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

Brief the tax section with deduction

Entertainment  Allowance:  

The first deduction which you claim from salary is Entertainment Allowance. Entertainment allowance received is first included in the employee’s income and then a deduction is allowed in case of government employees, for a sum equal to 1/5th of salary (excluding all allowances, benefits, and other perquisites) or Rs. 5,000, whichever is less.

Professional Tax:  

Tax on employment by whatever name called, levied by a State under Article 80C  276 of the Constitution shall be allowed as a deduction. [Sec. 16(iii)]

Deductions Permissible under Chapter VI-A:  

Certain deductions are available from the gross taxable income, under sections 80C to 80U. Important deductions are:

Deposit/Contribution to Life Insurance Premium, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, bank deposits under notified scheme, 5 years POTD, Senior Citizen Saving Scheme, etc. [Sec. 80C] 

Contribution to LIC Pension Plan (Jeevan Suraksha) or Pension Fund of other insurance companies. [Sec. 80CCC]

Contribution to notified Pension Scheme by employees of Central Government or any other employer or by any other individual. [Sec. 80CCD]

Contribution to Pension Fund to the employees by the employer U/s 80CCD(2)

Contribution to the New Pension Fund up to Rs.50,000/- U/s 80CCD(1B). The deduction has made out of the limit of U/s 80C ( Max Rs.1.5 Lakh)

Download All in One TDS on Salary for Govt & Non-Govt employees for the F.Y.2016-17

Payment of Medical Insurance Premia (Mediclaim) or contribution to Central Government Health Scheme. [Sec. 80D]: 

 Deductible up to a maximum of Rs. 25,000 (Rs. 30,000 in case the person insured is a senior citizen). Besides, an additional deduction up to Rs. 25,000 (Rs. 30,000 in case the person insured is a senior citizen) [The age limit for a senior citizen from A.Y.2017-18 is 60 years or more] shall be allowable in respect of medical insurance premium for parent(s).

W.e.f. A.Y. 2016-17, the deduction can also be availed for any payment for preventive health check-up of the assesses, his family and parents, subject to a limit of Rs. 5,000 within the aforesaid ceilings.

Expenditure on medical Treatment etc. and deposit for maintenance of handicapped dependents. [Sec. 80DD]:  

A deduction is allowed to compensate for any expenditure incurred by an assessee, during a year, for the medical treatment (including nursing), training and rehabilitation of one or more handicapped relatives wholly dependent on him, and for amount deposited in an approved scheme of LIC or UTI, for the benefit of a handicapped dependent. A fixed deduction of Rs. 50,000 is allowable, in aggregate for any or both the purpose specified above, irrespective of the actual amount of expenditure incurred.

Expenditure  or Medical Treatment of assessing/dependant relative [Sec. 80DDB]:

 Deduction for the amount of expenditure incurred or Rs. 40,000, whichever is less, is allowable for any year during which expenditure is actually incurred for the medical treatment of specified diseases or ailments for the assesses himself or a dependent relative. If the patient is a senior citizen the deduction allowable shall be the expenditure incurred or Rs. 80,000 whichever is less. Besides, any amount received under a medical insurance policy shall be reduced by the amount of deduction allowable.

Interest on Loan took for Higher Education. [Sec. 80E]: 

Any amount paid by way of interest on a loan taken from any financial institution or any approved charitable institution for the purpose of pursuing his higher education is deduction without any limit.

Interest on Loan took for the first residential house. [Sec. 80EE]:

 The deduction is allowable for interest on housing loan from a bank/housing finance company, for allowable is Rs. 1, 50,000, subject to specified conditions. The deduction is allowable for A.Y. 2017-18 and F.Y. 2016-17 only.]

