Download TDS on Salary for Govt & Non-Govt employees forF.Y.2016-17 & A.Y.2017-18 [ This Excel Based Utility can prepare at a time your Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure as per Govt & Non-Govt employees Salary Pattern + Automated H.R.A. Calculation + Automated Arrears Relief Calculator U/s 89(1) with Form 10E up to F.Y.2016-17 + Form 16 Part A&B and Part B for F.Y.2016-17]
1. Exempt Income under Chapter 10 of
Income Tax Act, such as House Rent allowance, Transport Allowance, LTC etc.
2. Savings
which are eligible for Tax Exemption up to Rs. 1.5 lakh under Section 80C,
Section 80CCC and Section 80CCD(1)
3. Additional
Savings eligible for Tax Exemption up to Rs. 50,000/- under Section 80 CCD (1B)
over and above Savings Cap of Rs. Rs. 1.5 lakh, if the amount is invested in
NPS (Govt run Contributory Pension System which is known as National Pension
System)
4. Deduction
(up to 10% of salary) towards Contribution made by Employer in any of Pension
fund such as NPS, approved by Central Government, under Section 80CCD(2), which
will be over and above savings value cap of Rs. 1.5 lakh under Section 80CCE
plus additional savings of Rs.50,000 under Section 80CCD(1B)
5. Eligible
deductions from Income from Section 80 D to 80 U towards amount spent on health
insurance, medical treatment for disabled dependents, interest on higher
education loan etc.
6. Deduction
of up to Rs. 2 lakh in respect of loss (interest) incurred on self-occupied
House Property (and unlimited interest in respect of rented property) under
Section 24 of Income Tax Act.
7. Relief
Under Section 89(1)
1. Exempt Income and Allowances under Section 10 of Income Tax Act
Income given
below are exempt income and hence these need not included while calculating
Total Income of a Salaried Employee
·
Agricultural
Income [Section 10(1)]
·
The
sum received (including the bonus) under a life insurance policy (other than
any sum received under sub-section (3) of section 80DDA or under a Keyman
insurance policy).[Section (10)(10)(D)]
·
Amount
of LTC or LTA actually incurred. [Section 10(5)]
·
Any
allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India for rendering service outside India
·
Any
special allowance or benefit, such as Traveling Allowance, Uniform Allowance
etc which are incurred for the performance of the duties of an office or
employment . [Section 10(13A)]
·
The
transport allowance granted to an employee to meet his
expenditure for the purpose of commuting between the place of his
residence and the place of duty is exempt to the extent of
Rs. 1,600/- per month or Rs. 3200 per month (for a visually challenged
person) [Section 10 (14)]
·
Scholarships
granted to meet the cost of education.[Section 10(16)]
·
Children
Education allowance:
Rs. 100/- per month per child up to a maximum of 2 children.
Rs. 100/- per month per child up to a maximum of 2 children.
·
Hostel
Subsidy: Rs. 300/- per month per child upto a maximum of two children.
·
Other
Allowances exempted under Section 10 of IT Act are Tour TA, Tour Daily
Allowance, Academic, research or training allowance, uniform Allowance, Special
Compensatory Allowance, High Altitude Allowance, Climate Allowance, allowances
applicable to North East, Hilly areas of U.P., H.P. and J & K, border area
allowance, Compensatory Field Area Allowance, Counter Insurgency Allowance,
High Active Field Area Allowance, island duty allowance, tribal allowance etc.
Exemption
under Section 10 (13A) in respect of HRA – Calculation Method: DownloadAutomatic H.R.A Exemption Calculator U/s 10(13A)
Least of the
following amount is to be treated as exempt from Income Tax.
·
Actual
House Rent Allowance Received, or
·
Rent
paid in excess of 10% of Pay in Pay band and Grade Pay or
·
50%
of Pay in Pay band and Grade Pay if the employee is in
Chennai/Mumbai/Kolkatta/Delhi and 40% of Pay in Pay Band and Grade Pay for the
employees is in other places.
·
If
the employees resides in his/her own house or in a house for which he/she does
not pay any rent, no HRA exemption is available.
