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INCOME TAX, 1961
(As amended by Finance Act, 2015)
Structure of ActChapt
er Sections Description
I 1-3 DefinitionsII 4-9A Residential StatusIII 10-13B ExemptionsIV 14-59 Heads of IncomeV 60-65 Clubbing ProvisionsVI 66-80 Setoff Provisions
VI-A 80-80U Deductions
Person [Sec.2(31)]Individual
Hindu Undivided FamilyCompanyFirmAOP or BOI
Local AuthorityEvery Artificial Judicial Person
Residential StatusBasic Conditions1) Stay in India, in
relevant the Previous Year, not less than 182 days.
2) Stay should be,i. At least 60 days in
relevant previous year &
ii. At least 365 days in LAST 4 years preceding the Previous Year.
Additional Conditions1) Should be Resident
of India, for at least 2 Year, in LAST 10 Years preceding the Previous Year, &
2) Stay in India, at least 730 days in LAST 7 years, preceding the Previous Year,
Sr. No.
Residential Status
Basic Condition(One or More
Condition)
Additional
Conditions
(Both 2 Conditio
ns)
1 Non- Resident 2 Non Ordinary
Resident 3 Ordinary
Resident
COMPUTATIONFOR
INDIVIDUAL
Heads of income (S/14)
Salary
Income from House
Property
Profits and Gains of
Business and Profession
Capital Gain
Income from Other source
Particulars Amount
Amount
Income under different Heads of Income:
Salary XXXIncome from House Property XXXProfits and Gains of Business & Profession XXX
Capital Gains XXXIncome from Other Sources XXX
Gross Income XXXDeductions under Chapter VI-A (Section 80C to 80U) (XXX)
Total Taxable Income XXX
Total Tax Payable (calculated on the basis of Slab Rates) XX
DEDUCTIONS
80-80U
80C – Qualified Savings Contribution to Provident Fund (except URPF) Life Insurance Premium Contribution to Post Office, Cumulative Time Deposit Subscription to notified Central Govt. Securities Subscription to notified Deposit Scheme Subscription to units of any Mutual Fund approved by CBDT Investment in units of Equity Linked Scheme of LIC, UTI Payment to Group Insurance Scheme Deposit in National Saving Scheme 1992 Tuition Fees paid for children Subscription to Notified bonds of NABARD
MAXIMUM DEDUCTION ALLOWABLE IS Rs. 1,50,000.
80CCC – Pension Fund Any Amount paid or deposited in an
Annuity plan of LIC or other Insurer for receiving pension.
DEDUCTION ALLOWABLE least of the following:
1. Actual Amount paid/deposited2. 1,50,000
80CCD – New Pension Scheme Applicable for All type of Employees (i.e. Local
Authority, State Govt., Central Govt., Private Employee & Self-Employed)
For Self-Employed: Least of the following will qualify for deduction
1. Actual Contribution2. 10% of GTI
For Other Employees: Least of the following will qualify for deduction
1. Actual Contribution2. 10% of Salary Section 80CCD(1) has
been deleted by Finance Act, 2015, which earlier
specified the limit of 1,00,000 to this section
80CCE – Limits of Deduction
80C 80CCC
80CCD
Not more than 1,50,000
80CCD (1B) – New Pension Scheme
This section is introduced by Finance Act, 2015 to provide additional deduction for New Pension Scheme.
Deduction Available: 50,000 Over and Above the limits specified in 80CCE
Particulars Amount (Rs.)
Amount (Rs.)
Amount (Rs.)
Deduction u/s 80C XXXDeduction u/s 80CCC XXXDeduction u/s 80CCD XXX XXXDeduction u/s 80CCE (Subject to Max. of 1,50,000)
1,50,000
XXXDeduction u/s 80CCE (1B) 50,000
Total Deduction XXX
Particulars Amount (Rs.)
Amount (Rs.)
Amount (Rs.)
