The salary persons always ask from us that tell all the deductions which we can claim from salary for A.Y. 2016-2017. So we are giving the list of all the deductions which you can claim while calculating taxable salary income or net total income after adding other sources incomes as per the Finance Budget 2015-16. The deductions are given along with the income tax sections. So you can get all the complete details by going to that particular section in case of any doubt.
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.
1) Download 100 employees Master of Form 16 Part B forF.Y.2015-16 [ This Excel Utility can prepare at a time 100 employees Form 16 Part B ]
2) Download 50 employees Master of Form 16 Part B forF.Y.2015-16 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B ]
Professional Tax (P.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)]
House Building Loan Interest (U/s 24B):- House Building Loan Interest ( Loss of House Property) U/s 24B, Max. Rs. 2 Lakh.
Travelling/Conveyance Allowances (U/s 10):- Max Rs. 1600/-P.M. and Phy.disable persons Rs. 3200/- P.M.
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 Premia, 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 a 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]
1) Download 100 employees Master of Form 16 Part A&B forF.Y.2015-16 [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B ]
2) Download 50 employees Master of Form 16 Part A&B forF.Y.2015-16 [ This Excel Utility can prepare at a time 50 employees Form 16 Part A&B ]
Rajiv Gandhi Equity savings Scheme Investment in listed equity shares (w.e.f 1-4-2014) A.Y.2014-15 [or listed units of equity-oriented mutual funds] under. [Sec. 80CCG]
Payment of Medical Insurance Premia (Mediclaim) or contribution to Central Government Health Scheme. [Sec. 80D]: Deductible upto a maximum of Rs. 25,000 (Rs. 30,000 in case the person insured is a senior citizen
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 assesses, 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.
Download Master ofForm 16 Part B with 12 BA for F.Y.2015-16 [ This Excel Utility can prepare at a time 50 employees Form 16 with 12 BA ]
Expenditure or Medical Treatment of assess/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 from the amount of deduction allowable.
Interest on Loan taken 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 pursing his higher education, is deduction without any limit.
Interest on Loan taken for first residential house. [Sec. 80EE]: Deduction is allowable for interest on housing loan from a bank/housing finance company, for allowable is Rs. 1, 00,000, subject to specified conditions. The deduction is allowable for A.Y. 2014-15 and A.Y. 2015-16 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 deduction, only if it paid by a mode other than cash.
Expenditure on Rent. [Sec. 80GG]: Rent paid by an assesses 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 1-4-2014, for A.Y. 2014-15]
Physical Disability [Sec. 80U]: Rs. 75,000 for disability and Rs. 1, 25,000 for severe disability.
Savings Bank Interest [Sec. 80TTA]: Exemption up to Rs. 10,000/- who’s Taxable Income less than 5 Lakh.
Tax Rebate Rs.2,000/-[Sec. 87A]: Tax Rebate can be allowed Max Rs. 2,000/- who’s Taxable Income less than 5 Lakh.
