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Showing posts with label Automatic House Rent Exemption Calculator U/s 10(13A). Show all posts
Showing posts with label Automatic House Rent Exemption Calculator U/s 10(13A). Show all posts
Monday, 11 December 2017
Friday, 27 January 2017
Here is a list of 6 components in your salary that is tax-free. In case you have it in your pay slip, great – but in case you don’t have it – you can always discuss with your company and HR.
Download Automatic Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to 2016-17
1. House Rent Allowance (HRA):
The HRA that can be claimed for tax exemption is minimum of
§ Actual HRA Received or
§ 40% (50% for metros) of (Basic + Dearness Allowance) or
§ Rent paid (-) 10% of (Basic + Dearness Allowance)
If you pay rent of more than Rs 1 Lakh, you need to give PAN Card number of the landlord to your employer. In case your landlord does not have a PAN Card, you will need to get a declaration signed by him for the same.
Tip: HRA at 50% of (Basic + Dearness Allowance) is the most optimum break up in a salary. Download Automatic H.R.A. Exemption Calculator
2. Medical Reimbursement:
You can claim up to Rs 25,000/- per year against medical expenses by submitting medical bills. Even cost for eye testing and spectacles frame and lens costs are covered.& Rs. 30000/- for a Sr.Citizen person.
3. Transport Allowance:
Transport Allowance up to Rs 1600/- per month is tax-free while this limit is Rs 3200/- per month for orthopedic person. from the F.Y.2016-17
4. Leave Travel Allowance (LTA):
LTA is tax-free only when you get your traveling expenses reimbursed from the company on submission of the bills. You can claim LTA twice for two domestic trips with family in the block of four years. The present block is 2014 – 2017. There is no maximum limit of LTA and is decided by the employer.
The meaning of ‘family’ for the purposes of exemption includes spouse and children and parents, brothers and sisters who are wholly or mainly dependent on you. Only expenses incurred in traveling is covered. You cannot claim hotel stay and food bills.
Assuming Rs 1,500 per ticket for the one-way train journey in 3AC, it costs Rs 12,000 for the return journey for a family of four. For journey by flight, this expense can easily go to Rs 30,000 per trip. Since this can be claimed once in two years LTA of at least Rs 12,000 per year seems sensible.
5. Uniform Allowance:
Amount up to Rs 24,000 per annum is tax-free, but this cannot be given for normal clothes. This is more common in manufacturing units where they have the dress code; it would be difficult to implement the same in IT/ITES sector.
6. Children Education Allowance:
Rs.100 per month per Child and Rs.300 for Hostel Expenditure for the maximum of two children is tax exempted.
Friday, 23 December 2016
Calculation and Taxability of House Rent Allowance (HRA). Today we are Providing a Premium guide on Calculation and Taxability of House Rent Allowance (HRA). Now you can Find Best Notes For Calculation of House Rent Allowance. House Rent Allowance [Section 10(13A) & Rule 2A] Calculation and Tax Liability. How To Compute House Rent Allowance. We are Providing Full Computation for Calculation of House Rent Allowance for 2016-17. See the Full guide on Calculation and Taxability of House Rent Allowance (HRA), House Rent Allowance ( HRA) Calculate as per Income Tax Rules. How Much House Rent Allowance is Exempt, House Rent Allowance Exemption Calculator, House Rent Allowance ( HRA) Rules and Tax Exemption, House Rent Allowance Act, House Rent Allowance Meaning, House Rent Allowance for central Government Employees. Now you can scroll down below and check complete details regarding “Calculation and Taxability of House Rent Allowance (HRA)” with Automatic House Rent Exemption Calculator in Excel.Calculation and Taxability of House Rent Allowance (HRA)
House Rent Allowances is given by the employer to the employee to meet the expenses in connection with Rent of the accommodation which the employee might have to take. House Rent Allowance is taxable under the head salary to the extent it is not exempt under section 10(13A) of the Act.
Also here is an Excel Based Income Tax Form 16 Part A &B for the Financial Year 2016-17 & Ass Yr 2017-18.
Download Automatic Master of Form 16 Part A & B for Financial Year 2016-17.
(This Excel Utility can prepare at a time 100 and 50 employees Form 16 Part A & B as per the latest amended tax section is given by the Finance Bill 2016-17.)
1)Click here to Download Master of Form 16 Part A & B for 100 employees for F.Y.2016-17
2) Click here to download Master of Form 16 Part A & B for 50 Employees for F.Y.2016-17
The feature of this Excel Utility are:-
1) Automatic Calculate your Tax Liability.
2) Automatic Prepare Form 16 Part A & B after filling the each employee's Data.
5) Automatic Convert the Amount into the In-Words.
6)you can prepare more than 1000 employees Form 16 by this one Excel Utility.
Exemption of H.R.A.
House rent allowance is exempt under section 10(13A) read with rule 2A, to the extent of the minimum of The following three amounts:
(a) Actual HRA received by the employee in respect of the “Relevant Period”
(b) Excess of rent paid for the accommodation occupied by him over 10% of the salary for the “Relevant Period” (Rent Paid -10% Salary)
(c) 50% of salary where the accommodation is situated at Mumbai, Calcutta, Delhi or Chennai and 40% Of salary where the house is situated at any other place for the “Relevant Period”
The minimum of the above three amounts shall be exempt from tax and the balance shall be taxable and thus included in the gross salary of the employee.
Important Note
Condition: Under Sec 10(13A) an employee who is in receipt of House Rent Allowance 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.
No entitlement to the exemption: In the following cases, exemption of HRA is not available to employee:-
(a) When an employee stays in his own house.
(b) When an employee does not pay any rent or incur any expenditure towards rent.
(c) When the rent paid is less than 10% of salary.
Relevant Period: Relevant period means the period during which the said accommodation was occupied by the Employee during the previous year.
Meaning of Salary: Total
1. Basic Salary
2. Dearness Allowance (if forming part of retirement benefits)
3. % based commission on turnover.
Factors affecting exemption: Exemption of HRA depends upon the following factors:
(a) Salary of the employee (b) HRA Received (c) Rent Paid (d) Place of Residence
Where these four factors continue to be same throughout the year, the exemption u/s 10(13A) should be calculated
On “Annual basis”. However, if there is any change in respect of any of the above factors then calculation should be done in “Monthly basis”
The meaning of H.R.A.:-
If any allowance is given for House rent than it is called H.R.A.
Exemption of H.R.A. Under Section 10(13A) & Rule 2A:- If Employee receive H.R.A. than it will be taxable under section 10(13A) & Rule 2A as under-
A
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Actual H.R.A. received
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******
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B
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Rent Paid – 10% of Salary
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******
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C
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40% and 50% of Salary
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******
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Whichever is less
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******
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Note-1 40% and 50% depends on Rental place not on place of service
Note-2 50% of salary where the accommodation is situated at Mumbai, Calcutta, Delhi or Chennai and 40% Of salary where the house is situated at any other place.
Download the Automatic House Rent Exemption Calculator in Excel
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