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Showing posts with label All about 80C. Show all posts
Showing posts with label All about 80C. 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

Wednesday 11 May 2016

Click to download Automated Master of Form 16 Part B for the Financial Year 2015-16 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B]

Sunday 29 March 2015

Sukanya Samriddhi Yojana Account is the latest launch in the small deposit scheme segment by Govt. of India. With this launch people started showing huge response and want to know more about this Sukanya Samriddhi Scheme. The scheme has launched with many key features but there is not much clarity over few benefits or clauses. In this article I will try to share those 17 points which will answer almost all possible query regarding this Sukanya Samriddhi Account. This scheme will see a hue success in coming days as this is the major highlight of Beti Bachao Beti padhao campaign

Snapshot of Sukanya Samriddhi Calculator

1.           Girl’s Age limit: Sukanya Samriddhi Account can be opened by a legal guardian or by parents of the girl child by visiting nearest post office or selected bank branches. The girl child age can be maximum 10 years old while opening SSA account. As this is the starting year, Govt is providing a grace period of 1 year till December 2015. Any girl child born between 2 December 2003 and 1 December 2004 can open account up to till 1 December 2015. This rule is just for this year only, it will not continue further. So till 2015 year end girl child age could be accepted even if 11 years, but there after the standard max age to open Sukanya Samriddhi Account is 10 years.
2.          Who can open SSA : Only the parents or the legal guardian of the girl child can open SSA account. One can’t open SSA account for his/her sisters or brothers daughter’s account. In case you want to open this account for your sister in absentee of your father in your family you can open. There could be many such cases which is not at all clear as per Govt. notification.
3.          No of Accounts: The no of account can be opened in the name of max 2 girl child only. If 1st or 2nd birth gave twins then it can be opened for all 3 girls. From a family only one account is possible in the name of girl child. It is not like mother and father can open 2 accounts in the name of a same girl child.
Where to open Sukanya Samriddhi Account : One can easily open this account by visiting nearest post-office where deposit account opening facility is available. You can check out the sample form that you have to fill up in post office. On submit of the form with valid documents you will receive a passbook like our savings account passbook. Besides post office one can open SSY account in banks also. But all banks are not allowed to facilitate this scheme. The List of Bank for Sukanya Samriddhi Account is given below:-
1.     State Bank of India (SBI)
2.     State Bank of Patiala (SBP)
3.     State Bank of Bikaner & Jaipur (SBBJ)
4.     State Bank of Travancore (SBT)
5.     State Bank of Hyderabad (SBH)
6.     State Bank of Mysore (SBM)
7.     Allahabad Bank
8.     Andhra Bank
9.     Axis Bank
10. Bank of Baroda (BoB)
11. Bank of India (BoI)
12. Bank of Maharashtra (BoM)
13. Canara Bank
14. Central Bank of India (CBI)
15. Corporation Bank
16. Dena Bank
17. ICICI Bank
18. IDBI Bank
19. Indian Bank
20. Indian Overseas Bank (IOB)
21. Oriental Bank of Commerce (OBC)
22. Punjab National Bank (PNB)
23. Punjab & Sind Bank (PSB)
24. Syndicate Bank
25. UCO Bank
26. Union Bank of India
27. United Bank of India
28. Vijaya Bank
Also all Post offices in India are authorized to open account under Sukanya Samriddhi Yojana 
4.          Documents require opening SSY account: To open Sukanya Samriddhi Account you have to provide birth certificate of your kid, 2 passport photo graph, photo id of parent or guardian opening the account and address proof. Now for a new born child in many cases name is not updated. In that case I think we can open the account in the name of baby of XXXX like this. Or it is better to wait till the birth certificate is updated with your baby name. If anyone has the answer of this query please share.
5.          Interest rate of SSYAccount: Interest rate of this account will be changing every year. For this year it has fixed to 9.1% which is the maximum for any small deposit scheme. PPF account has 8.7% this year.
6.          Deposit rules: Many people are asking how much I can deposit in Sukanya Samriddhi Account? Can I deposit monthly basis or yearly basis? I will clear this confusion here. The minimum amount one have to deposit to continue this account is Rs 1000 only and maximum 1.5 lakh. Now one can deposit from rs 1000 – 1.5 lakh any amount in any month in a year. There is no such restriction, but don’t forget the min and max limit.
7.          Deposit term : One can deposit under this scheme up to 14 years from the date of account opening only. Means if your child’s age is 5 years now, you can deposit money till 19th year of her age. After that no further deposit will be allowed.
8.         Maturity: The Sukanya Samriddhi Account will mature after 21 years from the date of opening. E.g. in the previous example the maturity year will be 26th year of your kid’s age. But there is one more clause regarding marriage. In case your daughter gets married before 26 years, then the account will be closed on that year itself. So, the maturity period of this account will be 21 years or the marriage year which one is earlier. You can download the SSA excel calculator and play with it to get some idea about returns after 18 years or 21 years.
9.          Pre-mature withdrawal: One can withdraw 50% of the amount accumulated till 18th year of the girl child. The purpose of withdraw here is education expense. So till 18 years whatever amounts accumulate in your Sukanya Samriddhi Account, you can withdraw 50% of that and utilise for your girls education. Rest amount will stay there and earn compound interest till maturity. So before maturity there is only one option provided for a partial withdrawal.
10.      Enjoy interest from 14 – 21 years without deposit: As the deposit period for this account is limited till 14 years, one can enjoy compounding yearly interest on the accumulated money from 14-21 years.
11.       Penalty: In case you forget to deposit the minimum amount of rs 1000 in your Sukanya Samriddhi Account then your account will be discontinued. But nothing to worry, you can pay a penalty of Rs 50 only and again activate the account. The account will continue from where it has stopped operating.
12.      Transfer: The account can be transferred to any part of country with the girl moving that city. But whether it is possible to transfer Sukanya Samriddhi Account from post office to any bank is not at all clear now. Although this is too early to expect as such queries.
13.      SSA is EEE scheme now: After budget 2015, Sukanya Samriddhi Account has been income tax exempted 100%. Earlier while launched first time, the interest earned on this account was taxable. But later on it was decided to make the earning and maturity tax free similar to PPF account. But both parents can’t claim the contribution toward this account under section 80C.
14.      In case of death: In case of death of depositor the account should be closed immediately. Again if the girl child dies unfortunately, then also account has to be closed. In such case the amount accumulated till the previous month of death will be returned to the nominee declared while opening SSA account or the girl child.
15.       Rules for NRI : So far there is no scope for NRIs (Non Resident Indian) to open SSY account. Govt has to clear about this in future notifications.
16.      PPF and SSA combination to make wealth: Can I invest in both PPF and Sukanya Samriddhi Account? The answer is yes. As both the schemes are declared EEE scheme, one can utilize both the savings option to make huge wealth for future, if you are satisfied with the guaranteed return. Although in longer term equity way may be best, but if you don’t like to taste the equity return then these combination would be perfect.

