Download Automated Income Tax Calculator with Individual Tax Compute Sheet for Financial Year 2015-16 and Assessment Year 2016-17 [ This Excel Utility Can prepare at a time 50 employees Tax Compute Sheet for F.Y.2015-16 with all changes by Finance Budget 2015]

Let the  explain what exactly has changed in terms of taxation from the year (i.e.AY 2016-17) As per Budget 2015:

1. Tax slabs have not changed
2. investment limit under sec. 80CC  increased to 1,50,000

Income Tax Slabs

1) In Case of General Assesses (Both Male & Female):

Income Bracket	Rate
0 to Rs. 2,50,000	0   %
Rs. 2,50,001 to Rs. 5,00,000	10 %
Rs. 5,00,001 to Rs. 10,00,000	20 %
Above Rs. 10,00,000	30 %

2) In Case of Senior Citizens (Age above 60 years but below 80 years):

Income Bracket	Rate
0 to Rs. 3,00,000	0   %
Rs. 3,00,001 to Rs. 5,00,000	10 %
Rs. 5,00,001 to Rs. 10,00,000	20 %
Above Rs. 10,00,000	30 %

3) In Case of Very Senior Citizens (Age 80 years and above):

Income Bracket	Rate
0 to Rs. 5,00,000	0   %
Rs. 5,00,001 to Rs. 10,00,000	20 %
Above Rs. 10,00,000	30 %

* On final tax amount, a surcharge of 3 %
**No surcharge above 10 lacs.

Income Tax Exemptions: 

1) Section 80 C Limit  – Not Raised this year ( Rs. 1,50,000)

• Deduction on premium paid for a life insurance policy, taken after 1 April 2012, will be allowed only if yearly premium is less than 10% of sum assured.  If its more than 10% then it will be not eligible for deduction u/sec. 80C
• ELSS (Mutual Fund)
• PPF (upto Rs. 1,50,000)
• EPF
• FD for 5 years
• Pension Plans
• NSC
• Sukanya Samriddhi Account ( Minor Girl Child Scheme) Max Rs. 1.5 Lakh
• Post Office SB
• Infrastructure Bonds
• Expenditure on Children Education (For upto 2 children only for full time education)
• Tuition fees Maximum allowed is Rs. 1,50,000
• Housing loan principal
• Deferred Annuity
• Approved Super Annotation Fund
• 80CC Raised Up to Rs. 1,50,000 [ Pension Fund ]

2) Section 80CCD - Unchanged this year

Deduction under this section can be claimed only if the contribution to your NPS account is made by your employer and the deduction is limited to a maximum of 10% of your basic salary. Returns on NPS are tax free, but withdrawal is still taxable. The deduction under sec 80CCD is over and above the deduction available under sec 80C.

3) Section 80 D –Changed this year

Deduction under section 80D

• Deduction of Rs. 25000/- is allowed if the same is paid as premium for Medical Insurance taken for self / dependents or towards preventive health check-up (max Rs. 5000). In case any of self / dependents is a senior citizen, the deduction allowed is Rs. 30000/-

4) Section 80DD – Unchanged this year

Deduction under section 80DD

• Exemption given for expenditure made for a disabled dependant towards Medical Treatment/Training/Rehabilitation. It also includes the LIC/Insurance premium paid towards maintenance of such dependant.
• Maximum deduction allowed is Rs. 50,000/- in case of normal disability and Rs. 1 Lakh in case of severe disability.

5) Section 80DDB - Changed this year

Deduction under section 80DDB

• Exemption given for expenditure incurred on specified disease or ailments such as cancer/aids.
• Maximum deduction allowed is Rs. 80,000/-.

List of ailments covered:
(i) Neurological Diseases where the disability level has been certified to be of 40% and above,

1. Dementia ;
2. Dystonia Musculorum Deformans ;
3. Motor Neuron Disease ;
4. Ataxia ;
5. Chorea ;
6. Hemiballismus ;
7. Aphasia ;
8. Parkinsons Disease ;

(ii) Malignant Cancers ;

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

(iv) Chronic Renal failure ;

(v) Hematological disorders :

1. Hemophilia ;
2. Thalassaemia.

6) Section 80E - Unchanged this year

Deduction under section 80E
Deduction is allowed for repayment of interest component of Higher Education loan. All education after Class 12 is allowed, either vocational or Fulltime. But should be from a school/institute/university recognized by the government.

7) Section 80G - Unchanged this year

• Contribution to exempt charities – 25/50/75/100% depending on the charity and as per approval
• 100% exemption on donation to political parties

8) Section 80U - Changed this year

• Deduction upto Rs. 75,000/- is allowed in case of Permanent Disability.
• In case of Permanent Disability exceeding 80%, maximum deduction allowed is Rs. 1,00,000/-.

