Income Tax Rebate U/s 80DDB ( Relief from Medical Treatment in Sever Disease In brief this Section)

If you or a dependent undergoes medical treatment for diseases like cancer, kidney failure, thalassaemia, etc you can get income tax deduction for the amount you have spent for the treatment. Section 80DDB deals with this.
Eligibility for 80DDB
This tax rebate is applicable for individuals and HUFs resident in India. Medical treatment for the following diseases should be undergone and you should have paid the expenses on yourself, spouse, children, parent, brother or sister:
i) Neurological Diseases with disability of at least 40%
    - Dementia
    - Dystonia Musculorum Deformans
    - Motor Neuron Disease
    - Ataxia
    - Chorea
    - Hemiballismus
    - Aphasia
    - Parkinsons Disease
 ii) Malignant Cancer
 iii) AIDS
 iv) Chronic Kidney failure
 v) Hematological disorders
    - Hemophilia
    - Thalassaemia
You would have to produce certificate from specialist government doctors in Form 10-I. They have to be certified by a Neurologist for diseases in (i), Oncologist for (ii), Nephrologists for (iv) and a specialist with degree in Hematology for diseases in (v). You can get a certificate from a specialist even if the treatment is being undergone in a private hospital.
80DDB tax deduction on medical treatment is not available for NRI taxpayers
Maximum deduction limit under 80DDB
The actual expense or Rs 40,000, whichever is lesser can be claimed for income tax deduction under section 80DDB. If the person undergoing treatment is a senior citizen and resident of India the exemption limit is Rs 60,000.
How to get 80DDB tax benefit
You can submit the required certificate to your HR in the relevant year to get this deduction on salary TDS or if you miss it you can still put this amount in cell for 80DDB under Chapter VI-A deductions in ITR form in the section Income & Deductions.

Though certificate is not required to be attached with ITR form you should keep it you for record sake. Your taxable income reduces by the amount you claim as 80ddb deduction.

Exemptions/Deductions for House Rent Allowance (HRA) and Section 80GG, with Automatic Prepare Form 16 Part B and Part A&B for the Financial Year 2014-15

Click here to Download the All in One TDS on Salary for Central Govt employees for the Financial Year 2014-15 ( This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure as per the C.G employee's Salary Pattern + Individual Salary Sheet for Print + Arrears Relief U/s 89(1) with Form 10E + Automatic calculation House Rent Exemption + Form 16 Part A&B and Part B with all of new Income Tax Section as per the Income Tax Act.)

In case you are in receipt of House Rent Allowance (HRA) from your employer, you may avail exemption from the same, In case you are not in receipt of HRA and you are paying rent, then you may claim tax deduction under section 80GG of IT Act, 1961 subject to certain deductions.

Below are the important provisions regarding HRA and section 80GG -

[A] HRA – In respect of HRA, the least of the following 3 is exempt from tax u/s 10(13A):
o        40% salary (50% in case of a metropolitan city);
o        Actual HRA received from employer during the period the rented house is occupied by the employee;
o        The excess of rent paid over 10 per cent of salary.
Note: Salary for the purpose of HRA means – Basic + DA (only if forming part of salary for retirement benefits) + any fixed % commission on sales turnover.
[B] Section 80GG – Deduction for Rent Paid
In case you are not in receipt of HRA and Rent free accommodation (RFA) and you/your spouse/children do not own any residential property either at the place of your work or residence, or if your spouse/children own a residential property at any other place (but not the assessee), then you can claim deduction for the rent paid as per sec 80GG under Income Tax Act, 1961. The same is explained below:

Deduction (under sec 80GG) allowed is least of the 3 options below:

o        Rs 2000 per month;
o        Excess of rent paid over 10% of Adjusted total income
o        25% of Adjusted total income
where, Adjusted total income:
Gross total income
LESS
LTCG (if already included in Gross Total income)
STCG (if already included in Gross Total income)
All deductions other than the deduction under Section 80GG

Important Points regarding section 80GG:

o        No deduction if you are a member of a Hindu Undivided Family (HUF), and the HUF owns a house at the place where you normally stay, work or conduct business.
o        You need to be paying rent, and for your own accommodation, not for your parents’ accommodation.
o        You need to declare that you are paying the rent. This has to be done by filling out and filing from 10-BA.
o        The house is to be situated within specified municipal areas. However, all major cities are a part of the specified municipal areas.