Sunday 1 February 2015

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


First time individual home buyers can get tax deduction on interest of home loan, under newly inserted section 80EE of the Income Tax Act, applicable from the assessment year 2014-15 and On-words A.Y. This is in addition to tax rebate on interest payment of home loan, under section 24.
Eligibility for 80EE rebate

This rebate on home loan interest is applicable only for home loans satisfying the following conditions:
i. Loan is sanctioned by a financial institution or housing finance company between 1st April 2013 and 31st March 2014.

ii. Loan amount is Rs 25 lakhs or less and cost of residential house is Rs 40 lakhs or less.
This should be the only house owned by the taxpayer at the time of sanction.

Maximum deduction limit under 80EE
Up to Rs 1 lakh can be claimed towards interest payable on home loan from the financial year 2013-14 and on words F.Y. If interest payable in this year is less than Rs 1 lakh then the balance can be claimed in the following year.

For instance if interest payable in FY 2013-14 is Rs 75,000 then tax rebate on remaining Rs 25,000 can be claimed in FY 2014-15.

The amount claimed under 80EE cannot be claimed for tax rebate under any other sections in any year.

How to get 80EE tax benefit

You can either produce  certificate from your lender to the HR and get deduction on salary TDS or you can deduct the amount from total income while filing income tax return.