2. Savings which are eligible for Tax Exemption Section 80C, Section
80CCC and Section 80CCD
Section 80C,
CCC and CCD(1) allow deduction from total income. The total deduction under
this section (along with section 80CCC and 80CCD(1) is limited to Rs. 1.50 lakh
only.
Section
80C:
·
Life
Insurance Premium For individual, policy must be in self or spouse’s or any
child’s name. For HUF, it may be on life of any member of HUF.
·
Sum
paid under contract for deferred annuity for individual, on life of self,
spouse or any child .
·
Sum
deducted from salary payable to Govt. Servant for securing deferred annuity for
self-spouse or child Payment limited to 20% of salary.
·
Investment
in Senior Citizens Savings Scheme 2004 for 5 year by resident individuals.
·
Contribution
made under Employee’s Provident Fund Scheme.
·
Contribution
to PPF For resident individual, can be in the name of
self/spouse, any child & for HUF, it can be in the name of any member of
the family.
·
Deposit
in Sukanya Samriddhi Account as natural / legal guardian of girl child.
·
Contribution
by employee to a Recognised Provident Fund.
·
Sum
deposited in 10 year/15 year account of Post Office Saving Bank
·
Subscription
to any notified securities/notified deposits scheme. e.g. NSS
·
Subscription
to any notified savings certificate, Unit Linked Savings certificates. e.g. NSC
VIII issue.
·
Contribution
to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanrakhsa 1989
·
Contribution
to notified deposit scheme/Pension fund set up by the National Housing Scheme.
·
Payment
made by way of installment or part payment of loan taken for
purchase/construction of residential house property.
·
Subscription
to units of a Mutual Fund notified u/s 10(23D).
·
Subscription
to deposit scheme of a public sector, company engaged in providing housing
finance.
·
Subscription
to equity shares/ debentures forming part of any approved eligible issue of
capital made by a public company or public financial institutions.
·
Tuition
fees paid at the time of admission or otherwise to any school, college,
university or other educational institution situated within India
Section
80CCC:
Deduction in
respect of Premium Paid for Annuity Plan of LIC or Other Insurer. Payment of
premium for annuity plan of LIC or any other insurer Deduction is available
upto a maximum of Rs. 150,000/-.
The premium
must be deposited to keep in force a contract for an annuity plan of the LIC or
any other insurer for receiving pension from the fund.
Section
80CCD (1):
Deduction in
respect of Contribution to Pension Account (by Assessee). Deduction available
for the amount paid or deposited in a pension scheme notified or as may be
notified by the Central Government subject to a maximum of :
(a) 10% of
salary in the previous year in the case of an employee
(b) 10% of
gross total income in any other case.
Section
80CCD(1A):
The maximum
deduction allowable under this section contribution to New Pension Scheme
(NPS), it is Rs. 1.50 lakh w.e.f. 01.04.2016
3. Additional Savings eligible for Tax Exemption up to Rs.
50,000/- under Section 80 CCD (1B)
Section
80CCD(1B):
Contribution
in NPS has been given more tax concession in the budget 2015. As per Section
80CCD(1B), an additional deduction of up to Rs. 50,000 over and above the
Section 80C, 80CCC and 80CCD savings cap of Rs. 1.5 lakh, is allowed if such
amount is contributed by the employee. So, overall tax savings of Rs. 2 lakh
can be availed under Section 80C, 80CCC and 80CCD(1).
4. Deduction in respect of Contribution to Pension Account by
Employer under Section 80CCD (2):
Deduction
under Section 80CCD(2) is available for the amount paid or deposited by the
employer of the assessee in a pension scheme notified or as may be notified by
the Central Government subject to a maximum of 10% of salary in the financial
year. This deduction is allowed over and above Savings value cap of Rs. 1.5
lakh under Section 80CCE (in the case of investment in NPS, savings value cap
eligible for deduction will be Rs. 2 lakh).
5. Eligible deductions from Income from Section 80 D to 80 U
towards amount spent on health insurance, medical treatment etc. Max Rs.
25000/- for General and Rs. 30,000/- for Sr. Citizen.
Section
80D: Deduction in respect of Medical Insurance:
Deduction is
available upto Rs. 30,000/- for parents who are senior citizens and upto Rs.
