ఇన్ కంటాక్స్
INCOME TAX SOFTWARE 2015-16 by KSS PRASAD (18/1/2016)QUESTIONS &ANSWERS ON HOUSE LOAN UNDER INCOME TAX WHAT ARE PROOFS TO BE SUBMITTED FOR CLAIMING HRA
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Complete information on INCOME TAX
పన్ను శ్లాబులు 2015 - '16
1).2,50,000 వరకు - పన్నులేదు.
2).2,50,001 నుండి 3,00,000 వరకు - 10%.
3).3,00,001 నుండి 5,00,000 వరకు - 5,000 + 10%
4).5,00,001 నుండి 10,00,000 వరకు - 25,000 + 20%
5).10,00,000 పైన - 1,25,000 + 30%
ముఖ్య గమనిక :-
వార్షిక ఆదాయం మొత్తం 5 లక్షలు మించని వారికి చెల్లించవలసిన ఆదాయపు పన్ను నుండి మరో 2 వేలు మినహాయింపు లభిస్తుంది.
1).2,50,000 వరకు - పన్నులేదు.
2).2,50,001 నుండి 3,00,000 వరకు - 10%.
3).3,00,001 నుండి 5,00,000 వరకు - 5,000 + 10%
4).5,00,001 నుండి 10,00,000 వరకు - 25,000 + 20%
5).10,00,000 పైన - 1,25,000 + 30%
ముఖ్య గమనిక :-
వార్షిక ఆదాయం మొత్తం 5 లక్షలు మించని వారికి చెల్లించవలసిన ఆదాయపు పన్ను నుండి మరో 2 వేలు మినహాయింపు లభిస్తుంది.
2015 - 16 ఆర్థిక సంవత్సరం ఆదాయపు పన్ను గణన
2015-16 ఆర్థిక సంవత్సరం గణన లో తేది 01.04.2015 నుండి 31.03.2016 వరకు పొందిన జీతభత్యాలు ఆధాయముగా పరిగణించాలి.
అదే విదంగా సేవింగ్స్ మరియు మినహాయింపులు పొందే సొమ్ము ఈ కాలంలో చెల్లించినవి అయి ఉండాలి.
అదే విదంగా సేవింగ్స్ మరియు మినహాయింపులు పొందే సొమ్ము ఈ కాలంలో చెల్లించినవి అయి ఉండాలి.
Category SlabTax
Age below 60 Years
Upto 2,50,000Nil
2,50,001-5,00,000 10% of amount by which the taxable income exceeds Rs. 2,50,000/-.
5,00,001-10,00,000 Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
above 10,00,000 Rs. 125,000/- + 30%of the amount by which the taxable incomeexceeds Rs. 10,00,000/-.
Upto 2,50,000Nil
2,50,001-5,00,000 10% of amount by which the taxable income exceeds Rs. 2,50,000/-.
5,00,001-10,00,000 Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
above 10,00,000 Rs. 125,000/- + 30%of the amount by which the taxable incomeexceeds Rs. 10,00,000/-.
Section 87A
ప్రకారం చెల్లించాల్సిన ఆదాయపు పన్ను 5లక్షల లోపు ఉన్నవారికి చెల్లించాల్సిన టాక్స్ లో రూ. 2,000/- రిబేట్ కలదు.
* చెల్లించాల్సిన ఆదాయపు పన్ను పైన 3% (2+1) ఎడ్యుకేషన్ సెస్ అదనంగా చెల్లించాలి.
ప్రకారం చెల్లించాల్సిన ఆదాయపు పన్ను 5లక్షల లోపు ఉన్నవారికి చెల్లించాల్సిన టాక్స్ లో రూ. 2,000/- రిబేట్ కలదు.
* చెల్లించాల్సిన ఆదాయపు పన్ను పైన 3% (2+1) ఎడ్యుకేషన్ సెస్ అదనంగా చెల్లించాలి.
ఆదాయముగా పరిగనించబడే జీతబత్యములు:-
Pay, DA, HRA, IR, CCA, అలవెన్సులు, మెడికల్ అలవెన్సులు,అదనపు ఇంక్రిమెంట్ అలవెన్స్, సరెండర్ లీవు జీతం, పి.అర్.సి బకాయిలు,స్టెప్ అప్ ఎరియర్స్, సెలవు కాలపు జీతం, మొ. నవి ఆదాయంగా పరిగనించబడును
Pay, DA, HRA, IR, CCA, అలవెన్సులు, మెడికల్ అలవెన్సులు,అదనపు ఇంక్రిమెంట్ అలవెన్స్, సరెండర్ లీవు జీతం, పి.అర్.సి బకాయిలు,స్టెప్ అప్ ఎరియర్స్, సెలవు కాలపు జీతం, మొ. నవి ఆదాయంగా పరిగనించబడును
ఆదాయముగా పరిగనించబడనిఅంశములు :-
పదవి విరమణ తరువాత పొందే GPF/GIS/AP(TS)GLI లనుండి పొందే సొమ్ము మరియు నగదుగా మార్చుకున్న సంపాదిత సెలవులు,అర్దజీతపు సెలవుల పై వచ్చిన సొమ్ము,LTC పై పొందిన ప్రయాణ భత్యం, మెడికల్ రియంబర్స్మేంట్ మరియు
GPF, AP(TS)GLI లలో అప్పుగా పొందిన సొమ్ము ఆదాయంగా పరిగణించరాదు.
పదవి విరమణ తరువాత పొందే GPF/GIS/AP(TS)GLI లనుండి పొందే సొమ్ము మరియు నగదుగా మార్చుకున్న సంపాదిత సెలవులు,అర్దజీతపు సెలవుల పై వచ్చిన సొమ్ము,LTC పై పొందిన ప్రయాణ భత్యం, మెడికల్ రియంబర్స్మేంట్ మరియు
GPF, AP(TS)GLI లలో అప్పుగా పొందిన సొమ్ము ఆదాయంగా పరిగణించరాదు.
HRA మినహాయింపు :
Under Section 10(13A)
ప్రకారం క్రింది మూడు అంశంలలో ఏది తక్కువయితే ఆ మొత్తము ఆదాయం నుండి మినహాయింపు పొందవచ్చును.
1.పొందిన ఇంటి అద్దె బత్యంమొత్తం
2.ఇంటి అద్దెగా చెల్లించిన మొత్తం - 10% మూలవేతనం
3.40% వేతనం ఇంటి అద్దె అలవెన్స్ ప్రకారం క్రింది మూడు అంశంలలో ఏది తక్కువయితే ఆ మొత్తము ఆదాయం నుండి మినహాయింపు పొందవచ్చును.
1.పొందిన ఇంటి అద్దె బత్యంమొత్తం
2.ఇంటి అద్దెగా చెల్లించిన మొత్తం - 10% మూలవేతనం
(HRA) నెలకు 3,000/-(సంవత్సరానికి సరాసరి 36,000/-) కన్నఎక్కువ పొందుతున్నవారు
మొత్తం HRA మినహాయింపు పొందాలంటే రశీదుDDO కు సమర్పించాలి.చెల్లిస్తున్నఇంటి అద్దె 1లక్ష దాటిన పక్షంలో
ఇంటి యజమాని PAN నంబర్ ఇవ్వాల్సి ఉంటుంది.స్వంత ఇంట్లో నివాసం ఉంటున్న వారికి HRA మినహాయింపు వర్తించదు.
మొత్తం HRA మినహాయింపు పొందాలంటే రశీదుDDO కు సమర్పించాలి.చెల్లిస్తున్నఇంటి అద్దె 1లక్ష దాటిన పక్షంలో
ఇంటి యజమాని PAN నంబర్ ఇవ్వాల్సి ఉంటుంది.స్వంత ఇంట్లో నివాసం ఉంటున్న వారికి HRA మినహాయింపు వర్తించదు.
మినహాయింపులు :
1.ఇంటి ఋణం పై వడ్డి (Section24):
ఇంటి ఋణం తో నిర్మించి స్వంతం గా ఉంటున్న వారికి ఋణం పై చెల్లిస్తున్న వడ్డి పై 2లక్షల వరకు మినహాయింపు కలదు. ఒక వేళ ఇల్లు బార్య మరియు భర్త ఇద్దరు జాయింటుగా ఋణం పొంది ఉంటె ఇద్దరికీ సమానం గా విభజించి ఒక్కొక్కరు గరిష్టంగా 2లక్షల మినహాయింపు పొందవచ్చు. ఇంటి ఋణం తీసుకున్న ఇంట్లో స్వయంగా నివసించకుండా కిరాయకు ఇచ్చినట్టయితే ఇంటి ఋణం పై వడ్డి పూర్తిగా మినహాయింపు కలదు, కాని వచ్చే కిరాయిని ఆదాయంగా చూపాలి.
2.ఉన్నత చదువుల కోసం విద్యాఋణం పై వడ్డి (80E) :Self, Spouse, Children ఉన్నత చదువుల కోసం విద్యాఋణం పై 2015-16 ఆర్ధిక సంవత్సరం లో చెల్లించిన వడ్డి మినహాయింపు కలదు. ఈ మినహాయింపు గరిష్టం గా 7 సం. లు వర్తిస్తుంది.
3.ఆదారపడిన వారు వికలాంగులయితే (80DD): ఆదాయపు పన్ను చెల్లించే వ్యక్తిపై ఆడరపడిన వాళ్ళలో వికలాంగులుంటె సెక్షన్ 80DD క్రింద మినహాయింపు కలదు.
80% కన్నా తక్కువగా వైకల్యం ఉంటె 75,000/- , 80% లేదా అంతకన్నా ఎక్కువ వైకల్యం ఉంటె 1,25,000/- మినహాయింపు కలదు. ఇందుకోసం సంబందిత అధికారులు జారిచేసిన సర్టిఫికేట్ పొంది ఉండాలి.
4.ఆదాయపు పన్ను చెల్లించె వ్యక్తీ వికలాంగులయితే (80U) :
ఉద్యోగి స్వయంగా వికలాంగులైన పక్షంలో 80% కంటే తక్కువ వైకల్యం ఉంటె 75,000/-,
80% లేదా అంతకన్నా ఎక్కువ వైకల్యం ఉంటె 1,25,000/- మినహాయింపు కలదు. వైకల్య ద్రువీకరణ పత్రం సమర్పించాలి.
5.అనారోగ్యానికి చికిత్సకు అయిన ఖర్చు (80DDB) : ఉద్యోగి కాని తనమీద ఆడరపడిన వారు Cancer, Hemophilia, Talassemia, Neurological diseases మరియు Chronic renal Failure వంటివాటితో అనారోగ్యానికి గురయి చికిత్స కోసం చెల్లించిన సొమ్ములో 60 సంవత్సరాల లోపు వారికి 40,000/-, 60 సంవత్సరాలు లేదా పైబడిన వారికి 80,000/- మినహాయింపు కలదు. దీనికోసం ఫారం 10-I లో సంభందిత స్పెషలిస్ట్ డాక్టర్ చే ఖర్చుల వివరాలు సమర్పించాలి.కాని ఈ సెక్షన్ కింద మినహాయింపు చేసె అవకాశం DDO లకు లేదు.
6.చందాలు (80G) :
PM, CMరిలీఫ్ ఫండ్ వంటి 100% మినహాయింపు గలవాటికి ఇచ్చే చందాలు మినహా , 80G క్రిందకు వచ్చే 50%/30% మినహాయింపులోకి వచ్చే ఏ ఇతర చందాలు DDO లు అనుమతించరాదు.
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* Note : సెక్షన్ 80DDB మరియు 80G కింద మినహాయింపు చేసె అవకాశం DDO లకు లేదు. కాని ముందుగా February జీతం తో టాక్స్ చెల్లించి, అధికముగా చేల్లించిన మొత్తాన్ని31 జూలై 2016 లోపు Income Tax Department వారికి SAHAJ ఫారంలో సమర్పించిన తిరిగి చెల్లిస్తారని ఐ.టి. డిపార్ట్మెంట్ వారు గత సంవత్సరం DTA/DTO లకు సర్క్యులర్ రూపంలో ఆదేశాలు ఇచ్చినారు (vide E.No TDS/clarification/1011 Dt. 15/12/2011 of Addl. Commissioner IT Dept. Hyderabad) తిరిగి పొందవచ్చు.
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మెడికల్ ఇన్సురెన్స్ (80D) : ఉద్యోగి తన కుటుంబంకోసం మరియు పేరెంట్స్ కోసం చెల్లించిన మెడికల్ ఇన్సూరెన్స్ వేరు వేరుగా మినహాయింపు పొందవచ్చు. ఉద్యోగి తన కుటుంబం కోసం చెల్లించిన సోమ్ముకాని గరిష్టంగా 25,000/- లు, ఉద్యోగి పేరెంట్స్ కి మెడికల్ ఇన్సూరెన్స్ కోసం చెల్లించిన ప్రీమియం కాని గరిష్టంగా 25,000/- పేరెంట్స్ లో ఒక్కరు సీనియర్ సిటిజెన్ అయినా ప్రీమియం కాని గరిష్టంగా 30,000/- మినహాయింపు పొందవచ్చు. ఉద్యోగి కాని కుటుంబం కోసం కాని పేరెంట్స్ కోసం కాని హెల్త్ చెకప్ కోసం సొమ్ము ఉపయోగిస్తే ఈ సెక్షన్ కింద గరిష్టం గా 5,000/- మినహాయింపు కలదు.కన్వేయన్స్ అలవెన్స్ కి పూర్తిమినహాయింపు. వృత్తి పన్ను కు కూడాపూర్తిగా మినహాయింపు కలదు.
ఇంటి ఋణం తో నిర్మించి స్వంతం గా ఉంటున్న వారికి ఋణం పై చెల్లిస్తున్న వడ్డి పై 2లక్షల వరకు మినహాయింపు కలదు. ఒక వేళ ఇల్లు బార్య మరియు భర్త ఇద్దరు జాయింటుగా ఋణం పొంది ఉంటె ఇద్దరికీ సమానం గా విభజించి ఒక్కొక్కరు గరిష్టంగా 2లక్షల మినహాయింపు పొందవచ్చు. ఇంటి ఋణం తీసుకున్న ఇంట్లో స్వయంగా నివసించకుండా కిరాయకు ఇచ్చినట్టయితే ఇంటి ఋణం పై వడ్డి పూర్తిగా మినహాయింపు కలదు, కాని వచ్చే కిరాయిని ఆదాయంగా చూపాలి.
