        However, the tax deduction would be available for the 50% of your     investment. So, if you invest Rs 50,000, you will get the tax deduction of      only Rs 25,000. There is some mutual fund scheme which is designed for        RGESS. However, due to the complex rules,  it could not become popular.

Section 80D:  Medical Insurance Deduction

Maximum Limit for general Rs. 25,000/- and Sr.Citizen above 60 Years old Rs. 30,000/- [ Raised As per Finance Budget 2015]

Section 80E: Deduction on Loan for Higher Studies

Like the home loan interest, one can also claim income tax deduction for education loan interest.

                            You must take education loan from a financial institution.      

                       You can avail this tax deduction maximum of 7 years.

            You can take the benefit of this deduction only for the higher education.

                         You can take this benefit only for the education of self, spouse or children. If you are the legal guardian of a student, you can also take this benefit.

Section 80G: Deduction for Donations

The donations specified in Section 80G are eligible for deduction. The deduction may of 100% of donation or 50%, It depends upon the type of receiver.

Section 80GG: Deduction on House Rent Paid 

This deduction is for those, who don’t get the house rent allowance from their employer. Such person can avail this deduction according the specified rules. 

    Deduction is the least of   

    Rent paid less 10% of total income   

    Rs. 2000/ month, i.e. Maximum Deduction available is   

    24,000. 25% of total income

There are some conditions for this benefit.

·                                 Assessee or his spouse or minor child should not own residential accommodation at the place of employment.

·                                 He should not get a house rent allowance (HRA).

·                                 He should not have self occupied residential premises in any other place.

Section 80TTA: Saving Account Interest Deduction

Interest earned on a saving account is not added in taxable income, if it is less than Rs 10,000 in a financial year.

Section 80U: Deduction For Disabled

Under section 80U a person with disability gets extra deduction from his/her taxable income. Such person can deduct Rs 75,000 from the taxable income. In case the disability is severe, the deduction is up to Rs 1,00,000. To avail this deduction one should obtain a certificate from the government doctor.

U/s 87A :- Tax Rebate Rs.2,000/- who’s taxable Income less than 5 Lakh.

On March 12, 2015 by www.taxexcel.net

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