Section 87A Rebate Limit Increased to Rs. 5000, Changes in Section 87A by Finance bill 2016,Hi Friends in union budget 2016 Section 87A Rebate Limit Raised to Rs. 5000. Rebate under Sec 87A: With the objective of providing relief to resident individuals in the lower income slab i.e. total income not exceeding Rs. 5,00,000, section 87A is proposed to be amended so as to increase the maximum amount of rebate available from existing limit of Rs.2,000 to Rs.5,000.  Earlier this limit is only available for Rs 2000 now this limit is increased by Rs 3000 and now the total limit for Section 87A for AY 2017-18 is Rs 5000.  Check more details regarding “Section 87A Rebate Limit Increased to Rs. 5000 – Budget 2016” from below…..

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Section 87A Rebate Limit Increased to Rs. 5000 from F.Y.2016-17

The existing provisions of section 87A of Income-tax Act, provide for a rebate of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less, from the amount of income-tax to an individual resident in India whose total income does not exceed five hundred thousand rupees.

With the objective to provide relief to resident individuals in the lower income slab, it is proposed to amend section 87A so as to increase the maximum amount of rebate available under this provision from existing Rs.2,000 to Rs.5,000.

This amendment will take effect from 1^st April 2017 and will accordingly apply in relation to the assessment year 2017-18 and subsequent assessment years.Clause 45 To Finance Bill 2016

Clause 45 of the Bill seeks to amend section 87A of the Income-tax Act relating to the rebate of income-tax in case of certain individuals.

The aforesaid section provides that an individual resident, whose total income does not exceed five hundred thousand rupees, is eligible for the rebate in income-tax equal to hundred per cent. of such income-tax or two thousand rupees, whichever is less.

It is proposed to increase the amount of rebate allowable under the said section from the existing two thousand rupees to five thousand rupees.

This amendment will take effect from 1st April 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years.

Amendment of section 87A.

In section 87A of the Income-tax Act, for the words “two thousand rupees”, the words “five thousand rupees” shall be substituted with effect from the 1st day of April 2017.

On November 29, 2016 by www.taxexcel.net

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The Budget 2016 applicable to the Salaried Persons in Income Tax

      The Budget 2016 having high expectations was released by Mr. Arun Jaitley, Finance Minister of the new Modi government on the 28th of February 2016. Many people whom I met post budget had the same view that it did not meet their expectations. However, I feel that mainly this reaction was because the slab rates were not changed or to be precise the slab rates were not Increased. Face the fact, Slab rate for F.Y. 2016-17 cannot be increased further, there is no room for it, as it will not only decrease the government's revenue but will also hamper the economy in a very bad way. the best way was to channelize the fund from governments revenue to some government and Economy helping funds, investments, etc; which Mr. Jaietly knew very well and hence he introduced more Deductions and also raised Limits of the deductions. Just wait and have trust on Government the 4th and 5th year of the Modi Government will be a Golden Era for India's Economy... I can Speak on this more but for now, let's bring our mind horses back on the Topic "TDS or Taxation on Income From Salaries for F.Y. 2016-17".    

Download Automatic Arrears Relief Calculator with Form10E  from the F.Y.2000-01 to F.Y.2016-17

           Keeping apart the main Topic i.e. "TDS on Salary". Let us witness important points, in Short, Common and Nontechnical language related to the Calculation Income from Salaries for TDS and Taxation Purpose:

1. Medi-claim Premium (Premium on Health Insurance) Section 80D :

      The deduction under this section was available to the assessee for the Insurance premium paid on the health insurance but it was subjected to following Limits (Earlier and Now Revised): Max Rs. 25,000/- and for Senior Citizen Rs.30,000/- as per Budget 2015

  

2. Deduction for Medical Expenses on treatment of Specified Diseases (Section 80DDB):

         Deduction u/s. 80DDB has been Raised from Rs. 60,000/- to Rs. 80,000/- only for Senior Citizens, please note that here is no change in limits for Non-Senior Citizens.

3. Deduction for Persons differently abled (Section 80DD and 80U):

       Deductions under section 80DD and 80U are increased as follows: Up to 40% to 80% Rs. 75,000/- and above 80 % Rs. 1.25,000/- as per Budget 2015 for F.Y.2015-16

      

  

4. Transport Allowance Exempt u/s. 10:

                 Exemption for Transport allowance is allowable as the amount received or Fixed amount as below: For General Max Rs. 1600/- P.M. and Phy.Disable Max Rs. 3200/- P.M. for F.Y. 2015-16

  

5. Sukanya Samridhi Account (For Girl child) under Section 80C :

            This is an another milestone in the Indian Taxation History. A Historic Scheme which can only exist in India and no other country for the betterment of a Girl Child's Future. This is a must have investment in your Portfolio of investments if you have a girl child below the age of 10 years, however one year grace period is allowed as this is a new scheme; So a Girl Child who is Born between 2.12.2003 & 1.12.2004 can also open an account under this scheme up to 1.12.2015.     