2.ఉన్నత చదువుల కోసం విద్యాఋణం పై వడ్డి (80E) :Self, Spouse, Children ఉన్నత చదువుల కోసం విద్యాఋణం పై 2015-16 ఆర్ధిక సంవత్సరం లో చెల్లించిన వడ్డి మినహాయింపు కలదు. ఈ మినహాయింపు గరిష్టం గా 7 సం. లు వర్తిస్తుంది.
3.ఆదారపడిన వారు వికలాంగులయితే (80DD): ఆదాయపు పన్ను చెల్లించే వ్యక్తిపై ఆడరపడిన వాళ్ళలో వికలాంగులుంటె సెక్షన్ 80DD క్రింద మినహాయింపు కలదు.
80% కన్నా తక్కువగా వైకల్యం ఉంటె 75,000/- , 80% లేదా అంతకన్నా ఎక్కువ వైకల్యం ఉంటె 1,25,000/- మినహాయింపు కలదు. ఇందుకోసం సంబందిత అధికారులు జారిచేసిన సర్టిఫికేట్ పొంది ఉండాలి.
4.ఆదాయపు పన్ను చెల్లించె వ్యక్తీ వికలాంగులయితే (80U) :
ఉద్యోగి స్వయంగా వికలాంగులైన పక్షంలో 80% కంటే తక్కువ వైకల్యం ఉంటె 75,000/-,
80% లేదా అంతకన్నా ఎక్కువ వైకల్యం ఉంటె 1,25,000/- మినహాయింపు కలదు. వైకల్య ద్రువీకరణ పత్రం సమర్పించాలి.
5.అనారోగ్యానికి చికిత్సకు అయిన ఖర్చు (80DDB) : ఉద్యోగి కాని తనమీద ఆడరపడిన వారు Cancer, Hemophilia, Talassemia, Neurological diseases మరియు Chronic renal Failure వంటివాటితో అనారోగ్యానికి గురయి చికిత్స కోసం చెల్లించిన సొమ్ములో 60 సంవత్సరాల లోపు వారికి 40,000/-, 60 సంవత్సరాలు లేదా పైబడిన వారికి 80,000/- మినహాయింపు కలదు. దీనికోసం ఫారం 10-I లో సంభందిత స్పెషలిస్ట్ డాక్టర్ చే ఖర్చుల వివరాలు సమర్పించాలి.కాని ఈ సెక్షన్ కింద మినహాయింపు చేసె అవకాశం DDO లకు లేదు.
6.చందాలు (80G) :
PM, CMరిలీఫ్ ఫండ్ వంటి 100% మినహాయింపు గలవాటికి ఇచ్చే చందాలు మినహా , 80G క్రిందకు వచ్చే 50%/30% మినహాయింపులోకి వచ్చే ఏ ఇతర చందాలు DDO లు అనుమతించరాదు.
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* Note : సెక్షన్ 80DDB మరియు 80G కింద మినహాయింపు చేసె అవకాశం DDO లకు లేదు. కాని ముందుగా February జీతం తో టాక్స్ చెల్లించి, అధికముగా చేల్లించిన మొత్తాన్ని31 జూలై 2016 లోపు Income Tax Department వారికి SAHAJ ఫారంలో సమర్పించిన తిరిగి చెల్లిస్తారని ఐ.టి. డిపార్ట్మెంట్ వారు గత సంవత్సరం DTA/DTO లకు సర్క్యులర్ రూపంలో ఆదేశాలు ఇచ్చినారు (vide E.No TDS/clarification/1011 Dt. 15/12/2011 of Addl. Commissioner IT Dept. Hyderabad) తిరిగి పొందవచ్చు.
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మెడికల్ ఇన్సురెన్స్ (80D) : ఉద్యోగి తన కుటుంబంకోసం మరియు పేరెంట్స్ కోసం చెల్లించిన మెడికల్ ఇన్సూరెన్స్ వేరు వేరుగా మినహాయింపు పొందవచ్చు. ఉద్యోగి తన కుటుంబం కోసం చెల్లించిన సోమ్ముకాని గరిష్టంగా 25,000/- లు, ఉద్యోగి పేరెంట్స్ కి మెడికల్ ఇన్సూరెన్స్ కోసం చెల్లించిన ప్రీమియం కాని గరిష్టంగా 25,000/- పేరెంట్స్ లో ఒక్కరు సీనియర్ సిటిజెన్ అయినా ప్రీమియం కాని గరిష్టంగా 30,000/- మినహాయింపు పొందవచ్చు. ఉద్యోగి కాని కుటుంబం కోసం కాని పేరెంట్స్ కోసం కాని హెల్త్ చెకప్ కోసం సొమ్ము ఉపయోగిస్తే ఈ సెక్షన్ కింద గరిష్టం గా 5,000/- మినహాయింపు కలదు.కన్వేయన్స్ అలవెన్స్ కి పూర్తిమినహాయింపు. వృత్తి పన్ను కు కూడాపూర్తిగా మినహాయింపు కలదు.
పొదుపు పథకాల పై మదుపు రూ. 1.5 లక్ష :
* Note : DDO లు ఫిబ్రవరి మాసం జీతం బిల్ పొందే సమయములో Form-16 లు సమర్పిస్తు డిడక్ట్ చేసిన ఇన్కమ్ టాక్స్ TAN నెంబర్ తో జమ అవుతుంది, దీనికి సంబందించిన బిల్ నంబర్స్ STO/ Online లో TAN నెంబర్ ద్వారా తీసుకుని ఉద్యోగి వారిగా CA తో ఇ-పిల్లింగ్ ద్వారా TDS వివరాలు వివరాలు 31 జూలై,2016 లోపు ఆన్లైన్ చేయించాలి, ఇలా చేయని వారికి Income Tax Department వారు ఫైన్ వేసే అవకాశం ఉంది
1.వివిధ పొదుపు పతకాలలో సేవింగ్స్ (80C) :
GPF, ZPGPF, APGLI, GIS, LIC, PLI, National Saving Certificates, Public Provident Fund, Sukanya Samruddhi Yojana, ELSS, ULIPS మొదలయిన పతకాలలో చేసిన సేవింగ్స్, తన, స్పౌస్ ఉన్నత చదువుకోసం, ఇద్దరు పిల్లల వరకు ప్రీ స్కూల్ నుండి ఉన్నత చదువుల వరకు చెల్లించిన ఫీజు, ఇంటి ఋణం పై చెల్లించిన అసలు (Principle), ఇంటిని ఈ ఆర్ధిక సంవత్సరం లో కొన్నవారికి రిజిస్ట్రేషన్ కోసం చెల్లించిన స్టాంప్ డ్యూటీ రూ. 1.5 లక్ష వరకు మినహాయింపు కలదు.
2.Annuity సేవింగ్స్ పథకం లో సేవింగ్ (80 CCC) : LIC లేదా ఇతర ఇన్సూరెన్స్ ప్రొవైడర్ ల ద్వారా తీసుకున్న ఆన్యుటి స్కీంల కోసం చేల్లించిన ప్రీమియం. 3.CPS deduction (80CCD) : కొత్త పెన్షన్ పై నియామకం అయిన ఉద్యోగులు ప్రతినెల తమ జీతం నుండి 10% చెల్లిస్తున్న CPS deduction 80CCD(1) ప్రకారం 1లక్ష వరకు మినహాయింపు కలదు . ప్రభుత్వం ఉద్యోగి ప్రాన్ ఖాతా లో జమ చేస్తున్న 10% CPS మ్యాచింగ్ గ్రాంట్ ని 80CCD(2) ప్రకారం జమయిన మొత్తాన్ని రూ.1.5 లక్షలకు అదనం గా మినహాయింపు కలదు.80CCD(1B) తో 50,000/- అదనపు మినహాయింపు అవకాశం కల్పించారు ఈ సదుపాయం ఏప్రిల్ 2016 నుండి అందుబాటులోకి వస్తుంది.* 80C, 80CCC, 80CCD ల పొదుపు ల పైన మొత్తముగా 1.5 లక్షలు ఉంటుంది.
అదనపు మినహాయింపు పొదుపు పథకం RGESS (80CCG) :
Rajiv Gandhi Equity Saving Scheme ద్వారా 1.5లక్షలకి అదనముగా మినాయింపు ఇస్తుంది. వార్షిక ఆదాయము 10 లక్షలలోపు ఉన్నవారు గరిష్టంగా 50,000/- వరకు పొదుపు చెయవచ్చు. పొదుపు చేసిన సొమ్ములో సగం (50%) ను మినహాయిస్తారు అంటె గరిష్ట మినహాయింపు 25,000/- వరకు పొందొచ్చు.
సేవింగ్స్ ఖాతా పైన పొందిన వడ్డీ మినహాయింపు (80TTA) :
సేవింగ్స్ ఖాతా లో జమయిన వడ్డీ ని ఆదాయం గా చూపిన దాంట్లో నుండి వడ్డీని గరిష్టం గా 10,000/- వరకు 80TTA ప్రకారం రూ. 1.5 లక్ష సేవింగ్స్ పై అదనముగా 10,000/- వరకు మినహాయింపు అవకాశం ఉంది.
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GPF, ZPGPF, APGLI, GIS, LIC, PLI, National Saving Certificates, Public Provident Fund, Sukanya Samruddhi Yojana, ELSS, ULIPS మొదలయిన పతకాలలో చేసిన సేవింగ్స్, తన, స్పౌస్ ఉన్నత చదువుకోసం, ఇద్దరు పిల్లల వరకు ప్రీ స్కూల్ నుండి ఉన్నత చదువుల వరకు చెల్లించిన ఫీజు, ఇంటి ఋణం పై చెల్లించిన అసలు (Principle), ఇంటిని ఈ ఆర్ధిక సంవత్సరం లో కొన్నవారికి రిజిస్ట్రేషన్ కోసం చెల్లించిన స్టాంప్ డ్యూటీ రూ. 1.5 లక్ష వరకు మినహాయింపు కలదు.
2.Annuity సేవింగ్స్ పథకం లో సేవింగ్ (80 CCC) : LIC లేదా ఇతర ఇన్సూరెన్స్ ప్రొవైడర్ ల ద్వారా తీసుకున్న ఆన్యుటి స్కీంల కోసం చేల్లించిన ప్రీమియం. 3.CPS deduction (80CCD) : కొత్త పెన్షన్ పై నియామకం అయిన ఉద్యోగులు ప్రతినెల తమ జీతం నుండి 10% చెల్లిస్తున్న CPS deduction 80CCD(1) ప్రకారం 1లక్ష వరకు మినహాయింపు కలదు . ప్రభుత్వం ఉద్యోగి ప్రాన్ ఖాతా లో జమ చేస్తున్న 10% CPS మ్యాచింగ్ గ్రాంట్ ని 80CCD(2) ప్రకారం జమయిన మొత్తాన్ని రూ.1.5 లక్షలకు అదనం గా మినహాయింపు కలదు.80CCD(1B) తో 50,000/- అదనపు మినహాయింపు అవకాశం కల్పించారు ఈ సదుపాయం ఏప్రిల్ 2016 నుండి అందుబాటులోకి వస్తుంది.* 80C, 80CCC, 80CCD ల పొదుపు ల పైన మొత్తముగా 1.5 లక్షలు ఉంటుంది.
అదనపు మినహాయింపు పొదుపు పథకం RGESS (80CCG) :
Rajiv Gandhi Equity Saving Scheme ద్వారా 1.5లక్షలకి అదనముగా మినాయింపు ఇస్తుంది. వార్షిక ఆదాయము 10 లక్షలలోపు ఉన్నవారు గరిష్టంగా 50,000/- వరకు పొదుపు చెయవచ్చు. పొదుపు చేసిన సొమ్ములో సగం (50%) ను మినహాయిస్తారు అంటె గరిష్ట మినహాయింపు 25,000/- వరకు పొందొచ్చు.
సేవింగ్స్ ఖాతా పైన పొందిన వడ్డీ మినహాయింపు (80TTA) :
సేవింగ్స్ ఖాతా లో జమయిన వడ్డీ ని ఆదాయం గా చూపిన దాంట్లో నుండి వడ్డీని గరిష్టం గా 10,000/- వరకు 80TTA ప్రకారం రూ. 1.5 లక్ష సేవింగ్స్ పై అదనముగా 10,000/- వరకు మినహాయింపు అవకాశం ఉంది.
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* Note : DDO లు ఫిబ్రవరి మాసం జీతం బిల్ పొందే సమయములో Form-16 లు సమర్పిస్తు డిడక్ట్ చేసిన ఇన్కమ్ టాక్స్ TAN నెంబర్ తో జమ అవుతుంది, దీనికి సంబందించిన బిల్ నంబర్స్ STO/ Online లో TAN నెంబర్ ద్వారా తీసుకుని ఉద్యోగి వారిగా CA తో ఇ-పిల్లింగ్ ద్వారా TDS వివరాలు వివరాలు 31 జూలై,2016 లోపు ఆన్లైన్ చేయించాలి, ఇలా చేయని వారికి Income Tax Department వారు ఫైన్ వేసే అవకాశం ఉంది
Income Tax Act and Income Tax Calculation for 2014-15 for AY 2015-16
Income Tax Calculation 2015-16 and Income Tax Act for 2016-17
As per the Finance Act, 2015, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2015-16 (i.e.Assessment Year 2016-17) at the following rates.
Income Tax Normal Slabs below 60 Years
|
Income Tax Rate
|
|
i.
|
Where the total income does not exceed Rs. 2,50,000/-. | NIL |
ii.
|
Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. | 10% of amount by which the total income exceeds Rs. 2,50,000/-. |
iii.
|
Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. | Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-. |
iv.
|
Where the total income exceeds Rs. 10,00,000/-. | Rs. 1,25,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-. |
Important Changes made in Income Tax Act from 2015-16 AY 2016-17
1.
