Showing posts with label Income Tax Form 16 for A.Y.2017-18. Show all posts
Showing posts with label Income Tax Form 16 for A.Y.2017-18. Show all posts
Wednesday 28 June 2017
Tuesday 23 May 2017
Income tax act provides the scope of claiming the deduction from gross total income. Income earned by an individual under different heads like salary, business or profession is clubbed together to calculate the gross total income. Then eligible deductions are claimed and tax is calculated on the balance income. Here we shall discuss deductions allowed for the assessment year 2018-2019 under chapter VI-A of IT act, which includes section 80C to 80U.
Click to Download Automated Master of Form 16 Part A&B for F.Y. 2016-17 and A.Y.2017-18[This Excel Based Utility can prepare at a time 100 employees Form 16 Part A&B for F.Y.2016-17]
Click to Download Automated Master of Form 16 Part B for F.Y. 2016-17 and A.Y.2017-18[ This Excel Based Utility can prepare at a time 100 employees Form 16 Part A&B for F.Y.2016-17]
Section 80C
The individual taxpayer can claim deduction up to Rs. 1,50,000/- under section 80C of Income Tax act.
1) Tuition fees towards full-time education of children,
2) Principal amount of home loan repaid during the financial year,
3) Amount paid towards stamp duty and registration of the house purchased during the year is eligible for claiming the deduction.
4) Apart from this taxpayer can also claim deduction in respect of contribution towards employee provident fund or public provident fund,
5) Subscription to Equity Linked saving Scheme,
6) NSC, Senior Citizen Saving Scheme,
8) Life insurance premium paid subject to qualifying limit.
Section 80CCD
An individual contributing an amount in National Pension System (NPS) is eligible for claiming deduction under section 80CCD(1).
The aggregate amount of deduction under sections 80C, 80CCC and 80CCD(1) shall not exceed Rs.1,50,000/- (Section 80CCE).
In budget 2015 a new sub-section (1B) has been inserted so as to provide for an additional deduction in respect of any amount paid, of up to Rs. 50,000 for contributions made by any individual assessee under the NPS.
Section 80D
Deduction up to Rs. 25,000 is allowed in respect of premium paid to buy or to keep a health insurance policy in force for self, spouse and dependent children. Additional deduction of Rs. 25000 is allowed in respect of the premium paid for health insurance policy of parents.
The limit is Rs. 30000 for senior citizens. Expenses up to Rs. 5,000 towards preventive health checkup can also be included within the prescribed limit under section 80D.
People aged above 80 and not covered by health insurance are allowed deduction of 30,000 rupees for medical expenses.
Section 80DD
Those who have a dependent with a disability can claim a deduction in respect of their maintenance including medical treatment under section 80DD of the Income Tax Act.
The deduction allowed is Rs. 75,000 if the disabled dependent is not suffering from severe disability.
The deduction allowed is Rs. 1,25,000 if the disabled dependent is a person with severe disability. A person with a disability means a person suffering from not less than 40% of any of the disabilities as defined in the act. Severe disability means 80% or more of one or more of the disabilities.
Section 80DDB
Deductions of expenses on medical treatment of specified ailments (such as AIDS, cancer and neurological diseases) can be claimed under Section 80DDB.
The maximum amount of deduction allowed from gross total income is restricted to Rs 40,000 on condition that no medical reimbursement is received from any insurance company or employer for this amount. In the case of reimbursement, the deduction will be allowed for the amount over and above the amount received from an insurer or an employer.
The deduction in respect of a senior citizen is allowable up to sixty thousand rupees and in respect to a Super senior citizen, a deduction up to eighty thousand rupees would be allowed.
Section 80E
The deduction can be claimed for interest paid on loan taken for pursuing higher education by the assessee himself or for the purpose of higher education of his relative.
You can deduct the entire interest amount from your taxable income without any cap, however, there is no benefit available on the repayment of principal amount of the loan.
