4
Dear Himadri, Thanks for the feedback, restriction of the PPF limit removed, attching the revised Tax Calculator. Thanks, Benny Thadathil
From India, Bangalore
From India, Bangalore
Hi Benny, Can you plz confirm that Children Education Allowance (Rs.100 per child per month) is being deducted from Gross Salary in the calculator? Thanks.
From India, Mumbai
From India, Mumbai
Hi Beny, Thanks for this.
I have following remarks.
(1)
I just want to make sure how you have arrived at the limit of Rs, 40000 u/s 80D (Medical insurance premium). In my opinion, Rs.35000 is the maximum amount exempted here.
1) Rs. 15000 towards premium paid for self & family.
2) Additional deduction of Rs.15000 for premium paid for parents. If parents are
Senior citizen, the deduction available is Rs. 20000 instead of Rs.15000.
Hence, a salaried employee can claim maximum exemption for Rs. 35000 under section 80 D.
Exemption for Rs. 40000 is available only in case when employee himself is a senior citizen (> 60 years of age) but generally in India, this is the retirement age of a salaried employee.
(2)
Exemption u/s 80CCF for Rs. 20000 is no longer available from F.Y 2012-2013.
(3) Investment in Rajiv Gandhi Equity saving scheme need to be included, exemption is available for 50% of investment made up to Rs.50000.( this exemption is available for individuals having annual income below 10 lakhs ).
Also additional deduction (u/s 80TTA) up to Rs. 10000 per annum (towards bank interest received) needs to be updated.
Thanks
From India, Mumbai
I have following remarks.
(1)
I just want to make sure how you have arrived at the limit of Rs, 40000 u/s 80D (Medical insurance premium). In my opinion, Rs.35000 is the maximum amount exempted here.
1) Rs. 15000 towards premium paid for self & family.
2) Additional deduction of Rs.15000 for premium paid for parents. If parents are
Senior citizen, the deduction available is Rs. 20000 instead of Rs.15000.
Hence, a salaried employee can claim maximum exemption for Rs. 35000 under section 80 D.
Exemption for Rs. 40000 is available only in case when employee himself is a senior citizen (> 60 years of age) but generally in India, this is the retirement age of a salaried employee.
(2)
Exemption u/s 80CCF for Rs. 20000 is no longer available from F.Y 2012-2013.
(3) Investment in Rajiv Gandhi Equity saving scheme need to be included, exemption is available for 50% of investment made up to Rs.50000.( this exemption is available for individuals having annual income below 10 lakhs ).
Also additional deduction (u/s 80TTA) up to Rs. 10000 per annum (towards bank interest received) needs to be updated.
Thanks
From India, Mumbai
Hi!
I'm new to this as I'm a fresher but please clarify my doubts on this calculation.
There are some other allowances that my company is giving and they have told me that even these
allowances are tax exemptible. I didn't fine the appropriate cells to fill in these forms in the document you have given.
So, I entered these details in the other allowances section. The problem I am facing is that these allowances
are not being deducted in the calculations that you have done. Could you please fix this up?!
Thanks!
Regards,
Rahul.
From India, Bangalore
I'm new to this as I'm a fresher but please clarify my doubts on this calculation.
There are some other allowances that my company is giving and they have told me that even these
allowances are tax exemptible. I didn't fine the appropriate cells to fill in these forms in the document you have given.
So, I entered these details in the other allowances section. The problem I am facing is that these allowances
are not being deducted in the calculations that you have done. Could you please fix this up?!
Thanks!
Regards,
Rahul.
From India, Bangalore
how many data we can enter in this and how we have to use this
whether we have to generat the sheet for each employee seprately or the same sheet will allow us to update and append the other employees too
From India, Vapi
whether we have to generat the sheet for each employee seprately or the same sheet will allow us to update and append the other employees too
From India, Vapi
All Section 80 Deductions
All these deductions are valid from AY 2012-13 onwards.
Section 80C
This section has been introduced by the Finance Act 2005. Broadly speaking, this section provides deduction from total income in respect of various investments / expenditures / payments.
Remember: The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD (combined together) is Rs. 1,00,000/- (Rs. one lac only).
