Click here to Download the Automatic All in One TDS on Salary for Central & State Govt Employees for the FY 2016-17 ( Prepare at a time Tax Compute Sheet + Individual Salary Structure + Automated HRA Exemption + Automated Form 16 Part A&B and Part B)
Section - 10 (5)
Exemption for Leave Travel Concession
The amount actually incurred on the performance of travel on leave to any place in India by the shortest route to that place is exempt. This is subject to a maximum of the air economy fare or AC 1st Class fare (if the journey is performed by the mode other than air) by such route.
The amount actually incurred on the performance of travel on leave to any place in India by the shortest route to that place is exempt. This is subject to a maximum of the air economy fare or AC 1st Class fare (if the journey is performed by the mode other than air) by such route.
Provided that the exemption shall be available only in respect of two journeys performed in a block of 4 calendar years.
Section - 10(10):
Gratuity Exemption
Descriptions :
Least of the following will be exempt
1. Amount received
2. Max Rs. 10,00,000
3. 15*/26 x LS x (CYS + Fraction 6 months)
LS : Last Month Salary Drawn (Salary means Basic + DA (both))
Section - 10(10A)
Commuted Pension, Actual Amount
Section - 10(10AA)
Leave Encashment upon Retirement
Other Employee Least of the following will be exempted
1.Amount Received
2.Rs. 3, 00,000
3.10 x AS
(LE or 30 days) Received by Employee During the Employment (Fully TAXABLE)
Note - Govt. Employee {Fully Exempt} Received by Legal Heir (Fully exempt)
Section - 10(13A)
HRA
The least of the following will be exempted
1.Amount received
2.50% or 40% of Salary
3.Rent paid less 10% of Salary
4.Salary means; Basic Salary+D.A
Section - 10(14)
Children Education Allowance.
Rs.100 per month per child up to a maximum 2 children.
Hostel expenditure Allowance on employee’s child
Rs.300 per month per child up to a maximum two children.
Note: Allowance granted to meet Hostel expenditure Allowance on employee’s child.
Deductions under section 80 of Income Tax Act:
Section - 80C:
General deduction for investment in PPF, PF, Life Insurance, ULIP, Stamp duty on the house, Fixed deposits for 5 years , bonds etc. Maximum Rs. 1,50,000 is allowed. Investment need not be from taxable income.
Section - 80CCC
Deduction in case of a contribution to pension fund. However, it should be noted that surrender value or employer contribution is considered income. Maximum is Rs 1,50,000.
Section - 80CCD (2)
Deduction in respect to contribution to a new pension scheme. Employees of central and others are eligible.
The maximum is a sum of employer’s and employee’s contribution to the maximum: 10 % of salary.
Section - 10(10):
Gratuity Exemption
Descriptions :
Least of the following will be exempt
1. Amount received
2. Max Rs. 10,00,000
3. 15*/26 x LS x (CYS + Fraction 6 months)
LS : Last Month Salary Drawn (Salary means Basic + DA (both))
Section - 10(10A)
Commuted Pension, Actual Amount
Section - 10(10AA)
Leave Encashment upon Retirement
Other Employee Least of the following will be exempted
1.Amount Received
2.Rs. 3, 00,000
3.10 x AS
(LE or 30 days) Received by Employee During the Employment (Fully TAXABLE)
Note - Govt. Employee {Fully Exempt} Received by Legal Heir (Fully exempt)
Section - 10(13A)
HRA
The least of the following will be exempted
1.Amount received
2.50% or 40% of Salary
3.Rent paid less 10% of Salary
4.Salary means; Basic Salary+D.A
Section - 10(14)
Children Education Allowance.
Rs.100 per month per child up to a maximum 2 children.
Hostel expenditure Allowance on employee’s child
Rs.300 per month per child up to a maximum two children.
Note: Allowance granted to meet Hostel expenditure Allowance on employee’s child.