Donation for Charitable Purposes [Sec. 80G]: 

There are a number of donations in respect of which deduction is permissible under Sec. 80G. Deduction @ 50% is available for donation to Jawaharlal Nehru Memorial Fund, Prime Minister Drought Relief Fund, [National Children’s Fund] Indira Gandhi Memorial Trust or Rajiv Gandhi Foundation etc. 100% deduction is allowed for donations to National Defense Fund, Prime Minister’s National Relief Fund, [National Children’s Fund,]National Foundation for Communal Harmony, Chief Minister’s/Lt. Governor’s Relief Fund etc. Deduction is granted subject to the prescribed maximum ceiling and on furnishing of appropriate certificate from the done organization.

Donation of a sum exceeding Rs. 10,000 shall be eligible for the deduction, only if it paid by a mode other than cash.

Expenditure on Rent. [Sec. 80GG]: 

Rent paid by an assessee not owning a house and not in receipt of house rent allowance u/s 10(13A) for residential accommodation whether furnished or unfurnished, is deductible subject to the prescribed ceilings. [w.e.f 1-4-2016, for A.Y. 2017-18]

Who have not entitled the House Rent from the Employer, they can avail and get the deduction U/s 80GG which max Rs. 60,000/- P.A.

Physical Disability [Sec. 80U]:

 Rs. 75,000 for disability and Rs. 1,50,000 for severe disability. 

On December 09, 2016 by www.taxexcel.net

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Download All in One TDS On Salary for Govt & Non Govt Employees for Financial Year 2014-15 [ This Excel Utility can prepare at a time Govt or Non-Govt employees Tax Compute Sheet + Salary Structure + HRA Exemption Calculation + Arrears Relief Calculation + Form 10+ Form 16 Part A&B and Part B for Financial Year 2014-15]

         Aggregate amount of deduction u/s 80C, 80CCC and 80CCD is restricted to Rs.1,50,000.

     

Life Insurance Premium: You can get deduction by depositing or paying life insurance premium in previous year. You must note here that premium paid on behalf of wife/husband/child or any member of the family where assesse in an HUF. Child includes adult children also, Thus, deduction is available in respect of premium paid on a policy on the life of a married daughter.

Provident Fund & Public Provident Fund: You can claim deduction under section 80C for the amount deposit in provident fund also. The amount deposit in the name of wife/husband/child or any member of the family where you are as an HUF is also eligible for deduction u/s 80C. The annual contribution up to  Rs.1,50,000 (A.Y.2015-16) is eligible for deduction under section 80C. You can deposit Rs. 1,50,000 (A.Y.2015-16) in PPF A/c even if you have paid the amount in LIC, NSC, ULIP etc. However, the deduction u/s 80C is available on the total contribution of PPF, LIC, ULIP, etc. up to maximum of Rs.1,50,000 [Rs.1,00,000 for A.Y.2014-15].  Interest on PPF is not treated as reinvestment for purpose of section u/s 80C is available even if the contribution is made in the PPF account of minor/major children or spouse.

National Saving Certificates (NSC): You can also get deduction under section 80C for the amount deposit in national saving certification along with PPF/LIC/ULIP up to maximum of Rs.1,50,000 accrued during the year.  There is no TDS deduction for repayment of NSC. Interested accrued during the year (except for the last year) shall be deemed to be reinvested and shall also qualify for deduction u/s 80C.

Bank Term Deposit Schemes: Amount invested in bank term deposits along with PPF/LIC/NSC/ULIP etc. up to a maximum of Rs.1,50,000 (Rs.1 lakh for A.Y.2014-15) is also eligible for deduction under section 80C. The maturity period for bank term deposit schemes is 5 years.

Post Office Time Deposit Schemes: You can also opt for post office time deposit to get deduction under section 80C up to Rs.1,50,000. You must note that the deduction is available only to the first holder.

Mutual Fund Schemes: Some of the schemes of mutual funds are eligible for deduction u/s 80C along with other investments give above. The income from mutual funds is also fully exempted u/s 10 (35).

Senior Citizens Saving Scheme, 2004: You can also get benefit of Senior Citizens Saving Scheme to get deduction u/s 80C of Rs.1,50,000 [Rs.1,00,000 for A.Y.2014-15].  No TDS deduction is required if you provide form 15H/15G (as the case may be).