An additional deduction upto a maximum of Rs. 20,000/- will be available from Assessment Year 2011-12 (FY 2010-11) for investment in Infrastructure Bonds.
1. Life Insurance Premium for individuals. The policy must be in the assesse's or spouse's or any child's name. For a HUF, it may be on life of any member of HUF. The 80C deduction is valid on insurance policies purchased after 1st April, 2012 only if the premium is less than 10% of sum assured. Benefits for existing purchased policies continue.
2. Sum paid under contract for deferred annuity for an individual on the life of the assesse, spouse or any child.
3. Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self-spouse or child Payment limited to 20% of salary.
4. Contribution made under Employee's Provident Fund Scheme.
5. Contribution to PPF for individual can be in the name of the assesse, the spouse or any child. For a HUF, it can be in the name of any member of the family.
6. Contribution by employee to a Recognised Provident Fund.
7. Sum deposited in 10/15 year account of Post Office Saving Bank
8. Subscription to any notified securities/notified deposits scheme. e.g. NSS
9. Subscription to any notified savings certificate, Unit Linked Savings certificates. e.g. NSC VIII issue.
10. Contribution to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanrakhsa 1989
11. Contribution to notified deposit scheme/Pension fund set up by the National Housing Scheme.
12. Payments of instalments or part payments of loan taken for buying or constructing residential house property. However, if the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year.
13. Contribution to notified annuity Plan of LIC (e.g. Jeevan Dhara) or Units of UTI / notified Mutual Funds.
Note if in case of such contributions the deduction under Section 80CCC has already been availed, the rebate under Section 88 would not be allowable.
14. Subscription to units of a Mutual Fund notified u/s 10(23D).
15. Subscription to deposit scheme of a public sector, company engaged in providing housing finance.
16. Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.
17. Tuition fees paid to any school, college, university or other educational institution situated within India for the purpose of full time education of any two children.
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. 100,000/-. (This limit has been increased from Rs. 10,000/- to Rs. 1,00,000/- w.e.f. 01.04.2007).
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: Deduction in respect of Contribution to Pension Account
Deductions to the extent of 10% of one's salary are available on deposits made by a Central government servant in one's pension account. If the Central Government makes any contribution to the pension account, deduction of such contribution to the extent of 10% of salary shall be allowed. Further, in any year where any amount is received from the pension account such amount shall be charged to tax as income of that previous year.
Section 80GG: Deduction in respect of House Rent Paid
Deduction available is the least of
1. Rent paid minus 10% of total income
2. Rs. 2000/- per month
3. 25% of total income, provided
o Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
o He should not be in receipt of house rent allowance.
o He should not have self occupied residential premises in any other place.
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 w.e.f. A.Y. 2008-09.
Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account
Deduction from gross total income of an individual or HUF, upto a 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, is allowable w.e.f. 1st April 2012 (Assessment Year 2013-14).
Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)
The Rajiv Gandhi Equity Saving Scheme (RGESS) was launched after the 2012 Budget. Investors whose annual income is less than Rs. 10 lakhs can invest in this scheme (up to Rs. 50,000) and get a deduction of 50% of the investment.
So, if you invest Rs. 50,000 (maximum amount eligible for income tax rebate is Rs. 50,000), you can claim a tax deduction of Rs. 25,000 (50% of Rs. 50,000).
Section 80D: Deduction in respect of Medical Insurance
Deduction is available up to Rs. 20,000/- for senior citizens and upto Rs. 15,000/ in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 20,000/- if parents are senior Citizen and Rs. 15,000/- in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 40,000/-. From AY 2013-14, within the existing limit a deduction of upto Rs. 5,000 for preventive health check-up is available.
Section 80DD: Deduction in respect of Rehabilitation of Handicapped Dependent Relative
Deduction of Rs. 50,000/- is available on:
1. expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.
2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
Further, if the dependant is a person with severe disability, a deduction of Rs. 100,000/- is also available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.
Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.
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 for donations towards Social Causes
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. 80G deduction not applicable in case donation is done in form of cash for amount over Rs 10,000.
Donations with 100% deduction without any qualifying limit:
• Prime Minister’s National Relief Fund
• National Defence Fund
• Prime Minister’s Armenia Earthquake Relief Fund
• The Africa (Public Contribution - India) Fund
• The National Foundation for Communal Harmony
• Approved university or educational institution of national eminence
• The Chief Minister’s Earthquake Relief Fund, Maharashtra
• Donations made to Zila Saksharta Samitis.
