Download All in One Income Tax Preparation Excel Based Software for Govt & Non-Govt employees for the Financial Year 2015-16 & Ass Year 2016-17 [ This Excel Based Software can prepare at a time your Income Tax Computed Sheet + Automated HRA Exemption Calculation + Automated Arrears Relief Calculation with Form 10E + Automated Form 16 Part A&B and Form 16 Part B as per the Budget 2015] This Excel Utility can Use both of Govt and Private Concerned employees.

Most of the Tax payers are known about the Income Tax Section 80C where you can relief Max Rs. 1.5 Lakh. And Common Tax Payers only follow this section 80C, and they always follow whether the limit extended or not, which deduction are include in this Section 80C. Most of the Tax Payers are look this Only this Section.

But As per the Income Tax Act 1961, you may get Income Tax Relief from your Source of Income Directly other than Section 80C. Below given a list of Income Tax Section were you can get Relief and this deduction will be reduce your Income Tax. The below given list is shown and follow the New Finance Budget 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).

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 Medical Insurance :-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 80DD :-You can claim up to Rs 75,000 (increased from the existing Rs 50,000) for spending on medical treatments of your dependents (spouse, parents, kids or siblings) who have 40% disability. It is also been proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.

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):- House Building Loan Interest:- 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 80EE:- House Building Loan Interest :- You can get another Relief from the House Building Loan Interest U/s 80EE which was introduce in the Financial Year 2013-14 and this Section remain continue for forth comming financial Year. The Max Limit Rs. 1 Lakh and the this relief can get who are HB Interest Paid since 1/4/2013 and onwards.

Section 80U :- You can claim up to Rs 75,000 (increased from the existing Rs 50,000) who have 800% disability. It is also increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability above 80 %

Section 80 TTA :- This Section can get relief from Income Tax from the Savings Bank Interest Max Rs.10,000/- who's taxable Income less than 5 lakh.

Section 87A :- This Section can get Relief from Income Tax as Tax Rebate Max. Rs.2,000/- who's Taxable Income Less than 5 Lakh.

Section 10(13A) : House Rent Exemption Max Rs. 50%,40% or 10% of Basic pay + D.A. + Spl allowances which ever is less [ Download HRA Exemption Calculator U/s 10(13A)

Section 89(1) :- Arrears Relief from Income Tax, some of employees have received the salary amount from his Previous Financial Year, which may break up and can get relief this section and also he have to submit the Form 10e.[ Download the Arrears Relief Exemption Calculator U/s 89(1) with Form 10E, Since 2000-01 to 2014-15 ]

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Claim Income Tax Exemptions And Deductions After Passed the Finance Budget 2015 to the Salaried Persons

The deadline to file income tax return is closing. You might have got the form 16 from your employer. You may be in the hurry to complete this annual ritual. This year, you may be e-filing income tax yourself. The process has become easier. Even you don’t need to send ITR-V.

Are you sure about the tax deduction amount? Have you saved tax as much as possible? Is there not any chance to save more tax?

4 out of 10 people have the opportunity to save tax before e-filing income tax return. You may be also one of them. No, I am not talking about the tax saving investment of the new financial year. You can still save tax on the investments of previous financial year. As, there is a probability of under reporting the tax deductions and exemptions.

The employers deduct tax according to your income, exemptions and tax saving investments. For uniform tax deductions throughout the year, the employers ask a tax declaration. You state your insurance premium, ELSS, PPF and other tax saving investments. In the month of January and February Employers again ask the investment proof and rent receipts to calculate the final TDS on the basis of hard facts. This is the time when you may be struggling for the proofs. Many tax saving investments are done in the hurry. You have to meet the deadline given by the employer. The total tax deduction is done on the basis of the given proof.

you might miss the deadline. You might not produce proofs on time. You may not get the receipt of term insurance on time. You may have invested in the PPF account just before the end of the financial year. The tuition fees receipt may come late. Or, you may find a good time to invest in ELSS after the deadline. There may be many reasons of under reporting.

Did you also miss the bus of tax saving? Not really. If you deserve to pay less tax, the proof submission deadline can’t deprive you. What if, your employer has deducted excess tax, you can claim income tax refund. The income tax filing is the method to claim refund of excess tax.

Hence, once again, you should review the tax liability. Write down all of your tax saving investments and expenses. Ponder over the tax exemptions. Were you eligible for more tax exemptions? Here is the checklist to help you.

· Did your landlord increase the rent of the last few months, will this increase was part of the HRA exemption?

· Did you take an insurance plan after the proof submission deadline?

· Did you contribute into the PPF account just before the end of the financial year?

· Did you get the receipt of tuition fees after the proof submission deadline?

· Did you also invest lumpsum amount in the ELSS in addition to thes ystematic investment plan (SIP)?

· Have you gone for the health check up after the deadline?

· Is your home loan approved after the deadline and EMI started before 31st march?

The reasons can be many. You have to just think over it. A review of tax deductions and exemption can save tax. It is to your benefit.

Fortunately, if you find any missed tax deduction or exemption, you can ask for tax refund.