4. Tax Rebate U/s 87A has raised from Rs.2,000/- to 5,000/-

As per the Finance Budget 2016 has raised the Tax Rebate can get Rs. 5,000/- who's taxable Income less than 5 lakh.

On October 04, 2016 by www.taxexcel.net

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Income tax is something all of us would like to reduce it to the maximum. And what better than tax saving investments under Section 80C to reduce our taxes to some extent. Choose one of the following tax saving investments before 31st March.

Download All in One Income Tax Preparation Excel Based Software for Non-Govt employees for F.Y.2016-17 & A.Y.2017-18.[ This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure + Automated H.R.A.Exemption Calculation + Automated Form 16 Part A&B and Form 16 Part B ]

 PPF (Public Provident Fund)

It is one of the traditional yet highly preferred retirement planning investments. It is also a great long-term tax saving investment. The maximum amount that is allowed as an investment in the scheme is Rs 1.5 lakh. Interest income on PPF and the amount received on maturity are both tax-free.

ELSS (Equity Linked Saving Scheme)

ELSS is a mutual fund that comes within the ambit of tax saving investments. With a lock-in period of 3 years, this investment option offers an exemption of maximum Rs 1.5 lakh in a financial year. The interest rate depends on the performance of this scheme in a given year and the maturity amount from the investment is tax-free.

FD (Fixed Deposits)

Fixed deposit is another popular tax saving Investment. The interest rate varies from one bank or post office to another. The maximum exemption allowed is Rs 1.5 lakh for a minimum duration of 5 years. The interest earned and the maturity amount is taxable.

NSC (National Saving Certificate)

NSC’s are tax saving investments issued by the Indian Post Office. It has a 5-year lock in period. They offer guaranteed and tax-free returns till maturity, although the interests earned is taxable.

EPF (Employee Provident Fund)

This scheme helps save a maximum of Rs 1.5 lakh. In this fund, up to 12 % of a person’s basic salary gets deducted and the other 12 % is contributed by the employer.The amount at maturity is tax-free.

Life Insurance

Life insurance is the most popular tax saving investment under Section 80C of the Income Tax Act. With a maximum deduction of Rs, 1.5 lakh is allowed in a given financial year. The amount received at maturity or in the case of death is tax-free. Apart from the tax saving benefits life insurance helps one plan for the unforeseen events in his or her life.

ULIP (Unit Linked Insurance Plan)

ULIP is a unique combination of investment and insurance that results in a tax saving of Rs 1.5 lakh per year. The premium paid by you is split between insurance and investment. The corpus received at maturity is exempt from tax.

NPS (National Pension System)

The National Pension System is an additional tax saving investment. It is a long-term product with strict penalties on withdrawal. It is primary to encourage people to save for their retirement. Your contribution in the scheme is deducted from income tax up to a maximum of Rs.50,000. This deduction is over and above the limit of Rs 1.5 lakh of Section 80C.

However, if your employer contributes to your NPS account, it would be tax-free without any limit. And this contribution is also exempt from income tax over and above the 80C limit.

Sukanya Samriddhi Yojana

A Sukanya Samriddhi Yojana account can only be opened on a girl child’s name by her parents or legal guardians.The account can be opened anytime from the birth of the girl child till she attains the age of 10 years and it is valid up to 21 years of age. The maximum deduction of up to Rs 1,50,000 can be claimed every year under Section 80C. The maturity proceeds from the scheme are tax-free.

On September 11, 2016 by www.taxexcel.net

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The Financial Year 2016-17 has already  started From the 1^st April 2016  and Tax deduction can be made as per the Finance Budget 2016, the Tax Slab have not changed, same as the previous financial year 2016-17.

But Limit of  some Tax Section has Increased by this Finance Budget.

The Section 80U have increased 75000/- P.A. and Rs. 125000/- P.A. for Blind persons.

Traveling Allowances also raised up to 1600/- P.M. and Blind Person can avail Rs. 3200/- P.M.

Section 80D Raised Rs. 25000/- and Sr.Citizen Rs. 30,000/-  

Additional House Building Interest U/s 80EE has increased from Rs.1 Lakh to 1.5 Lakh, excluding the Tax Section 24B.

It is necessary to calculate your Tax Liability for the Financial Year 2016-17 for guessing the actual Tax Liability for the Financial Year 2016-17 and you can Plan how  to save tax for this Financial Year FY 2016-17.

Below Given Excel Based updated Income Tax Software All in One for all type of Employees like as Govt employees and also Non-Govt employees.

The below given Excel based Software which can prepare at a time Income Tax Computed Sheet + Automatic Arrears Relief Calculator + Automatic House Rent Exemption calculation + Inbuilt Salary Structure for both Govt & Non Govt employees which can prepared on the basis of Salary Pattern of each Govt and Non Govt concerned +Automated Arrears Relief Calculation with Form 10E + Automated Form 16 Part A&B + Automated Form 16 Part B for the Financial Year 2016-17 and Assessment Year 2017-18.

It is most hazards to calculate individually HRA Calculation separately another sheet and also it is a hazard to calculate the Arrears Relief Calculation from the financial Year 2001-02 to 2016-17. This Excel Utility can prepare all the calculation just a moment. Thus your time may reduce for calculating the actual Income Tax of each employee.