Vide Finance Act 2015, an individual is allowed a deduction up to a
limit of Rs 1,00,000 being paid as interest on a loan taken from a
Financial Institution, sanctioned during the period 01-04-2013 to
31-03-2014 (loan not to exceed Rs 25 lakhs) for acquisition of a
residential house whose value does not exceed Rs 40 lakhs. If in case of
above loan the interest claimed during AY 2015-16is less than Rs.
1,00,000/- then the balance amount is allowed in AY 2016-17.(Section
80EE)
2.
Deduction in respect of Life insurance premia, deferred annuity,
contributions to provident fund, subscription to certain equity shares
or debentures, etc. (section 80C) is allowed subject to a limit of Rs.1,50,000/-
3. Donations made to National Children's Fund will be exempted 100% under Sec 80G.
4. Continued : Rebate of Rs. 2000 Finance
Act 2013 provided relief in the form of rebate to individual taxpayers,
resident in India, who are in lower income bracket, i. e. having total
income not exceeding Rs 5,00,000/-. The amount of rebate is Rs 2000/- or
the amount of tax payable, whichever is lower. This rebate is available for A.Y. 2015-16 and subsequent assessment years.
Pay and Salary and Other Income Income included in Salary in Brief:
Pay, DA, HRA, CCA, IR, Increments, Commissions, Leave Dues, Pay
Advances, Surrender Leave, Pension, Bonus, Honorarium, Tuition Fee
Reimbursement etc...
Income excluded from Salary in Brief:
LTC, Gratuity, Commuted Pension, Tour/Transfer TA/DA, PF Payments, Medical Reimbursement, Educational Allowance
Any Income earned from other sources other than Salary shall also be shown in the Other Income
Deducations / Savings Allowed:
Any Income earned from other sources other than Salary shall also be shown in the Other Income
Deducations / Savings Allowed:
1. Professional Tax
2. HRA (Conditions Applied. More Details Click on HRA Section Below)
3. Interest on Housing Loan Advance
4. Expenditure on Medical Treatment, Handicapped Dependent
5. Donations to charitable Trusts
6. Rajiv Gandhi Equity Savings Scheme (50% Amount will Qualify)
7. And Savings in Salary or which comes under 80C, 80CCC, 80CCD(1) i.e., APGLI, ZPPF, CPS, GIS, LIC, Term Deposits, Housing Loan Principal, Insurance Premium paid in this Year , 5Years Fixed Deposits, Tuition Fees. (Only 1 Lakh will qualify from the Total of these Savings mentioned in this Point 7).
2. HRA (Conditions Applied. More Details Click on HRA Section Below)
3. Interest on Housing Loan Advance
4. Expenditure on Medical Treatment, Handicapped Dependent
5. Donations to charitable Trusts
6. Rajiv Gandhi Equity Savings Scheme (50% Amount will Qualify)
7. And Savings in Salary or which comes under 80C, 80CCC, 80CCD(1) i.e., APGLI, ZPPF, CPS, GIS, LIC, Term Deposits, Housing Loan Principal, Insurance Premium paid in this Year , 5Years Fixed Deposits, Tuition Fees. (Only 1 Lakh will qualify from the Total of these Savings mentioned in this Point 7).
IT Deductions allowed Under Chapter VI-A Sec 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB etc
Section 80CCD: Deduction in respect of Contribution to Pension Account (CPS)(by Assessee}
Section 80CCD(1) allows an employee, being an individual employed by the Central Government or any other employer, on or after the 01.01.2004, a deduction of an amount paid or deposited out of his income chargeable to tax under a pension scheme as notified vide Notification F. N. 5/7/2003- ECB&PR dated 22.12.2003 or as may be notifed by the Central Government. However, the deduction shall not exceed an amount equal to 10% of his salary(includes Dearness Allowance but excludes all other allowance and perquisites).
As per Section 80CCD(2), where an employee receives any contribution in the said pension scheme from the Central Government or any other employer then the employee shall be allowed a deduction from his total income of the whole amount contributed by the Central Government or any other employer subject to limit of 10% of his salary of the previous year.
Section 80DDB: Deduction in respect of Medical Expenditure on Self or Dependent Relative
A deduction to the extent of Rs. 40,000/- 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.
Section 80G: Deduction in respect of Various Donations
The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G. The Donations made SWF, PMRF, CMRF etc will come under this section. No deduction under this section is allowable in case of amount of donation if exceeds Rs.10000/- unless the amount is paid by any mode other than cash.
Income
Tax Deductions allowed Under Chapter VI-A of Income Tax Act. Under
Chapter VI-A, the Sections covered are Sec.80C, Sec.80CCC, Sec.80D,
Sec.80CCG, Sec.80DD, Sec.80U, Sec.80DDB, 80E. Let us discuss briefly
about all the Sections with reference to the Income Tax Act 2014-15.
- Section 80C - Various Investments-
- Section 80CCC - Pension Funds
- Section 80CCD - CPS Subscriptions
- Section 80CCG - Equity Savings Schemes
- Section 80D - Medical Insurance
- Section 80DD - Medical Expediture of Disabled Dependent-
- Section 80 U - Persons with Disability-
- Section 80DDB - Medical Expenditure
- Section 80EE - Interest on Loan on House Property-
- Section 80G - Donations
Details of IT Deductions Allowed under Chapter VI-A of IT Act
In
computing the taxable income of the employee, the following deductions
under Chapter VIA of the Act are to be allowed from his gross total
income:
Deductions allowed Under Section 80C Rs.1,50,000 (Key Points)
Section
80C, entitles an employee to deductions for the whole of amounts paid
or deposited in the current financial year in the following schemes,
subject to a limit of Rs.1,50,000/
1. Payment of
insurance premium to effect or to keep in force an insurance on the life
of the individual, the spouse or any child of the individual.
2. Any payment made to effect or to keep in force a contract for a deferred annuity.
3. Any sum deducted from the salary payable by, or, on behalf of the Government to any individual, being a sum deducted in accordance with the conditions of his service for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum deducted does not exceed 1/5th of the salary; (From the above APGLI, GIS are covered)
4. Any contribution made by an individual to any Provident Fund to which the Provident Fund Act 1925 applies.
5. Any subscription to any such saving certificates as defined under section 2(c) of the Government Saving Certificate Act, 1959 as the Government may, by notification in the Official Gazette, specify in this behalf. [The Central Government has since notified National Saving Certificate (VIIIth Issue) vide Notification S.O. No. 1560(E) dated 3.11.05 and National Saving Certificate (IXth Issue) vide Notification . G.S.R. 848 (E), dated the 29th November, 2011, publishing the National Savings Certificates (IX-Issue) Rules, 2011 G.S.R. 868 (E), dated the 7th December, 2011, specifying the National Savings Certificates IX Issue as the class of Savings Certificates FNo1-13/2011-NS-II r/w amendent Notification No.GSR 319(E), dated 25-4-2012]
6. Any sum paid as contribution in the case of an individual, for himself, spouse or any child, a. for participation in the Unit Linked Insurance Plan.(ULIPS)
7. Any subscription made to any units of any Mutual Fund, of section 10(23D). The investments made after 1.4.2006 in plans formulated in accordance with Equity Linked Saving Scheme, 1992 or Equity Linked Saving Scheme, 1998 shall also qualify for deduction under section 80C.
8. Any sums paid by an assessee for the purpose of purchase or construction of a residential house property, the income from which is chargeable to tax under the head "Income from house property" (or which would, if it has not been used for assessee's own residence, have been chargeable to tax under that head) where such payments are made towards or by way of any installment or part payment of the amount due under any self financing or other scheme of any Development Authority, Housing Board etc.
9. Tuition fees, whether at the time of admission or thereafter, paid to any university, college, school or other educational institution situated in India, for the purpose of full-time education of any two children of the employee. It is also clarified that full-time education includes play-school activities, pre-nursery and nursery classes. It is clarified that the amount allowable as tuition fees shall include any payment of fee to any university, college, school or other educational institution in India.
10. Subscription to equity shares or debentures forming part of any eligible issue of capital made by a public company, which is approved by the Board or by any public finance institution.
11. Investment as a term deposit for a fixed period of not less than five years with a scheduled bank, which is in accordance with a scheme framed and notified by the Central Government, in the Official Gazette for these purposes. [The Central Government has since notified the Bank Term Deposit Scheme, 2006 for this purpose vide Notification S.O. No. 1220(E) dated 28.7.2006]
12. Subscription to such bonds issued by the National Bank for Agriculture and Rural Development, as the Central Government may, by such notification in the Official Gazette, specify in this behalf.
13. Any investment as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.
2. Any payment made to effect or to keep in force a contract for a deferred annuity.
3. Any sum deducted from the salary payable by, or, on behalf of the Government to any individual, being a sum deducted in accordance with the conditions of his service for the purpose of securing to him a deferred annuity or making provision for his spouse or children, in so far as the sum deducted does not exceed 1/5th of the salary; (From the above APGLI, GIS are covered)
4. Any contribution made by an individual to any Provident Fund to which the Provident Fund Act 1925 applies.
5. Any subscription to any such saving certificates as defined under section 2(c) of the Government Saving Certificate Act, 1959 as the Government may, by notification in the Official Gazette, specify in this behalf. [The Central Government has since notified National Saving Certificate (VIIIth Issue) vide Notification S.O. No. 1560(E) dated 3.11.05 and National Saving Certificate (IXth Issue) vide Notification . G.S.R. 848 (E), dated the 29th November, 2011, publishing the National Savings Certificates (IX-Issue) Rules, 2011 G.S.R. 868 (E), dated the 7th December, 2011, specifying the National Savings Certificates IX Issue as the class of Savings Certificates FNo1-13/2011-NS-II r/w amendent Notification No.GSR 319(E), dated 25-4-2012]
6. Any sum paid as contribution in the case of an individual, for himself, spouse or any child, a. for participation in the Unit Linked Insurance Plan.(ULIPS)
7. Any subscription made to any units of any Mutual Fund, of section 10(23D). The investments made after 1.4.2006 in plans formulated in accordance with Equity Linked Saving Scheme, 1992 or Equity Linked Saving Scheme, 1998 shall also qualify for deduction under section 80C.
8. Any sums paid by an assessee for the purpose of purchase or construction of a residential house property, the income from which is chargeable to tax under the head "Income from house property" (or which would, if it has not been used for assessee's own residence, have been chargeable to tax under that head) where such payments are made towards or by way of any installment or part payment of the amount due under any self financing or other scheme of any Development Authority, Housing Board etc.
9. Tuition fees, whether at the time of admission or thereafter, paid to any university, college, school or other educational institution situated in India, for the purpose of full-time education of any two children of the employee. It is also clarified that full-time education includes play-school activities, pre-nursery and nursery classes. It is clarified that the amount allowable as tuition fees shall include any payment of fee to any university, college, school or other educational institution in India.
10. Subscription to equity shares or debentures forming part of any eligible issue of capital made by a public company, which is approved by the Board or by any public finance institution.
11. Investment as a term deposit for a fixed period of not less than five years with a scheduled bank, which is in accordance with a scheme framed and notified by the Central Government, in the Official Gazette for these purposes. [The Central Government has since notified the Bank Term Deposit Scheme, 2006 for this purpose vide Notification S.O. No. 1220(E) dated 28.7.2006]
12. Subscription to such bonds issued by the National Bank for Agriculture and Rural Development, as the Central Government may, by such notification in the Official Gazette, specify in this behalf.
13. Any investment as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.
Section 80CCC: Deduction in respect of Contribution to certain Pension Funds
Section 80CCC allows an employee deduction of an amount paid or deposited out of his income chargeable to tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the Fund referred to in section 10(23AAB). However, the deduction shall exclude interest or bonus accrued or credited to the employee's account, if any and shall not exceed Rs. 1 lakh.
Section 80CCC allows an employee deduction of an amount paid or deposited out of his income chargeable to tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the Fund referred to in section 10(23AAB). However, the deduction shall exclude interest or bonus accrued or credited to the employee's account, if any and shall not exceed Rs. 1 lakh.
Section 80CCD: Deduction in respect of Contribution to Pension Account (CPS)(by Assessee}
Section 80CCD(1) allows an employee, being an individual employed by the Central Government or any other employer, on or after the 01.01.2004, a deduction of an amount paid or deposited out of his income chargeable to tax under a pension scheme as notified vide Notification F. N. 5/7/2003- ECB&PR dated 22.12.2003 or as may be notifed by the Central Government. However, the deduction shall not exceed an amount equal to 10% of his salary(includes Dearness Allowance but excludes all other allowance and perquisites).
As per Section 80CCD(2), where an employee receives any contribution in the said pension scheme from the Central Government or any other employer then the employee shall be allowed a deduction from his total income of the whole amount contributed by the Central Government or any other employer subject to limit of 10% of his salary of the previous year.
Note:It
is emphasized that as per the section 80CCE the aggregate amount of
deduction under sections 80C, 80CCC and Section 80CCD(1) shall not
exceed Rs.1,50,000/-. However the contribution made by the Central
Government or any other employer to a pension scheme u/s 80CCD(2) shall
be excluded from the limit of Rs.1,50,000/- provided under this Section.
SECTIONS UNDER CHAPTER-IV AND EXCLUDED FROM THE 150000 LIMIT
The Below are the Sections covered under Chapter-IV but excluded from 1.50 Lakh Limit
Sec 80CCG: Equity Savings Scheme: Rajiv Gandhi Equity Saving Scheme.
