Showing posts with label H.R.A. Exemption Calculator U/s 10(13A). Show all posts
Showing posts with label H.R.A. Exemption Calculator U/s 10(13A). Show all posts
Sunday, 5 January 2020
Friday, 6 December 2019
Tuesday, 3 December 2019
Monday, 21 October 2019
Wednesday, 31 July 2019
Thursday, 4 July 2019
As
a taxpayer, there are regularly sure circumstances where pass up a
major opportunity to guarantee to reason. Segment 80GG is one of those territories where the greater part of the citizens neglect to understand that a concealed reasoning can be guaranteed. Along these lines,
immediately, we should perceive what Section 80GG is about!
Tuesday, 19 June 2018
Download All in One Income Tax Preparation Excel Based Software for Non-Govt employees for FY 2018-19 [ This Excel Utility at a time Tax Computed Sheet + Individual Salary Structure + Individual Salary sheet + Automatic H.R.A. Calculation + Automated Form 12 BA + Automated Form 16 Part A&B and Form 16 Part B for F.Y. 2018-19 ]
All in One Income Tax preparation Excel Based Software which most popularly known to all of the Taxpayers as well as all Govt and Non-Govt concerned. This All in One Specially designed for the Non-Govt employees in India.
You can easily prepare your Income Tax computed sheet with the help of universal Salary Structure which Salary structure is fit for any Non-Govt concerned.
The feature of this Utility:-
- Prepare at a time the Tax Computed Sheet + Salary Sheet + Automatic HRA Exemption Calculation
- New Tax Slab for F.Y. 2018-19
- Automated Income Tax Form 16 Part B and Part A&B for F.Y.2018-19
- Automated Form 12 BA
- Automatic Convert the Amount in Words
- All Income Tax Section has amended in this Excel Utility as per Budget 2018
Thursday, 1 March 2018
Download All in One Income Tax Preparation Excel Based Software for Non-Govt employees for FY 2017-18 [ This Excel Utility at a time Tax Computed Sheet + Individual Salary Structure + Individual Salary sheet + Automatic H.R.A. Calculation + Automated Form 12 BA + Automated Form 16 Part A&B and Form 16 Part B for F.Y. 2017-18 ]
All in One Income Tax preparation Excel Based Software which most popularly known to all of Tax payers as well as all Govt and Non-Govt concerned. This All in One Specially designed for the Non-Govt employees in India.
You can easily prepare your Income Tax computed sheet with the help of universal Salary Structure which Salary structure is fit for any Non-Govt concerned.
Feature of this Utility:-
- Prepare at a time the Tax Computed Sheet + Salary Sheet + Automatic HRA Exemption Calculation
- New Tax Slab for F.Y.2017-18
- Automated Income Tax Form 16 Part B and Part A&B for F.Y.2017-18
- Automated Form 12 BA
- Automatic Convert the Amount in Words
- All Income Tax Section has amended in this Excel Utility as per Budget 2017
Monday, 27 November 2017
The New Pension System has generated a lot of interest ever since Budget 2015 announced additional tax benefits for investments in the scheme. For someone in the 30 percent tax bracket, this is a clear benefit of Rs 15,000 on investment of Rs 50,000 over and above the Rs 1.5 lakh allowed under Section 80 C. This article gives an overview of NPS, explains NPS tax benefits, answers frequently asked questions regarding NPS and tax.
Tuesday, 15 August 2017
The income tax rate for those earning between Rs 2.5 lakh and Rs 5 lakh has been halved to 5%. Except for this change, all other Income Tax Slab rates have been kept unchanged by the Finance Minister for the Financial Year 2017-18 (Assessment Year 2018-2019).
Tax planning is an important part of a financial plan. Whether you are a salaried individual, a professional or a businessman, you can save taxes to the certain extent through proper tax planning.
Download Automated All in One TDS on Salary for Non-Govt Employees for F.Y.2017-18 & A.Y. 2018-19 [ This Excel Utility can prepare at a time Tax Computed Sheet + Individual Salary Structure as per Private Concerned Salary pattern + Automated H.R.A. Exemption U/s 10(13A) + Automated Form 12 B.A. + Automated Form 16 Part A&B and Form 16 Part B ]
The Indian Income Tax act allows for certain Tax Deductions / Tax Exemptions which can be claimed to save tax. You can subtract tax deductions from your Gross Income and your taxable income gets reduced to that extent.
Let us understand all the important sections and new proposals with respect to Income Tax Exemptions FY 2017-18. I hope you find this list useful and helps in planning your taxes well in advance.