Path To Save More Tax

Think Beyond Form 16

You can cut excess tax while filing income tax return. The income tax return is the mechanism to present the tax liability with all the details. In this form, you have to tell about the income, the applicable exemptions and tax saving deductions. The ITR utility calculates tax according to the data given by you. It relies upon you.

To simplify the things your employer gives form 16. The form 16 has all the details of your income, TDS and tax saving exemptions and deductions.

The form 16 only helps in filing income tax return. It is not the final word of your tax calculation. The income tax return filed by you is final tax information from you.

No Need To Attach Any Proof

Do you want to add any extra tax deduction investment in the income tax return? Are you thinking of sending the proof of extra investment to the income tax department?

Just chill. The income tax department does not accept any proof of investment. Neither, it accepts any proof with income tax return, nor It accepts the proof from your employer. Rather, It is the responsibility of your employer to maintain the record. If required, income tax department can ask the record and proof.

As far as the investment proof after the deadline is concerned, you need not to attach it with the income tax return. Indeed, It is not possible with efiling.

Keep All The Records To Prove The Claimed Tax Exemption And Deductions

The tax department relies on your income tax declaration and accepts your income tax return. But, if it finds any anomaly or tax avoidance, the assessing officer can ask for the proofs. Nowadays, the hi-tech system of income tax department can track all of your earning and investment. Hence, if there is any suspicion, it can ask for proof. Therefore, you should always keep the investment proof for 6 years. The tax department can reopen the case of the last 6 years.

Don’t Misuse System To Avoid Tax

It seems enticing to file a false income tax return. It can give heavy tax refunds.

But, please beware! Tax avoidance has become very tough, therefore you should always give correct information in the ITR form. Be truthful to avoid heavy penalty.

Take Note of the Financial Year

You can claim tax deduction on the investment done after the proof submission deadline. But it does not mean you can also count the investment done after the 31st March. Please take care of the financial year before adding any investment in ITR forms.

You can Also Revise ITR

If for any reason, you misses to report an investment in ITR form, you can report it further. You can file revised income tax return. The extra investment can be incorporated in the revised income tax return.

Claiming Tax Refund Can’t Be A Norm, It Is a Suspicious Behaviour

The income tax return gives you the opportunity to get back the excess taxes. But, It can’t be a regular practice. You should not ask for tax refund every year. Although, technically there is nothing wrong with repeated tax refund claims. But this type of behavior can generate suspicion. You should not attract the tax official.

The Exemptions and Deductions You Can File In Income Tax Return Form

There are some exemption and deductions which are not dependent upon the employer or form 16. You can give the information about the exemption, you deemed correct.

House Rent Allowance exemption on your income tax return

House Rent allowance (HRA) exemption is a major tax saver for salaried. Without the HRA, your tax liability increases substantially. Therefore, you must take the tax benefit of HRA. This exemption is available when the employee is living in a rented accommodation and pays rent to the landlord.

But could you not submit the rent receipt before deadline? Did your employer deduct tax on the HRA as well? You can claim this exemption through the income tax return.

1. To avail this benefit through ITR, you need to calculate the HRA exemption available to you.

2. You should deduct the applicable HRA exemption from the taxable income.

3. If you have already availed some HRA exemption, you should only deduct the remaining exemption.

The HRA exemption will reduce your total tax liability, which in turn will give you a tax refund.

EPF Contribution

The EPF can be also claimed at the time of income tax return filing. Since, the employer deducts this amount it self, there would be a less chance to change in this amount. The PF contribution by you is eligible for tax deduction under section 80C.

Life Insurance premium

The premium paid by you for life insurance for yourself, your spouse or any child can be claimed as a deduction. The deduction can be claimed for the full amount paid (premium including service tax & other charges).

Children’s Tuition Fee Payment

Tuition fees paid by you for the education of your children (maximum 2) are eligible for tax deduction under section 80C. If you could not produce the receipt of fees paid, you can claim this expense with income tax return.

Principal Repayments on Home Loan

The principal payment of a home loan is eligible for tax deduction. You can mention it in the income tax return. The home loan principal payment deduction is covered under section 80C.

Health Check-up

The health check-up is often missed. Under section 80D, you can claim tax deduction on the maximum expense of 5000 in a financial year. The health check-up can be of your, spouse or children.

Exemption Can’t be Claimed In the Income Tax Return

You can’t claim each and every tax exemption through the income tax return. There is some exemption, which needs the validation of your employer.

LTA

Expenses on a trip against the LTA can only be claimed via your employer. Because, it needs the authorization of the employer. The unclaimed LTA can be carried forward to the next year.

Medical Reimbursement

Medical reimbursement requires original receipt. Only your employer can claim tax exemption under this head. You can’t claim it with the income tax return.

You have a flexibility to claim the tax deductions and exemption with the income tax return. But never try to misuse it. The advanced technology of the income tax department is keeping an eye on every taxpayer. Also, you must keep the record of all the claimed exemptions or deductions. So that you can produce it whenever the tax assessing officer asks.