Section 80CCG provides deduction w.e.f .assessment year 2013-14 in respect of investment made under notified equity saving scheme. Rajiv Gandhi Equity Savings Scheme 2012 has been notified vide SO No 2777 E dated 23.11.2012 as a scheme under this section. The scheme wasmodified in December 2013 vide notification SO No. 3693 dated 18.12.2013 as RGESS 2013. The investment is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme. The amount of deduction is at 50% of amount invested in equity shares/units. However, the amount of deduction under this provision cannot exceed Rs. 25,000
Section 80CCG provides deduction w.e.f .assessment year 2013-14 in respect of investment made under notified equity saving scheme. Rajiv Gandhi Equity Savings Scheme 2012 has been notified vide SO No 2777 E dated 23.11.2012 as a scheme under this section. The scheme wasmodified in December 2013 vide notification SO No. 3693 dated 18.12.2013 as RGESS 2013. The investment is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme. The amount of deduction is at 50% of amount invested in equity shares/units. However, the amount of deduction under this provision cannot exceed Rs. 25,000
- (a) The assessee is a resident individual
- (b) His gross total income does not exceed Rs. 12 lakhs;
- (c) He has acquired listed shares in accordance with a notified scheme or listed units of an equity oriented fund as defined in section 10(38);
- (d) The assessee is a new retail investor;
- (e) The investment is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme;
- (f) The assessee satisfies any other condition as may be prescribed.
Amount
of deduction –The amount of deduction is at 50% of amount invested in
equity shares/units. However, the amount of deduction under this
provision cannot exceed Rs. 25,000.
Section 80D: Deduction in respect of health insurance premia paid (Medical Insurance):
Section 80D provides for deduction available for health insurance premia paid, etc. which is
calculated as under:
calculated as under:
Section 80D: Deduction in respect of health insurance premia paid (Medical Insurance):
Section 80D provides for deduction available for health insurance premia paid, etc. which is
calculated as under:
calculated as under:
| Sl No | Persons for whom payment made | Nature of payment | Mode of payment | Allowable Deduction (in Rs) |
| 1 | Employee or his family | The whole of the amount paid to effect or to keep in force an insurance on the health of the employee or his family or Any contribution made to the CGHS or such other scheme as may be notified by Central Government (Finance Act 2013) A any payment on account of preventive health check-up of the employee or family, [restricted to Rs 5000/-; cash payment allowed here] | any mode other than cash | Aggregate allowable is Rs 15,000/ {For Senior Citizens it is Rs 20000/-}. |
| 2 | Parent or Parents of employee | The whole of the amount paid to effect or keep in force an insurance on the health of the parent or parents of the employee or v any payment made on account of preventive health check-up of the parent or parents of the employee [restricted to Rs 5000/-; cash payment allowed here] | any mode other than cash | Aggregate allowable is Rs 15,000/ {For Senior Citizens it is Rs 20000/-} |
Section 80DD: Medical treatment of a dependent who is a person with disability
Under section 80DD, where an employee, who is a resident in India, has, during the previous year
(a)
incurred any expenditure for the medical treatment (including nursing),
training and rehabilitation of a dependant, being a person with
disability; or
(b)
paid or deposited any amount under a scheme framed in this behalf by
the Life Insurance Corporation or any other insurer or the Administrator
or the specified company subject to the conditions specified in this
regard and approved by the Board in this behalf for the maintenance of a
dependant, being a person with disability, the employee shall be
allowed a deduction of a sum of fifty thousand rupees from his gross
total income of that year.
However, where such dependant is a person with severe disability, an amount of one hundred thousand rupees shall be allowed as deduction subject to the specified conditions.
However, where such dependant is a person with severe disability, an amount of one hundred thousand rupees shall be allowed as deduction subject to the specified conditions.
Section 80U: Deductions for a Person with Disability.
Deduction
of Rs. 50,000/- 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.
100,000/- shall be available u/s 80U. Certificate should be obtained
from a Govt. Doctor. The relevant rule is Rule 11D.
Section 80DDB: Deduction in respect of Medical Expenditure on Self or Dependent Relative
A deduction to the extent of Rs. 40,000/- 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.
Section 80EE: Interest on loan taken for residential house property
,
Vide Finance Act 2013, an individual is allowed a deduction upto a
limit of Rs 1,00,000 being paid as interest on a loan taken from a
Financial Institution, sanctioned during the period 01-04-2013 to
31-03-2014 (loan not to exceed Rs 25 lakhs) for acquisition of a
residential house whose value does not exceed Rs 40 lakhs. However the
deduction is available if the assessee does not own any residential
house property on the date of sanction of the loan.
Section 80G: Deduction in respect of Various Donations
The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G. The Donations made SWF, PMRF, CMRF etc will come under this section. No deduction under this section is allowable in case of amount of donation if exceeds Rs.10000/- unless the amount is paid by any mode other than cash.
Income Tax Rules-Income included under the Head Salaries
Income Tax Rules-Income Included under the Head Salaries. It
is important to know what is the income that is chargeable under the
head Salaries while computation of Income Tax. We will discuss the
Definition of Salary, Perquisite and Profit in Lieu of Salary as per
Section 17.
(1) The following income shall be chargeable to income-tax under the head "Salaries" :
Rule.5.2 Definition of Salary, Perquisite and Profit in Lieu of Salary (Section 17)
5.2.1 "Salary" includes:-
i. wages, fees, commissions, perquisites, profits in lieu
of, or, in addition to salary, advance of salary, annuity or pension,
gratuity, payments in respect of encashment of leave etc.
ii. the portion of the annual accretion to the balance at the credit of the employee participating in a recognized provident fund as consists of {Rule 6 of Part A of the Fourth Schedule of the Act}:
Family Pension is chargeable to tax under head “Income from other sources” and not under the head “Salaries”. Therefore, provisions of section 192 of the Act are not applicable.
Hence no TDS is required to be made on family pension.
5.2.2 Perquisite includes:
A perquisite is an incidental profit, privilege, or fringe benefit derived from one's employment or office. In this sense, it is almost universally shortened to perk. The word also means anything claimed or held as an exclusive right. Perquisite usually means ‘an extra allowance or privilege’: For Instance: "he had all the perquisites of a movie star, including a stand-in"
I. The value of rent free accommodation provided to the employee by his employer;
II. The value of any concession in the matter of rent in respect of any accommodation provided to the employee by his employer;
III. The value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases:
IV. Any sum paid by the employer in respect of any obligation which would otherwise have been payable by the assessee.
V. Any sum payable by the employer, whether directly or through a fund, other than a recognized provident fund or an approved superannuation fund or other specified funds u/s 17, to effect an assurance on the life of an assessee or to effect a contract for an annuity.
VI. The value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at concessional rate to the employee and for this purpose,.
VIII. The value of any other fringe benefit or amenity as prescribed (in Rule 3).
Rule.5.1 Income Chargeable under the Head "SALARIES"
- (a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not;
- (b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him.
- (c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year.
Rule.5.2 Definition of Salary, Perquisite and Profit in Lieu of Salary (Section 17)
5.2.1 "Salary" includes:-
ii. the portion of the annual accretion to the balance at the credit of the employee participating in a recognized provident fund as consists of {Rule 6 of Part A of the Fourth Schedule of the Act}:
- a) contributions made by the employer to the account of the employee in a recognized provident fund in excess of 12% of the salary of the employee,
- b) interest credited on the balance to the credit of the employee in so far as it is allowed at a rate exceeding such rate as may be fixed by Central Government. [w.e.f. 01-09-2010 rate is fixed at 9.5% - Notification No SO 1046(E) dated 13-05-2011]
- iii. the contribution made by the Central Government or any other employer to the account of the employee under the New Pension Scheme as notified vide Notification F.N. 5/7/2003- ECB&PR dated 22.12.2003 (enclosed as Annexure VII) referred to in section 80CCD (para 5.5.3 of this Circular).
Family Pension is chargeable to tax under head “Income from other sources” and not under the head “Salaries”. Therefore, provisions of section 192 of the Act are not applicable.
Hence no TDS is required to be made on family pension.
5.2.2 Perquisite includes:
A perquisite is an incidental profit, privilege, or fringe benefit derived from one's employment or office. In this sense, it is almost universally shortened to perk. The word also means anything claimed or held as an exclusive right. Perquisite usually means ‘an extra allowance or privilege’: For Instance: "he had all the perquisites of a movie star, including a stand-in"
I. The value of rent free accommodation provided to the employee by his employer;
II. The value of any concession in the matter of rent in respect of any accommodation provided to the employee by his employer;
III. The value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases:
- i) By a company to an employee who is a director of such company;
- ii) By a company to an employee who has a substantial interest in the company;
- iii) By an employer (including a company)to an employee, who is not covered by (i) or (ii) above and whose income under the head “Salaries” (whether due from or paid or allowed by one or more employers), exclusive of the value of all benefits and amenities not provided by way of monetary payment, exceeds Rs.50,000/-.
IV. Any sum paid by the employer in respect of any obligation which would otherwise have been payable by the assessee.
V. Any sum payable by the employer, whether directly or through a fund, other than a recognized provident fund or an approved superannuation fund or other specified funds u/s 17, to effect an assurance on the life of an assessee or to effect a contract for an annuity.
VI. The value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at concessional rate to the employee and for this purpose,.
- (a) “specified security” means the securities as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956 and, where employees’ stock option has been granted under any plan or scheme therefor, includes the securities offered under such plan or scheme;
- (b) “sweat equity shares” means equity shares issued by a company to its employees or directors at a discount or for consideration other than cash for providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called;
- (c) the value of any specified security or sweat equity shares shall be the fair market value of the specified security or sweat equity shares, as the case may be, on the date on which the option is exercised by the assessee as reduced by the amount actually paid by, or recovered from the assessee in respect of such security or shares;
- (d) “fair market value” means the value determined in accordance with the method as may be prescribed;
- (e) “option” means a right but not an obligation granted to an employee to apply for the specified security or sweat equity shares at a predetermined price;
VIII. The value of any other fringe benefit or amenity as prescribed (in Rule 3).
Some More Useful references in terms of Salary
Interest free or concessional loans [Rule 3(7)(i)]:
It is common practice, particularly in financial institutions, to provide interest free or concessional loans to employees or any member of his household. The value of perquisite arising from such loans would be the excess of interest payable at prescribed interest rate over interest, if any, actually paid by the employee or any member of his household. The prescribed interest rate would now be the rate charged per annum by the State Bank of India as on the 1st day of the relevant financial year in respect of loans of same type and for the same purpose advanced by it to the general public. Perquisite value would be calculated on the basis of the maximum outstanding monthly balance method. For valuing perquisites under this rule, any other method of calculation and adjustment otherwise adopted by the employer shall not be relevant. However, small loans up to Rs. 20,000/- in the aggregate are exempt.
Loans for medical treatment of diseases specified in Rule 3A are also exempt, provided the amount of loan for medical reimbursement is not reimbursed under any medical insurance scheme. Where any medical insurance reimbursement is received, the perquisite value at the prescribed rate shall be charged from the date of reimbursement on the amount reimbursed, but not repaid against the outstanding loan taken specifically for this purpose.
Exemptions: It is pertinent to mention that benefits specifically exempt u/s 10(13A) (Deals with HRA) , 10(5) (This Section deals with LTC) , 10(14) (Deals with Transfer Grant Allowance), 17 (Deals with Medical Reimbursement) etc.of the Act would continue to be exempt. These include benefits like house rent allowance,leave travel concession, travel on tour and transfer, daily allowance to meet tour expenses asprescribed, medical facilities subject to conditions.
5.2.3 'Profits in lieu of salary' shall include
It is common practice, particularly in financial institutions, to provide interest free or concessional loans to employees or any member of his household. The value of perquisite arising from such loans would be the excess of interest payable at prescribed interest rate over interest, if any, actually paid by the employee or any member of his household. The prescribed interest rate would now be the rate charged per annum by the State Bank of India as on the 1st day of the relevant financial year in respect of loans of same type and for the same purpose advanced by it to the general public. Perquisite value would be calculated on the basis of the maximum outstanding monthly balance method. For valuing perquisites under this rule, any other method of calculation and adjustment otherwise adopted by the employer shall not be relevant. However, small loans up to Rs. 20,000/- in the aggregate are exempt.
Loans for medical treatment of diseases specified in Rule 3A are also exempt, provided the amount of loan for medical reimbursement is not reimbursed under any medical insurance scheme. Where any medical insurance reimbursement is received, the perquisite value at the prescribed rate shall be charged from the date of reimbursement on the amount reimbursed, but not repaid against the outstanding loan taken specifically for this purpose.
Exemptions: It is pertinent to mention that benefits specifically exempt u/s 10(13A) (Deals with HRA) , 10(5) (This Section deals with LTC) , 10(14) (Deals with Transfer Grant Allowance), 17 (Deals with Medical Reimbursement) etc.of the Act would continue to be exempt. These include benefits like house rent allowance,leave travel concession, travel on tour and transfer, daily allowance to meet tour expenses asprescribed, medical facilities subject to conditions.
5.2.3 'Profits in lieu of salary' shall include
1. I. the amount of any compensation due to or received by
an assessee from his employer or former employer at or in connection
with the termination of his employment or the modification of the terms
and conditions relating thereto;
2. II. any payment (other than any payment referred to in clauses (10), (10A), (10B), (11), (12) (13) or (13A) of section 10 due to or received by an assessee from an employer or a former employer or from a provident or other fund, to the extent to which it does not consist of contributions by the assessee or interest on such contributions or any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy.
3. "Keyman insurance policy" shall have the same meaning as assigned to it in section 10(10D);
4. III. any amount due to or received, whether in lump sum or otherwise, by any assessee from any person—
5. (A) before his joining any employment with that person; or
6. (B) after cessation of his employment with that person
2. II. any payment (other than any payment referred to in clauses (10), (10A), (10B), (11), (12) (13) or (13A) of section 10 due to or received by an assessee from an employer or a former employer or from a provident or other fund, to the extent to which it does not consist of contributions by the assessee or interest on such contributions or any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy.
3. "Keyman insurance policy" shall have the same meaning as assigned to it in section 10(10D);
4. III. any amount due to or received, whether in lump sum or otherwise, by any assessee from any person—
5. (A) before his joining any employment with that person; or
6. (B) after cessation of his employment with that person
Income Exempted under the Head Salaries in Income Tax
Income Exempted (Not Included) under
the Head Salaries in Income Tax. In our previous post we discussed about
the Income covered under Salaries and now let us know the Income which
is not Included under the Head Salaries means Exempted from Salaries
under certain conditions. Any income falling within any of the following
clauses shall not be included in computing the income from salaries for
the purpose of section 192 of the Act.
