Download Automated All in One TDS on Salary for Govt & Non Govt Employees for FY 2015-16 & AY 2016-17 [ This Excel Utility can prepare at a time your Tax Compute Sheet + HRA Exemption Calculation + Arrears Relief Calculation with Form 10E + Automated Form 16 Part A&B and Part B for FY 2015-16]
Budget 2015 has been introduced in Parliament.
The Finance Minister has kept the Personal Income Tax rates unchanged for the
Financial Year 2015 /2016 (Assessment Year 2016-2017).
He has
to introduce or extend the Tax Deduction limits Under few Sections of the
Income Tax Act.
Let us
understand all the important sections and new introduce with respect to ‘Income
Tax Deductions 2015′. This list will help you in planning your taxes.
Income
Tax Deductions 2015
Section 80c
The maximum tax exemption limit under Section 80C has been
retained as Rs 1.5 Lakh only. The various investment avenues under this section
are;
- PPF (Public Provident
Fund)
- EPF (Employees’
Provident Fund)
- Five year Bank or Post
office Tax saving Deposits
- NSC (National Savings
Certificates)
- ELSS Mutual Funds
(Equity Linked Savings Schemes)
- Kid’s Tuition Fees
- SCSS (Post office Senior
Citizen Savings Scheme)
- Principal repayment of
Home Loan
- NPS (National Pension
System)
- Life Insurance Premium
- Sukanya Samriddhi
Account Deposit Scheme
Section 80CCC
Contribution to annuity plan of LIC (Life Insurance Corporation of
India
Section 80CCD
Employee can contribute to Government notified Pension Schemes
(like National Pension Scheme – NPS). The contributions can be upto 10% of the
salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b) is
proposed in Budget 2015. In FY 2014-2015, the maximum tax exemption allowed
under Section 80CCD is Rs 1 Lakh only. In Financial Year 2015-2016 or
Assessment Year (2016-2017), this will be Rs 1.5 Lakh (u/s 80 CCD 1 ) and
additional exemption of Rs 50,000 u/s 80CCD (1b) will be allowed. ( To claim this deduction, the employee has to
contribute to Govt recognized Pension schemes like NPS)
(10%
of salary is applicable for salaried individuals and Gross income is applicable
for non-slaried. The definition of Salary is only ‘Dearness Allowance.’ If your
employer also contributes to Pension Scheme, the whole contribution amount (10%
of salary) can be claimed as tax deduction under Section 80CCD (2). The ceiling
limit of 1.5 Lakh u/s 80CCD is not applicable on employer’s contribution.)
Section 80D
Deduction u/s 80D on health insurance premium will be Rs 25,000,
increased from Rs 15000. For Senior Citizens it has been increased to Rs 30,000
from the existing Rs 20,000. For very senior citizen above the age of 80 years
who are not eligible to take health insurance, deduction is allowed for Rs
30,000 toward medical expenditure.
Section 80DDB
An individual (less than 60 years of age) can claim upto Rs 40,000
for the treatment of specified critical ailments. This can also be claimed on
behalf of the dependents. The tax deduction limit under this section for Senior
Citizens is proposed as Rs 60,000 and for very Senior Citizens (above 80 years)
the limit is Rs 80,000
Section 24 (B)
You can claim upto Rs 2 Lakh as tax deduction on the home loan
interest payment. If your property is a let-out one then the entire interest
amount can be claimed as tax deduction.
Section 80U
You can claim up to Rs 75,000 (increased from the existing Rs
50,000) for spending who have up to 80%
disability. It is also been Introduce to
increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of above
80% severe disability.
The other sections are – Section 80E (tax deduction benefit on the
interest payment of an education loan), Section 80 G (Donations), Section 80GG
(when HRA is not paid by the company but you incur rental expenses) and 100%
TAX DEDUCTION on contributions made to SWACHH BHARAT & CLEAN GANGA
initiatives have also been proposed.
The above ‘Income Tax Deductions 2015′ are applicable for
Financial year 2015-2016 (or Assessment Year 2016-2017).