Parents are also eligible to claim a deduction of interest paid by them on loan taken for their children’s education. Higher education would mean any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the government. The tax benefits on education loan are only valid once you start the repayment and moreover they are only available up to eight years. For instance, if your loan tenure exceeds eight years, you cannot claim for deductions beyond eight years.
Section 80G
Donations paid to specified institutions qualify for tax deduction under section 80G but is subject to certain ceiling limits.
For claiming deduction under Section 80G, a receipt issued by the recipient trust must contain the name, address & PAN of the Trust, the name of the donor and the amount donated.
Donation may be eligible to 100% deduction or 50% subject to qualifying or without qualifying limit. No deduction is allowable if the donation in excess of Rs. 10,000 paid in cash.
Section 80 TTA
Deduction U/S 80TTA is applicable to individual taxpayers and HUF only. Interest earned up to Rs. 10,000 from saving bank accounts is allowed to deduct from gross total income. This deduction is not applicable to the interest you received on your fixed deposit
Section 80U
An assessee who is suffering from any disability, not less than 40% is eligible for the deduction to the extent of Rs. 75,000/- and in the case of severe disability allowable deduction is Rs. 1,25,000.
Section 87A:- Tax Rebate Rs. 5000/- who’s taxable Income below Rs.5 Lakhs.
Wednesday 26 October 2016
Most new Excel Based Income Tax generated Software for the Central and State Govt employees for the Financial Year 2016-17 and Assessment Year 2017-18.You can prepare at a time your Income Tax Compute Sheet + Individual Salary Sheet + Automatic HRA Exemption + Automatic Form 16 Part B and Form 16 Part A&B. In this Excel Based Software have a Salary Structure which can fit for all the Central and State Govt employees.
In this Salary Structure you can easily Calculate your Gross Salary Income and after generating this Salary Sheet the other Form 16 Part B and Part A&B will be generated automatically. All the Income Tax Section have in this Utility with the brief of each Income Tax Section. No need to manually fill the Form 16 part B or Part A&B.
Below given the Snapshot of this Excel Based Software :-
Click here to download the All in One Income Tax Preparation Excel based Software for Central Govt and All State Govt employees for the F.Y.2016-17. [ You can prepare more than 100 employees Tax Computed Sheet One by One by this One Software]
Sunday 23 October 2016
Under section 80U, in computing the total income of an individual, being a resident, who, at any time during the previous year, is certified by the medical authority to be a person with a disability, there shall be allowed a deduction of a sum of fifty thousand rupees. However, where such individual is a person with severe disability, a higher deduction of one lakh rupees shall be allowable. DDOs should note that 80DD deduction is in the case of the dependent of the employee whereas 80U deduction is in the case of the employee himself. However, under both the Sections the employee shall furnish to the DDO following:
As the Tax Benefits can be availed by the Phy.disable person below 80% Rs. 75,000/- & above 80% Rs. 1,25000/- for the F.Y.2016-17
Click here to Download the Automatic Master of 100 employees Form 16 Part B for the Financial Year 2016-17 and Assessment Year 2017-18 (This Excel Based Software can prepare at a time 100 employees Form 16 Pat B , You can also prepare more than 1000 employees Form 16 Part B by this One Software)
1. A copy of the certificate issued by the medical authority as defined in Rule 11A(1) in the prescribed form as per Rule 11A(2) of the Rules. The DDO has to allow deduction only after seeing that the Certificate furnished is from the Medical Authority defined in this Rule and the same is in the form as mentioned therein.
2. Further in cases where the condition of disability is temporary and requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any subsequent period unless a new certificate is obtained from the medical authority as in 1 above and furnished before the DDO.
Thursday 13 October 2016
Download Master of Form 16 Part A&B for Financial Year 2016-17 and Assessment Year 2016-17. This Excel Based Software can prepare at a time 100 employees Form 16 Part A&B for F.Y.2016-17.
