January 18, 2017

Tax-planning tips for salaried people for F.Y.2016-17, With Automatic All in One TDS on Salary for West Bengal Govt Employees for F.Y.2016-17

With the tax-planning season about to end, most individuals are rushing around to make investments to minimise their tax liability. It has been observed that individuals (often salaried ones) end up paying more taxes than they are obligated to.
While the lack of sufficient time to conduct the tax-planning exercise is a reason, largely, this can be attributed to lack of awareness about different incentives, allowances, and rebates under the Income Tax Act. Apart from the Section 80C deductions which are quite popular, there are various other sections which can help salaried individuals save taxes.
We believe there is a need for salaried individuals to devote adequate time and effort to the tax planning exercise and be aware of the various benefits that they can avail of. In this article, we present 5 tax-planning tips that can aid salaried individuals to minimise their tax liability.

Download Automated All in One Income Tax Preparation Excel Based Software for West Bengal Govt Employees for F.Y.2016-17 [ This Excel Utility can prepare at a time your Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automatic H.R.A. Calculation + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17]





1. Utilise the entire Section 80C deduction
Under Section 80C, the maximum deduction available is Rs 150,000 pa. Ideally, salaried individuals whose gross total income is equal to or more than Rs 250,000 should utilise the entire Rs 150,000 limit.
Consider the case of an individual whose taxable income is Rs 600,000 and who only utilises half of the available Rs 150,000 limit. He would end up paying an additional tax of Rs 15,450 as opposed to an individual with the same taxable income but has utilised the entire limit.
Also, at times, individuals make investments of over Rs 1,50,000 in Section 80C designated avenues, since they fail to understand that the benefits are capped. For example, despite making investments of Rs 70,000 in Public Provident Fund and Rs 40,000 in ELSS, the amount eligible is only Rs 1,50,000.
Following investments/contributions qualify for Section 80C deductions,
  • Public Provident Fund
  • National Saving Certificate
  • Accrued interest on National Saving Certificate
  • Life Insurance Premium
  • Tuition fees paid for children's education (maximum 2 children)
  • Principal component of home loan repayment
  • Equity Linked Savings Schemes (ELSS)
  • 5-Year fixed deposits with banks and Post Office
2. Think beyond Section 80C
For salaried individuals whose gross total income exceeds Rs 250,000 pa, deductions under Section 80C may not be sufficient to reduce the overall tax liability. In such cases they can consider the following:
Home loan: Individuals intending to buy a house should consider opting for a home loan. Interest payments of up to Rs 150,000 pa are eligible for deduction under Section 24.
Medical insurance: An individual who pays the medical insurance premium for self or spouse/dependent children is allowed a deduction of up to Rs 25,000 P.A. under section 80D.
An additional deduction of up to Rs 25,000 P.A. is allowed for premium payment made for parents. In case the parents are senior citizens, then the maximum deduction allowed is Rs 30,000 per year.
Donations: Subject to the stated limits, donations to specified funds/institutions are eligible for tax benefits under Section 80G.
Salaried individuals who plan to pursue higher education should avail of an education loan as the entire interest is eligible for deduction under Section 80E. The loan can be for self, spouse or child from an approved charitable institution or a notified financial institution.
3. Restructure the salary
Restructuring the salary and including certain components can go a long way in reducing the tax liability. Unlike eligible investments which lead to an additional cash outflow, restructuring the salary is a more 'efficient' means of claiming tax benefits. The following can form a part of one's salary structure:
·  Individuals living in a rented accommodation should have House Rent Allowance (HRA) as part of their salary. Download Automatic H.R.A. Exemption Calculator U/s 10(13A)
·  Transport allowance is exempt up to Rs 1600 per month for general & Rs. 3200/-P.M. for Phy.disable person.
·  Leave Travel Allowance (LTA) can be claimed twice in a block of four years for domestic travel.
4. Claim tax benefits on house rent paid
Salaried individuals can claim rent paid by them for residential accommodation if HRA doesn't form part of their salary. This deduction is available under Section 80GG and is least of the following:
·  25% of the total income or,
·  Rs 5,000 per month or,
·  Excess of rent paid over 10% of total income
Please note that the above deduction will be denied if the taxpayer or his spouse or minor child owns a residential accommodation in the location where the taxpayer resides or performs his office duties.
5. Opt for a joint home loan
As discussed earlier, the principal repayment on a home loan is eligible for a deduction of up to Rs 150,000 pa and the interest paid is eligible for a deduction of up to Rs 150,000 per year.
In cases where the home loan is a substantial sum, it is not uncommon for the interest and principal repayment to exceed the stated limit. To ensure that the tax benefit is optimally utilised, an individual can consider opting for a joint loan with his spouse or parent or sibling.