Friday 9 January 2015

Click here to Download Automatic All in One Income Tax Preparation Excel Based Software for FY 2014-15 (This Excel Based Software  can prepare at a time Income Tax Computed Sheet + Individual Salary Sheet + Individual Salary Structure for Govt and Non Govt employees + Automatic Arrears Relief Calculator + Automatic HRA Exemption + Form 16 Part B and Form 16 Part A&B for Govt and Non Govt Concern's Employees for the Financial Year 2014-15 and Assessment Year 2015-16)

Under Section 80 C ( Max Limit Rs. 1.5 Lakh)
The total limit under section 80C is Rs 1 lakh. Included under this heading are many small savings schemes like NSC, PPF and other pension plans. Payment of life insurance premiums and investment in specified government infrastructure bonds are also eligible for deduction under Section 80C

Most of the Income Tax payee try to save tax by saving under Section 80C of the Income Tax Act.  However, it is important to know the Section in toto so that one can make best use of the options available for exemption under income tax Act.   One important point to note here is that one can not only save tax by undertaking the specified investments, but some expenditure which you normally incur can also give you the tax exemptions.
Besides these investments, the payments towards the principal amount of your home loan are also eligible for an income deduction. Education expense of children is increasing by the day. Under this section, there is provision that makes payments towards the education fees for children eligible for an income deduction
Sec 80C of the Income Tax Act is the section that deals with these tax breaks. It states that qualifying investments, up to a maximum of Rs. 1 Lakh, are deductible from your income. This means that your income gets reduced by this investment amount (up to Rs. 1 Lakh), and you end up paying no tax on it at all!
This benefit is available to everyone, irrespective of their income levels. Thus, if you are in the highest tax bracket of 30%, and you invest the full Rs. 1 Lakh, you save tax of Rs. 30,000. Isn’t this great? So, let’s understand the qualifying investments first.
Qualifying Investments
Provident Fund (PF) & Voluntary Provident Fund (VPF: PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest is 8.5% per annum (p.a.) and is tax-free.
Public Provident Fund (PPF): Among all the assured returns small saving schemes, Public Provident Fund (PPF) is one of the best. Current rate of interest is 8% tax-free and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 70,000. A point worth noting is that interest rate is assured but not fixed. Interest on PPF  is proposed to increase to 8.60% and Investment Limit is also expected to increase to Rs. 1,50,000/- 
Life Insurance Premiums: Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.
Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.
Home Loan Principal Repayment: The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”, which presents a full analysis of how you can save income tax through a home loan.
Stamp Duty and Registration Charges for a home: The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

National Savings Certificate (NSC): National Savings Certificate (NSC) is a 6-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is eight per cent compounded half-yearly, i.e., the effective annual rate of interest is 8.16%. If you invest Rs 1,000, it becomes Rs 1601 after six years. The interest accrued every year is liable to tax (i.e., to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

 
Pension Funds – Section 80CCC: This section – Sec 80CCC – stipulates that an investment in pension funds is eligible for deduction from your income. Section 80CCC investment limit is clubbed with the limit of Section 80C – it maeans that the total deduction available for 80CCC and 80C is Rs. 1 Lakh.This also means that your investment in pension funds upto Rs. 1 Lakh can be claimed as deduction u/s 80CCC. However, as mentioned earlier, the total deduction u/s 80C and 80CCC can not exceed Rs. 1 Lakh.
5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.
Senior Citizen Savings Scheme 2004 (SCSS): A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. Current rate of interest is 9% per annum payable quarterly. Please note that the interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax.
5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) – which currently offers 7.5 per cent rate of interest –qualifies for tax saving under section 80C. Effective rate works out to be 7.71% per annum (p.a.) as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable.
NABARD rural bonds: There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.

Unit linked Insurance Plan : ULIP stands for Unit linked Saving Schemes. ULIPs cover Life insurance with benefits of equity investments.They have attracted the attention of investors and tax-savers not only because they help us save tax but they also perform well to give decent returns in the long-term.
Others: Apart form the major avenues listed above, there are some other things, like children’s education expense (for which you need receipts), that can be claimed as deductions under Sec 80C.
So, where should you invest?
Like most other things in personal finance, the answer varies from person to person. But the following can be the broad principles:

Provident Fund: This is deducted compulsorily, and there is no running away from it! So, this has to be the first. Also, apart from saving tax now, it builds a long term, tax-free retirement corpus for you.

Home Loan Principal: If you are paying the EMI for a home loan, this one is automatic too! So, it comes as a close second.

Life Insurance Premiums: Every earning person having dependents should have adequate life insurance coverage. (For more on this, please read “Life after life – Why you should buy Life Insurance”) Therefore, life insurance premium payments are the next.
Voluntary Provident Fund (VPF) / Public Provident Fund (PPF): If you think that the PF being deducted from your salary is not enough, you should invest some more in VPF, or in PPF.

Equity Linked Savings Scheme (ELSS): After the above, if you have not reached the limit of Rs. 1,50,000, then you should invest the remaining amount in Equity Linked Savings Scheme (ELSS).