There are many revenue enhancement deductions that a remunerator will claim to save lots of revenue enhancement. Some are applicable to salaried staff and a few are applicable to business people. several folks don't understand a number of the revenue enhancement saving choices that we are able to claim each year. If you're searching for a comprehensive list of revenue enhancement Deductions to save lots of revenue enhancement from twelvemonth 2018-2019 forward, this text is for you. this text conjointly provides a list of revenue enhancement deductions that be claimed in FY2018 together with the relevant IT section, eligibility and therefore the most limits.
The financial gain attained by a private, HUF, firm or company is classified into 5 categories:
1) financial gain from remuneration
2) financial gain from house property
3) financial gain from business and profession
4) financial gain from the financial gain
5) different financial gain
The summation of financial gain from these higher than heads is named as gross total financial gain. From this gross total financial gain, there are bound deductions that are allowed by the law to be subtracted from the gross total financial gain. this text explains of these deductions in an exceedingly simplified manner.
What are revenue enhancement deductions?
There are bound deductions that are such beneath sections 80C to 80U. These deductions are claimed by Associate in Nursing assessee to lower his rateable financial gain and obtain some relief in tax. These deductions are subtracted from the gross total financial gain.
List of revenue enhancement Deductions to save lots of revenue enhancement from FY2018-2019
Here is that the list of all the deductions which can be quite handy for the assessee and can facilitate them with their tax-filing.
1) Section 80C – Tax exemption up to Rs 1.5 Lakhs
The maximum exemption which will avail u/s 80C, 80CCC along is Rs. 1,50,000. It is availed solely by people and HUFs. There are bound investments and expenditures which might be claimed in it:
Amount got Tuition fees for two youngsters.
Amount contributed towards the provident fund
The amount endowed in NPS, Sukanya Samriddhi Account, Post workplace Deposits, ELSS Mutual Funds.
5 years golden agar Saving theme
Principal reimbursement of home equity credit
5 years Tax saving Bank FDs
Premium paid towards insurance
Section 80CCC – any quantity paid in any regular payment of the LIC or the other no depository financial institution for receiving a pension from a fund.
The aggregate quantity of all higher than investments is claimed to a most of Rs 1.5 Lakhs. you'll browse complete details concerning 80C tax saving investment choices and on the far side here for additional data.
2) Section 80CCD – Investment in Pension theme – Tax exemption up to Rs 50,000
It includes contributions towards Government notified Pension schemes. The contribution is most of a tenth of the remuneration (for salaried individuals) and twentieth of the gross financial gain (for self-employed). the utmost quantity which will be claimed is Rs 50,000. you'll invest in National Pension theme, that is one in every of the foremost fashionable pension schemes.
3) Section 80D – insurance Premium
This deduction is accessible to individual and HUF for the quantity paid towards insurance premium. the utmost deduction allowed is Rs. 25,000 for the premium got self, mate or dependent youngsters. One will even claim for the premium paid towards their folks conjointly. the frog eyes of mate aren't enclosed in it. For senior voters, this limit is Rs. 30,000. you must perceive a way to claim 80D – insurance Premium from revenue enhancement.
4) Section 80DD – Medical expenses for disabled persons – up to Rs 1.25 Lakhs
This section deals with the medical expenses incurred on disabled persons which have a mate, children, folks or siblings. you'll claim up to Rs. 75,000 for fortieth incapacity and Rs. 1,25,000 just in case of severe incapacity.
5) Section 80DDB – Medical expenses for specific ailments upto Rs 40,000 (up to Rs 80,000 for Senior Citizens)
This deduction is allowed for the medical treatment of specific ailments. the quantity of deduction is Rs. 40,000 or actual expenses incurred whichever is lower. just in case of senior voters, it is Rs. 60,000 and for super senior voters, it is Rs. 80,000.
6) Section 80E – Interest on the loan is taken for education
This deduction pertains to the interest paid towards a loan obtained for the following education. there's no limit on the quantity. there's no deduction for reimbursement of principal quantity and it's allowed for optimum eight years.
7) Section 24B – Loss from Self-Occupied House property / unchained property – Up to Rs 2 Lakhs
You can claim home equity credit interest on self-occupied house property for tax exemption up to Rs 2 Lakhs. This limit is most of Rs 2 Lakhs and not per home. unwanted loss (if any) will carry over and set-off in next eight monetary years.
8) Section 80EE – initial time home consumers – Rs 50,000 further exemption
This section has been recently introduced by the govt. for those that are initial time home consumers and have obtained their home equity credit throughout or when F.Y. 2016-17. the worth of the house ought to be but Rs. 50,00,000 and residential loan ought to be below Rs 35 Lakhs. Such home consumers will claim an extra deduction up to Rs. 50,000 on home equity credit interest payments. you'll browse additional concerning section twenty-four and Section 80EE wherever you'll claim tax exemption on home loans here.
8) Section 80G – Donations
Payments created to bound relief funds and authorized charitable establishments are claimed beneath this section. Any donations created to registered establishments are exempted for fiftieth or a thousandth limit as per prescribed.
9) Section 80GGC – Donations to political parties
Any donations created to political parties is claimed beneath this section. From the twelvemonth 2017-18 forward, it's been dominated out that donations created higher than Rs. 2,000 can not be in money mode.
10) Section 80GG – Claim in the position of not having own house and don't receive HRA
This deduction pertains to those that don't possess a residence of their own and doesn't receive House Rent Allowance (HRA). it's in respect of expenditure created towards rent. the utmost quantity claimed beneath this section is Rs. 60,000. The deduction is least type the following-
a) Rent paid minus a tenth of the adjusted total financial gain
b) Rs 5,000 per month
c) 25 of the whole financial gain
11) Section 80TTA – Deduction for Savings Bank Interest up to Rs 10,000
It provides a deduction up to Rs. 10,000 on the mixture to Associate in Nursing assessee (being a private or HUF) in respect of any financial gain by the manner of interest on deposits in an exceedingly saving A/c.
14) Section 80U – Exemption for specific disabilities
This deduction is availed by solely those people UN agency are tormented by some incapacity of some quite not but fortieth.
15) Rebate beneath section 87A – Rs 2,500
Additional tax edges of Rs 2,500 has been provided to those taxpayers whose lucre is a smaller amount than Rs. 350,000.
Conclusion: within the context of salaried people, all his exemptions and deductions are well-found by him to his leader. On the idea of this data, type sixteen is ready by his work and he files his taxes. In case, he forgets to furnish any data to his leader, he will claim the deduction at the time of filing of revenue enhancement come back beneath chapter 6A.
1) Automated Income Tax Computed Sheet as per Finance Budget 2018-19
2)Individual Salary Sheet
3) Individual Salary Structure as per the W.B.Govt employee's Salary Pattern
4) Automatic Calculate the House Rent Exemption Calculation U/s 10(13A)
5) Automated Income Tax Form 16 Part A&B
6) Automated Income Tax Form 16 Part -B
Download Automated Income Tax Excel Based Software All in One TDS on Salary for the West Bengal Govt Employees for the Financial Year 2018-19 & Ass Year 2019-20
Main Features of this Excel Utility are:-1) Automated Income Tax Computed Sheet as per Finance Budget 2018-19
2)Individual Salary Sheet
3) Individual Salary Structure as per the W.B.Govt employee's Salary Pattern
4) Automatic Calculate the House Rent Exemption Calculation U/s 10(13A)
5) Automated Income Tax Form 16 Part A&B
6) Automated Income Tax Form 16 Part -B