Travel Concession or Assistance:
5.3.1 The value of any travel concession or assistance received by or due to an employee from his employer or former employer for himself and his family, in connection with his proceeding (a) on leave to any place in India or (b) after retirement from service, or, after termination of service to any place in India is exempt under Section 10(5) subject, however, to the conditions prescribed in Rule 2B of the Rules.
It may also be noted that the amount exempt under this clause shall in no case exceed theamount of expenses actually incurred for the purpose of such travel.
Death-cum-retirement gratuity 5.3.2 Death-cum-retirement gratuity or any other gratuity is exempt to the extent specified from inclusion in computing the total income under Section 10(10). Any death-cum-retirement gratuity received under the revised Pension Rules of the Central Government or, as the case may be, the Central Civil Services (Pension) Rules, 1972, or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence service. Gratuity received in cases other than those mentioned above, on retirement, termination etc is exempt up to the limit as prescribed by the Board.
Presently the limit is Rs. 10 lakhs w.e.f. 24.05.2010 [Notification no. 43/2010 S.O. 1414(E) F.No. 200/33/2009-ITA-1 dated 11th June 2010].
Commutation of Pension
5.3.3 Any payment in commutation of pension received under the Civil Pensions (Commutation) Rules of the Central Government or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all- India services or to the members of the defence services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority] or a corporation established by a Central, State or Provincial Act, is exempt under Section10(10A)(i). As regards payments in commutation of pension received under any scheme of any other employer, exemption will be governed by the provisions of section 10(10A)(ii). Also, any payment in commutation of pension from a fund referred to in Section 10(23AAB) is exempt under Section 10(10A)(iii).
Cash-equivalent of the Leave Salary
5.3.4 Any payment received by an employee of the Central Government or a State Government, as cash-equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement, whether on superannuation or otherwise, is exempt under Section 10(10AA)(i). In the case of other employees, this exemption will be determined with reference to the leave to their credit at the time of retirement on superannuation or otherwise, subject to a maximum of ten months' leave. This exemption will be further limited to the maximum amount specified by the Government of India Notification No.S.O.588(E) dated 31.05.2002 at Rs. 3,00,000/- in relation to such employees who retire, whether on superannuation or otherwise, after 1.4.1998.
Retrenchment Compensation
5.3.5 Under Section 10(10B), the retrenchment compensation received by a workman is exempt from income-tax subject to certain limits. The maximum amount of retrenchment compensation exempt is the sum calculated on the basis provided in section 25F(b) of the Industrial Disputes Act, 1947 or any amount not less than Rs.50,000/- as the Central Government may by notification specify in the Official Gazette, whichever is less. These limits shall not apply in the case where the compensation is paid under any scheme which is approved in this behalf by the Central Government, having regard to the need for extending
special protection to the workmen in the undertaking to which the scheme applies and other relevant circumstances. The maximum limit of such payment is Rs. 5,00,000/- where retrenchment is on or after 1.1.1997 as specified in Notification No. 1096 of 25-06-1999.
Schemes of Voluntary Retirement
5.3.6 Under Section 10(10C), any payment received or receivable (even if received in installments) by an employee of the following bodies at the time of his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of public sector company, a scheme of voluntary separation, is exempt from income-tax to the extent that such amount does not exceed Rs. 5,00,000/-:
Sum received under a Life Insurance Policy
5.3.7 Any sum received under a Life Insurance Policy (Sec 10(10D), including the sum allocated by way of bonus on such policy other than the following is exempt under section 10(10D):
Payment from a Provident Fund
5.3.8 Any payment from a Provident Fund to which the Provident Funds Act, 1925, applies or from any other provident fund set up by the Central Government and notified by it in the Official Gazette is exempt under section 10(11).
Expenditure incurred on Payment of Rent
5.3.9 Under section 10(13A) of the Act, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations.
5.3.12 Any scholarship granted to meet the cost of education is not to be included in total income as per provisions of section 10(16) of the Act.
Income Exempted (Not Included) under the Head Salaries
5.3.1 The value of any travel concession or assistance received by or due to an employee from his employer or former employer for himself and his family, in connection with his proceeding (a) on leave to any place in India or (b) after retirement from service, or, after termination of service to any place in India is exempt under Section 10(5) subject, however, to the conditions prescribed in Rule 2B of the Rules.
It may also be noted that the amount exempt under this clause shall in no case exceed theamount of expenses actually incurred for the purpose of such travel.
Death-cum-retirement gratuity 5.3.2 Death-cum-retirement gratuity or any other gratuity is exempt to the extent specified from inclusion in computing the total income under Section 10(10). Any death-cum-retirement gratuity received under the revised Pension Rules of the Central Government or, as the case may be, the Central Civil Services (Pension) Rules, 1972, or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence service. Gratuity received in cases other than those mentioned above, on retirement, termination etc is exempt up to the limit as prescribed by the Board.
Presently the limit is Rs. 10 lakhs w.e.f. 24.05.2010 [Notification no. 43/2010 S.O. 1414(E) F.No. 200/33/2009-ITA-1 dated 11th June 2010].
Commutation of Pension
5.3.3 Any payment in commutation of pension received under the Civil Pensions (Commutation) Rules of the Central Government or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all- India services or to the members of the defence services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority] or a corporation established by a Central, State or Provincial Act, is exempt under Section10(10A)(i). As regards payments in commutation of pension received under any scheme of any other employer, exemption will be governed by the provisions of section 10(10A)(ii). Also, any payment in commutation of pension from a fund referred to in Section 10(23AAB) is exempt under Section 10(10A)(iii).
Cash-equivalent of the Leave Salary
5.3.4 Any payment received by an employee of the Central Government or a State Government, as cash-equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement, whether on superannuation or otherwise, is exempt under Section 10(10AA)(i). In the case of other employees, this exemption will be determined with reference to the leave to their credit at the time of retirement on superannuation or otherwise, subject to a maximum of ten months' leave. This exemption will be further limited to the maximum amount specified by the Government of India Notification No.S.O.588(E) dated 31.05.2002 at Rs. 3,00,000/- in relation to such employees who retire, whether on superannuation or otherwise, after 1.4.1998.
Retrenchment Compensation
5.3.5 Under Section 10(10B), the retrenchment compensation received by a workman is exempt from income-tax subject to certain limits. The maximum amount of retrenchment compensation exempt is the sum calculated on the basis provided in section 25F(b) of the Industrial Disputes Act, 1947 or any amount not less than Rs.50,000/- as the Central Government may by notification specify in the Official Gazette, whichever is less. These limits shall not apply in the case where the compensation is paid under any scheme which is approved in this behalf by the Central Government, having regard to the need for extending
special protection to the workmen in the undertaking to which the scheme applies and other relevant circumstances. The maximum limit of such payment is Rs. 5,00,000/- where retrenchment is on or after 1.1.1997 as specified in Notification No. 1096 of 25-06-1999.
Schemes of Voluntary Retirement
5.3.6 Under Section 10(10C), any payment received or receivable (even if received in installments) by an employee of the following bodies at the time of his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of public sector company, a scheme of voluntary separation, is exempt from income-tax to the extent that such amount does not exceed Rs. 5,00,000/-:
- a) A public sector company;
- b) Any other company;
- c) An Authority established under a Central, State or Provincial Act;
- d) A Local Authority;
- e) A Cooperative Society;
- f) A university established or incorporated or under a Central, State or Provincial Act, or, an Institution declared to be a University under section 3 of the University Grants Commission Act, 1956;
- g) Any Indian Institute of Technology within the meaning of Section 3 (g) of the Institute of Technology Act, 1961;
- h) Such Institute of Management as the Central Government may by notification in the Official Gazette, specify in this behalf.
Sum received under a Life Insurance Policy
5.3.7 Any sum received under a Life Insurance Policy (Sec 10(10D), including the sum allocated by way of bonus on such policy other than the following is exempt under section 10(10D):
1. i) any sum received under section 80DD(3) or section 80DDA(3); or
2. ii) any sum received under a Keyman insurance policy; or
3. iii) any sum received under an insurance policy issued on or after 1.4.2003, but on or before 31-03-2012, in respect of which the premium payable for any of the years during the term of the policy exceeds 20 percent of the actual capital sum assured; or
4. iv) any sum received under an insurance policy issued on or after 1.4.2012 in respect of which the premium payable for any of the years during the term of the policy exceeds 10 percent of the actual capital sum assured; or
5. iv) any sum received under an insurance policy issued on or after 1.4.2013. In cases of persons with disability or person with severe disability as per Sec 80 U or suffering from disease or ailment as specified in Sec 80DDB, in respect of which the premium payable for any of the years during the term of the policy exceeds 15 percent of the actual capital sum assured
However, any sum received under such policy referred to in (iii), (iv) and (v) above, on the death of a person would be exempt.2. ii) any sum received under a Keyman insurance policy; or
3. iii) any sum received under an insurance policy issued on or after 1.4.2003, but on or before 31-03-2012, in respect of which the premium payable for any of the years during the term of the policy exceeds 20 percent of the actual capital sum assured; or
4. iv) any sum received under an insurance policy issued on or after 1.4.2012 in respect of which the premium payable for any of the years during the term of the policy exceeds 10 percent of the actual capital sum assured; or
5. iv) any sum received under an insurance policy issued on or after 1.4.2013. In cases of persons with disability or person with severe disability as per Sec 80 U or suffering from disease or ailment as specified in Sec 80DDB, in respect of which the premium payable for any of the years during the term of the policy exceeds 15 percent of the actual capital sum assured
Payment from a Provident Fund
5.3.8 Any payment from a Provident Fund to which the Provident Funds Act, 1925, applies or from any other provident fund set up by the Central Government and notified by it in the Official Gazette is exempt under section 10(11).
Expenditure incurred on Payment of Rent
5.3.9 Under section 10(13A) of the Act, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations.
5.3.12 Any scholarship granted to meet the cost of education is not to be included in total income as per provisions of section 10(16) of the Act.
Medical Treatment:
5.3.14 Under Section 17 of the Act, exemption from tax will also be available in respect of:-
5.4.1 Entertainment Allowance [Section 16(ii)]:
A deduction is also allowed under section 16(ii) in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee, who is in receipt of a salary from the Government, a sum equal to one-fifth of his salary(exclusive of any allowance, benefit or other perquisite) or five thousand rupees whichever is less. No deduction on account of entertainment allowance is available to non-government employees.
5.4.2 Tax on Employment [Section 16(iii)]:
The tax on employment (Professional Tax) within the meaning of article 276(2) of the Constitution of India, leviable by or under any law, shall also be allowed as a deduction in computing the income under the head "Salaries".
It may be clarified that “Standard Deduction” from gross salary income, which was being allowed up to financial year 2004-05 is not allowable from financial year 2005-06 onwards.
p; (c) premium paid by the employer in respect of medical insurance taken for his employees (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority) or reimbursement of insurance premium to the employees who take medical insurance for themselves or for their family members (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority);
4. (d) reimbursement, by the employer, of the amount spent by an employee in obtaining medical treatment for himself or any member of his family from any doctor, not exceeding in the aggregate Rs.15,000/- in an year
5. (e) As regards medical treatment abroad, the actual expenditure on stay and treatment abroad of the employee or any member of his family, or, on stay abroad of one attendant who accompanies the patient, in connection with such treatment, will be excluded from perquisites to the extent permitted by the Reserve Bank of India. It may be noted that the expenditure incurred on travel abroad by the patient/attendant, shall be excluded from perquisites only if the employee's gross total income, as computed before including the said expenditure, does not exceed Rs.2 lakhs.
For the purpose of availing exemption on expenditure incurred on medical treatment, "hospital" includes a dispensary or clinic or nursing home, and "family" in relation to an individual means the spouse and children of the individual. Family also includes parents, brothers and sisters of the individual if they are wholly or mainly dependent on the individual.
1. (a) the value of any medical treatment
provided to an employee or any member of his family, in any hospital
maintained by the employer;
2. (b) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or of any member of his family: (i) in any hospital maintained by the Government or any local authority or any other hospital approved by the Government for the purposes of medical treatment of its employees; ii) in respect of the prescribed diseases or ailments as provided in Rule 3A(2) of the Rules in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines as provided in Rule 3(A)1)of the Rules.
3. (c) premium paid by the employer in respect of medical insurance taken for his employees (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority) or reimbursement of insurance premium to the employees who take medical insurance for themselves or for their family members (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority);
4. (d) reimbursement, by the employer, of the amount spent by an employee in obtaining medical treatment for himself or any member of his family from any doctor, not exceeding in the aggregate Rs.15,000/- in an year.
5. (e) As regards medical treatment abroad, the actual expenditure on stay and treatment abroad of the employee or any member of his family, or, on stay abroad of one attendant who accompanies the patient, in connection with such treatment, will be excluded from perquisites to the extent permitted by the Reserve Bank of India. It may be noted that the expenditure incurred on travel abroad by the patient/attendant, shall be excluded from perquisites only if the employee's gross total income, as computed before including the said expenditure, does not exceed Rs.2 lakhs.
For the purpose of availing exemption on expenditure incurred
on medical treatment, "hospital" includes a dispensary or clinic or
nursing home, and "family" in relation to an individual means the spouse
and children of the individual. Family also includes parents, brothers
and sisters of the individual if they are wholly or mainly dependent
on the individual.2. (b) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or of any member of his family: (i) in any hospital maintained by the Government or any local authority or any other hospital approved by the Government for the purposes of medical treatment of its employees; ii) in respect of the prescribed diseases or ailments as provided in Rule 3A(2) of the Rules in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines as provided in Rule 3(A)1)of the Rules.
3. (c) premium paid by the employer in respect of medical insurance taken for his employees (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority) or reimbursement of insurance premium to the employees who take medical insurance for themselves or for their family members (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority);
4. (d) reimbursement, by the employer, of the amount spent by an employee in obtaining medical treatment for himself or any member of his family from any doctor, not exceeding in the aggregate Rs.15,000/- in an year.