Feature of this Excel Utility :-
1) Prepare at a time 100 employees Form 16 Part A&B for F.Y.2016-17 & A.Y.2017-18
2) All the amended Income Tax Section have in this utility as per the Budget 2016
3) You can prepare more than 1000 employees Form 16 Part A&B
4) Automatic Convert Amount into the In Words.
Sunday 22 May 2016
Download TDS on Salary for Govt & Non-Govt employees forF.Y.2016-17 & A.Y.2017-18 [ This Excel Based Utility can prepare at a time your Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure as per Govt & Non-Govt employees Salary Pattern + Automated H.R.A. Calculation + Automated Arrears Relief Calculator U/s 89(1) with Form 10E up to F.Y.2016-17 + Form 16 Part A&B and Part B for F.Y.2016-17]
1. Exempt Income under Chapter 10 of Income Tax Act, such as House Rent allowance, Transport Allowance, LTC etc.
2. Savings which are eligible for Tax Exemption up to Rs. 1.5 lakh under Section 80C, Section 80CCC and Section 80CCD(1)
3. Additional Savings eligible for Tax Exemption up to Rs. 50,000/- under Section 80 CCD (1B) over and above Savings Cap of Rs. Rs. 1.5 lakh, if the amount is invested in NPS (Govt run Contributory Pension System which is known as National Pension System)
4. Deduction (up to 10% of salary) towards Contribution made by Employer in any of Pension fund such as NPS, approved by Central Government, under Section 80CCD(2), which will be over and above savings value cap of Rs. 1.5 lakh under Section 80CCE plus additional savings of Rs.50,000 under Section 80CCD(1B)
5. Eligible deductions from Income from Section 80 D to 80 U towards amount spent on health insurance, medical treatment for disabled dependents, interest on higher education loan etc.
6. Deduction of up to Rs. 2 lakh in respect of loss (interest) incurred on self-occupied House Property (and unlimited interest in respect of rented property) under Section 24 of Income Tax Act.
7. Relief Under Section 89(1)
1. Exempt Income and Allowances under Section 10 of Income Tax Act
Income given below are exempt income and hence these need not included while calculating Total Income of a Salaried Employee
· Agricultural Income [Section 10(1)]
· The sum received (including the bonus) under a life insurance policy (other than any sum received under sub-section (3) of section 80DDA or under a Keyman insurance policy).[Section (10)(10)(D)]
· Amount of LTC or LTA actually incurred. [Section 10(5)]
· Any allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India for rendering service outside India. [Section 10(7)]
· Any special allowance or benefit, such as Traveling Allowance, Uniform Allowance etc which are incurred for the performance of the duties of an office or employment . [Section 10(13A)]
· The transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of duty is exempt to the extent of Rs. 1,600/- per month or Rs. 3200 per month (for a visually challenged person) [Section 10 (14)]
· Scholarships granted to meet the cost of education.[Section 10(16)]
· Children Education allowance:
Rs. 100/- per month per child up to a maximum of 2 children.
Rs. 100/- per month per child up to a maximum of 2 children.
· Hostel Subsidy: Rs. 300/- per month per child upto a maximum of two children.
· Other Allowances exempted under Section 10 of IT Act are Tour TA, Tour Daily Allowance, Academic, research or training allowance, uniform Allowance, Special Compensatory Allowance, High Altitude Allowance, Climate Allowance, allowances applicable to North East, Hilly areas of U.P., H.P. and J & K, border area allowance, Compensatory Field Area Allowance, Counter Insurgency Allowance, High Active Field Area Allowance, island duty allowance, tribal allowance etc.
Exemption under Section 10 (13A) in respect of HRA – Calculation Method: DownloadAutomatic H.R.A Exemption Calculator U/s 10(13A)
Least of the following amount is to be treated as exempt from Income Tax.