NABARAD Rural Bonds: The deduction is also available under section 80C for subscription to notified bonds issued by National Bank for Agriculture and Rural Development.

ULIP: The deduction is also eligibile for the amount deposit in the name of himself, his/her wife/husband or his child, and an HUF in the name of its members to any Unit Linked Insurance Plan of UTI.

Tuition Fees: You can claim the deduction of paying the tuition fee of your two children. Here, you should note that tuition fees eligible paid to any university, college, school or other educational institution situated in India. However, any development fees or donation or payment of similar nature shall not be eligible for deduction.

K.V.P. :- Newly include U/s 80C the Kissan Vikas Patra in the Finance Budget 2014 which can relief from tax max Rs.1.5 Lakh.

On February 09, 2015 by www.taxexcel.net

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Click to download All in One Master of Form 16 Part B( This excel utility can prepare at a time 50 employees Form 16 Part B with Individual Salary Sheet + Individual Salary Structure)
With the tax-planning season about to end, most individuals are rushing around to make investments to minimize their tax liability. It has been observed that individuals (often salaried ones) end up paying more taxes than they are obligated to.

While lack of sufficient time to conduct the tax-planning exercise is a reason, largely, this can be attributed to lack of awareness about different incentives, allowances and rebates under the Income Tax Act. Apart from the Section 80C deductions which are quite popular, there are various other sections which can help salaried individuals save taxes.

We believe there is a need for salaried individuals to devote adequate time and effort to the tax planning exercise and be aware of the various benefits that they can avail of. In this article, we present 5 tax-planning tips that can aid salaried individuals minimize their tax liability.

1. Utilise the entire Section 80C deduction Click to view details of 80C

Under Section 80C, the maximum deduction available is Rs 150,000 pa. Ideally, salaried individuals whose gross total income is equal to or more than Rs 250,000 should utilise the entire Rs 150,000 limit.

Also, at times, individuals make investments of over Rs 150,000 in Section 80C designated avenues, since they fail to understand that the benefits are capped. For example, despite making investments of Rs 70,000 in Public Provident Fund and Rs 40,000 in ELSS, the amount eligible is only Rs 150,000.

Following investments/contributions qualify for Section 80C deductions,

• Public Provident Fund
• National Saving Certificate
• Accrued interest on National Saving Certificate
• Life Insurance Premium
• Tuition fees paid for children's education (maximum 2 children)
• Principal component of home loan repayment
• Equity Linked Savings Schemes (ELSS)
• 5-Year fixed deposits with banks and Post Office

Download Income Tax Preparation Excel Based Software for Financial Year 2014-15 for all Central Govt employees ( Tax Compute Sheet + HRA Exemption Calculation + Form 16 Part A&B and Part B)

2. Think beyond Section 80C  Click to view details of Chapter VI A deduction

For salaried individuals whose gross total income exceeds Rs 250,000 pa, deductions under Section 80C may not be sufficient to reduce the overall tax liability. In such cases they can consider the following:

Home loan: Individuals intending to buy a house should consider opting for a home loan. Interest payments of upto Rs 2,00,000 pa are eligible for deduction under Section 24. And Another Section can avail HB Loan Interest up to Rs. 1 Lakh U/s 80EE since 1/4/2013

Medical insurance: An individual who pays medical insurance premium for self or spouse/dependent children is allowed a deduction of upto Rs 15,000 pa under section 80D.

An additional deduction of up to Rs 15,000 pa is allowed for premium payment made for parents. In case the parents are senior citizens, then the maximum deduction allowed is Rs 20,000 per year.

Donations: Subject to the stated limits, donations to specified funds/institutions are eligible for tax benefits under Section 80G.

Salaried individuals who plan to pursue higher education should avail of an education loan as the entire interest is eligible for deduction under Section 80E. The loan can be for self, spouse or child from an approved charitable institution or a notified financial institution.

