Taxexcel: Income Tax Section 10 raised by the budget 2015-16

Tuesday 16 June 2015

Download the TDS on Salary All in One for Govt & Non Govt Employees for Govt and Non-Govt employees for F.Y.2015-16 and A.Y.2016-17 [ This Excel Utility Can prepare at a time your Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automatic HRA Calculation U/s 10(13A) + Automatic Arrears Relief Calculation with Form 10E + Automated Form 16 Part A&B and Part B for F.Y.2015-16]

The Budget 2015 applicable for Financial Year 2015-16

The Budget 2015 having high expectations was released by Mr. Arun jaitely, Finance Minister of the new Modi government on the 28th of February 2015. Many people whom i met post budget had same view that it did not meet their expectations. However i feel that mainly this reaction was because the slab rates where not changed or to be precised the slab rates were not Increased. Face the fact, Slab rate for F.Y. 2015-16 cannot be increased further, there is no room for it, as it will not only decrease the government's revenue but will also hamper the economy in a very bad way. the best way was to channelized the fund from governments revenue to some government and Economy helping funds, investments, etc; which Mr. Jaietly knew very well and hence he introduced more Deductions and also raised Limits of the deductions. Just wait and have trust on Government the 4th and 5th year of the modi Government will be a Golden Era for India's Economy... I can Speak on this more but for now let's bring our mind horses back on the Topic "TDS or Taxation on Income From Salaries for F.Y. 2015-16".

Keeping apart the main Topic i.e. "TDS on Salary". Let us witness important points in Short, Common and Non technical language related to the Calculation Income from Salaries for TDS and Taxation Purpose for the Financial Year 2015-16 and Assessment Year 2016-17:

1. Medi-claim Premium (Premium on Health Insurance) Section 80D :

The deduction under this section was available to the assesee for the Insurance premium paid on the health insurance but it was subjected to following Limits (Earlier and Now Revised): Max Rs. 25,000/- and for Senior Citizen Rs.30,000/- as per Budget 2015.

2. Deduction for Medical Expenses on treatment of Specified Diseases (Section 80DDB):

Deduction u/s. 80DDB has been Raised from Rs. 60,000/- to Rs. 80,000/- only for Senior Citizens, please note that here is no change in limits for Non-Senior Citizens.

3. Deduction for Persons differently abled (Section 80DD and 80U):

Deductions under section 80DD and 80U are increased as follows: Up to 40% to 80% Rs. 75,000/- and above 80 % Rs. 1.25,000/- as per Budget 2015 for F.Y.2015-16.

4. Transport Allowance Exempt u/s. 10:

Exemption for Transport allowance is allowable as amount received or Fixed amount as below: For General Max Rs. 1600/- P.M. and Phy.Disable Max Rs. 3200/- P.M. for F.Y. 2015-16.

5. Sukanya Samridhi Account (For Girl child) under Section 80C :

This is an another milestone in the Indian Taxation History. A Historic Scheme which can only exist in India and no other country for the betterment of a Girl Child's Future. This is a must have investment in your Portfolio of investments if you have a girl child below the age of 10 years, however one year grace period is allowed as this is a new scheme; So a Girl Child who is Born between 2.12.2003 & 1.12.2004 can also open an account under this scheme up to 1.12.2015.

Now talking about the benefits under this scheme; Any amount Deposited in this Account shall be eligible for deduction u/s. 80C i.e. it will be directly deducted form the Total income for the purpose of calculation of TDS or Tax on your income. However Mimimum 1000 rupees and Maximum 1,50,000/- rupees shall be allowed to be deposited per year. Also Interest of 9.2% p.a. received on this account is completely exempted from the Income tax i.e. no tax is payable on interest income arising from the amount deposited in the Sukanya Samridhi Account.

Slab Rates for F.Y. 2015-16 and A.Y. 2016-17....

For this year even though almost everyone thought that the slab rates will increase giving an opportunity to the individual taxpayer to save some income to fight against unstoppable food inflation the slab rates remain same as given below:

Income tax slab for F.Y. 2015-16 / A.Y. 2016-17
New Income Tax Slabs for A.Y. 2016-2017 for Resident Senior Citizens above 60 years (FY 2015-2016)
S. No.	Income Range	Tax percentage
1	Up to Rs 2,50,000	No tax / exempt
2	2,50,001 to 5,00,000	10% - Rs.2000 (Credit)
3	5,00,001 to 10,00,000	20%
4	Above 10,00,000	30%
New Income Tax Slabs for A.Y. 2016-2017 for Resident Senior Citizens above 80 years (FY 2015-2016)
S. No.	Income Range	Tax percentage
1	Up to Rs 5,00,000	No tax / exempt
2	5,00,001 to 10,00,000	20%
3	Above 10,00,000	30%
New Income Tax Slabs for A.Y. 2016-17 for Resident Women (below 60 years) (FY 2015-16)
1	Up to Rs 2,50,000	No tax / exempt
2	2,50,001 to 5,00,000	10% - Rs.2500 (Credit)
3	5,00,001 to 10,00,000	20%
4	Above 10,00,000	30%
New Income Tax Slabs for A.Y. 2016-2017 for Men & Others (FY 2015-2016)
1	Up to Rs 2,50,000	No tax / exempt
2	2,50,001 to 5,00,000	10% - Rs.2000 (Credit)
3	5,00,001 to 10,00,000	20%
4	Above 10,00,000	30%