Deductions under section 80 of Income Tax Act:
Section - 80C:
General deduction for investment in PPF, PF, Life Insurance, ULIP, Stamp duty on the house, Fixed deposits for 5 years , bonds etc. Maximum Rs. 1,50,000 is allowed. Investment need not be from taxable income.
Section - 80CCC
Deduction in case of a contribution to pension fund. However, it should be noted that surrender value or employer contribution is considered income. Maximum is Rs 1,50,000.
Section - 80CCD (2)
Deduction in respect to contribution to a new pension scheme. Employees of central and others are eligible.
The maximum is a sum of employer’s and employee’s contribution to the maximum: 10 % of salary.
Section - 80CCD (1B)
Deduction in respect to contribution to a new pension scheme. Employees of central and others are eligible. This deduction is additional deduction U/s 80C Rs.1.5 Lakh.
Maximum Rs. 50,000/-
Deduction in respect to contribution to a new pension scheme. Employees of central and others are eligible. This deduction is additional deduction U/s 80C Rs.1.5 Lakh.
Maximum Rs. 50,000/-
Section - 80CCE
It should be noted that employer contribution is allowable as extra u/s 80CCD(2) & 80CCE(1B) of the Income Tax Act from Asst Yr 2016-17 and only employee's contribution is within limit of Rs 1.5 Lakh as stated in 80CCE
It should be noted that as per section 80CCE, the maximum amount of deduction which can be claimed in.
Section - 80CCG
Individual having gross total income up to Rs. 12 Lakh can claim this deduction for investing in IPOs of share or mutual fund units. 50 % 0f the invested amount. The limit is Rs. 25,000 max. Note: The deduction is allowed for three years only.
Section - 80D
Medical insurance on self, spouse, children or parents. The deduction is also allowable for CGHS contribution to Central and State scheme. It is also for conducting health check up to Rs 6000.
Rs 25,000 for self, spouse & children. Extra Rs. 30,000 for insurance on parents. IF parents are above 65 years, Thus maximum is RS 55,000 per annum to a person of age below 60 yrs.
Section - 80DD
For maintenance including treatment or insurance, the lives of physical disable dependent relatives
Rs 50,000. In the case of disability is severe, the amount is Rs 1,50,000. Watch video on 80DD Deduction
Section - 80DDB
For medical treatment of self or relatives suffering from specified disease. The actual amount paid to the extent of Rs 40,000. In the case of a patient being Sr Citizen, the amount is Rs 80,000.
Section - 80E
For interest payment on a loan is taken for higher studies for self or education of spouse or children. The actual amount paid as interest and start from the financial year in which he /she starts paying interest and runs till the interest is paid in full. Watch the video on 80E.
Section - 80EE
Interest on home loan sanctioned during F. Y. 2013-14 & on-wards F.Y. Maximum Rs 1.5 lakh from the F.Y.2016-17. The value of the property should be below Rs 50 Lakh and max loan sanctioned should be Rs 25 lakh. Further, Assessee should not have any other residential house.
Section - 80G:
Donations to the charitable institution. 100% or 50% of an amount of donation made to 19 entities (National defense fund,Prime minister relief fund etc). For Asst Yr 2014-15, National Children Fund will also get 100% deduction.
Section - 80GG
For rent paid. This is only for people not getting any House Rent Allowance. The maximum is Rs 2000 per month or Rs.60,000/- P.A.
Section - 80TTA
Individual & HUF having interest in Savings Bank Account Rs 10000 maximum Limit
Section - 80U
Deduction in respect of permanent physical disability including blindness to taxpayer
RS 75,000 which goes to Rs 1,25,000 in case taxpayer is suffering from severe disability.
Section - 87A
Rebate to individual having low taxable income (Below Taxable Income 5 Lakh), Amount of tax or Rs 5,000.
Deduction in respect of permanent physical disability including blindness to taxpayer
RS 75,000 which goes to Rs 1,25,000 in case taxpayer is suffering from severe disability.
Section - 87A
Rebate to individual having low taxable income (Below Taxable Income 5 Lakh), Amount of tax or Rs 5,000.