As
per the Finance Budget 2019, some Important Income Tax Section and
Income Tax Rebate has changed. The Major modification including the
Income Tax Slab Rate for the F.Y. 2019-20 is given below.
Showing posts with label H.R.A. Calculator. Show all posts
Showing posts with label H.R.A. Calculator. Show all posts
Monday, 30 September 2019
Saturday, 8 October 2016
Many individuals have a Public Provident Fund (PPF) Account, but, they might not know that they can really maximize their returns if they take some very prudent steps. This is one of the most popular and safe investments the country has, even as it provides one of the highest interest rates, beating even bank deposits. Did you know that you can actually make more money from the Public Provident Fund? Let us explain, with some examples, how you can do so.
Download All in One Income Tax Preparation Excel Based Software for Central & State Govt Employees for F.Y.2016-17 [ This Excel Utility can prepare at a time Individual Salary Sheet + Individual Salary Structure for Central & all State Employees + Individual Tax Computed Sheet + Automatic H.R.A. Calculation + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17 as per the Finance Bill 2016
Deposit money before the 5th of each month Not many individuals know, that the interest on the Public Provident Fund (PPF) is calculated on lowest balances in the account between 5th and last day of the month. In simple terms, what this means is that if you deposit the amount after the 5th of the month, you will lose interest for that month.
The ideal way to get returns from PPF The best way to get maximum returns is to deposit the amount on April 1. In fact, we suggest that you deposit the entire amount in lump sum. Of course, if you do not have a lump sum, then as suggested you should please deposit the amount before the 5th of every month. We suggest lump sum on April 1, because PPF gives you a very high-interest rate of 8.1 per cent, as against 7.5 per cent in government deposits.
How much do you lose? There are many individuals who ask: how much would I actually lose if I do not deposit the amount before the 5th of each month? If you work on the assumption that you would invest the entire amount that is permitted at Rs 1.5 lakhs, over 15 years by not depositing before 5th, you could end up losing around Rs 31,000.
The biggest draw is interest rates If you have never invested in the PPF and are in your 20s and 30s, you simply should. The Public Provident Fund almost always gives you higher interest rates than bank deposits. SBI Deposits offer you an interest rate of 7.50 per cent at best. The PPF currently, offers you an interest rate of 8.10. Though the government reviews interest rate on small savings every quarter, we do not see these interest rates falling below that of Bank deposit rates.
Dual tax benefits Very few instruments in this country, offer you two different types of tax benefits. The PPF allows you the tax benefit under Sec 80C of the Income Tax Act and the interest income is also free from tax. All along a win-win situation. At the moment the maximum amount that you can place in the PFF is Rs 1.5 lakhs. We suggest that you place the entire amount of Rs 1.5 lakhs, because of the tax benefits and the high-interest rates.
Source from goodreturns.in
Friday, 27 November 2015
Download Income Tax Calculator All in One TDS on Salary for Non-Govt Employees for the Financial Year 2015-16 and Ass Yr 2016-17. [ This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automatic HRA Calculation + Automatic Form 16 Part A&B and Form 16 Part B + 12 BA for FY 2015-16]
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| Private employees Salary Structure |
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| Tax Computed Sheet |
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| Form 16 Part A&B and Part B |
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) or any other Life Insurance Company for receiving pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.
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-salaried. 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.Also if you are get joint home loan, you can get the benefits from the both side.
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).
Wednesday, 17 June 2015
Download Income Tax Calculator All in One TDS on Salary for Non-Govt Employees for the Financial Year 2015-16 and Ass Yr 2016-17. [ This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automatic HRA Calculation + Automatic Form 16 Part A&B and Form 16 Part B + 12 BA 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)
or any other Life Insurance Company for receiving pension from the fund
is considered for tax benefit. The maximum allowable Tax deduction
under this section is Rs 1.5 Lakh.
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).
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