Breaking News
Loading...
Share It

Enter your email address:

Powered by Feedio

Showing posts with label U/s 80CCD(1B). Show all posts
Showing posts with label U/s 80CCD(1B). Show all posts

Wednesday 30 October 2019


The 80CCD deduction for AY 2019-20 can be divided into three different categories:
  • 80CCD (1): You can avail of this deduction irrespective of whether you're in employment or self-employed on the amount deposited under a pension scheme notified by the Central Government (NPS deduction for AY 2018-19). The deduction allowed in this section is lower of the following 3 amounts:
    1. 10% of your Salary (Basic salary+D.A) (in case you're in employment) or 20 % of your Gross Total Income (in case you're self-employed)
    2. Limit left under section 80CCE i.e. Rs 1,50,000 - deduction u\s 80C - deduction u\s 80CCC.
    3. Actual Amount paid under eligible NPS.

Tuesday 29 October 2019


The 80CCD deduction for AY 2019-20 can be divided into three different categories:

Sunday 5 June 2016

DownloadAll in One TDS on Salary for Non-Govt Employees for F.Y.2016-17 & Ass Yr 2017-18 [This Excel based software can prepare at a time Tax Computed Sheet + Individual Salary Structure + Individual Salary Sheet + Automated H.R.A Exemption Calculation + Automated Form 12 BA + Automated Form 16 Part A&B and Form 16 Part B  as per the Budget 2016]


Changes in Income Tax Rules:

1. There has been no change in the income tax slabs.

2. For people with net taxable income below Rs 5 lakh, the tax rebate has been increased from Rs 2,000 to Rs 5,000 u/s 87A. This would benefit people who have net taxable income between Rs 2.7 Lakhs to Rs 5 Lakhs.

3. Additional exemption for first time home buyer up to Rs. 50,000 on interest paid on housing loans. This would be applicable where the property cost is below Rs 50 Lakhs and the home loan is below Rs 35 lakhs. The loan should be sanctioned on or after April 1, 2016.

4. Tax Exemption u/s 80GG (for rent expenses who do have HRA component in salary) has been increased from Rs 24,000 to Rs 60,000 per annum. This is a good move to align the exemption amount with today’s rent and keep the section relevant.

5. For people with net taxable income above Rs 1 crore, the surcharge has been increased from 12% to 15%
6. Dividend Income in excess of Rs. 10 lakh per annum to be taxed at 10%

7. 40% of lump sum withdrawal on NPS at maturity would be exempted from Tax. This rule now also applies to EPF. So now in case of EPF income tax would be applicable on 60% of the corpus on maturity.

8. Presumptive taxation scheme introduced for professionals with receipts up to Rs. 50 lakhs. The presumptive income would be 50% of the revenues.

Download Automated ArrearsRelief Calculator U/s 89(1) with Form 10E from F.Y. 2001-02 to F.Y. 2016-17 [ Up to date Version]


1. Section 80C/80CCC/80CCD

These 3 are the most popular sections for tax saving and have lot of options to save tax. The maximum exemption combining all the above sections is Rs 1.5 lakhs. 80CCC deals with the pension products while 80CCD includes Central Government Employee Pension Scheme.
You can choose from the following for tax saving investments:
1.                 Employee/ Voluntary Provident Fund (EPF/VPF)
2.                 PPF (Public Provident fund)
3.                 Sukanya Samriddhi Account
4.                 National Saving Certificate (NSC)
5.                 Senior Citizen’s Saving Scheme (SCSS)
6.                 5 years Tax Saving Fixed Deposit in banks/post offices
7.                 Life Insurance Premium
8.                 Pension Plans from Life Insurance or Mutual Funds
9.                 NPS (New Pension Scheme)
10.        Equity Linked Saving Scheme (ELSS – popularly known as Tax Saving        Mutual Funds)
11.            Central Government Employee Pension Scheme
12.            Principal Payment on Home Loan
13.            Stamp Duty and registration of the House
14.            Tuition Fee for 2 children

2. Section 80CCD(1B) – Investment in NPS

Budget 2016 has allowed additional exemption of Rs 50,000 for investment in NPS. We have done a complete analysis and concluded that it would be beneficial for you to discard this benefit and invest after tax money in a good equity mutual fund.

Download Automated House Rent Exemption Calculator U/s 10(13A) [ Excel Based Software]



3. Payment of interest on Home Loan (Section 24/80EE)

The interest paid up to Rs 2 lakhs on home loan for self-occupied home is exempted u/s 24. There is no limit for home given on rent.
Budget 2016 has provided additional exemption up to Rs 50,000 for payment of home loan interest for first time home buyers. To avail this benefit the value of home should not exceed Rs 50 lakhs and loan should not be more than Rs 35 lakhs.

4. Payment of Interest on Education Loan (Section 80E)

The total interest paid on education loan can be claimed as tax exemption. There is no upper limit for the same.

5. Investment in RGESS-(Section 80CCG)

Deduction Up to Rs 25,000 (50% of amount invested) is allowed if you make investment in pre approved stocks and mutual funds in Rajiv Gandhi Equity Savings Scheme (RGESS). This is available to first time equity investors subject to certain conditions.

6. Medical insurance for Self and Parents (Section 80D)

You can get tax deduction up to Rs 60,000 by paying medical insurance premium for self, your dependents and your parents. There is also sub limit of Rs 5,000 for preventive medical checkup.

7. Treatment of Serious disease (Section 80DDB)

You can claim deduction up to Rs 80,000 for treatment of certain diseases like AIDS, renal failure, etc for self or dependents

8. Physically Disabled Tax payer (Section 80U)

Physically Disabled Tax payer can get tax exemption up to Rs 1.25 lakhs u/s 80U for above 801% and Rs.75,000/- for below 80% of  physically Disabled Tax payer

9. Physically Disabled Dependent (Section 80DD)

You can claim deduction up to Rs 1.25 lakhs for maintenance and medical treatment of Physically Disabled dependent

10. Rebate Rs.5,000/- U/s 87A


Please give us your feedback and help us improve!