This will ensure that both the co-owners can claim tax deductions in the proportion of their holding in the loan. The co-owner falling in the higher tax bracket should hold a higher proportion of home loan to ensure that the tax benefits are maximized.
With the tax-planning season about to end, most individuals are rushing around to make investments to minimise their tax liability. It has been observed that individuals (often salaried ones) end up paying more taxes than they are obligated to.
While the lack of sufficient time to conduct the tax-planning exercise is a reason, largely, this can be attributed to lack of awareness about different incentives, allowances, and rebates under the Income Tax Act. Apart from the Section 80C deductions which are quite popular, there are various other sections which can help salaried individuals save taxes.
We believe there is a need for salaried individuals to devote adequate time and effort to the tax planning exercise and be aware of the various benefits that they can avail of. In this article, we present 5 tax-planning tips that can aid salaried individuals to minimise their tax liability.

Download Automated All in One Income Tax Preparation Excel Based Software for West Bengal Govt Employees for F.Y.2016-17 [ This Excel Utility can prepare at a time your Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automatic H.R.A. Calculation + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17]





1. Utilise the entire Section 80C deduction
Under Section 80C, the maximum deduction available is Rs 150,000 pa. Ideally, salaried individuals whose gross total income is equal to or more than Rs 250,000 should utilise the entire Rs 150,000 limit.
Consider the case of an individual whose taxable income is Rs 600,000 and who only utilises half of the available Rs 150,000 limit. He would end up paying an additional tax of Rs 15,450 as opposed to an individual with the same taxable income but has utilised the entire limit.
Also, at times, individuals make investments of over Rs 1,50,000 in Section 80C designated avenues, since they fail to understand that the benefits are capped. For example, despite making investments of Rs 70,000 in Public Provident Fund and Rs 40,000 in ELSS, the amount eligible is only Rs 1,50,000.
Following investments/contributions qualify for Section 80C deductions,
  • Public Provident Fund
  • National Saving Certificate
  • Accrued interest on National Saving Certificate
  • Life Insurance Premium
  • Tuition fees paid for children's education (maximum 2 children)
  • Principal component of home loan repayment
  • Equity Linked Savings Schemes (ELSS)
  • 5-Year fixed deposits with banks and Post Office
2. Think beyond Section 80C
For salaried individuals whose gross total income exceeds Rs 250,000 pa, deductions under Section 80C may not be sufficient to reduce the overall tax liability. In such cases they can consider the following:
Home loan: Individuals intending to buy a house should consider opting for a home loan. Interest payments of up to Rs 150,000 pa are eligible for deduction under Section 24.
Medical insurance: An individual who pays the medical insurance premium for self or spouse/dependent children is allowed a deduction of up to Rs 25,000 P.A. under section 80D.
An additional deduction of up to Rs 25,000 P.A. is allowed for premium payment made for parents. In case the parents are senior citizens, then the maximum deduction allowed is Rs 30,000 per year.
Donations: Subject to the stated limits, donations to specified funds/institutions are eligible for tax benefits under Section 80G.
Salaried individuals who plan to pursue higher education should avail of an education loan as the entire interest is eligible for deduction under Section 80E. The loan can be for self, spouse or child from an approved charitable institution or a notified financial institution.
3. Restructure the salary
Restructuring the salary and including certain components can go a long way in reducing the tax liability. Unlike eligible investments which lead to an additional cash outflow, restructuring the salary is a more 'efficient' means of claiming tax benefits. The following can form a part of one's salary structure:
·  Individuals living in a rented accommodation should have House Rent Allowance (HRA) as part of their salary. Download Automatic H.R.A. Exemption Calculator U/s 10(13A)
·  Transport allowance is exempt up to Rs 1600 per month for general & Rs. 3200/-P.M. for Phy.disable person.
·  Leave Travel Allowance (LTA) can be claimed twice in a block of four years for domestic travel.
4. Claim tax benefits on house rent paid
Salaried individuals can claim rent paid by them for residential accommodation if HRA doesn't form part of their salary. This deduction is available under Section 80GG and is least of the following:
·  25% of the total income or,
·  Rs 5,000 per month or,
·  Excess of rent paid over 10% of total income
Please note that the above deduction will be denied if the taxpayer or his spouse or minor child owns a residential accommodation in the location where the taxpayer resides or performs his office duties.
5. Opt for a joint home loan
As discussed earlier, the principal repayment on a home loan is eligible for a deduction of up to Rs 150,000 pa and the interest paid is eligible for a deduction of up to Rs 150,000 per year.
In cases where the home loan is a substantial sum, it is not uncommon for the interest and principal repayment to exceed the stated limit. To ensure that the tax benefit is optimally utilised, an individual can consider opting for a joint loan with his spouse or parent or sibling.