Feature of this Utility:-

·         Automatic Calculate Income Tax with Tax Computed sheet individually

·         Individual Salary Structure for calculating the Gross Salary Income 

·         Salary Structure have prepared on the Basis of Govt and NonGovt Salary Pattern

·         Automatic Calculate the House Rent Exemption Calculation U/s 10(13A)

·         Automatic Calculate the Arrears Relief Calculation with Form 10E since 2001-02 to 2016-17

·         Automated Form 16 Part A&B

·         Automated Form 16 Part B

·         Automatic Convert the Amount into In Words

1) Download All in One TDS on Salary for Non-Govt Employees for F.Y.2016-17 & A.Y.2017-18 [ This Excel Based Software can prepare at a time Tax Compute Sheet + H.R.A. Calculation +Individual Salary Structure + Individual Salary Sheet + Form 12 BA + Form 16 Part A&B and Form 16 Part B ]

2) Download All in One TDS on Salary for Govt & Non-Govt Employees for F.Y.2016-17 & A.Y.2017-18 [ This Excel Based Software can prepare at a time Tax Compute Sheet + H.R.A. Calculation +Automated Arrears Relief Calculator U/s 89(1) with Form 10E + Individual Salary Structure + Individual Salary Sheet + Form 16 Part A&B and Form 16 Part B ]

On July 13, 2016 by www.taxexcel.net

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The Financial Year 2016-17 has already  started From the 1^st April 2016  and Tax deduction can be made as per the Finance Budget 2016, the Tax Slab have not changed, same as the previous financial year 2016-17.

On June 23, 2016 by www.taxexcel.net

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The Financial Year 2016-17 has already  started From the 1^st April 2016  and Tax deduction can be made as per the Finance Budget 2016, the Tax Slab have not changed, same as previous financial year 2016-17.

On May 24, 2016 by www.taxexcel.net

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Press Information Bureau 
Government of India
Ministry of Finance

                                                                                        01-March-2016 15:16 IST

Clarification about Changes made in the Tax Treatment for Recognised Provident Fund & National Pension System (NPS) 

There seems to be some amount of lack of understanding about the changes made in the General Budget 2016-17 in the tax treatment for recognised Provident Fund & NPS.( No Changed in General Provident Fund) [ G.P.F.]

The following clarifications are given in this matter:- 

(i) The purpose of this reform of making the change in tax regime is to encourage more number of private sector employees to go for pension security after retirement instead of withdrawing the entire money from the Provident Fund Account. ( Not G.P.F)

(ii) Towards this objective, the Government has announced that Forty Percent(40%) of the total corpus withdrawn at the time of retirement will be tax exempt both under recognised Provident Fund and NPS. 

(iii) It is expected that the employees of private companies will place the remaining 60% of the Corpus in Annuity, out of which they can get regular pension. When this 60% of the remaining Corpus is invested in Annuity, no tax is chargeable. So what it means is that the entire corpus will be tax free, if invested in annuity. 

(iv) The Government in this Budget has also made another change which says that when the person investing in Annuity dies and when the original Corpus goes in the hands of his heirs, then again there will be no tax. 

(v) The idea behind this mechanism is to encourage people to invest in pension products rather than withdraw and use the entire Corpus after retirement. 

(vi) The main category of people for whom EPF ( Not G.P.F.) scheme was created are the members of EPFO who are within the statutory wage limit of Rs.15,000 per month. Out of around 3.7 crores contributing members of EPFO as on today, around 3 crore subscribers are in this category. For this category of people, there is not going to be any change in the new dispensation. 

(vii) However, in EPFO, there are about 60 lakh contributing members who have accepted EPF voluntarily and they are highly - paid employees of private sector companies. For this category of people, amount at present can be withdrawn without any tax liability. We are changing this. What we are saying is that such employee can withdraw without tax liability provided he contributes 60% in annuity product so that pension security can be created for him according to his earning level. However, if he chooses not to put any amount in Annuity product the tax would not be charged on 40%.

(viii) There is no change in the existing tax treatment of Public Provident Fund (PPF). [NOT GENERAL PROVIDENT FUND FOR GOVT EMPLOYEES]

(ix) Currently there is no monetary ceilings on the employer contribution under EPF with only ceiling being that it would be 12% of the salary of the employee member. Similarly, there is no monetary ceiling on the employer contribution under NPS, except that it would be 10% of salary. 

(x) Now the Finance Bill 2016 provides that there would be monetary ceiling of Rs1.5 lakh (Annul) on employer contribution considered with the ceiling of the 12% rate of employer contribution, whichever is less. 

(xi) We have received representations today from various sections suggesting that if the amount of 60% of corpus is not invested in the annuity products, the tax should be levied only on accumulated returns on the corpus and not on the contributed amount. We have also received representations asking for not having any monetary limit on the employer contribution under EPF, because such a limit is not there in NPS. The Finance Minister would be considering all these suggestions and taking a view on it in due course.

On March 05, 2016 by www.taxexcel.net

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