9) Section 24B & Section 80EE  - Unchanged this year

• Housing loan interest. Maximum allowed limit raised to – Rs. 2,00,000 (for loans taken after 1 April 1999. For loans before that Maximum Investment Limit was 30,000).

• Additional deduction of Rs. 1 lac will be applicable to persons taking first home loan of up to Rs. 25 lacs for property worth upto Rs. 40 lac. For such persons, the total deduction will be Rs. 2.5 lacs (Rs. 1.5 lac available under section 24(1)(vi) and Rs. 1 lac available under this new section 80EE). 10) Superannuation - Unchanged this year

Any contribution made by a company to superannuation fund upto Rs. 1,00,000 tax free in the hands of the employee.

11) Conveyance/Transport Allowance - Changed this year

Any Conveyance / Transport Allowance given to an employee is tax free upto Rs. 1600 /- P.M. & Rs. 3200/- P.M. for Phy.disable persons.

12) Medical Allowance - Unchanged this year

Any Medical Allowance given to an employee is tax free upto Rs. 15,000 /- (Supporting Bills required).

13) HRA - Unchanged this year

Any House Rent Allowance given to an employee is tax free upto the minimum value of the following conditions (subject to – when an employee can produce rent paid receipts from landlord for the period and if the employee has not availed of tax exemptions for home loan interest / principal repayment):

1. 50% of Annual Basic (40% of Annual Basic in case of non-metros)
2. Actual HRA received
3. Rent Paid – (10% of Annual Basic)

   Calculate HRA Exemption U/s 10(13A) with Excel utility

14) Professional Tax - Unchanged this year

Any Professional Tax deducted from an employee’s salary can be reduced from the annual salary income to arrive at taxable salary.

15)80CCG – Direct Equity Investment - Unchanged this year

Under ‘Rajiv Gandhi Equity Savings Scheme‘ – a new equity investor will be able to claim 50% of his investment in direct equity as deduction subject to maximum investment of Rs. 50,000 and provided his taxable income is below Rs. 10 lacs. The investment will be subject to 3 years lock-in.  
Government has notified this scheme (RGESS). Mutual funds and ETFs that invest in BSE100 or CNX 100 stocks or PSUs which are Navratna, Maharatna and Miniratna will qualify under this scheme. These investments can be traded over stock exchange after 1 year of investment. New equity investor has been defined as someone who has opened a Demat account but has not bought any securities till date of notification of this scheme (22 Sep 2012).

16) Section 80TTA – Savings Bank Interest - Unchanged this year

No tax will be charged on interest earned on balance in savings bank account subject to a maximum of Rs. 10,000 per year.

17) Section 87 A [Tax Rebate Rs.2,000/-  - Unchanged this year

On May 22, 2015 by www.taxexcel.net

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Download Automatic Arrears Relief Calculator with Form 10E  from the F.Y.2000-01 to F.Y.2015-16

The Budget 2015 applicable to the Salaried Persons in Income Tax

      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:

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.

Download Automatic Arrears Relief Calculator with Form 10E  from the F.Y.2000-01 to F.Y.2015-16

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%

On May 10, 2015 by www.taxexcel.net

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All in One TDS on Salary for Non-Govt employees for the Financial Year 2015-16 & Assessment Year 2016-17 [ This Excel Based Software can prepare at a time your Tax Compute Sheet + Salary Structure as per Private Concerned Salary Pattern + HRA Calculation + Form 16 Part A&B and Part B + Form 12 BA ]

This Excel Utility have all the changes by the Finance Budget 2015-16. All the Tax Section have incorporate in this Excel Utility. 

The main Changes in the Income Tax for salaried person by the Finance Budget 2015-16 is given below:-

1.     Increase in the limit of deduction in respect of health insurance premium from Rs.15,000 to Rs.25,000. U/s 80D

2.     For senior citizens the limit will stand increased to Rs.30,000 from the existing Rs.20,000.U/s 80D

3.     For very senior citizens of the age of 80 years or more, who are not covered by health insurance, deduction of Rs.30,000 towards expenditure incurred on the treatment will allowed.

4.     The  deduction  limit  of  Rs.60,000  towards  expenditure  on  account  of specified diseases of serious nature is proposed to be enhanced to Rs.80,000 in case of very senior citizens U/s 80DDB

5.     The limit on deduction on account of contribution to a Pension Fund and the New Pension Scheme is proposed to be increased from Rs.1 lakh to Rs.1.5 lakh U/s 80CC

6.     Investments in Sukanya Samriddhi Account is already eligible for deduction under Section 80C Max. Rs.1.5 Lakh for Minor Girl Child below 10 Years  

7.     Transport allowance exemption is being increased from Rs.800 to Rs.1,600 per month U/s 10

On May 02, 2015 by www.taxexcel.net

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