This will ensure that both the co-owners can claim tax deductions in the proportion of their holding in the loan. The co-owner falling in the higher tax bracket should hold a higher proportion of home loan to ensure that the tax benefits are maximized.

January 17, 2017

Prepare at a time Tax Compute Sheet + Salary Sheet + Automatic H.R.A. Exemption +Automatic Arrears Relief Calculation with Form 10E + Form 16 Part A and B and Form 16 Part B for F.Y.2016-17

This time is preparing your Income Tax Papers and Income Tax statement as per the Finance Budget 2016-17. Your Employer asks to you submit the Income Tax Statement within March 2016. If you not prepared the Income Tax Statement with your all deposit and yet not submit the same to your Employer, then the Employer can deduct your Income Tax as per your Total Earn without any deduction U/s 80C or Under Chapter VIA.

Below given a Excel Based Income Tax preparation Software which can prepare at a time your Individual Salary Sheet + Individual Tax Compute sheet + Individual Salary Structure + Automatic House Rent Exemption Calculation U/s 10(13A) + Automatic Arrears Relief Calculation with Form 10E + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17. Just put your salary details into the Salary Structure and all the Income Tax papers will be prepared automatically.

The feature of this Excel Utility:-

1) This Excel Utility can easy to generate just like as an Excel File
2) This Excel Utility can use both of Govt and Non-Govt Employees ( Private Employee)
3) Automatic H.R.A. Exemption Calculation can be done
4) Automatic Arrears Relief Calculation with Form 10E up to the F.Y.2016-17
5) Automatic Convert the Amount into the In-Words
6) All the Tax Section Amended version have in this utility.

Click here to Download the All in One TDS on Salary for Govt and Non-Govt Employees for F.Y.2016-17

Employee's & Employer Data Sheet

Deduction Sheet Section wise
Tax Compute Sheet
Arrears Relief Main Data Input Sheet 
Arrears Relief Form 10E

This time is preparing your Income Tax Papers and Income Tax statement as per the Finance Budget 2016-17. Your Employer asks to you submit the Income Tax Statement within March 2016. If you not prepared the Income Tax Statement with your all deposit and yet not submit the same to your Employer, then the Employer can deduct your Income Tax as per your Total Earn without any deduction U/s 80C or Under Chapter VIA.

Below given a Excel Based Income Tax preparation Software which can prepare at a time your Individual Salary Sheet + Individual Tax Compute sheet + Individual Salary Structure + Automatic House Rent Exemption Calculation U/s 10(13A) + Automatic Arrears Relief Calculation with Form 10E + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17. Just put your salary details into the Salary Structure and all the Income Tax papers will be prepared automatically.

The feature of this Excel Utility:-

1) This Excel Utility can easy to generate just like as an Excel File
2) This Excel Utility can use both of Govt and Non-Govt Employees ( Private Employee)
3) Automatic H.R.A. Exemption Calculation can be done
4) Automatic Arrears Relief Calculation with Form 10E up to the F.Y.2016-17
5) Automatic Convert the Amount into the In-Words
6) All the Tax Section Amended version have in this utility.