Deduction u/s 80C 90,000Deduction u/s 80CCC 20,000Deduction u/s 80CCD (1,40,000-50,000) 60,000 1,70,000
Deduction u/s 80CCE (Subject to Max. of 1,50,000)
1,50,000
1,50,000Deduction u/s 80CCE (1B) 50,000
Total Deduction 2,00,000
80D – Medical Insurance Premium(Part – 1)
1. Any premium paid, other than by way of cash, to keep in force an insurance on the health of-
a) In case of Individual - Self, Spouse and
Dependent Childrenb) In case of HUF - Family Member
2. Contribution to CGHS of such other scheme as notified by Govt.
3. Any payment, including cash payment, for PREVENTIVE HEALTH CHECKUP for himself, spouse, dependent children.Maximum Deduction Allowable Rs.
25,000 Rs. 30,000 if individual or spouse is
a senior citizen
80D – Medical Insurance Premium(Part – 2)
1. Any premium paid, other than by way of cash, to keep in force an insurance on the health of parents, whether or not dependent on individual.
2. Any payment, including cash payment, for PREVENTIVE HEALTH CHECKUP of parents.
Maximum Deduction Allowable Rs. 25,000
Rs. 30,000 in case either or both parents are senior citizen
Maximum Rs. 5,000 for Preventive Health Checkup (in aggregate, i.e. for
himself, spouse, children, parents) Subject to overall limit of 25,000 or
30,000
Deduction u/s 80D1.
a.
Medical Insurance for self/spouse/children
22,000
b.
Preventive Health Checkup for self/spouse/children Rs. 5000 (but restricted to 3000) (25000-22000, since Max Allowable Deduction is 25000)
3,000
25,000
2.
a.
Health Insurance for Parents
26,000
b.
Preventive Health Checkup for Parents Rs. 7000 (but restricted to 2000) (5000-3000, since Max Allowable Deduction for Preventive Health Checkup is 5000)
2,000
28,000
Total of (1.) & (2.) 53,000
80DD – Medical Treatment of Dependent Disabled
Any amount incurred for the medical treatment, training and rehabilitation of dependent disabled
and/or Any amount paid or deposited under the scheme
framed in this behalf by the LIC or any other insurer or administrator or specified company.
Flat Deduction Allowed is Rs. 75,000
In case of Severe Disability the Flat Deduction shall be Rs.
1,25,000
80DDB – Specified Diseases or ailments
In Case of individual
For Himself, &DEPENDENT Spouse, Child, Parents, Brothers & Sisters
In case of HUF For any Family MemberA. Actual Sum Paid XXXB. Less:
(XXX) XXX
Below 60 years 40,000
Senior Citizen 60,000
SUPER SENIOR CITIZEN
80,000
C. Amount reimbursed from Insurance Co. or Employer
(XXX)
Total Deduction u/s 80DDB XXX
80E – Interest on Education Loan
Deduction is available for interest payment in the Initial A.Y. and 7 A.Y. immediately succeeding the Initial A.Y.
or until the interest is paid in full
No limit for deduction
80G – Donation Prime Minister’s National Relief Fund Prime Minister’s Drought Relief Fund National Children’s Fund Rajiv Gandhi Foundation Govt. or any approved Local Authority, Institution for promotion of
Family Planning Programme Donation to certain Funds, Charitable Funds, Charitable Institution.
Deduction Available: 50% or 100% of Donated Amount
NO Deduction shall be allowed for donation in excess of 10,000, if paid in cash
80E – Rent PaidConditions: Assessee is not receiving HRA Assessee, spouse or minor children do not own
house in the place of business/profession if Assessee has house at any other place than
business/profession, he should not claim benefit of self-occupancy.
In case of Employee, Rent Free Accommodation is not provided by his employer
He is paying Rent for house
80E – Rent PaidLeast of the following is allowable as deductionA. Rent Paid (-) 10% of Adjusted GTIB. 25% of Adjusted GTIC. 2,000 p.m.
Adjusted GTI = GTI (–) Long Term Capital Gain(–) Deduction u/c VI-A[except u/s 80GG]
80U – Person with Disability This section applicable to a resident
individual who at any time during the previous year certified by the medical authority to be a person with disability.
Deduction Available
Normal Disability Severe Disability(less than 80%
Disability)(more than 80%
Disability)Flat Deduction of
75,000Flat Deduction of
1,25,000