As per the CBDT new Circular that the Form 16 is now two part, one is Part A and another is Part B. The Form 16 Part A is mandatory to download from the Income Tax TRACES Portal, and Form 16 Part B is mandatory to prepare by the employer. 

On May 25, 2016 by www.taxexcel.net

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The existing provisions of section 80EE provide a deduction of up to 1 lakh rupees in respect of interest paid on loan by an individual for acquisition of a residential house property. This benefit is available for the two assessment years beginning on the 1st day of April 2014 and on the 1st day of April 2015.

Click to Download the Master of Form 16 Part A&B for Financial Year 2015-16 and Assessment Year 2016-17 [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B for F.Y.2015-16]

In furtherance of the goal of the Government of providing ‘housing for all’, it is proposed to incentivise first-home buyers availing home loans, by providing additional deduction in respect of interest on loan taken for residential house property from any financial institution up to Rs. 50,000. This incentive is proposed to be extended to a house property of a value less than fifty lakhs rupees in respect of which a loan of an amount not exceeding thirty five lakh rupees has been sanctioned during the period from the 1st day of April, 2016 to the 31stday of March, 2017. It is also proposed to extend the benefit of deduction till the repayment of loan continues.

The deduction under the proposed section is over and above the limit of Rs 2,00,000 provided for a self-occupied property under section 24 of the Act.

Click to Download Master of Form 16 Part B which can prepare at a time 50 employees Form 16 Part B for Financial Year 2015-16

These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-18 and subsequent assessment years.

[Clause 37 & 43]

Substitution of new section for section 80EE. Deduction in respect of interest on loan taken for residential house property.
Clause 37. For section 80EE of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2017, namely:—

’80EE. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential property.

(2) The deduction under sub-section (1) shall not exceed fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2017 and subsequent assessment years.

(3) The deduction under sub-section (1) shall be subject to the following conditions, namely:—

(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2016 and ending on the 31st day of March, 2017;

(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed thirty-five lakh rupees;

(iii) the value of residential house property does not exceed fifty lakh rupees;

(iv) the assessee does not own any residential house property on the date of sanction of loan.

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the
same or any other assessment year.

(5) For the purposes of this section,—

(a) “financial institution” means a banking company to which the Banking Regulation Act, 1949 applies, or any bank or banking institution referred to in section 51 of that Act or a housing finance company;

(b) “housing finance company” means a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes.

On May 07, 2016 by www.taxexcel.net

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Section 80C [Deduction upto Rs 1.5 Lacs]

1. Life Insurance Premium - Any sum received under Life Insurance Policy (except keyman insurance policy) along with bonus is exempt from tax if premium was payable as per aforesaid restriction. However amount received on death of insured is exempt in all cases (except keyman insurance policy).

Click here to download the Automatic Form 16 Part B for F.Y.2015-16 [ This Excel Utility can prepare One by One Income Tax Form 16 Part B ]

Click here to Download the Automatic Income Tax Form 16 Part A&B and Part B for F.Y.2015-16 [ This Excel Utility can prepare One by One  both of Form 16 Part A&B and Part B for F.Y.2015-16]

2. Deferred Annuity Contract (Self, Spouse, Child) (LIC/Other insurer notified by central

government)

3. Contribution to

   a. RPF (employee) / SPF (Government employee) / PPF(Self, Spouse, Child)

   b. Approved Super Annuation Fund (Employee)

   c. ULIP of UTI (Self, Spouse, Child) / LIC-MF (Self, Spouse, Child)

   d. Pension Fund setup by MF/NHB (Lock in period: 5 years)

   e. Pension Fund setup by LIC or Other insurer (80CCC), setup by Govt (80CCD)

   f. Sukanya Samriddhi Yojna Account

   g. Senior Citizen Saving Scheme 2004 (SCSS)

4. Subscription to

   a. National Saving Certificate

   b. Mutual Fund units

   c. Equity Share/Debenture of Public Co. or Public Financial Institution approved by CBDT

       (Lock in period: 3 years)

   d. Notified bonds of NABARD

5. Deposits

   a. Deposit Scheme of National Housing Bank

   b. Notified deposit scheme of

        i. Public Sector Company providing finance for house

       ii. Authority of housing, development etc.

   c. Post Office Saving Bank 10/15 year A/c

   d. Post Office 5 year Time Deposit A/c

   e. Senior Citizen 5 year Saving A/c

   f. 5 year FD A/c with scheduled Bank under scheme of central government

6. Residential house property

    a. Amount spent in purchasing/constructing (Lock in period: 5 years)

    b. Stamp duty and registration charges

7. Tuition fees of 2 children to University/College/School in India

Section 80D [Medical Insurance Premium for Individual/ Hindu Undivided Family]

For Individual:

· Purpose

     1. Keep in force health insurance for self, spouse, dependent children

     2. Preventive Health Checkup of self, spouse, dependent children

     3. Contribution to Central Gov Health Scheme

     4. Keep in force health insurance for parents of individual

     5. Preventive Health Checkup of parents of individual

· Expenditure allowed

    1. Rs. 25000 for self, spouse, dependent children (wherein expense on preventive health

        checkup shall not exceed Rs. 5000)

   2. Rs.30,000 for parents in case of a senior

Section 80E [Interest on Loan for Higher Education]

     · Interest on Loan for Higher Education (after 12th) of self/ spouse/ children

     · Deduction is available for 8 years beginning from the year in which payment of interest on the loan                begins

Section 80EE [Interest on Loan for Residential House]

    · If an individual who does not own any other residential property on the date of sanction of     loan

    · took loan during 1/4/13 to 31/3/14 not exceeding Rs. 25 Lac

    · for buying house worth Rs. 40 Lac or less

    · deduction can be claimed for interest payment of Rs. 1 lac

    · from incomes of years 13-14 and 14-15 in totality.

Section 80TTA [Interest earned on Saving A/c]

       Upto Rs. 10000 interest earned on deposit in saving bank account (not time deposit/ FD) is

      allowed to be deducted from taxable income

On March 22, 2016 by www.taxexcel.net

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