How does Budget 2014 affect Personal Taxes and Investments?, Plus All in One Automated Master of Form 16 Part B for Financial Year 2014-15

Click here to download the Master of Form 16 Part B for the Financial Year 2014-15 with the Individual Salary Structure + Individual Salary Sheet for Print[ This Excel Utility can prepare at a time 50 employees Form 16 Part B with Individual Salary Structure + Individual Salary Sheet for Print ]

These are the major highlights of changes in individual taxation from FY 2014-15 post the 2014 Budget that can affect your Household budget and Savings:
1. Changes in Tax exemption slabs
a) For resident individuals (males and females) – exemption limit has been increased to Rs. 2,50,000 i.e. Income upto Rs. 2,50,000 is exempt from tax.
b) For senior citizens (from 60 yrs of age to 79 yrs of age) – exemption limit has been increased to Rs. 3,00,000 i.e. Income upto Rs. 3,00,000 is exempt from tax.
c) For super senior citizens (from 80 yrs of age) – exemption limit remains the same at Rs. 5,00,000.
d) Re-introduce the K.V.P.(Kissan Vikas Patra) in U/s 80C
2. Changes u/s 80C
a) Deduction limit u/s 80C has been increased to Rs. 1,50,000 from Rs. 1,00,000.
b) Maximum investment limit in PPF increased to Rs. 1,50,000 from Rs. 1,00,000.
c) Tax incentive given to all types of bonds instead of just infrastructure bonds.
3. Change in Interest on Housing loan
Earlier Interest on housing loan was allowed upto Rs. 1,50,000 max in case of a self-occupied property. Now that limit has been increased to Rs. 2,00,000.
Note that 100 % of Interest paid on let out property is still allowed from rental income.
4. Changes related to Taxation of Debt/non-equity mutual funds such as Debt funds, Liquid funds, FMPs
a) Return from these funds are treated as Capital Gains and not Income from other Sources.
b) A lock-in holding period of 3 yrs has been introduced. Earlier this holding period was 1 year. That is to say, the instrument has to be held for a minimum of 3 yrs to be treated as long term capital asset.
c) The taxation rate for this long term capital asset has been made constant at 20% – earlier it was taxed at 10% without indexation and 20% with indexation.
d) If this asset is sold within 3 yrs, the short term capital gain is added to the total taxable income and taxed as per applicable slabs.
5. Capital Gains Exemption Relief u/s 54 & 54F for purchase of new residential property
Earlier in case the assessee earned long term capital gains in sale of residential property, he could invest the capital gains amount in any number of new residential houses to claim 100% exemption from capital gains tax. Now the long term capital gains exemption u/s 54 and 54F in case of residential house property has been fixed to 1 new house only.
6. Capital Gains Exemption Relief u/s 54EC for investment in bonds
Capital Gains Exemption Relief u/s 54EC is now restricted to Rs. 50 lacs on the whole , including the financial year in which the original asset is transferred and the subsequent financial year.
7. Forfeited Advance
Any advance forfeited during negotiations for sale of residential property when the negotiations do not result in sale, is now taxable as Income from Other sources instead of adjustment with the Capital Gains.
8. Real Estate Investment Trusts

The Budget 2014 has given a push to Real Estate Investment Trusts by proposing that Long Term Capital Gains on sale of such REIT units should be exempt from tax while Short Term Capital Gains should be taxed @ 15%.

Availability of Rebate U/s. 87A for FY 2014-15 / AY 2015-16, Plus All in One TDS on Salary for Govt & Non-Govt Concerned Employees for the Financial Year 2014-15

Click here to download the All in One Income Tax preparation Excel based Software for the Govt and Non-Govt employees for the Financial Year 2014-15 [ This Excel utility can prepare at a time your Tax computed Sheet + Individual Salary Structure + Individual Salary sheet for Print + Automated HRA Calculation + Automated Arrears Relief Calculation with Form 10E + Automatic Form 16 Part A&B and Part B]

Finance Bill 2014 has proposed to  increase Income Tax Exemption Limit by Rs. 50000/- for Individuals and Senior Citizens below the Age of 80 Years. Now Question arises was do Rebate of income-tax under section 87A as applicable for FY 2013-14 also available for FY 2014-15 and subsequent years.
Finance Act 2013 has introduced the rebate U/s. 87A and in this section it has not restricted the exemption to any particular Financial or Assessment year. Further in Recently Presented Budget 2014 by Finance Minister Arun Jaitley  section 87A was not been amended. So in the view of new Central Finance Budget it is clear that the Rebate U/s. 87A is Available to Resident Individuals , whose total income does not exceed 5 Lakh rupees in even for Financial Year 2014-14 and for Subsequent Years.