Click here to Download the All in One TDS on Salary for Govt and Non-Govt Employees for F.Y.2016-17

Employee's & Employer Data Sheet

Deduction Sheet Section wise
Tax Compute Sheet
Arrears Relief Main Data Input Sheet 
Arrears Relief Form 10E

January 16, 2017

Income Tax Deductions FY 2016-17 : List of important Income Tax Exemptions for AY 2017-18, With Income Tax Form 16 Part B for Assessment Year 2017-18

Click to Download Automated 50 employees Master of Form 16 Part A&B for F.Y.2016-17 [This Excel utility can prepare at a time 50 employees Form 16 Part A&B for F.Y.2016-17]

Let us understand all the important sections and new proposals with respect to Income Tax Deductions FY 2016-17. This list can help you in planning your taxes.

Income Tax Deductions FY 2016-17 

Section 80c
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80c are as below;
  • PPF (Public Provident Fund)
  • EPF (Employees’ Provident Fund)
  • Five year Bank or Post office Tax saving Deposits
  • NSC (National Savings Certificates)
  • ELSS Mutual Funds (Equity Linked Saving Schemes)
  • Kid’s Tuition Fees
  • SCSS (Post office Senior Citizen Savings Scheme)
  • Principal repayment of Home Loan
  • NPS (National Pension System)
  • Life Insurance Premium
  • Sukanya Samriddhi Account Deposit Scheme
Section 80CCC
Contribution to annuity plan of LIC (Life Insurance Corporation of India) or any other Life Insurance Company for receiving the pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.
Section 80CCD
An employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be up to 10% of the salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.
To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals and Gross income is applicable for non-salaried. 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 the tax deduction under Section 80CCD (2).
Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.
Section 80D
Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, the deduction is allowed for Rs 30,000 toward medical expenditure.
Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).
Section 80DD
You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings) who have 40% disability. The tax deduction limit of up to Rs 1.25 lakh in case of severe disability can be availed.
To claim this deduction, you have to submit Form no 10-IA.
Section 80DDB
An individual (less than 60 years of age) can claim up to 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 Rs 60,000 and for very Senior Citizens (above 80 years) the limit is Rs 80,000.
To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.
For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:
  • 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
  • Hematological disorders
  • Hemophilia
  • Thalassaemia
 Section 24 (B)
The interest component of home loans is allowed as the deduction under Section 24B for up to Rs 2 lakh in case of a self-occupied house. If your property is a let-out one then the entire interest amount can be claimed as the tax deduction. 
 Section 80EE
This is a new proposal which has been made in Budget 2016-17. The first time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.
  • The home loan should have been sanctioned in FY 2016-17.
  • Loan amount should be less than Rs 35 Lakh.
  • The value of the house should not be more than Rs 50 Lakh &
  • The home buyer should not have any other existing residential house in his name.
Section 80U
This is similar to Section 80DD. A tax deduction is allowed for the tax assessee who is physically and mentally challenged. Max Limit for General Rs.75,000/- and more than 80% Rs.1,25,000/-
Section 80GG
As per the budget 2016 proposal, the Tax Deduction amount under 80GG has been increased from Rs 24,000 per annum to Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
The extent of tax deduction will be limited to the least amount of the following;
  • Rent paid minus 10 percent the adjusted total income.
  • Rs 5,000 per month.
  • 25 % of the total income.
Section 80G
Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. But the deduction is not allowed for donations made in cash exceeding Rs 10,000. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G.
Section 80E
If you take any loan for higher studies (after completing Senior Secondary Exam), tax deduction can be claimed under Section 80E for interest that you pay towards your Education Loan. This loan should have been taken for higher education for you, your spouse or your children or for a student for whom you are a legal guardian. Principal Repayment on educational loan cannot be claimed as the tax deduction.
There is no limit on the amount of interest you can claim as the deduction under section 80E. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.
Section 87A Rebate
If you are earning below Rs 5 lakh, you can save an additional Rs 3,000 in taxes. Tax rebate under Section 87A has been raised from Rs 2,000 to Rs 5,000 for FY 2016-17 (AY 2017-18).
In case if your tax liability is less than Rs 5,000 for FY 2016-17, the rebate u/s 87A will be restricted up to income tax liability only.
Section 80 TTA
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 with a bank, co-operative society or post office can be claimed under this section. Section 80TTA deduction is not available on interest income from fixed deposits
Click to Download Automated 50 employees Master of Form 16 Part A&B for F.Y.2016-17 [This Excel utility can prepare at a time 50 employees Form 16 Part A&B for F.Y.2016-17]

Let us understand all the important sections and new proposals with respect to Income Tax Deductions FY 2016-17. This list can help you in planning your taxes.

