Most of the salaried person has known only medical insurance U/s 80D where can get tax relief up to Rs. 15,000/- for below 60 years and Rs. 20,000/- for Sr. Citizen. But as per the Tax Section, 80DDB can get extra benefits regarding the treatment of various diseases, as per the noted by the Income Tax Act 1961. As per the Central Finance Budget 2014-15 have no change in this section. The rebate of section 80DDB is given below:-

On March 09, 2018 by www.taxexcel.net

Share It

No Comments

Read More

Download Automated Master of Form 16 Part A&B for the Financial Year 2016-17 [ This Excel Utility can prepare at a time 100 employees Form 16 Part A&B with all up dated Tax Section and Tax Section as per Finance Bill 2016]

Deductions on Section 80C, 80CCC, 80CCD & 80CCD(1B)

Section 80C

The deduction under section 80C is allowed from your Gross Total Income. These are available to an Individual or an HUF.

Broadly speaking, this section provides deduction from total income in respect of various investments / expenditures / payments. Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17, excluding U/s 80CCD(2) And 80CCD(1B).

Section 80CCC: Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer

This section provides the deduction to an Individual for any amount paid or deposited in any annuity plan of LIC any other insurer for receiving the pension from a fund referred to in Section 10(23AAB).

In case the annuity is surrendered before the date of its maturity, the surrender value is taxable in the year of receipt.

Section 80CCD: Deduction in respect of Contribution to Pension Account

Total Deduction under Section 80C, 80CCC and 80CCD(1) cannot exceed Rs 1,50,000. Employer’s contribution under section 80CCD(2) towards NPS is outside the monetary ceiling mentioned above & Rs. 50 thousand can get additional tax relief from U/s 80CCD(1B)

Deductions on Savings Bank Account

Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account

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 ( not time deposits ) with a bank, co-operative society or post office, is allowable 

Deductions on House Rent

Section 80GG: Deduction in respect of House Rent Paid

Deduction available is the least of

1. Rent paid minus 10% of total income
2. Rs.5000/- per month
3. 25% of total income, provided
• Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
• He should not be in receipt of house rent allowance.
• He should not have self-occupied residential premises in any other place.

Deductions on Loan for Higher Studies

Section 80E: Deduction in respect of Interest on Loan for Higher Studies

Deduction in respect of interest on loan is taken for pursuing higher education. The deduction is also available for the purpose of higher education of a relative w.e.f. A.Y. 2008-09.

Deductions on Rajiv Gandhi Equity Saving Scheme (RGESS)

Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)

The Rajiv Gandhi Equity Saving Scheme (RGESS) was launched after the 2012 Budget. Investors whose annual income is less than Rs. 10 lakhs can invest in this scheme (up to Rs. 50,000) and get a deduction of 50% of the investment.

So, if you invest Rs. 50,000 (maximum amount eligible for income tax rebate is Rs. 50,000), you can claim a tax deduction of Rs. 25,000 (50% of Rs. 50,000).

Deductions on Medical Insurance

Section 80D: Deduction in respect of Medical Insurance

The deduction is available up to Rs. 20,000/- for senior citizens and up to Rs. 25,000/ in other cases for insurance of self, spouse, and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 30,000/- if parents are senior Citizen and Rs. 15,000/- in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 55,000/-. From A.Y 2016-17, within the existing limit a deduction of up to Rs. 5,000 for preventive health check-up is available.

Deductions on Medical Expenditure on Self or Dependent Relative

Section 80DDB: Deduction in respect of Medical Expenditure on Self or Dependent Relative

A deduction to the extent of Rs. 80,000/- or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assessee from any Registered Doctor.

Deductions on Medical Expenditure for a Handicapped Relative

Section 80DD: Deduction in respect of Rehabilitation of Handicapped Dependent Relative

Deduction of Rs. 50,000/- is available on:

1. expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.
2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.

Further, if the dependant is a person with severe disability, a deduction of Rs. 100,000/- is also available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.

Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.

Deductions on Person suffering from Physical Disability

Section 80U: Deduction in respect of Person suffering from Physical Disability

Deduction of Rs. 75,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 125,000/- shall be available u/s 80U. The certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.

Deduction for donations towards Social Causes

Section 80G: Deduction for donations towards Social Causes

The various donations specified in Sec. 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Sec. 80G. 80G deduction not applicable in case donation is done in form of cash for an amount over Rs 10,000.