Extract of Section 87A is as follows :-
The following section 87A shall be inserted after section 87 by the Finance Act, 2013, w.e.f. 1-4-2014 :
Rebate of income-tax in case of certain individuals.
87A. An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.

Click here to download the All in One Income Tax preparation Excel based Software for the Govt and Non-Govt employees for the Financial Year 2014-15 [ This Excel utility can prepare at a time your Tax computed Sheet + Individual Salary Structure + Individual Salary sheet for Print + Automated HRA Calculation + Automated Arrears Relief Calculation with Form 10E + Automatic Form 16 Part A&B and Part B]

Exemption available U/s 10 in Income Tax, Plus Prepare at a time 50 employees Master of Form 16 Part B for the Financial Year 2014-15

Click here to Download All in One Master of Form 16 Part B for the Financial Year 2014-15

[This Excel Utility can prepare at a time 50 employees  Individual Salary Structure of each employee+ Individual Salary Sheet for Print + Automatic Form 16 Part B for both Govt and Non Govt Employees]

Exemption available u/s 10 to salaried employee is summarised below for ready recokner. Section Income Maximum Exempt Amount Conditions 

1) 10(10) Gratuity.  Rs. 10,00,000  - Gratuity payable when employee has served minimum service of 4 years & 240 days. - Amt payable = No. of years completed X Last drawn Basics X 15 /26 

2) 10(10AA) Leave encashment  Rs. 3,00,000  - Any amount paid while continuation of the service with the said organisation is fully taxable. - Amt payable = Leave balance at the time of leaving organisation X avg. basic salary of last 10 months / 30 days - Maximum leave allowable per year to be considered as 30 days while calculating leave balance on leaving organisation 

3) 10(10B)  Retrenchment Compensation Rs. 3,00,000 - Subject to maximum  : An amount calculated as per section 25F (b) of the Industrial Disputes Act, 1947; or actual amount. - NA when received in accordance of Govt Scheme 

4) 10(10C) Compensation for voluntary retirement (V.R.S) Rs. 5,00,000 As per Rule 2BA of the Income Tax Rules. 

5) 10(10CC) Tax on non-monetary perquisites paid by the employer Actual amount paid NA 

6) 10(11) Payments received from a provident fund Actual amount paid See Section for more details 

7) 10(12) Accumulated balance in a recognized provident fund Actual amount paid See Section for more details 

8) 10(13A) House rent allowance Least of - 1. HRA actually paid 2. Rent paid Less 10% of Salary. 3. 50% of Salary if residing in Kolkata, Mumbai, Delhi or Chennai and 40% of Salary in other cases. NA

All about deduction U/s Section 80 D, with Automatic TDS on Salary for the Private Employees for the Financial Year 2014-15

Click here to Download the All in One TDS on Salary for the Financial Year 2014-15 for only the Private Concerned Employees,[ This Excel Utility can prepare at a time Tax Compute Sheet + Automatic HRA Calculation + Automatic Form 16 Part B and Form 16 Part A&B + Individual Salary Sheet + Individual Salary Structure as per Private Concerned Salary Pattern]


Deduction u/s 80D is available to the following:
1.An Individual;
2.A hindu undivided family(HUF)
Deduction u/s 80D is available to an individual for his own health , spouse and dependent children. An individual can also claim deduction u/s 80D for his parents(whether dependent or not). deduction in respect of parents health of an individual is in addition to the above deduction.

PERMISSIBLE DEDUCTION U/S80D:
1. Amount paid for medical insurance or Rs. 15,000/- for his own health or his family(spouse & dependent children)
2.Amount paid for the health of his parents whether dependent or not OR Rs. 15,000(Maximum). but if the parents are senior citizens, the above amount of deduction increased to Rs. 20,000(maximum).
therefore , an individual can get maximum deduction u/s 80D either Rs. 30,000(Rs.15,000 for himself & family & Rs. 15,000 for parents) OR Rs. 35,000( if the parents are senior citizens)
Example:
An individual assessee pays (through any mode other than cash) for Medical insurance premium during the previous year out of his taxable income as under:
a) Rs. 12,000 on his own health & on the health of his wife & dependent children.
b) Rs. 17,000 on the health of his
parents.
total amount paid by the individual is Rs. 29,000. but he will get deduction only for Rs. 27,000 (Rs. 12,000 for himself & family & Rs. 15,000 for his parents).
But if the parents are senior citizens he will get benefit of Rs. 29,000 because in case of senior citizen deduction is allowed upto Rs. 20,000.
NOTE:
1.deduction in respect of dependent children in case of male is upto the age of 25 years is allowed & in case of female child upto her marriage.
2. dependent children includes legitimate of legally adopted childrens.