Section 80c
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80c are as below;
- 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 Saving 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
Download All in One TDS on Salary for Govt & Non Govt employees for F.Y.2017-18 & A.Y.2018-19 [ This Excel Utility can prepare at a time Tax Computed Sheet + Individual Salary Sheet + Individual Salary Structure for both of Govt & Non-Govt employees + Automated Arrears Relief Calculator with Form 10e U/s 89(1) + Automated H.R.A.Exemption Calculation + Automated Form 16 Part A&B and Form 16 Part B as per the latest Income Tax Slab for F.Y.2017-18]
Section 80CCC
Contribution to annuity plan of LIC (Life Insurance Corporation of India) or any other Life Insurance Company for receiving the pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.
Section 80CCD
An employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be up to 10% of the salary (salaried individuals) and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.
As per Budget 2017-18, the self-employed (individual other than the salaried class) can now contribute up to 20% of their gross income and the same can be deducted from the taxable income under Section 80CCD (1) of the Income Tax Act, 1961, as against current 10%.
To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals only 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 note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit. deduction under Section 80CCD (2).
Download Automated Arrears Relief Calculator with Form 10E U/s 89(1) & Under Rule 21 from the F.Y.2000-01 to F.Y.2017-18
Section 80D
Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens, it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, the deduction is allowed for Rs 30,000 toward medical expenditure.
Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).
Section 80DD
You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings) who have 40% disability. The tax deduction limit of up to Rs 1.25 lakh in case of severe disability can be availed.
To claim this deduction, you have to submit Form no 10-IA.
Section 80DDB
An individual (less than 60 years of age) can claim up to 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 Rs 60,000 and for very Senior Citizens (above 80 years) the limit is Rs 80,000.
To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.
For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:
- Neurological Diseases where the disability level has been certified to be of 40% and above;
(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinson’s Disease
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinson’s Disease
- Malignant Cancers
- Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
- Chronic Renal failure
- Hematological disorders
- Hemophilia
- Thalassaemia
Section 80CCG
Tax Benefits of Rajiv Gandhi Equity Savings Scheme (
Section 24 (B)
(Loss under the head Income from House Property)
- Tax benefit on loan repayment of second house will be restricted to Rs 2 lakh per annum only (even if you have multiple houses the limit is still going to be Rs 2 Lakh only and the ceiling limit is not per house property).
- The unclaimed loss if any will be carried forward to be set off against house property income of subsequent 8 years. In most of the cases, this can be treated as ‘dead loss‘.
- That this is a major blow to the investors who have bought multiple houses on the home loan(s) with an intention to save taxes alone.
- As of now (till FY 2016-17), interest paid on your housing loan is eligible for the following tax benefits ;
- Municipal taxes paid, 30% of the net annual income (standard deduction) and interest paid on the loan taken for that house are allowed as deductions.
- After these deductions, your rental income can be NIL or NEGATIVE and is called ‘loss from house property’ in the latter case.
- Such loss is currently allowed to be set off against other heads of income like Income from Salary or Business etc. which helps you to lower your tax liability substantially.
Section 80E
If you take any loan for higher studies (after completing Senior Secondary Exam), tax deduction can be claimed under Section 80E for interest that you pay towards your Education Loan. This loan should have been taken for higher education for you, your spouse or your children or for a student for whom you are a legal guardian. Principal Repayment on educational loan cannot be claimed as the tax deduction.
There is no limit on the amount of interest you can claim as the deduction under section 80E. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.
Section 80EE
This was a new proposal which had been made in Budget 2016-17. The same will be continued in FY 2017-18 / AY 2018-19 too. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.
- The home loan should have been sanctioned during/after FY 2016-17.
- Loan amount should be less than Rs 35 Lakh.
- The value of the house should not be more than Rs 50 Lakh &
- The home buyer should not have any other existing residential house in his name.
Section 80G
Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G.
The donations made to any Political party can be claimed under section 80GGC.
w.e.f F.Y 2017-18, the limit of deduction under section 80G / 80GGC for donations made in cash is reduced from current Rs 10,000 to Rs 2,000 only.
Section 80GG
The Tax Deduction amount under 80GG is Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
The extent of tax deduction will be limited to the least amount of the following;
- Rent paid minus 10 percent the adjusted total income.
- Rs 5,000 per month.
- 25 % of the total income.
(If you are claiming HRA (House Rent Allowance) of more than Rs 50,000 per month (or) paying rent which is more than Rs 50,000 then the tenant has to deduct TDS @ 5%. It has been proposed that the tax could be deducted at the time of credit of rent for the last month of the tax year or last month of tenancy, as applicable.)
Rebate under Section 87A
The tax rebate of Rs 2,500 for individuals with income of up to Rs 3.5 Lakh has been proposed in Budget 2017-18.
- Only Individual Assesses earning net income up to Rs 3.5 lakhs are eligible to enjoy tax rebate u/s 87A.
- For Example: Suppose your yearly pay comes to Rs 4,50,000 and you claim Rs 1,50,000 u/s 80C. The total net income in your case comes to Rs 3,00,000 which makes you eligible to claim the tax rebate of Rs 2,500.