Donations with 100% deduction without any qualifying limit:

• National Defence Fund set up by the Central Government
• Prime Minister’s National Relief Fund
• National Foundation for Communal Harmony
• An approved university/educational institution of National eminence
• Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
• Fund set up by a State Government for the medical relief of the poor
• National Illness Assistance Fund
• National Blood Transfusion Council or to any State Blood Transfusion Council
• National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
• National Sports Fund
• National Cultural Fund
• Fund for Technology Development and Application
• Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund in respect of any State or Union Territory
• the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
• The Maharashtra Chief Minister’s Relief Fund during October 1, 1993, and October 6, 1993
• Chief Minister’s Earthquake Relief Fund, Maharashtra
• Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
• Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001, and September 30, 2001) or
• Prime Minister’s Armenia Earthquake Relief Fund
• Africa (Public Contributions — India) Fund

Donations with 50% deduction without any qualifying limit.

• Jawaharlal Nehru Memorial Fund
• Prime Minister’s Drought Relief Fund
• National Children’s Fund
• Indira Gandhi Memorial Trust
• The Rajiv Gandhi Foundation

Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income

• Government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
• Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India.

Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income

• Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
• Government or any local authority to be utilized for any charitable purpose other than the purpose of promoting family planning
• Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
• Any corporation referred in Section 10(26BB) for promoting interest of minority community
• For repairs or renovation of any notified temple, mosque, gurudwara, church or another place.

Download Automated Master of Form 16 Part B for the Financial Year 2016-17[ This Excel Utility can prepare at a time 100 employees Form 16 Part B with all updated Tax Section and Tax Slab]

On December 17, 2016 by www.taxexcel.net

Share It

No Comments

Read More

Specialists in private hospitals can now give a certificate for eduction under Section 80DDB of the Income Tax Act.

Download All in One TDS on Salary for Non-Govt Employees for Financial Year 2016-17 [ This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Sheet+ Individual Salary Structure + Automatic HRA Calculation +Automatic 12 BA + Automated Form 16 Part A&B and Part B for Assessment Year 2017-18]

When you have spent money for treatment of a dependent, suffering from a listed disease, you can claim deduction under section 80DDB. This deduction can be claimed by an individual or HUF. Only residents in India can claim this deduction. It can be claimed for your spouse, children, parents, and siblings. (The diseases for which this deduction is allowed are listed at the end of this article). 

How to get a certificate

 A certificate of the disease is mandatory to claim the deduction on your income tax return. The process of getting this certificate has now been simplified by the income tax department.

For patients who are receiving treatment in a private hospital, the certificate can be taken from the private hospital itself. They don’t have to take a certificate from a government hospital. The certificate must be taken from a specialist with a degree in the specialized field. This degree must be recognised by the Medical Council of India. 

For patients getting treated in a government hospital, the certificate must be taken from any specialist working full-time in that hospital. Such specialist must have a post-graduate degree in general or internal medicine or any equivalent degree, which is recognized by the Medical Council of India.

Certificate in Form 10I is no longer required. The tax department has specified some details that the certificate must include. The certificate must have name and age of the patient, name of the disease or ailment, name, address, registration number and the qualification of the specialist issuing the prescription. If the patient is receiving the treatment in a government hospital, it should also have name and address of the government hospital. 

How much deduction is allowed? 

For the financial year 2015-16 (the assessment year 2016-17) 40,000/- or the amount actually paid, whichever is less. In the case of senior citizen Rs, 60,000 or amount actually paid, whichever is less. For very senior citizens Rs 80,000 is the maximum deduction that can be claimed. 

Specified diseases

• 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.

• Malignant Cancers

• Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

• Chronic Renal failure

• Haematological disorders

(i) Haemophilia

(ii) Thalassaemia

On October 25, 2016 by www.taxexcel.net

Share It

No Comments

Read More

This year when you file your returns, make sure that you are availing maximum benefits which has been offered by the IT Department of India. In this article, we will be discussing the range of deductions which a tax payer can get under Section 80DDB. So, let’s get started!

On January 31, 2016 by www.taxexcel.net

Share It

No Comments

Read More

Specialists in private hospitals can now give certificate for deduction under Section 80DDB of the Income Tax Act.

Download All in One TDS on Salary for Non-Govt Employees for Financial Year 2015-16 [ This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Sheet+ Individual Salary Structure + Automatic HRA Calculation +Automatic 12 BA + Automated Form 16 Part A&B and Part B for Assessment Year 2016-17]

 

When you have spent money for treatment of a dependant, suffering from a listed disease, you can claim deduction under section 80DDB. This deduction can be claimed by an individual or HUF. Only residents in India can claim this deduction. It can be claimed for your spouse, children, parents and siblings. (The diseases for which this deduction is allowed are listed at the end of this article). 

How to get a certificate

 A certificate of the disease is mandatory to claim deduction in your income tax return. The process of getting this certificate has now been simplified by the income tax department.

For patients who are receiving treatment in a private hospital, the certificate can be taken from the private hospital itself. They don’t have to take certificate from a government hospital. Certificate must be taken from a specialist with a degree in the specialised field. This degree must be recognised by the Medical Council of India. 