5. (e) As regards medical treatment abroad, the actual expenditure on stay and treatment abroad of the employee or any member of his family, or, on stay abroad of one attendant who accompanies the patient, in connection with such treatment, will be excluded from perquisites to the extent permitted by the Reserve Bank of India. It may be noted that the expenditure incurred on travel abroad by the patient/attendant, shall be excluded from perquisites only if the employee's gross total income, as computed before including the said expenditure, does not exceed Rs.2 lakhs.
Medical Treatment:
5.4 DEDUCTIONS U/S 16 OF THE ACT FROM THE INCOME FROM SALARIES
A deduction is also allowed under section 16(ii) in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee, who is in receipt of a salary from the Government, a sum equal to one-fifth of his salary(exclusive of any allowance, benefit or other perquisite) or five thousand rupees whichever is less. No deduction on account of entertainment allowance is available to non-government employees.
5.4.2 Tax on Employment [Section 16(iii)]:
The tax on employment (Professional Tax) within the meaning of article 276(2) of the Constitution of India, leviable by or under any law, shall also be allowed as a deduction in computing the income under the head "Salaries".
It may be clarified that “Standard Deduction” from gross salary income, which was being allowed up to financial year 2004-05 is not allowable from financial year 2005-06 onwards.
p; (c) premium paid by the employer in respect of medical insurance taken for his employees (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority) or reimbursement of insurance premium to the employees who take medical insurance for themselves or for their family members (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority);
4. (d) reimbursement, by the employer, of the amount spent by an employee in obtaining medical treatment for himself or any member of his family from any doctor, not exceeding in the aggregate Rs.15,000/- in an year
5. (e) As regards medical treatment abroad, the actual expenditure on stay and treatment abroad of the employee or any member of his family, or, on stay abroad of one attendant who accompanies the patient, in connection with such treatment, will be excluded from perquisites to the extent permitted by the Reserve Bank of India. It may be noted that the expenditure incurred on travel abroad by the patient/attendant, shall be excluded from perquisites only if the employee's gross total income, as computed before including the said expenditure, does not exceed Rs.2 lakhs.
For the purpose of availing exemption on expenditure incurred on medical treatment, "hospital" includes a dispensary or clinic or nursing home, and "family" in relation to an individual means the spouse and children of the individual. Family also includes parents, brothers and sisters of the individual if they are wholly or mainly dependent on the individual.
Calculating Rs.2000 Tax Rebate Sec 87A of Income Tax Act- Clarifications
Calculating Rs.2000 Tax Rebate Sec 87A of Income Tax Act - Clarifications. As per the Income Tax Financial Act 2013-14,the
new Section 87A is introduced w.e.f. 1.4.2014. It is a big relief as
the Rebate of Rs.2000 is announced for the Individuals having Income
between Rs.2,00,000 Rs.5,00,000. Now there are lot of doubts on how to
avail the Rebate from Income Tax. Some are asking that whether the Basic
Income Limit for Individuals has raised to Rs.2,20,000 and basic
exemption limit is raised ?. Let us discuss some important points on
availing rebate with reference to the Income Tax Act 2013-14 and Finance Minister's Financial Budget speech.
The Rebate Rs.2000 under Sec 87A is inserted after the Sec 87 of the Income Tax Finance Act 2013 and is as follows:
87A. [Omitted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.]
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.
Clarifications on Sec 87A:
Calculating Rs.2000 Tax Rebate under Sec 87A of Income Tax Financial Act
87A. [Omitted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.]
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.
Clarifications on Sec 87A:
1. This Sec 87A Rebate of Rs.2000 is applicable to Individuals Indian Male and Female Residents only.
2. Basic Exemption Limit has not been increased. (Rs. 2 Lakh for Below 60 Years More Detailed particulars Click Here)
3. This Relief is applicable to all Individuals only if the Total Income is less than Rs.5,00,000
4. This Section 87A is w.e.f 1.4.2014 means, it is applicable from Assessment Year 2014-15, means for those who are filling their Income Tax Returns for the Financial Year 2013-14.
5. Tax Rebate is also applicable to Senior Citizens upto Rs. 5,00,000 Income.
6. First Calculate the Total Taxable Income after making all Possible and eligible Deductions from your Income. ( If the Total Taxable Income is Less than Rs.5,00,000 then you are to eligible claim a Rebate of Rs.2000).
7. From the previous step, we get The Income liable to Tax at Normal Rates.
8. From the Income Liable to Tax, Calculate the Income Tax.
9. Now Deduct Max of Rs.2000 as Rebate.
10. Means It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 2,000, whichever is less.
11. After deducting the Rebate, pay the tax after calculating the education cess, That's it.
Model Calculation of Rs.2000 Rebate in Income Tax Act 2013 as per Section 87A
For the purpose of availing exemption on expenditure incurred on medical treatment, "hospital" includes a dispensary or clinic or nursing home, and "family" in relation to an individual means the spouse and children of the individual. Family also includes parents, brothers and sisters of the individual if they are wholly or mainly dependent on the individual.
2. Basic Exemption Limit has not been increased. (Rs. 2 Lakh for Below 60 Years More Detailed particulars Click Here)
3. This Relief is applicable to all Individuals only if the Total Income is less than Rs.5,00,000
4. This Section 87A is w.e.f 1.4.2014 means, it is applicable from Assessment Year 2014-15, means for those who are filling their Income Tax Returns for the Financial Year 2013-14.
5. Tax Rebate is also applicable to Senior Citizens upto Rs. 5,00,000 Income.
6. First Calculate the Total Taxable Income after making all Possible and eligible Deductions from your Income. ( If the Total Taxable Income is Less than Rs.5,00,000 then you are to eligible claim a Rebate of Rs.2000).
7. From the previous step, we get The Income liable to Tax at Normal Rates.
8. From the Income Liable to Tax, Calculate the Income Tax.
9. Now Deduct Max of Rs.2000 as Rebate.
10. Means It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 2,000, whichever is less.
11. After deducting the Rebate, pay the tax after calculating the education cess, That's it.
Model Calculation of Rs.2000 Rebate in Income Tax Act 2013 as per Section 87A
1. Let us assume that Your Gross Income is Rs.400000
2. All Deductions and Exemptions is Rs.100000 and Your Total Income after applying all eligible deductions is Rs.3,00,000.
3. Hence, Now the Net Taxable Income will become Rs.3,00,000.
4. Now, 10% Tax on Rs.1,00,000 (Rs.3,00,000 - Rs.2,00,000) will be Rs.10,000.
5. As the Taxable Income is Less than Rs.5,00,000, apply Tax Rebate u/s 87A upto a Max of Rs.2,000.
6. Hence Tax is Rs.10,000 - Rs.2,000 = Rs.8,000.
7. Add Education Cess, Higher and Secondary Education Cess 3% on Rs.8,000 and Pay the Tax.
f the employee or any member of his family, or, on stay abroad of
one attendant who accompanies the patient, in connection with such
treatment, will be excluded from perquisites to the extent permitted by
the Reserve Bank of India. It may be noted that the expenditure incurred
on travel abroad by the patient/attendant, shall be excluded
from perquisites only if the employee's gross total income, as computed
before including the said expenditure, does not exceed Rs.2 lakhs.2. All Deductions and Exemptions is Rs.100000 and Your Total Income after applying all eligible deductions is Rs.3,00,000.
3. Hence, Now the Net Taxable Income will become Rs.3,00,000.
4. Now, 10% Tax on Rs.1,00,000 (Rs.3,00,000 - Rs.2,00,000) will be Rs.10,000.
5. As the Taxable Income is Less than Rs.5,00,000, apply Tax Rebate u/s 87A upto a Max of Rs.2,000.
6. Hence Tax is Rs.10,000 - Rs.2,000 = Rs.8,000.
7. Add Education Cess, Higher and Secondary Education Cess 3% on Rs.8,000 and Pay the Tax.
For the purpose of availing exemption on expenditure incurred on medical treatment, "hospital" includes a dispensary or clinic or nursing home, and "family" in relation to an individual means the spouse and children of the individual. Family also includes parents, brothers and sisters of the individual if they are wholly or mainly dependent on the individual.
Income Tax Section 10(13A)-Exemption of House Rent Allowance (HRA
Income Tax Section 10(13A) Exemption of House Rent Allowance (HRA) . While calculating Income Tax, Most of us have some doubts on calculation of HRA (House Rent Allowance). Income Tax Dept has mentioned so many times on wrong calculation of HRA by employees while submitting the returns. Hence let us discuss the Calculation of House Rent Allowance Exemption in Income Tax as per Income Tax Act 1961, Section 10(13A), Read with Rule 2A of Income Tax Rules 1962.
HRA Exemption Rule as per Income Tax Act Section 10(13A)
Under section 10(13A) of the Act, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations. According to Rule 2A of the Rules, the quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be the least of the following:
1. (a) The actual amount of such allowance received by the
assessee in respect of the relevant period i. e. the period during which
the accommodation was occupied by the assesse during the financial
year; or
2. (b) The actual expenditure incurred in payment of rent in excess of 1/10 of the salary due for the relevant period; or
3. (i) Where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50% of the salary due to the employee for the relevant period; or (ii) Where such accommodation is situated in any other places, 40% of the salary due to the employee for the relevant period,
For this purpose, "Salary" includes dearness allowance, if
the terms of employment so provide, but excludes all other allowances
and perquisites.2. (b) The actual expenditure incurred in payment of rent in excess of 1/10 of the salary due for the relevant period; or
3. (i) Where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50% of the salary due to the employee for the relevant period; or (ii) Where such accommodation is situated in any other places, 40% of the salary due to the employee for the relevant period,
It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax.
The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee.
Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A), it has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs.3000/- per month will be exempted from production of rent receipt. It may, however, be noted that this concession is only for the purpose of tax-deduction at source, and, in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry as he deems fit for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent.
Further if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.
Clarification by Addl Commissioner of IT, Hyd, as per CIT-14/TDS-State Govt/2012-13 Dated 14.2.13
- HRA granted to an employee who is residing in his own house/flat owned by self is not exempt from income-tax.
- Salaried employees paying rent upto Rs.3000 per month will be exempted from production of rent receipt.
Calculation of HRA Exemption:
1.Actual Amount of HRA Received
2.Actual Rent Paid Minus (-) 10% of Basic Salary (Here Basic Salary means Basic Pay + DA)
3.40% of Basic Salary (50% of Basic Salary in Metro Cities).
The Least of the above three will be taken House Rent Allowance Exemption.
Illustrative calculation of House Rent Allowance U/s 10 (13A)in respect of residential accommodation situated in Delhi in case of an employee below the age of 60 years (With valid PAN furnished to employer).
Particulars as follows:
1 Salary =2,50,000
2 Dearness Allowance =1,00,000
3 House Rent Allowance =1,40,000
4 House rent paid =1,44,000
Now Calculation of HRA Exemption as follows:
Salary + Dearness Allowance + House Rent Allowance= (2,50,000+1,00,000+1,40,000) = 4,90,000
Total Salary Income = 4,90,000
Less: House Rent allowance exempt U/s 10(13A):
Least of:
- (a). Actual amount of HRA received= 1,40,000
- (b). Actual Rent paid minus 10% of salary (including D.A) = (1,44,000-35,000) = 1,09,000
- (c). 50% of Salary (Basic+ DA) = 1,75,000.
Gross Total Income = 4,90,000-1,09,000 = 3,81,000.
IT Exemptions: House Building Loan Repayment, Interest on Housing Loan
Exemption on Interest on House Building Loan (Housing Loan Interest)
Section 24(b) of the Act allows deduction from income from houses property on interest on borrowed capital as under:-
(i) the deduction is allowed only in case of house property which is owned and is in the occupation of the employee for his own residence. However, if it is actually not occupied by the employee in view of his place of the employment being at other place, his residence in that other place should not be in a building belonging to him. The quantum of deduction allowed as per table below:
Purpose of borrowing capital
|
Date of borrowing Capital
|
Maximum Deduction allowable
|
Repair or renewal or reconstruction of the house
|
Any time
|
Rs. 30,000/-
|
Acquisition or construction of the house
|
Before 01.04.1999
|
Rs. 30,000/-
|
Acquisition or construction of the house
|
On or after 01.04.1999
|
Rs. 1,50,000/-
(upto AY 2014-15) Rs. 2,00,000/- (w. e. f. AY 2015-16) |
1. (a) The acquisition or construction of the house should
be completed within3 years from the end of the FY in which the capital
was borrowed. Hence it is necessary for the DDO to have the completion
certificate of the house property against which deduction is claimed
either from the builder or through self-declaration from the employee.
2. (b) Further any prior period interest for the FYs upto the FY in which the property was acquired or constructed (as reduced by any part of interest allowed as deduction under any other section of the Act) shall be deducted in equal installments for the FY in question and subsequent four FYs.
3. (c) The employee has to furnish before the DDO a certificate from the person to whom any interest is payable on the borrowed capital specifying the amount of interest payable. In case a new loan is taken to repay the earlier loan, then the certificate should also show the details of Principal and Interest of the loan so repaid.
Read What does the Section 24 (Deductions from income from house property)of Income Tax Rules Says:2. (b) Further any prior period interest for the FYs upto the FY in which the property was acquired or constructed (as reduced by any part of interest allowed as deduction under any other section of the Act) shall be deducted in equal installments for the FY in question and subsequent four FYs.
3. (c) The employee has to furnish before the DDO a certificate from the person to whom any interest is payable on the borrowed capital specifying the amount of interest payable. In case a new loan is taken to repay the earlier loan, then the certificate should also show the details of Principal and Interest of the loan so repaid.
24. Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:
(a) a sum equal to thirty per cent of the annual value;
(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:
- Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :
- Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed [within three years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed one lakh fifty thousand rupees.
- [Provided also that no deduction shall be made under the second proviso unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.