- The amount of tax rebate u/s 87A is restricted to a maximum of Rs 2,500. In case the computed tax payable is less than Rs 2,500, say Rs 2,000 the tax rebate shall be limited to that lower amount i.e. Rs 2,000 only.
- The Tax Assesse is first required to add all incomes i.e. salary, house income, capital gains, business or profession income and income from other sources and then deduct the eligible tax deduction amounts u/s 80C to 80U and under section 24(b) (Home Loan Interest) to come up with the net taxable income.
- If the above net taxable income happens to be less than Rs 3.5 lakhs then the tax rebate of Rs 2,500 comes into the picture and should be deducted from the calculated total income tax payable.
Section 80 TTA
Deduction from gross total income of an individual or HUF, up to a maximum of Rs. 10,000/-, in respect of interest on deposits in savings, account with a bank, co-operative society or post office can be claimed under this section. Section 80TTA deduction is not available on interest income from fixed deposits.
Section 80U
This is similar to Section 80DD. The tax deduction is allowed for the tax assessee who is physically and mentally challenged.
Sunday, 5 March 2017
The tax benefit on HRA is available only to a salaried individual who has the HRA component as part of his salary structure and is staying in a rented accommodation. Self-employed professionals cannot avail the deduction.
Download master of Form 16 Part A&B for F.Y.2016-17,which can prepare at a time 100 employees Form 16 Part A&B
Download Master of Form 16 Part B for F.Y.2016-17, whichcan prepare at a time 100 employees Form 16 Part B
The exemption for HRA benefit is the minimum of:
i) Actual HRA received
ii) 50% of salary if living in metro cities, or 40% for non-metro cities; and
iii) Excess of rent paid annually over 10% of annual salary (Rent paid minus 10% of Salary)
For Calculation purpose, Salary = Basic Salary + Dearness Allowance (DA) (if it forms a part of retirement benefits) + commission received on the basis of sales turnover
The tax benefit is available to the person only for the period in which the rented house is occupied.
Example of HRA calculation
Let’s say an individual, with a monthly basic salary of Rs 15,000, receives HRA of Rs 7,000 and pays Rs 8,400 rent for an accommodation in a metro city. The tax rate applicable to the individual is 20 percent of his income.
To avail HRA benefit, the least of the following amount is exempted, rest is taxable:
i) Actual HRA received = Rs 84,000 (7,000 * 12)
ii) 50% of salary (metro city) = Rs 90,000 (50% of Rs 1,80,000)
iii) Excess of rent paid annually over 10% of annual salary = Rs 82,800 (Rs 1,00,800 – (10% of Rs 1,80,000))
It shows that of Rs 84,000 actually received as HRA, Rs 82,800 gets tax exemption and only the balance of Rs 1,200 gets added to the employee’s income, on which a tax of Rs 240 ( 20 per cent slab ) gets payable.
Download Automatic H.R.A. Exemption CalculatorU/s 10(13A) in Excel Format
Documents Required
HRA exemptions can be availed only on submission of rent receipts or the rent agreement with the house owner.
It is mandatory for the employee to report the Pan Card of the ‘landlord’ to the employer if the rent paid is more than Rs 1,00,000 annually, or if it exceeds Rs 15,000 per month.
Individuals who don’t get HRA but pay rent — Section 80GG
Self-employed professionals and Salaried individuals who have not received HRA but they actually paid the rent can claim deduction under section 80GG.
Amount of Deduction — Section 80GG
The least of the following is available for exemption from tax under Section 80GG:
(i) Rent paid in excess of 10% of Adjusted Income (Rent Paid minus 10% of Adjusted Income)
(ii) 25% of the total of the Adjusted Income
(iii) Rs 5,000 per month
Example of Section 80GG
Mr. A annually earns Rs. 3,00,000 (after all deductions) and pays an annual rent of Rs. 1,50,000. In such a case, the deduction allowed would be least of the following;
- 5000 per month i.e. Rs 60,000 per annum
- 25% of 3,00,000 i.e. Rs 75,000
- 1,50,000 minus 10% of 3,00,000 i.e. Rs 1,20,000
Deduction allowed under section 80GG is least of the above i.e. Rs 60,000
A) Deduction under Section 80GG for Rent paid is only available to an Individual or HUF.
B) The taxpayer is either Self-employed or Salaried (but does not receive any benefit of deduction under Section 10(13A) for House Rent Allowance.
C) The taxpayer himself or his spouse or Minor child should not own any accommodation at the place where he is employed or carries on his business or profession.
D) If the taxpayer owns any property at any place other than the place mentioned above, he should not be claiming the benefit of that property as self-occupied property. That other property would be deemed to be let out.
E) Individual needs to file the declaration in form 10BA that he satisfies all the conditions stated above.
DownloadForm 12 BA in Excel Format.
Subscribe to:
Posts (Atom)