• The National Blood Transfusion Council or a State Blood Transfusion Council.
• The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund.
Donations with 50% deduction without any qualifying limit.
• Jawaharlal Nehru Memorial Fund
• Prime Minister’s Drought Relief Fund
• National Children’s Fund
• Indira Gandhi Memorial Trust
• The Rajiv Gandhi Foundation
Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income
Donations to the Government or a local authority for the purpose of promoting family planning.
Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income
Donation to the Government or any local authority to be utilized by them for any charitable purposes other than the purpose of promoting family planning.
Section 80U: Deduction in respect of Person suffering from Physical 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 80RRB: Deduction in respect of any Income by way of Royalty of a Patent
Deduction in respect of any income by way of royalty is respect of a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available upto Rs. 3 lacs or the income received, whichever is less. The assessee must be an individual resident of India who is a patentee. The assessee must furnish a certificate in the prescribed form duly signed by the prescribed authority.
Section 80CCF: Investment in Long Term Infrastructure Bonds
This section is no longer valid from AY 2012-13 anymore
Investments in Long Term Infrastructure Bonds issued by Industrial Finance Corporation of India, LIC, Infrastructure Development Finance Company Limited or a Non-Banking Finance Company classified as an Infrastructure Finance Company by RBI with a minimum tenure of 10 years and Lock in period of 5 years. Maximum amount of deduction available is Rs. 20,000/- The deduction is over and above the combined deduction of Rs. 100,000/- available under section 80C, 80CCC and 80DDD. The benefits under this section were extended by one year in the Budget 2011 but the same has not been done in this Budget. Therefore, the deduction under this section shall not be available for AY 2013-14.
From India, Chennai
All these deductions are valid from AY 2012-13 onwards.
Section 80C
This section has been introduced by the Finance Act 2005. Broadly speaking, this section provides deduction from total income in respect of various investments / expenditures / payments.
Remember: The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD (combined together) is Rs. 1,00,000/- (Rs. one lac only).
An additional deduction upto a maximum of Rs. 20,000/- will be available from Assessment Year 2011-12 (FY 2010-11) for investment in Infrastructure Bonds.
1. Life Insurance Premium for individuals. The policy must be in the assesse's or spouse's or any child's name. For a HUF, it may be on life of any member of HUF. The 80C deduction is valid on insurance policies purchased after 1st April, 2012 only if the premium is less than 10% of sum assured. Benefits for existing purchased policies continue.
2. Sum paid under contract for deferred annuity for an individual on the life of the assesse, spouse or any child.
3. Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self-spouse or child Payment limited to 20% of salary.
4. Contribution made under Employee's Provident Fund Scheme.
5. Contribution to PPF for individual can be in the name of the assesse, the spouse or any child. For a HUF, it can be in the name of any member of the family.
6. Contribution by employee to a Recognised Provident Fund.
7. Sum deposited in 10/15 year account of Post Office Saving Bank
8. Subscription to any notified securities/notified deposits scheme. e.g. NSS
9. Subscription to any notified savings certificate, Unit Linked Savings certificates. e.g. NSC VIII issue.
10. Contribution to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanrakhsa 1989
11. Contribution to notified deposit scheme/Pension fund set up by the National Housing Scheme.
12. Payments of instalments or part payments of loan taken for buying or constructing residential house property. However, if the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year.
13. Contribution to notified annuity Plan of LIC (e.g. Jeevan Dhara) or Units of UTI / notified Mutual Funds.
Note if in case of such contributions the deduction under Section 80CCC has already been availed, the rebate under Section 88 would not be allowable.
14. Subscription to units of a Mutual Fund notified u/s 10(23D).
15. Subscription to deposit scheme of a public sector, company engaged in providing housing finance.
16. Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.
17. Tuition fees paid to any school, college, university or other educational institution situated within India for the purpose of full time education of any two children.
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. 100,000/-. (This limit has been increased from Rs. 10,000/- to Rs. 1,00,000/- w.e.f. 01.04.2007).