Exemption for House Building Advance (Loan) Principal Amount in Income Tax Rules
Vide Finance Act 2013, an individual is allowed a deduction upto a limit of Rs 1,00,000 being paid as interest on a loan taken from a Financial Institution, sanctioned during the period 01-04-2013 to 31-03-2014 (loan not to exceed Rs 25 lakhs) for acquisition of a residential house whose value does not exceed Rs 40 lakhs. However the deduction is available if the assessee does not own any residential house property on the date of sanction of the loan.
If in case of above loan the interest claimed during AY 2014-15 is less than Rs. 1,00,000/- then the balance amount is allowed in AY 2015-16.
1. Any sums paid by an assessee for the purpose of purchase
or construction of a residential house property, the income from which
is chargeable to tax under the head "Income from house property" (or
which would, if it has not been used for assessee's own residence, have
been chargeable to tax under that head) where such payments are
made towards or by way of any instalment or part payment of the amount
due under any selffinancing or other scheme of any Development
Authority, Housing Board etc.
2. The deduction will also be allowable in respect of re-payment of loans borrowed by an assessee from the Government, or any bank or Life Insurance Corporation, or National Housing Bank, or certain other categories of institutions engaged in the business of providing long term finance for construction or purchase of houses in India. Any repayment of loan borrowed from the employer will also be covered, if the employer happens to be a public company, or a public sector company, or a university established by law, or a college affiliated to such university, or a local authority, or a cooperative society, or an authority, or a board, or a corporation, or any other body established under a Central or State Act.
3. The stamp duty, registration fee and other expenses incurred for the purpose of transfer shall also be covered. Payment towards the cost of house property, however, will not include, admission fee or cost of share or initial deposit or the cost of any addition or alteration to, or, renovation or repair of the house property which is carried out after the issue of the completion certificate by competent authority, or after the occupation of the house by the assessee or after it has been let out. Payments towards any expenditure in respect of which the deduction is allowable under the provisions of section 24 of the Act will also not be included in payments towards the cost of purchase or construction of a house property.
4. Where the house property in respect of which deduction has been allowed under these provisions is transferred by the tax-payer at any time before the expiry of five years from the end of the financial year in which possession of such property is obtained by him or he receives back, by way of refund or otherwise, any sum specified in section 80C(2)(xviii), no deduction under these provisions shall be allowed in respect of such sums paid in such previous year in which the transfer is made and the aggregate amount of deductions of income so allowed in the earlier years shall be added to the total income of the assessee of such previous year and shall be liable to tax accordingly.
2. The deduction will also be allowable in respect of re-payment of loans borrowed by an assessee from the Government, or any bank or Life Insurance Corporation, or National Housing Bank, or certain other categories of institutions engaged in the business of providing long term finance for construction or purchase of houses in India. Any repayment of loan borrowed from the employer will also be covered, if the employer happens to be a public company, or a public sector company, or a university established by law, or a college affiliated to such university, or a local authority, or a cooperative society, or an authority, or a board, or a corporation, or any other body established under a Central or State Act.
3. The stamp duty, registration fee and other expenses incurred for the purpose of transfer shall also be covered. Payment towards the cost of house property, however, will not include, admission fee or cost of share or initial deposit or the cost of any addition or alteration to, or, renovation or repair of the house property which is carried out after the issue of the completion certificate by competent authority, or after the occupation of the house by the assessee or after it has been let out. Payments towards any expenditure in respect of which the deduction is allowable under the provisions of section 24 of the Act will also not be included in payments towards the cost of purchase or construction of a house property.
4. Where the house property in respect of which deduction has been allowed under these provisions is transferred by the tax-payer at any time before the expiry of five years from the end of the financial year in which possession of such property is obtained by him or he receives back, by way of refund or otherwise, any sum specified in section 80C(2)(xviii), no deduction under these provisions shall be allowed in respect of such sums paid in such previous year in which the transfer is made and the aggregate amount of deductions of income so allowed in the earlier years shall be added to the total income of the assessee of such previous year and shall be liable to tax accordingly.
INCOME TAX -IT FORMS
| Return of income for block assessment | FORM NO.2B |
| Report under section 32(1)(iia) of the Income-tax Act, 1961 | FORM NO.3AA |
| Audit Report under section 32AB(5) | FORM NO.3AAA |
| Audit report under section 33AB(2) | FORM NO.3AC |
| Audit Report under section 33ABA(2) | FORM NO.3AD |
| Audit report under section 35D(4)/35E(6) of the Income- tax Act, 1961 | FORM NO.3AE |
| Report under section 36(1)(xi) of the Income-tax Act,1961 | FORM NO.3BA |
| Form of daily case register | FORM NO.3C |
| Audit report under section 44AB of the Income-tax Act, 1961 in a case where the accounts of the business or profession of a person have been audited under any other law | FORM NO.3CA |
| Audit report under section 44AB of the Income-tax Act, 1961, in the case of a person referred to in clause (b) of sub-rule (1) of rule 6G | FORM NO.3CB |
| Statement of particulars required to be furnished under section 44AB of the Income-tax Act, 1961 | FORM NO.3CD |
| Audit Report under sub-section (2) of section 44DA of the Income-tax Act, 1961 | FORM NO.3CE |
| Report of an accountant to be furnished by an assessee under sub-section (3) of section 50B of the Income -tax Act, 1961 relating to computation of capital gains in case of slump sale | FORM NO.3CEA |
| Report from an accountant to be furnished under section 92E relating to international transaction(s) | FORM NO.3CEB |
| Application form from scientific and industrial research organisations for approval under section 35 of the Income-tax Act | FORM NO.3CF |
| Order of approval of scientific research programme under section 35(2AA) of the Income-tax Act, 1961 | FORM NO.3CH |
| Receipt of payment for carrying out scientific research under section 35(2AA) of the Income-tax Act, 1961 | FORM NO.3CI |
| Report to be submitted by the prescribed authority to the Director General (Income-tax Exemptions) after approval of scientific research programme under section 35(2AA) of the Income-tax Act, 1961 | FORM NO.3CJ |
| Application form for entering into an agreement with the Department of Scientific and Industrial Research for co-operation in in-house Research and Development facility and for audit of the accounts maintained for that facility | FORM NO.3CK |
| Report to be submitted by the prescribed authority to the Director General (Income-tax Exemptions) under section 35(2AB) of the Income-tax Act, 1961 | FORM NO.3CL |
| Application for notification of affordable housing project as specified business under section 35AD | FORM NO.3CN |
| Notice of commencement of planting/replanting tea bushes | FORM NO.4 |
| Certficate of Planting /replanting Tea bushes | FORM NO.5 |
| Statement of particulers for purposes of section 33A relating to (a) planting of tea bushes on land not planted at any time with tea bushes or on land which had been previously abandoned; (b) replanting of tea bushes in replacement of tea bushes that have died or have become permanently useless on any land already planted | FORM NO.5A |
| Application for notification of a zero coupon bond under clause (48) of section 2 of the Application for notification of a zero coupon bond under clause (48) of section 2 of the Income-tax Act, 1961 | FORM NO.5B |
| Audit report under section 142(2A) of the Income-tax Act, 1961 | FORM NO.6B |
| Notice of demand under section 156 of the Income-tax Act, 1961 | FORM NO.7 |
| Declaration under section 158A(1) of the Income-tax Act, 1961 to be made by an assessee claiming that identical question of law is pending before the High Court or the Supreme Court | FORM NO.8 |
| Application for grant of approval or continuance thereof to a fund under section 10(23AAA) of the Income-tax Act, 1961 | FORM NO.9 |
| Notice of demand under section 156 of the Income-tax Act, 1961 | FORM NO.10 |
| Details of accounts under section 80G(5C)(v) of the Income-tax Act, 1961, for providing relief to the victims of earthquake in Gujarat | FORM NO.10AA |
| Audit report under section 12A(b) of the Income-tax Act, 1961, in the case of charitable or religious trusts or institutions | FORM NO.10B |
| Declaration to be filed by the assessee claiming deduction under section 80GG | FORM NO.10BA |
| Audit report under section 10(23C) of the Income-tax Act, 1961, in the case of any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of section 10(23C) | FORM NO.10BB |
| Audit report under section 80HH of the Income-tax Act, 1961 | FORM NO.10C |
| Audit report under section 80HHA of the Income-tax Act, 1961 | FORM NO.10CC |
| Audit report under section 80HHB of the Income-tax Act, 1961 | FORM NO.10CCA |
| Audit report under section 80HHBA of the Income-tax Act, 1961 | FORM NO.10CCAA |
| Certificate to be issued by Export House/Trading House to the supporting manufacturer for purposes of clause (b) of sub-section (4A) of section 80HHC | FORM NO.10CCAB |
| Certificate to be issued by an undertaking in the Special Economic Zone to the manufacturer undertaking referred to in sub-section (4C) of section 80HHC, for purposes of proviso to sub-section (4) of section 80HHC | FORM NO.10CCABA |
| Report under section 80HHC(4)/80HHC(4A) of the Income-tax Act, 1961 | FORM NO.10CCAC |
| Report under section 80HHD of the Income-tax Act, 1961 | FORM NO.10CCAD |
| Certificate from a person making payment to an assessee,engaged in the business of a hotel/tour operator/travel agent,out of Indian currency obtained by conversion of foreign exchange received from/on behalf of a foreign tourist/group of tourist | FORM NO.10CCAE |
| Report under section 80HHE(4)/80HHE(4A) of the Income-tax Act, 1961 | FORM NO.10CCAF |
| Certificate to be issued by exporting company to the supporting software developer for the purposes of clause (ii) of sub-section (4A) of section 80HHE | FORM NO.10CCAG |
| Certificate under clause (ia) of sub-section (3) of section 80HHB of the Income-tax Act, 1961 | FORM NO.10CCAH |
| Report under section 80HHF(4) of the Income-tax Act, 1961 | FORM NO.10CCAI |
| Audit report under sections 80-I(7)/80-IA(7)/80-IB | FORM NO.10CCB |
| Audit report under section 80-IB(7A) | FORM NO.10CCBA |
| Audit report under section 80-IB(14) | FORM NO.10CCBB |
| Audit report under section 80-IA(11B) | FORM NO.10CCBC |
| Certificate under sub-rule (3) of rule 18BBE of the Income-tax Rules, 1962 | FORM NO.10CCC |
| Certificate under sub-section (3) of section 80QQB for Authors of certain books in receipt of Royalty income, etc. | FORM NO.10CCD |
| Certificate under sub-section (2) of section 80RRB for Patentees in receipt of royalty income, etc. | FORM NO.10CCE |
| Report under section 80LA(3) of the Income-tax Act, 1961 | FORM NO.10CCF |
| Report under section 80JJAA of the Income-tax Act, 1961 | FORM NO.10DA |
| Form for evidence of payment of securities transaction tax on transations entered in a recognised stock exchange 1961 | FORM NO.10DB |
| Form for evidence of payment of securities transaction tax on transations tax on transactions of sale of unit of equity oriented fund to the mutual fund | FORM NO.10DC |
| Form for furnishing particulars of income u/s 192(2A) for the year ending 31st March,20..... for claiming relief u/s 89(1) by a Government servant/an employee in a company, co-operative society, local authority, university, institution,association/body | FORM NO.10E |
| Application for grant of approval or continuance thereof to institution or fund under section 80G(5)(vi) of the Income-tax Act, 1961 | FORM NO.10G |
| Certificate of foreign inward remittance | FORM NO.10H |
| Form of certificate under second proviso to section 80-O of the Income-tax Act, 1961 | FORM NO.10HA |
| Certificate of prescribed authority for the purposes of section 80DDB | FORM NO.10I |
| Certificate of the medical authority for certifying person with disability, severe disability, autism, cerebral palsy and multiple disability for purposes of section 80DD and section 80U | FORM NO.10IA |
| Application for registration of a firm for the purposes of the Income-tax Act,1961 | FORM NO.11 |
| Application for registration of a firm for the purposes of the Income-tax Act,1961 | FORM NO.11A |
| Declaratiion under section 184(7) of the Income-tax Act,1961 for continuation of registration | FORM NO.12 |
| Communication under clause (b) of Explanation below section 185(1) of the Income -tax Act, 1961, regarding partner who is benamidar | FORM NO.12A |
| Form for furnishing details of income u/s 192(2) for the year ending 31st March,.... | FORM NO.12B |
| Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof | FORM NO.12BA |
| Application by a person for a certificate under section 197 and/or 206C(9) of the Income-tax Act, 1961, for no deduction/collection of tax or deduction of tax at a lower rate | FORM NO.13 |
| Application by a banking company for a certificate under section 195(3) of the Income-tax Act, 1961, for receipt of interest and other sums without deduction of tax | FORM NO.15C |