For patients getting treated in a government hospital, certificate must be taken from any specialist working full-time in that hospital. Such specialist must have a post-graduate degree in general or internal medicine or any equivalent degree, which is recognised by the Medical Council of India.

Certificate in Form 10I is no longer required. The tax department has specified some details that the certificate must include. The certificate must have name and age of the patient, name of the disease or ailment, name, address, registration number and the qualification of the specialist issuing the prescription. If the patient is receiving the treatment in a government hospital, it should also have name and address of the government hospital. 

How much deduction is allowed? 

For financial year 2015-16 (assessment year 2016-17) 40,000/- or the amount actually paid, whichever is less. In case of senior citizen Rs 60,000 or amount actually paid, whichever is less. For very senior citizens Rs 80,000 is the maximum deduction that can be claimed. 

Specified diseases

• 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.

• Malignant Cancers

• Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)

• Chronic Renal failure

• Haematological disorders

(i) Haemophilia

(ii) Thalassaemia

On December 11, 2015 by www.taxexcel.net

Share It

No Comments

Read More

At the present, most of the employee suffering from the various  disease and they can expenses huge of money for their Medical Treatment. Most of the Employee have not know about the Income Tax Section 80 DDB where they can relief Maximum Rs. 80,000/- as per the Finance Budget 2015. But the Income Tax Department have specify the Disease and the way how to get the benefits of tax relief in section as given below:-

Scope of Deduction - Deduction is applicable for treatment of self, spouse, children, siblings, and parents, wholly dependent on you. Diseases covered

a) Neurological Diseases (where the disability level has been certified as 40% or more).

b) Parkinson’s Disease

c) Malignant Cancers

d) Acquired Immune Deficiency Syndrome (AIDS)

e) Chronic Renal failure

f) Hemophilia

g) Thalassaemia Key Factors If you are already receiving any reimbursement for the treatment from your insurance company or employer, deductions cannot be claimed. If you are receiving partial reimbursement, the balance amount can be used for a deduction. A certificate would be required from a specialist working in a government hospital, as proof for the specified ailment.

Download Automatic Master of Form 16 Part A & B for Financial Year 2015-16 and Ass Yr 2016-17[ This Excel Based Utility can prepare at a time 100 employees Form 16 Part B]

On June 27, 2015 by www.taxexcel.net

Share It

No Comments

Read More

In the Income Tax Section 80 DDB In respect of Medication Treatment who have suffer from the given below listed disease ( As per the Income Tax Rules):-
Specified Disease List to get the relief U/s 80 DDB Is :-
  (i)   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)   Parkinsons Disease ;

         (ii)   Malignant Cancers ;

         (iii)   Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;

         (iv)   Chronic Renal failure ;

         (v)   Hematological disorders :

         (i)   Hemophilia ;

         (ii)   Thalassaemia.

Download the Automatic Form 16 Part B and Part A&B for the Financial Year 2013-14 with the all Income Tax Section at a glance in brief ( Click here to download the Utility)

 80DDB. Where an assessee who is resident in India has, during the previous year, actually paid any amount for the medical treatment of such disease or ailment as may be specified in the rules^89-90 made in this behalf by the Board—

          (a)  for himself or a dependant, in case the assessee is an individual; or

          (b)  for any member of a Hindu undivided family, in case the assessee is a Hindu undivided family,

the assessee shall be allowed a deduction of the amount actually paid or a sum of forty thousand rupees, whichever is less, in respect of that previous year in which such amount was actually paid :

Provided that no such deduction shall be allowed unless the assessee furnishes with the return of income, a certificate in such form, as may be prescribed^89-90, from a neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other specialist, as may be prescribed^89-90, working in a Government hospital :

Provided further that the deduction under this section shall be reduced by the amount received, if any, under an insurance from an insurer, or reimbursed by an employer, for the medical treatment of the person referred to in clause (a) or clause (b) :

Provided also that where the amount actually paid is in respect of the assessee or his dependant or any member of a Hindu undivided family of the assessee and who is a senior citizen, the provisions of this section shall have effect as if for the words “forty thousand rupees”, the words “sixty thousand rupees” had been substituted.

Explanation.—For the purposes of this section,—

           (i)  “dependant” means—

      (a)  in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them,

      (b)  in the case of a Hindu undivided family, a member of the Hindu undivided family,

                dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance;

          (ii)  “Government hospital” includes a departmental dispensary whether full-time or part-time established and run by a Department of the Government for the medical attendance and treatment of a class or classes of Government servants and members of their families, a hospital maintained by a local authority and any other hospital with which arrangements have been made by the Government for the treatment of Government servants;

         (iii)  “insurer”⁹¹ shall have the meaning assigned to it in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938);

         (iv)  “senior citizen” means an individual resident in India who is of the age of sixty-five years or more at any time during the relevant previous year.]

On November 26, 2013 by www.taxexcel.net

Share It

No Comments

Read More