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: Deduction in respect of Contribution to Pension Account
Deductions to the extent of 10% of one's salary are available on deposits made by a Central government servant in one's pension account. If the Central Government makes any contribution to the pension account, deduction of such contribution to the extent of 10% of salary shall be allowed. Further, in any year where any amount is received from the pension account such amount shall be charged to tax as income of that previous year.
Section 80GG: Deduction in respect of House Rent Paid
Deduction available is the least of
1. Rent paid minus 10% of total income
2. Rs. 2000/- per month
3. 25% of total income, provided
o Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
o He should not be in receipt of house rent allowance.
o He should not have self occupied residential premises in any other place.
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 w.e.f. A.Y. 2008-09.
Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account
Deduction from gross total income of an individual or HUF, upto a 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, is allowable w.e.f. 1st April 2012 (Assessment Year 2013-14).
Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)
The Rajiv Gandhi Equity Saving Scheme (RGESS) was launched after the 2012 Budget. Investors whose annual income is less than Rs. 10 lakhs can invest in this scheme (up to Rs. 50,000) and get a deduction of 50% of the investment.
So, if you invest Rs. 50,000 (maximum amount eligible for income tax rebate is Rs. 50,000), you can claim a tax deduction of Rs. 25,000 (50% of Rs. 50,000).
Section 80D: Deduction in respect of Medical Insurance
Deduction is available up to Rs. 20,000/- for senior citizens and upto Rs. 15,000/ in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 20,000/- if parents are senior Citizen and Rs. 15,000/- in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 40,000/-. From AY 2013-14, within the existing limit a deduction of upto Rs. 5,000 for preventive health check-up is available.
Section 80DD: Deduction in respect of Rehabilitation of Handicapped Dependent Relative
Deduction of Rs. 50,000/- is available on:
1. expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.
2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
Further, if the dependant is a person with severe disability, a deduction of Rs. 100,000/- is also available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist.
Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.
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 for donations towards Social Causes
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. 80G deduction not applicable in case donation is done in form of cash for amount over Rs 10,000.
Donations with 100% deduction without any qualifying limit:
• Prime Minister’s National Relief Fund
• National Defence Fund
• Prime Minister’s Armenia Earthquake Relief Fund
• The Africa (Public Contribution - India) Fund
• The National Foundation for Communal Harmony
• Approved university or educational institution of national eminence
• The Chief Minister’s Earthquake Relief Fund, Maharashtra
• Donations made to Zila Saksharta Samitis.
• The National Blood Transfusion Council or a State Blood Transfusion Council.
• The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund.
Donations with 50% deduction without any qualifying limit.
• Jawaharlal Nehru Memorial Fund
• Prime Minister’s Drought Relief Fund
• National Children’s Fund
• Indira Gandhi Memorial Trust
• The Rajiv Gandhi Foundation
Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income
Donations to the Government or a local authority for the purpose of promoting family planning.
Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income
Donation to the Government or any local authority to be utilized by them for any charitable purposes other than the purpose of promoting family planning.
Section 80U: Deduction in respect of Person suffering from Physical 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 80RRB: Deduction in respect of any Income by way of Royalty of a Patent
Deduction in respect of any income by way of royalty is respect of a patent registered on or after 01.04.2003 under the Patents Act 1970 shall be available upto Rs. 3 lacs or the income received, whichever is less. The assessee must be an individual resident of India who is a patentee. The assessee must furnish a certificate in the prescribed form duly signed by the prescribed authority.
Section 80CCF: Investment in Long Term Infrastructure Bonds
This section is no longer valid from AY 2012-13 anymore
Investments in Long Term Infrastructure Bonds issued by Industrial Finance Corporation of India, LIC, Infrastructure Development Finance Company Limited or a Non-Banking Finance Company classified as an Infrastructure Finance Company by RBI with a minimum tenure of 10 years and Lock in period of 5 years. Maximum amount of deduction available is Rs. 20,000/- The deduction is over and above the combined deduction of Rs. 100,000/- available under section 80C, 80CCC and 80DDD. The benefits under this section were extended by one year in the Budget 2011 but the same has not been done in this Budget. Therefore, the deduction under this section shall not be available for AY 2013-14.
From India, Chennai
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Income-Tax-Calc ulator-FY-2009- 10.xls