| Application by a person other than a banking company for a certificate under section 195(3) of the Income-tax Act, 1961, for receipt of sums other than interest and dividends without deduction of tax of tax | FORM NO.15D |
| Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax of tax | FORM NO.15G |
| Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made by an individual who is of the age of sixty-five years or more claiming certain receipts without deduction of tax | FORM NO.15H |
| Declaration for non-deduction of tax at source to be furnished to contractor under the second proviso to clause (i) of sub-section (3) of section 194C by sub-contractor not owning more than two heavy goods carriages/trucks during the Financial Year | FORM NO.15I |
| Particulars to be furnished by the Contractor under the third proviso to clause (i) of sub-section (3) of section 194C for the Financial Year____(Assessment Year___) | FORM NO.15J |
| Certificate under section 203 of the Income-tax Act, 1961 for Tax deducted at source on Salary | FORM NO.16 |
| Certificate under section 203 of the Income-tax Act, 1961 for Tax deducted at source | FORM NO.16A |
| Statement of tax deducted at source from contributions repaid to employees in the case of an approved superannuation fund | FORM NO.22 |
| Annual return of Salaries under section 206 of the Income-tax Act, 1961 for the year ending 31st March,_______ | FORM NO.24 |
| TDS/TCS Book Adjustment Statement | FORM NO.24G |
| Quarterly statement of deduction of tax under sub-section (3) of section 200 of the Income-tax Act, 1961 in respect of salary for the quarter ended June/September/December/March (tick which ever applicable)...(year) | FORM NO.24Q |
| Annual Return of deduction of tax under section 206 of Income-tax Act, 1961 in respect of all payments other than Salaries for the year ending 31st March,______ | FORM NO.26 |
| Annual Return of deduction of tax under section 206 of Income-tax Act, 1961 in respect of all payments other than Salaries for the year ending 31st March,______ | FORM NO.26AS |
| Quarterly statement of deduction of tax under sub-section (3) of section 200 of the Income-tax Act, 1961 in respect of all payments other than Salary for the quarter ended June/September/December/March (tick whichever applicable)...(year) | FORM NO.26Q |
| Particulars required to be maintained for furnishing quarterly return under section 206A | FORM NO.26QA |
| Quarterly return under section 206A for the quarter ended June/September/December/March (tick whichever applicable) of the Financial Year _____ | FORM NO.26QAA |
| Form for furnishing information with the statement of deduction/collection of tax at source (tick whichever is applicable) filed on computer media for the period (From.to..(dd/mm/yyyy) | FORM NO.27A |
| Form for furnishing information with the statement of collection of tax at source filed on computer media for the period ending...(dd/mm/yyyy) | FORM NO.27B |
| Declaration under sub-section (1A) of section 206C of the Income-tax Act, 1961 to be made by a buyer for obtaining goods without collection of tax | FORM NO.27C |
| Certificate under section 206C of the Income-tax Act, 1961 for Tax collected at source | FORM NO.27D |
| Annual return of collection of tax under section 206C of I.T. Act, 1961 in respect of collections for the period ending.. | FORM NO.27E |
| Quarterly statement of Tax Collection at Source under section 206C of Income-tax Act, 1961 for the quarter ended June/September/December/March (tick whichever applicable)...(year) | FORM NO.27EQ |
| Quarterly statement of deduction of tax under sub-section (3) of section 200 of I.T. Act, 1961 in respect of payments other than Salary made to non-residents for the quarter ended June/September/December/March (tick which ever applicable)____(year) | FORM NO.27Q |
| Notice of demand under section 156 of the Income-tax Act, 1961 for payment of advance tax under sub-section (3) or sub-section (4) of section 210 | FORM NO.28 |
| Intimation to the Assessing Officer under section 210(5) regarding the notice of demand under section 156 of the Income-tax Act, 1961 for payment of advance tax under section 210(3)/210(4) of the Act | FORM NO.28A |
| Report under Section 115JB of the Income-tax Act, 1961 for computing the book profits of the company | FORM NO.29B |
| Report under section 115JC of the Income-tax Act, 1961 for computing adjusted total income and minimum alternate tax of the limited liability partnership | FORM NO.29C |
| Claim for refund of tax | FORM NO.30 |
| Form of undertaking to be furnished under sub-section (1) of section 230 of the Income-tax Act, 1961 | FORM NO.30A |
| No Objection Certificate for a person not domiciled in India under section 230(1) of the Income-tax Act, 1961 | FORM NO.30B |
| Form for furnishing the details under section 230(1A) of the Income-tax Act, 1961 | FORM NO.30C |
| Application for a certificate under the first proviso to sub-section (1A) of section 230 of the Income-tax Act, 1961 | FORM NO.31 |
| Clearance certificate under the first proviso to sub-section (1A) of section 230 of the Income-tax Act, 1961 | FORM NO.33 |
| Application for a certificate under section 230A(1) of the Income-tax Act, 1961 | FORM NO.34A |
| Form of application for settlement of cases under section 245C(1) of the Income-tax Act, 1961 | FORM NO.34B |
| Form of application for obtaining an advance ruling under section 245Q(1) of the Income-tax Act, 1961 | FORM NO.34C |
| Form of application by a resident applicant seeking advance ruling under section 245Q(1) of the Income-tax Act, 1961 in relation to a transaction undertaken or proposed to be undertaken by him with a non-resident | FORM NO.34D |
| Form of application by a person falling within such class or category of persons as notified by Central Government in exercise of powers conferred for obtaining and advance rulling u/s 245Q(1) of the Income-tax Act, 1961 | FORM NO.34E |
| Form of application for giving effect to the terms of any agreement under clause (h) of sub-section (2) of section 295 of the Income-tax Act, 1961 | FORM NO.34F |
| Appeal to the Commissioner of Income-tax (Appeals) | FORM NO.35 |
| Form of appeal to the Appellate Tribunal | FORM NO.36 |
| Reference application under section 256(1) of the Income- tax Act, 1961 | FORM NO.37 |
| Statement to be registered with the comptetent authority under section 269AB(2) of the Income-tax Act, 1961 | FORM NO.37EE |
| Form of appeal to the Appellate Tribunal against order of competent authority | FORM NO.37F |
| Statement to be furnished to the registering officer under section 269P(1) of the Income-tax Act, 1961 along with the instrument of transfer | FORM NO.37G |
| Fortnightly return under section 269P(2)(b) of the the Income-tax Act, 1961, in respect of the documents registered | FORM NO.37H |
| Statement of agreement for transfer of immovable property to be furnished to the appropriate authority under section 269UC of the Income-tax Act, 1961 | FORM NO.37I |
| Register of income-tax practitioners maintained by the Chief Commissioner or Commissioner of Income-tax.............. | FORM NO.38 |
| Form of application for registration as authorised income- tax practitioner | FORM NO.39 |
| Certificate of registration | FORM NO.40 |
| Form of nomination | FORM NO.40A |
| Form for modifying nomination | FORM NO.40B |
| Application for recognition | FORM NO.40C |
| Form for maintaining accounts of subscribers to a recognised provident fund | FORM NO.41 |
| Appeal against refusal to recognise or withdrawal of recognition from a provident fund | FORM NO.42 |
| Appeal against refusal to approve or withdrawal of approval from a superannuation fund | FORM NO.43 |
| Appeal against refusal to approve or withdrawal of approval from a gratuity fund | FORM NO.44 |
| Warrant of authorisation under section 132 of the Income-tax Act, 1961, and rule 112(1) of the Income-tax Rules, 1962 | FORM NO.45 |
| Warrant of authorisation under the proviso to sub-section (1) of section 132 of the Income-tax Act, 1961 | FORM NO.45A |
| Warrant of authorisation under sub-section (1A) of section 132 of the Income-tax Act, 1961 | FORM NO.45B |
| Warrant of authorisation under sub-section (1) of section 132A of the Income-tax Act, 1961 | FORM NO.45C |
| Information to be furnished to the income-tax authority under section 133B of the Income-tax Act, 1961 | FORM NO.45D |
| Application for information under clause (b) of sub-section (1) of section 138 of the Income-tax Act, 1961 | FORM NO.46 |
| Form for furnishing information under clause (b) of sub-section (1) of section 138 of the Income-tax Act, 1961 | FORM NO.47 |
| Form for intimating non-availability of information under clause (b) of sub-section (1) of section 138 of the Income-tax Act, 1961 | FORM NO.48 |
| Refusal to supply information under clause (b) of sub-section (1) of section 138 of the Income-tax Act, 1961 | FORM NO.49 |
| Application for allotment of Permanent Account Number under section 139A of the Income-tax Act, 1961 | FORM NO.49A |
| Application for allotment of Permanent Account Number under section 139A of the Income-tax Act, 1961 | FORM NO.49AA |
| Form of application for allotment of Tax Deduction Account Number under section 203A and Tax Collection Account Number under section 206CA of the Income-tax Act, 1961 | FORM NO.49B |
| Statement to be furnished to the Assessing Officer under section 285B of the Income-tax Act, 1961, in respect of production of a cinematograph film | FORM NO.52A |
| Application under section 281A(2) for obtaining a certified copy of notice under section 281A(1)/281A(1A)/281A(1B), of the Income-tax Act, 1961 | FORM NO.54 |
| Application for approval of an association or institution for purposes of exemption under section 10(23), or continuance thereof for the year.... | FORM NO.55 |
| Application for approval of a Venture Capital Fund or a Venture Capital Company | FORM NO.56A |
| Application for approval of a Venture Capital Fund or a Venture Capital Company | FORM NO.56AA |
| Condensed financial information income statement | FORM NO.56B |
| Condensed financial information Income statement | FORM NO.56BA |
| Statement of assets and liabilities | FORM NO.56C |
| Statement of assets and liabilities | FORM NO.56CA |
| Application for approval under section 10(23G) of an enterprise wholly engaged in the eligible business | FORM NO.56E |
| Report under section 10A of the Income-tax Act, 1961 | FORM NO.56F |
| Particulars to be furnished under clause (b) of sub-section (1B) of section 10A of the Income-tax Act, 1961 | FORM NO.56FF |
| Report under Section 10B of the Income-tax Act, 1961 | FORM NO.56G |
| Report under section 10BA of the Income-tax Act, 1961 | FORM NO.56H |
| Certificate under section 222 or 223 of the Income-tax Act, 1961 | FORM NO.57 |
| Application for approval of issue of public companies under section 88(2)(xvi) of the Income-tax Act | FORM NO.59 |
| Application for approval of mutual funds investing in the eligible issue of public companies under section 88(2)(xvii) of the Income-tax Act | FORM NO.59A |
| Form of declaration to be filed by a person who does not have either a permanent account number or General Index Register Number and who makes payment in cash in respect of transaction specified in clauses (a) to (h) of rule 114B | FORM NO.60 |
| Form of declaration to be filed by a person who has agricultural income and is not in receipt of any other income chargeable to income-tax in respect of transactions specified in clauses (a) to (h) of rule 114B | FORM NO.61 |
| Annual Information Return under section 285BA of the Income-tax Act, 1961 | FORM NO.61A |
| Certificate from the principal officer of the amalgamated company and duly verfied by an accountant regarding achievement of the prescribed level of production and continuance of such level of prduction in subsequent years | FORM NO.62 |
| Statement to be furnished to the Assessing Officer designated under rule 12B of the Income-tax Rules, 1962, in respect of income distributed by the Unit Trust of India | FORM NO.63 |
| Statement to be furnished to the Assessing Officer designated under rule 12B of the Income-tax Rules, 1962, in respect of income distributed by a Mutual Fund | FORM NO.63A |
| Statement of income distributed by Venture Capital Company or a Venture Capital Fund to be furnished under section 115U of the Income-tax Act, 1961 | FORM NO.64 |
| Application for exercising/renewing option for the tonnage tax scheme under sub-section (1) of section 115VP or sub-section (1) of section 115VR of the Income-tax Act, 1961 | FORM NO.65(New) |
| Audit Report under clause (ii) of section 115VW of the Income-tax Act, 1961 | FORM NO.66 |
YEAR 2015-16 INFO
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Read more: http://srinivasborra.webnode.com/income-tax/
INCOME TAX 2015-16 BY KSS PRASAD (9th -DEC) INCOME TAX SOFTWARE 2015-16 TRAIL BY PUTTA'SINCOME Tax Software - 2015-2016 YEAR (K.VIJAYA KUMAR) 03.10.2015) INCOME TAX SOFTWARE BY IT DEPT//// FOR AY 2015-16 INFORMATION ABOUT INCOMTAX 2015-16 IN TELUGU. Income Tax Act 2015-16 Complete Information
TDS అంటే ఏమిటి ?
TDS అంటే
మీరు పొందుతున్న ఆదాయం మూలం వద్దనే ఆదాయపు పన్ను కోత విధించడం .ఒకరకంగా
చెప్పాలి అంటే పరోక్షంగా ఆదాయపు పన్ను వసూలు చేయడం . అంటే ఇది pay as you earn అనే పద్దతిలో జరుగుతుంది.సాదారణంగా మీరు ఉద్యోగాస్తులతే మీ ఆదాయం పన్ను మినహాయింపు పరిధి కంటే అధికంగా ఉంటే మీ యాజమాన్యం మీ వద్ద TDS వసూలు చేస్తుంది. మీ యాజమాన్యం TDS వసూలు
చేసే ముందు మీరు ఆదాయపు పన్ను మినహాయింపు అర్హత గల వాటిలో ఇన్వెస్ట్ చేసిన
మొత్తాన్ని మీ ఆదాయం లో నుండి తగ్గించుకొని మీ ఆదాయానికి వర్తించే
స్లాబ్స్ కి అనుగుణంగా TDS వసూలు చేస్తారు. కాబట్టి మీరు చేసిన ఇన్వెస్ట్మెంట్ వివరాలు మీ యాజమాన్యం కు తెలియచేయడం తప్పనిసరి. ఒకవేళ మీరు బ్యాంక్ వడ్డీ ఆదాయం Rs 10000 కంటే అధికంగా వడ్డీ పొందితే ,వడ్డీ ఆదాయంలో 10 % TDS రూపంలో
మీ వద్ద బ్యాంక్ వసూలు చేస్తుంది. మీకు కేవలం బ్యాంక్ వడ్డీ ఆదాయం
మాత్రమే ఉన్న లేదా మీ మొత్తం ఆదాయం పన్ను పరిధి కంటే తక్కువగా ఉంటే
మీరు బ్యాంక్ వారికి 15G & 15 H అందచేసి మీ వద్ద TDS వసూలు చేయకుండా చూసుకోవచ్చు. ఆదాయపు పన్ను విషయంలో పెన్షన్ ను కూడా సాలరీగానే పరిగణిస్తారు. .ఈ విధంగా వసూలు చేసిన TDS ను ఆదాయపు పన్ను శాఖ వారికి చెల్లిస్తారు. అదే విధంగా మీకు TDS సర్టిపికేట్ కూడా అందచేస్తారు. మీ దగ్గర TDS వసూలు చేస్తే మీరు TDS సర్టిపికేట్ తీసుకోవడం మీ భాద్యత అదే విధంగా TDS సర్టిపికేట్ ఇవ్వడం TDS వసూలు చేసిన వారి బాధ్యత . TDS కేవలం సాలరీ , బ్యాంక్ వడ్డీ ఆదాయం మాత్రమే కాకుండా మీ ఆదాయం క్రింద ఇవ్వబడిన దానిలో యే విధంగా ఉన్న TDS వసూలు చేస్తారు.
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