Income Tax Deductions FY 2016-17 

Section 80c
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80c are as below;
  • PPF (Public Provident Fund)
  • EPF (Employees’ Provident Fund)
  • Five year Bank or Post office Tax saving Deposits
  • NSC (National Savings Certificates)
  • ELSS Mutual Funds (Equity Linked Saving Schemes)
  • Kid’s Tuition Fees
  • SCSS (Post office Senior Citizen Savings Scheme)
  • Principal repayment of Home Loan
  • NPS (National Pension System)
  • Life Insurance Premium
  • Sukanya Samriddhi Account Deposit Scheme
Section 80CCC
Contribution to annuity plan of LIC (Life Insurance Corporation of India) or any other Life Insurance Company for receiving the pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.
Section 80CCD
An employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be up to 10% of the salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.
To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals and Gross income is applicable for non-salaried. 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 the tax deduction under Section 80CCD (2).
Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.
Section 80D
Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, the deduction is allowed for Rs 30,000 toward medical expenditure.
Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).
Section 80DD
You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings) who have 40% disability. The tax deduction limit of up to Rs 1.25 lakh in case of severe disability can be availed.
To claim this deduction, you have to submit Form no 10-IA.
Section 80DDB
An individual (less than 60 years of age) can claim up to 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 Rs 60,000 and for very Senior Citizens (above 80 years) the limit is Rs 80,000.
To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.
For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:
  • 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
  • Hematological disorders
  • Hemophilia
  • Thalassaemia
 Section 24 (B)
The interest component of home loans is allowed as the deduction under Section 24B for up to Rs 2 lakh in case of a self-occupied house. If your property is a let-out one then the entire interest amount can be claimed as the tax deduction. 
 Section 80EE
This is a new proposal which has been made in Budget 2016-17. The first time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.
  • The home loan should have been sanctioned in FY 2016-17.
  • Loan amount should be less than Rs 35 Lakh.
  • The value of the house should not be more than Rs 50 Lakh &
  • The home buyer should not have any other existing residential house in his name.
Section 80U
This is similar to Section 80DD. A tax deduction is allowed for the tax assessee who is physically and mentally challenged. Max Limit for General Rs.75,000/- and more than 80% Rs.1,25,000/-
Section 80GG
As per the budget 2016 proposal, the Tax Deduction amount under 80GG has been increased from Rs 24,000 per annum to Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
The extent of tax deduction will be limited to the least amount of the following;
  • Rent paid minus 10 percent the adjusted total income.
  • Rs 5,000 per month.
  • 25 % of the total income.
Section 80G
Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. But the deduction is not allowed for donations made in cash exceeding Rs 10,000. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G.
Section 80E
If you take any loan for higher studies (after completing Senior Secondary Exam), tax deduction can be claimed under Section 80E for interest that you pay towards your Education Loan. This loan should have been taken for higher education for you, your spouse or your children or for a student for whom you are a legal guardian. Principal Repayment on educational loan cannot be claimed as the tax deduction.
There is no limit on the amount of interest you can claim as the deduction under section 80E. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.
Section 87A Rebate
If you are earning below Rs 5 lakh, you can save an additional Rs 3,000 in taxes. Tax rebate under Section 87A has been raised from Rs 2,000 to Rs 5,000 for FY 2016-17 (AY 2017-18).
In case if your tax liability is less than Rs 5,000 for FY 2016-17, the rebate u/s 87A will be restricted up to income tax liability only.
Section 80 TTA
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 with a bank, co-operative society or post office can be claimed under this section. Section 80TTA deduction is not available on interest income from fixed deposits

January 15, 2017

Income Tax Deduction For Disabled Persons U/s 80U, With Automatic All in One TDS on Salary for Govt and Non-Govt employees for F.Y.2016-17

The Income Tax Act and the Profession Tax Act provides various income tax deductions under Section 80DD, 80DDB and 80U for differently-abled (disabled and handicapped) people.
Most states in India allow a professional tax exemption for any person suffering from a permanent disability.