3. Restructure the salary

Restructuring the salary and including certain components can go a long way in reducing the tax liability. Unlike eligible investments which lead to an additional cash outflow, restructuring the salary is a more 'efficient' means of claiming tax benefits. The following can form a part of one's salary structure:

Food coupons like Sodexo and Ticket Restaurant; they are exempt from tax up to Rs 60,000 per year.

Medical expenses which are reimbursed by the employer are exempt up to Rs 15,000 per year.

Individuals living in a rented accommodation should have House Rent Allowance (HRA) as part of their salary.

Transport allowance is exempt upto Rs 800 per month.

Leave Travel Allowance (LTA) can be claimed twice in a block of four years for domestic travel.

4. Claim tax benefits on house rent paid Calculate HRA Exemption U/s 10(13A)

Salaried individuals can claim rent paid by them for residential accommodation, if HRA doesn't form part of their salary. This deduction is available under Section 80GG and is least of the following:

25% of the total income or,

Rs 2,000 per month or,

Excess of rent paid over 10% of total income

Please note that the above deduction will be denied if the taxpayer or his spouse or minor child owns a residential accommodation in the location where the taxpayer resides or performs his office duties.

5. Opt for a joint home loan

As discussed earlier, the principal repayment on a home loan is eligible for a deduction of up to Rs 150,000 pa and the interest paid is eligible for a deduction of up to Rs 2,00,000 per year.

In cases where the home loan is for a substantial sum, it is not uncommon for the interest and principal repayment to exceed the stated limit. To ensure that the tax benefit is optimally utilised, an individual can consider opting for a joint loan with his spouse or parent or sibling.

This will ensure that both the co-owners can claim tax deductions in the proportion of their holding in the loan. The co-owner falling in the higher tax bracket should hold a higher proportion of home loan to ensure that the tax benefits are maximised.

Download All in One TDS on Salary for only Non-Govt Employees for the Financial Year 2014-15 ( Prepare at a time Tax Compute Sheet + Individual Salary Structure as per Non-Govt Salary Pattern + Automated HRA Exemption U/s 10(13A) + Automated Form 16 Part A&B and Part B)

On October 16, 2014 by www.taxexcel.net

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Click here to Download the Automated TDS on Salary For the Financial Year 2014-15 [All in One] ( This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure +Arrears Relief Calculation + Form 10E + Automated HRA Calculation + Form 16 Part A&B and part B, for the Govt and Non Govt Employees)

As per the Central Fincnace  Bill 2014 has has already increase Limit of Deduction under section 80C to Rs. 1,50,000/- from Financial Year 2014-15. Assessee will be eligible for deduction of Rs. 1,50,000/- Under section 80C of the Income Tax act from A.Y. 2015-16 or FY 2014-15.

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

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 8.70% tax-free (Compounded Yearly) and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 1,50,000. A point worth noting is that interest rate is assured but not fixed.

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) (VIII Issue): National Savings Certificate (NSC) is a 5-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is 8.50%t compounded half-yearly.  If you invest Rs 1,000, it becomes Rs 1516.20 after five 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.

Infrastructure Bonds: These are also popularly called Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds can also be included in Sec 80C deductions.

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. 1.5 Lakh.This also means that your investment in pension funds upto Rs. 1.5 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. 1.5 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.

CLICK HERE TO DOWNLOAD AUTOMATED ALL IN ONE MASTER OF FORM 16 PART B for the FY 2014-15 ( This Utility can prepare at a time 50 employees Form 16 Part B with Individual Salary Structure + Individual Salary Sheet for Print)

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 8.40 per cent rate of interest –qualifies for tax saving under section 80C. Interest is compounded quarterly but paid annually. The Interest is entirely taxable.

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.

K.V.P.(Kissan Vikas Patra ) New include in this Section from the FY 2014-15

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.

On September 24, 2014 by www.taxexcel.net

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