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Monday 15 June 2015

Download Automated Master of Form 16 Part B for the Financial Year 2014-15 and Assessment Year 2015-16.[ This Excel Utility Can prepare at a time 50 employees Form 16 Part B for F.Y.2014-15]

Given below the U/s 80C which some modification in Budget 2015

Easy Chart for deduction u/s80C to 80U Rebate u/s 87A as per Budget 2015-16

Section	Details of deductions	Quantum	Remarks
80C (Individual & HUF)	A. ULIP of Spouse and Children and any member in case of HUF B. Deferred annuity, SPF, RPF, PPF, Superannuation Fund, NSC(8^TH),5 years PO Time deposit, Senior citizen Saving Scheme, Term deposit of 5 years, Deposit for 10 or 15 years in Post office saving bank. C. Bonds of NABARD, Deposit scheme of NHB, Notified deposit scheme,. D. MF referred u/s 10(23D), Pension fund of MF[10(23D)], Eligible issue of securities. E. Cost of purchase or construction of residential house including repayment of loan and expenses on transfer of property, tution fees to any educational institutions for full time eduction of 2 childrens.	Maximum Rs 1 ,50,000 is allowed Investment	No Dedcution Allowed: Terminates the insurance policy within 2 years, Terminate ULIP within 5 years, transfer house within 5 years Limit of eligible premium in case of insurance policy on life of disable person has been increased to 15 % instead of 10 % from FY 13-14. Max. 10% of the minimum amt assured under Life policies
80CCC (Individual)	Deduction in case of contribution to pension fund. However, it should be noted that surrender value or employer contribution is considered income.	Maximum is Rs 1,50,000	Aggregate of 80C 80CCC 80CCD is Rs 1,00,000
80CCD (individual)	Deduction in respect to contribution to new pension scheme. Employees of central and others are eligible.	Maximum is sum of employer’s and employee’s contribution to the scheme limited upto 10 % of salary.	Aggregate of 80C 80CCC 80CCD is Rs 1,50,000
80CCE	It should be noted that employer contribution is allowable as extra u/s 80CCD(2) of the Income Tax Act from Asst Yr 2012-13 and only employee's contribution is within limit of Rs 1 Lakh as stated in 80CCE	It should be noted that as per section 80CCE , the maximum amount of deduction which can be claimed in aggregate of 80C ,80CCC 80CCD(1) is Rs 1,50,0000
80CCG	Individual having gross total income upto Rs 12 Lakh can claim this deduction for inveting in IPOs of share or mututal fund units.	50 % 0f the invested amount . Limit is Rs 25,000 max.	The deduction is allowed for three years only.
80D (Individual &HUF)	Medical insurance on self, spouse , children or parents. The deuction is also allowable for CGHS contribution to Cenral and State scheme. It is also for conducting health check up to Rs 6000.	Age Below 60 years: Rs 25,000 Age above 60 years: Rs 30,000.	Cash payment not allowed. But for Preventive Checkup it is allowed.
80DD (Individual &HUF)	For maintenance including treatment or insurancing the lives of physical disable dependent relatives	Rs 50,000 . In case disability is severe , the amount is Rs 1,00,000.	dependent relatives includes spouse, child, parents, brother sister
80DDB (Individual &HUF)	For medical treatment of self or relatives suffering from specified disease	Acutal amount paid to the extent of Rs 80,000.	Deduction reduced by the amount received under insurance from an insurer or reimbursed by an employer.
80E (Individual)	For interest payment on loan taken for higher studies(after 12) for self or education of spouse or children	Actual amount paid as interest and start from the financial year in which he /she starts paying interest and upto maximum of 8 years.	loan from any financial institution banking or approved charitable institution
80EE	interest on home loan sanctioned during Fy 2013-14. However, value of the property should be below Rs 50 Lakh and max loan sanctioned should be Rs 25 lakh. Further assessee should not have any other residential house.	RS 1 lakh
80G (All Assessee)	Donations to charitable institution (Max. 10,000 if paid in cash from A/Y 13-14)	100% of amount of donation made to 19 entities (National defense fund , Prime minister relief fund etc. ). 50% (Gandhi/ Drouhgt/ charitable purpose/infrastructural development fund). For Asst Yr 2014-15, Natital Children Fund will also get 100% deduction.	Where the aggregate of sums exceed 10% of adjusted gross total income, then such excess amount is ignored for computing such aggregate.
80GG	For rent paid	This is only for people not getting any House Rent Allowance. Maximum is Rs 2000 per month. Rule 11B is method of computation.
80U	Deduction in respect of permanent physical disability including blindness to taxpayer	RS 75,000 Up to 80% and Rs 1,25,000 in case taxpayer is suffering from severe disability more than 80%
87A	Rebate to individual having low taxable income	Amount of tax or Rs 2,000 which ever is less	Only resident individual gets this rebate.
80 TTA	Relief From Savings Bank Interest	Amount Rs. 10,000/- Max Limit who’s Taxable Income less than 5 Lakh	Only resident individual gets this rebate

Download the Form 16 Part A&B and Part B for Financial Year 2015-16 and Assessment Year 2016-17 [ This Excel utility prepare One by One Form 16 Part A&B and Part B for F.Y.2015-16 with available in above deduction of 80C and U/s 10]