DownloadAll in One TDS on Salary for Non-Govt Employees for F.Y.2016-17 & Ass Yr2017-18 [This Excel based software can prepare at a time Tax Computed Sheet + Individual Salary Structure + Individual Salary Sheet + Automated H.R.A Exemption Calculation + Automated Form 12 BA + Automated Form 16 Part A&B and Form 16 Part B as per the Budget 2016]
Changes in Income Tax Rules:
1. There has been no change in the income tax slabs.
2. For people with net taxable income below Rs 5 lakh, the tax rebate has been increased from Rs 2,000 to Rs 5,000 u/s 87A. This would benefit people who have net
taxable income between Rs 2.7 Lakhs to Rs 5 Lakhs.
3. Additional exemption for
first time home buyer up to Rs. 50,000 on interest paid on housing loans. This would be applicable where the property cost is
below Rs 50 Lakhs and the home loan is below Rs 35 lakhs. The loan should be
sanctioned on or after April 1, 2016.
4. Tax Exemption u/s 80GG (for
rent expenses who do have HRA component in salary) has been increased from Rs
24,000 to Rs 60,000 per annum. This is a good move to align the exemption amount
with today’s rent and keep the section relevant.
5. For people with net taxable income above Rs 1 crore, the surcharge has
been increased from 12% to 15%
6. Dividend Income in excess of
Rs. 10 lakh per annum to be taxed at 10%
7. 40% of lump sum withdrawal
on NPS at maturity would be exempted from Tax. This rule now also applies to EPF. So now in case
of EPF income
tax would be applicable on 60% of the corpus on maturity.
8. Presumptive taxation scheme
introduced for professionals with
receipts up to Rs. 50 lakhs. The presumptive income would be 50% of the
revenues.
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1. Section 80C/80CCC/80CCD
These
3 are the most popular sections for tax saving and have lot of options to save
tax. The maximum exemption combining all the above sections is Rs 1.5
lakhs. 80CCC
deals with the pension products while 80CCD includes Central Government
Employee Pension Scheme.
You can choose from the following for tax saving
investments:
1.
Employee/ Voluntary Provident
Fund (EPF/VPF)
2.
PPF (Public Provident fund)
3.
Sukanya Samriddhi Account
4.
National Saving
Certificate (NSC)
5.
Senior Citizen’s Saving Scheme
(SCSS)
6.
5 years Tax Saving Fixed Deposit in banks/post offices
7.
Life Insurance Premium
8.
Pension Plans
from Life Insurance or Mutual Funds
9.
NPS (New Pension
Scheme)
10. Equity Linked Saving Scheme (ELSS – popularly known as Tax Saving Mutual Funds)
11.
Central
Government Employee Pension Scheme
12.
Principal
Payment on Home Loan
13.
Stamp Duty and
registration of the House
14.
Tuition Fee for
2 children
2. Section 80CCD(1B) – Investment in NPS
Budget
2016 has allowed additional exemption of Rs 50,000 for investment in NPS. We
have done a complete analysis and concluded that it would be beneficial
for you to discard this benefit and invest after tax money in a good equity
mutual fund.
Download Automated House Rent Exemption Calculator U/s 10(13A) [ Excel Based Software]
3. Payment of
interest on Home Loan (Section 24/80EE)
The interest paid up to Rs 2 lakhs on home loan for
self-occupied home is exempted u/s 24. There is no limit for home given on
rent.
Budget 2016 has provided additional exemption up to
Rs 50,000 for payment of home loan interest for first time home buyers. To
avail this benefit the value of home should not exceed Rs 50 lakhs and loan
should not be more than Rs 35 lakhs.
4. Payment of Interest on Education Loan (Section 80E)
The total interest paid on education loan can be
claimed as tax exemption. There is no upper limit for the same.
5. Investment in RGESS-(Section 80CCG)
Deduction Up to Rs 25,000 (50% of amount
invested) is allowed if you make investment in pre approved stocks and mutual
funds in Rajiv Gandhi Equity Savings Scheme (RGESS). This is available to first
time equity investors subject to certain conditions.
6. Medical insurance for Self
and Parents (Section 80D)
You
can get tax deduction up to Rs 60,000
by paying medical insurance premium
for self, your dependents and your parents. There is also sub limit of Rs 5,000
for preventive medical checkup.
7. Treatment of Serious disease (Section
80DDB)
You can claim deduction up to Rs 80,000 for
treatment of certain diseases like AIDS, renal failure, etc for self or
dependents
8. Physically Disabled Tax payer
(Section 80U)
Physically Disabled Tax payer can get
tax exemption up to Rs 1.25 lakhs u/s 80U for above 801% and Rs.75,000/- for
below 80% of physically Disabled Tax
payer
9. Physically Disabled Dependent
(Section 80DD)
You can claim deduction up to Rs 1.25 lakhs for
maintenance and medical treatment of Physically Disabled dependent
10. Rebate Rs.5,000/- U/s 87A
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