· Actual House Rent Allowance Received, or
· Rent paid in excess of 10% of Pay in Pay band and Grade Pay or
· 50% of Pay in Pay band and Grade Pay if the employee is in Chennai/Mumbai/Kolkatta/Delhi and 40% of Pay in Pay Band and Grade Pay for the employees is in other places.
· If the employees resides in his/her own house or in a house for which he/she does not pay any rent, no HRA exemption is available.
2. Savings which are eligible for Tax Exemption Section 80C, Section 80CCC and Section 80CCD
Section 80C, CCC and CCD(1) allow deduction from total income. The total deduction under this section (along with section 80CCC and 80CCD(1) is limited to Rs. 1.50 lakh only.
Section 80C:
· Life Insurance Premium For individual, policy must be in self or spouse’s or any child’s name. For HUF, it may be on life of any member of HUF.
· Sum paid under contract for deferred annuity for individual, on life of self, spouse or any child .
· Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self-spouse or child Payment limited to 20% of salary.
· Investment in Senior Citizens Savings Scheme 2004 for 5 year by resident individuals.
· Contribution made under Employee’s Provident Fund Scheme.
· Contribution to PPF For resident individual, can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
· Deposit in Sukanya Samriddhi Account as natural / legal guardian of girl child.
· Contribution by employee to a Recognised Provident Fund.
· Sum deposited in 10 year/15 year account of Post Office Saving Bank
· Subscription to any notified securities/notified deposits scheme. e.g. NSS
· Subscription to any notified savings certificate, Unit Linked Savings certificates. e.g. NSC VIII issue.
· Contribution to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanrakhsa 1989
· Contribution to notified deposit scheme/Pension fund set up by the National Housing Scheme.
· Payment made by way of installment or part payment of loan taken for purchase/construction of residential house property.
· Subscription to units of a Mutual Fund notified u/s 10(23D).
· Subscription to deposit scheme of a public sector, company engaged in providing housing finance.
· Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.
· Tuition fees paid at the time of admission or otherwise to any school, college, university or other educational institution situated within India for the purpose of full time education of any two children. Available in respect of any two children.
Section 80CCC:
Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer. Payment of premium for annuity plan of LIC or any other insurer Deduction is available upto a maximum of Rs. 150,000/-.
The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.
Section 80CCD (1):
Deduction in respect of Contribution to Pension Account (by Assessee). Deduction available for the amount paid or deposited in a pension scheme notified or as may be notified by the Central Government subject to a maximum of :
(a) 10% of salary in the previous year in the case of an employee
(b) 10% of gross total income in any other case.
Section 80CCD(1A):
The maximum deduction allowable under this section contribution to New Pension Scheme (NPS), it is Rs. 1.50 lakh w.e.f. 01.04.2016
3. Additional Savings eligible for Tax Exemption up to Rs. 50,000/- under Section 80 CCD (1B)
Section 80CCD(1B):
Contribution in NPS has been given more tax concession in the budget 2015. As per Section 80CCD(1B), an additional deduction of up to Rs. 50,000 over and above the Section 80C, 80CCC and 80CCD savings cap of Rs. 1.5 lakh, is allowed if such amount is contributed by the employee. So, overall tax savings of Rs. 2 lakh can be availed under Section 80C, 80CCC and 80CCD(1).
4. Deduction in respect of Contribution to Pension Account by Employer under Section 80CCD (2):
Deduction under Section 80CCD(2) is available for the amount paid or deposited by the employer of the assessee in a pension scheme notified or as may be notified by the Central Government subject to a maximum of 10% of salary in the financial year. This deduction is allowed over and above Savings value cap of Rs. 1.5 lakh under Section 80CCE (in the case of investment in NPS, savings value cap eligible for deduction will be Rs. 2 lakh).
5. Eligible deductions from Income from Section 80 D to 80 U towards amount spent on health insurance, medical treatment etc. Max Rs. 25000/- for General and Rs. 30,000/- for Sr. Citizen.
