Income Tax guidelines–Financial Year 2015 - 16
Assessment Year 2016 - 17
General Notes
1. Please read the instructions before filling the form. The form needs to be filled in all aspects.
- All investment proofs should be made during the financial year Apr 2015 to Mar 2016.
3. In case the investment is made in any other name other than you, you need indicate your Relationship.
4. For claiming rebate under section 80DD, 80DDB and 80U, please furnish a certificate by an authorized person in the prescribed form as defined by income tax act.
5. Mid-Year joiners are required to furnish their previous income details in Form 12B along with the salary certificate (stamped and signed by the employer) i.e. Form 16 & Income Tax computation for calculating the correct tax liability for the current year. In the case of any income, other than salary please fill & sign Form 12 C for the same & submit along with the Investment proofs.
- The employee will be the held responsible for any Income tax liability to the company arising out of the wrong declaration, suppression of facts by employee, false or forged documentation.
Download Excel Based Income Tax Challan 280 ITNS [ This Form is used for the purpose for Self and Advance Tax deposit. Who have still not deposited the amount of Tax which payable through this Challan 280 and submit to the Bank and get the Challan Receipt.]
Tax on Allowances
House Rent Allowance
Taxability: Subject to submission of Rental Agreement, Monthly Rent Receipts and PAN of the landlord in case the rent paid is more than Rs. 8,333 per month or Rs. 100,000 per year.
For Tax Calculation, least of the following is tax exempt
- Actual HRA Received
- Actual Rent paid over 10% of Basic salary
- 50% or 40% of Basic salary based on city of residence (Metro/Non-Metro)
For claiming benefit under HRA, an employee needs to submit original Rent Receipt of every quarter.
Please fill complete details on the rent receipts attached.
Photocopy of Rent receipts is not allowed.
Also please note rent agreement alone does not constitute proof of payment of rent.
Company Leased Accommodation
Taxability: 15% of taxable salary or actual rent of the house, whichever is less.
Medical (Domiciliary)U/s 80D
Reimbursement of actual medical expenses by the employer towards the amount spent by the employee in obtaining medical treatment for himself or any member of his family, not exceeding in the aggregate to Rs. 25000 in a year, is exempted from tax and Sr.Citizen Rs.30,000/- P.A.
Conveyance Allowance U/s 10
Non-taxable up to a maximum of Rs. 1600 per month for up to 80% and Rs.3200/- for above 80% only for Phy.Disable Persons
Investment / Items eligible for Deductions under 80 C
(Maximum eligible amount is Rs. 1,50,000)
Medical Insurance u/s 80D
Premium Paid on Medical policy of self, spouse, children is exempt up to Rs.25,000 and an additional benefit of Rs.25,000 in the case of dependent parents below 60 years and Rs 30,000 in the case of dependent parents above 60 years (Senior Citizen).
Expenses incurred on Health check up for self, spouse, dependent children / parents are exempted from the overall limit, not exceeding the aggregate limit of Rs. 5000
In case if the premium will be due in the month of Feb 2015 & March 2015, you need to submit the last year receipts with the declaration. Late payment Charges and service tax will not qualify for the benefit.
Medical treatment of handicapped dependent with disability u/s 80DD
Expenditure incurred on medical treatment and maintenance of the spouse, children, parents, brothers and sisters of the individual is deductible up to a fixed amount of Rs. 75,000. For the person with the severe disability over specified 80 %, the limit is Rs. 125,000.Please submit the photocopy of a certificate issued by the competent medical authority in a Government Hospital with the form 10i and detail of amount spent on treatment or training.
Medical treatment of dependent u/s 80DDB
Expenditure incurred on medical treatment (specified disease or ailment as prescribed by the board) of self, spouse, children, parents, brothers, and sisters is deductible up to Rs. 60,000 and for a senior citizen the limit is Rs. 80,000. Please submit the photocopy of certificate issued by the competent medical authority with form 10 (i)
Person with Disability u/s 80U
An individual suffering from not less than 40% of disability can claim fixed deduction of Rs. 75,000.Rs. 125,000 for persons with severe disability of over 80%. A certificate from specified medical authority has to be given to claim the benefit with form 10i
Interest on Savings Account (Newly Introduced) - 80TTA
Section 80TTA is proposed to be introduced to provide the deduction to an individual or a Hindu undivided family in respect of interest received on deposits (not being time deposits) in a savings account held with banks, cooperative banks, and post office. The deduction is restricted to Rs 10,000 or actual interest whichever is lower.
Exemptions under Section 80G
Payment above INR 10,000 – Sections 80G and 80GGA Presently, deduction in respect of donations to charitable trusts is available under section 80G in respect of any donation being a sum of money. Similarly, under section 80GGA deduction is available in respect of donation for scientific research, rural development, etc. Currently, there is no restriction for the mode of payment for eligibility of deduction, which can be paid in cash also. Now it is provided that any such payment exceeding ` 10,000 shall only be allowed as deduction if such sum is paid in any mode other than cash.
Tax benefit on Housing Loan U/s 24B
Deduction Limits:
· where the loan is taken on or after April 1, 1999-Rs 2,00,000/-
· where loan is taken earlier - Rs 30,000/-
New section 80EE inserted by the Finance Minister in the 2013 union Budget in order to promote affordable housing to the first time home loan buyers only by allowing an additional deduction of Rs 1 Lac under section 80EE
Highlights of Section 80EE are:
Additional deduction is available to only Individuals.
2) if you have no existing house in your name and intended to be self-occupied for the “First-time house buyers” only
You have bought a new house, and House cost of the house is maximum of Rs 40 lacs
4) Loan is approved and taken after 1-4-2013,
5) Loan does not exceed Rs 25 Lacs
Then, the Extra interest deduction that you will get is Rs 1,00,000/- under section 80EE.If the whole amount of Rs 1 lac is not exhausted in the first year then it can be carried forward to the 2nd year also but not more than that.
NPS 80CCD (I) – Tier I – Part of 80C. However, no deduction is available in respect of employee contribution which is an excess of 10% of the salary of the employee.
NPS 80CCD (II) – Tier II – Over and above 80C. However, no deduction is available in respect of employer’s contribution which is an excess of 10% of the salary of the employee.
Note: as per the section 80CCE the aggregate amount of deduction under sections
80C, 80CCC and Section 80CCD(I) shall not exceed Rs. 1,50,000/-. However, the contribution
made by the Central Government or any other employee to a pension scheme u/s 80CCD (II ) shall be excluded from the limit of Rs.1,00,000/- provided under this Section.
RGESS (Rajiv Gandhi Equity Saving Scheme) – 80CCG
With an annual income of Rs, 10 lac will get tax benefits for investing up to Rs 50,000 in the capital markets. The maximum investment permissible under the Scheme is Rs 50,000 and the investor would get a 50 percent deduction of the amount invested from the taxable income for that year. To benefit the small investors, the investments are allowed to be made in installment in the year in which tax claims are made.