CONDITIONS TO AVAIL THE DEDUCTION U/S 80D:
1.Payment shall be made by any mode of payment other than cash. If the payment for the policy is made in cash than deduction under this section is not allowed.
2.Payment shall be made out of income chargeable to Tax.
3. payment shall be as per GIC scheme approved by the central government or any other insurer as approved by IRDA.

Calculate Income Tax with Automatic Income Tax Calculator for All State Employees for the Financial Year 2014-15

Click to Download the Automated Income Tax All in One TDS on Salary for the Financial Year 2014-15  with Automatic prepare Form 16 Part B and Part A&B for the Assessment Year 2015-16 [ This Excel utility can prepare all of State Employees with Automatic Tax Compute Sheet + Individual Salary Structure of each State + Automatic Calculate HRA Calculate + Automatic Form 16 Part A&B and Part B ]
Generally, In India income tax is calculated on 5 type of incomes -
  1. Income from Salary
  2. Income from house property
  3. Income from business & profession
  4. Income from capital gains
  5. Income from other sources
In this article, we will talk about how to calculate income tax on salary, and what tax exemptions you can avail to minimize the tax paid.
By taking full advantage of exemptions & deductions available under the income tax act, 1961, a person can reduce their tax liability upto the certain limits.

Exemptions available for salaried employees

There are many exemptions available for salaried employees. Some of the commonexemption are:-

House rent allowance (HRA)

Under section 10 (13A)
The least of the following is exempt:-
  • Actual HRA Received
  • Rent Paid in excess of 10% of salary
  • 50% or 40% of Salary
Salary here means Basic salary plus Dearness Allowance(D.A.) plus Commission, if any.

Transport allowance (TA)

Rs 800 p.m. max 9,600 p.a.

Medical reimbursement

Up to Rs. 15,000. Remember if the employee is getting medical allowance from his employer, it is fully taxable.

Leave Travel Concession (LTC)

Generally LTC is fully taxable, but in the year when LTC is availed the employee can get the exemption for travel anywhere in India for fair only for the shortest route

Deductions on investment

Under section 80C, 80CCC, 80 CCD
For individuals & HUF only – Up to Rs. 1,50,000.
Some of the investments you can claim are -
  • LIC
  • ULIP
  • Tuition fee of up to 2 children
  • Provident fund (PF)
  • Public Provident Fund (PPF)
  • Fixed deposit (FD) with a nationalized bank for 5 years
  • K.V.P.(Kissan Vikas Patra)
  • House Building Loan Principal

Mediclaim

Under section 80D
Up to Rs. 15000 for self, children & spouse & also upto 15000 for parents. If parents are senior citizens then you can get deduction upto Rs. 20000.
Total deduction available u/s 80D is Rs. 30000 or 35000.

Education loan for higher education

Under section 80E
This deduction can be made only on interest payment. From Assesment year 2010 – 2011 this deduction can also be claimed by the guardian or parent of the child.
A qualified CA can help you get more details on the exemptions you can get when calculating your income tax.

All in One TDS on Salary which can prepare at a time 50 employees Form 16 Part B with Individual Salary Sheet for Print + Individual Salary Structure for the Financial Year 2014-15

Click here to Download the Modified All in One Master of Form 16 Part B for FY 2014-15( This Excel utility can prepare at a time 50 employees Form 16 Part B + Individual Salary Sheet for Print with Individual Salary Structure for Calculate the Gross Salary Income of each employees)

 

Below given Excel based Software which can prepare at a time 50 employees Form 16 Part B with Individual Salary Structure and Individual Salary Sheet for Print for the both of Govt and Non Govt Concerned for the Financial Year 2014-15 and Assessment Year 2015-16. This Excel Utility is most simple to generate and easy to install in any computer and calculate the Tax and prepare the Form 16 Part B for the FY 2014-15.
Feature of this Excel Utility :-

·         Automatic Calculate Income Tax with Tax Computed sheet individually

·         Individual Salary Structure for calculating the Gross Salary Income 

·         Salary Structure have prepare on the Basis of Govt and Non Govt Salary Pattern

·         Automated Form 16 Part B

·         Automatic Convert the Amount in to In Words


Click here to Download the Modified All in One Master of Form 16 Part B for FY 2014-15( This Excel utility can prepare at a time 50 employees Form 16 Part B + Individual Salary Sheet for Print with Individual Salary Structure for Calculate the Gross Salary Income of each employees)