Download All in One Income Tax Preparation Excel Based Software for Govt & Non-Govt employees for F.Y.2016-17[ This Excel Utility can prepare at a time Individual Salary Structure + Individual Salary Sheet + Individual Tax Compute Sheet + Automatic H.R.A. Calculation U/s 10(13A) + Automatic Arrears Relief Calculator with Form 10E up to F.Y.2016-17 + Automated Form 16 Part A& B and Form 16 Part B as per the latest amended of each Income Tax Section]


Section 80U

Under Section 80U a mentally or physically challenged person can claim an income tax deduction of up to Rs 75000 provided he/she suffers from over 40% of the identified disabilities notified as per the Income Tax Act. In the case of severe disability of over 80%, the disabled person can claim an income tax exemption up to Rs.125,000.

Disabilities included under Section 80U include blindness, low vision, leprosy-cured, hearing impairment, mental retardation, mental illness, locomotor disability. Documents related to the expenses don’t have to be produced if you are claiming for self.

However, you are required to submit a medical certificate authenticating the disability of the dependent from a certified medical professional to claim an income tax deduction. This certificate is not required at the time of filing taxes but may have to submit to an assessing officer, if demanded.

Section 80DD

Under Section 80DD the expenses on maintenance/ medical treatment of disabled dependents can be claimed as an income tax deduction. Dependents include spouse, children, parents, brothers and sisters and the income tax deduction is valid only if they have not already claimed a benefit under Section 80U. Income-tax Deduction for expenses for partially disabled dependants (severity 40-80%) is allowed up to Rs.75,000 while it goes up to Rs 1.25 lakh if the dependant is over 80% disabled. The plus side is that even if your actual expenses are lesser than Rs 75000 you can claim a full deduction.

Section 80DDB

Section 80DDB allows an income tax deduction on expenses incurred on medical treatment of various ailments. This included Neurological Diseases where the disability level has been certified to be of 40% and above (including Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, Hemiballismus, Aphasia, Parkinson’s Disease), Malignant Cancers, Full Blown Acquired Immuno-Deficiency Syndrome (AIDS), Chronic Renal failure, Hematological disorders including Hemophilia and Thalassaemia.


Income tax deduction for any of the above diseases ranges between Rs 40000 to Rs 80000 depending on your age and income tax slab.
The Income Tax Act and the Profession Tax Act provides various income tax deductions under Section 80DD, 80DDB and 80U for differently-abled (disabled and handicapped) people.
Most states in India allow a professional tax exemption for any person suffering from a permanent disability.

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Section 80U

Under Section 80U a mentally or physically challenged person can claim an income tax deduction of up to Rs 75000 provided he/she suffers from over 40% of the identified disabilities notified as per the Income Tax Act. In the case of severe disability of over 80%, the disabled person can claim an income tax exemption up to Rs.125,000.

Disabilities included under Section 80U include blindness, low vision, leprosy-cured, hearing impairment, mental retardation, mental illness, locomotor disability. Documents related to the expenses don’t have to be produced if you are claiming for self.

However, you are required to submit a medical certificate authenticating the disability of the dependent from a certified medical professional to claim an income tax deduction. This certificate is not required at the time of filing taxes but may have to submit to an assessing officer, if demanded.

Section 80DD

Under Section 80DD the expenses on maintenance/ medical treatment of disabled dependents can be claimed as an income tax deduction. Dependents include spouse, children, parents, brothers and sisters and the income tax deduction is valid only if they have not already claimed a benefit under Section 80U. Income-tax Deduction for expenses for partially disabled dependants (severity 40-80%) is allowed up to Rs.75,000 while it goes up to Rs 1.25 lakh if the dependant is over 80% disabled. The plus side is that even if your actual expenses are lesser than Rs 75000 you can claim a full deduction.

Section 80DDB

Section 80DDB allows an income tax deduction on expenses incurred on medical treatment of various ailments. This included Neurological Diseases where the disability level has been certified to be of 40% and above (including Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, Hemiballismus, Aphasia, Parkinson’s Disease), Malignant Cancers, Full Blown Acquired Immuno-Deficiency Syndrome (AIDS), Chronic Renal failure, Hematological disorders including Hemophilia and Thalassaemia.


Income tax deduction for any of the above diseases ranges between Rs 40000 to Rs 80000 depending on your age and income tax slab.

 
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