25,000/- in other cases for insurance of self, spouse and dependent children.
Amount of up to Rs.5000/- spent on preventive health check-up. So a maxium of
Rs. 60,000 can be deducted which is spent towards Health Insurance premium.
Section
80DD: Deduction for medical treatment of physically challenged dependents:
In the case
of salaried employee who is taking care of physically challenged Dependent
Relative, an amount with the maximum limit of Rs.75000/- spent towards medical
treatment or rehabilitation can be deducted from the income (In the case of
severe disability maximum deduction would be Rs. 1,25,000).
Section
80DDB: Deduction in respect of specified disease:
Deduction in
respect of specified disease for self or dependent relatives is allowed lower
of Rs.60,000 or actual amount paid. This deduction amount increases to
Rs.80,000 in case of senior citizen.
Section
80E: Deduction in respect of Interest on Loan for Higher Studies:
Deduction in
respect of interest on loan taken for pursuing higher education. The deduction
is also available for the purpose of higher education of a relative. Max Rs.
1.5 Lakh from 1/4/2016
Section
80G: Deduction for Donations
Notified
donations under Sec. 80G will be eligible for deduction ( 100% or 50% as per
the notification condition)
Section
80GG: Deduction in respect of House Rent Paid
Deduction
available is the least of
·
Rent
paid less 10% of total income
·
Rs.
5000/- per month i.e. Maximum
Deduction available is 60,000/-
·
25%
of total income subject to
·
Employee
or his/her spouse or minor child should not own residential accommodation at
the place of employment.
·
No
HRA is received.
·
No
self occupied residential premises in any other place.Section 80GGA: Deduction
in respect of certain donations for scientific research or rural development
Section 80 TTA: Deduction from
gross total income in respect of any Income by way of Interest on Savings
account :- Maximum
of Rs. 10,000/-, in respect of interest on deposits in savings account ( not
time deposits ) with a bank, co-operative society or post office
Section
80U: Deduction in respect of Person suffering from Physical Disability
Deduction of
Rs. 75,000/- in respect of tax payer suffering from a physical disability. In
the case of severe disability, deduction of Rs. 125,000/- will be allowed.
Certificate from the approved medical authorities regarding the extent of
disability will have to be produced (Rule 11D)
6. Deductions Allowable under Section 24 of Income Tax Act in
respect of interest on house property :
Housing
Property bought or constructed on or after 01.04.99 (completed within 3 years
from avail of loan) and self occupied will be eligible for deduction of
interest paid on housing loan with the maximum limit Rs. 2,00,000/-. In other
cases deduction in respect of interest paid up to Rs.30,000 will be allowed. If
the said house property is not self-occupied there is no limit in deduction in
respect of interest paid on housing loan subject to inclusion of rental income
in respect of the house property.
7. Relief Under
Section 89(1) :- Download Automatic Arrears Relief Calculator U/s89(1) with Form 10E up to F.Y.2016-17
Relief u/s 89(1) is available to an employee when he receives salary in
advance or in arrear or when in one financial year, he receives salary of more
than 12 months, or receives ‘profit in lieu of salary’ covered u/s 17(3). Relief
u/s 89(1) is also admissible on family pension, as the same has been allowed by
Finance Act, 2002 (with retrospective effect from 1/4/96).
To sum-up,
over and above the Basic Income Tax Exemption limit of Rs. 2.5 lakh for the
financial year 2015-16 available to Salaried Employees, maximum additional
income tax exemption for income up to Rs.4,44,200 can be availed. Maximum
Amount that can be saved / deducted to avail this income tax exemption benefit
are tabulated below. So, a salaried employee who earns gross total income of
Rs. 6,94,200/- and avails income tax exemption benefit by way of savings and
deductions detailed below, need not pay any income tax.
It is also pertinent to note here
that exemptions and deductions detailed above are common to a salaried
employee.
In addition
to this, by way of other deductions provided by Section 80DD to Section 80U
based on specific nature of expenditure such as medical, higher studies related
or physical status of employee or his / her dependents, more income could be
exempted from payment of Income Tax.