Section 80D: Deduction in respect of Medical Insurance:
Deduction is available upto Rs. 30,000/- for parents who are senior citizens and upto Rs. 25,000/- in other cases for insurance of self, spouse and dependent children. Amount of up to Rs.5000/- spent on preventive health check-up. So a maxium of Rs. 60,000 can be deducted which is spent towards Health Insurance premium.
Section 80DD: Deduction for medical treatment of physically challenged dependents:
In the case of salaried employee who is taking care of physically challenged Dependent Relative, an amount with the maximum limit of Rs.75000/- spent towards medical treatment or rehabilitation can be deducted from the income (In the case of severe disability maximum deduction would be Rs. 1,25,000).
Section 80DDB: Deduction in respect of specified disease:
Deduction in respect of specified disease for self or dependent relatives is allowed lower of Rs.60,000 or actual amount paid. This deduction amount increases to Rs.80,000 in case of senior citizen.
Section 80E: Deduction in respect of Interest on Loan for Higher Studies:
Deduction in respect of interest on loan taken for pursuing higher education. The deduction is also available for the purpose of higher education of a relative. Max Rs. 1.5 Lakh from 1/4/2016
Section 80G: Deduction for Donations
Notified donations under Sec. 80G will be eligible for deduction ( 100% or 50% as per the notification condition)
Section 80GG: Deduction in respect of House Rent Paid
Deduction available is the least of
· Rent paid less 10% of total income
· Rs. 5000/- per month i.e. Maximum Deduction available is 60,000/-
· 25% of total income subject to
· Employee or his/her spouse or minor child should not own residential accommodation at the place of employment.
· No HRA is received.
· No self occupied residential premises in any other place.Section 80GGA: Deduction in respect of certain donations for scientific research or rural development
Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account :- Maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office
Section 80U: Deduction in respect of Person suffering from Physical Disability
Deduction of Rs. 75,000/- in respect of tax payer suffering from a physical disability. In the case of severe disability, deduction of Rs. 125,000/- will be allowed. Certificate from the approved medical authorities regarding the extent of disability will have to be produced (Rule 11D)
6. Deductions Allowable under Section 24 of Income Tax Act in respect of interest on house property :
Housing Property bought or constructed on or after 01.04.99 (completed within 3 years from avail of loan) and self occupied will be eligible for deduction of interest paid on housing loan with the maximum limit Rs. 2,00,000/-. In other cases deduction in respect of interest paid up to Rs.30,000 will be allowed. If the said house property is not self-occupied there is no limit in deduction in respect of interest paid on housing loan subject to inclusion of rental income in respect of the house property.
7. Relief Under Section 89(1) :- Download Automatic Arrears Relief Calculator U/s89(1) with Form 10E up to F.Y.2016-17
Relief u/s 89(1) is available to an employee when he receives salary in advance or in arrear or when in one financial year, he receives salary of more than 12 months, or receives ‘profit in lieu of salary’ covered u/s 17(3). Relief u/s 89(1) is also admissible on family pension, as the same has been allowed by Finance Act, 2002 (with retrospective effect from 1/4/96).
To sum-up, over and above the Basic Income Tax Exemption limit of Rs. 2.5 lakh for the financial year 2015-16 available to Salaried Employees, maximum additional income tax exemption for income up to Rs.4,44,200 can be availed. Maximum Amount that can be saved / deducted to avail this income tax exemption benefit are tabulated below. So, a salaried employee who earns gross total income of Rs. 6,94,200/- and avails income tax exemption benefit by way of savings and deductions detailed below, need not pay any income tax.
It is also pertinent to note here that exemptions and deductions detailed above are common to a salaried employee.
In addition to this, by way of other deductions provided by Section 80DD to Section 80U based on specific nature of expenditure such as medical, higher studies related or physical status of employee or his / her dependents, more income could be exempted from payment of Income Tax.
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