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As per the Finance Budget (Central) 2014-15, the most popular Section 80C has Raised up to Rs. 1.5 Lakh from the Financial Year 2014-15 The Income Tax Department as well as the Central Govt provides certain exemptions under various sections of the Income Tax Act, to encourage investors to save and hence reduce their tax liability. The tax benefits under section 80C allow one a maximum investment of Rs 1.5 lakh from the Financial Year 2014-15 and Assessment Year 2015-16.
Good Returns.in has explained the various sections with the instruments available for exemption.
Gross total income means total income computed in accordance with the provisions of the Act before making any deduction under sections 80C to 80TTA i.e. Under Chapter VIA Deduction.
The income of a person is computed under the following heads:
2. Income from house property.
3. Profits and gains of business or profession.
4. Capital gains.
5. Income from other sources.
Here is given a chart of deduction from total income available under section 80C to 80U ( CHAPTER VIA) of the Income Tax Act. This chart will give you a fair idea of deduction which will help you while planning your tax.
Below given a Chart of deduction Under Chapter VIA after Finance Budget 2014-15
|Deduction from total income u/s 80c to 80u|
|Sec||Eligible assessee||Nature of Deduction||Amount|
|80C||Indl/HUF||General deduction for investment in PPF,PF,Life Insurance, ULIP, Stamp duty on house, Fixed deposits for 5 years , bonds etc||Amount deductible: Rs. 1,50,000/-|
|80CCC||Indl||Contibution to Pension funds||Amount deductible: Rs. 1,00,000/-|
|80CCD(1)||Indl||Contibution by an employee or any other individual towards notified pension scheme||Amount deductible: Rs. 1,00,000/- or 10% of Salary|
|80CCD(2)||Employer ’s||Contibution by an employer towards notified pension scheme||Amount deductible: maximum of 10 % of salary.|
|80CCG||Resident Individual||Investment made under equity scheme if gross total income does not exceed Rs 10 lakh.||Amount deductible: 50% of amount invested in equity shares, restricted to Rs 25,000.|
|80D||Indl/HUF||Medical insurance premia||Amount deductible: Max upto Rs 30,000- 40,000 incase of senior citizen|
|80DD||Resident Indl/ Resident HUF||For maintenance including treatment or insurance the lives of physical disable dependent relatives.||Amount deductible: Rs 50,000. In case disability is severe , the amount is Rs 1,00,000|
|80DDB||Resident Indl/ Resident HUF||Medical treatment expenses||Amount deductible: Rs 40,000|
|80E||Indl||For interest payment on loan taken for higher studies for self or education of spouse or children||Amount deductible: Entire amount of interest is deducatble for max of 8 years.|
|80G||All assessees||Donations to charitable institution||Amount deductible: 100% or 50% of amount of donation made to 19 entities (National defense fund , Prime minister relief fund etc.)|
|80GG||Indl||For rent paid||Amount deducatble: 1). Rs 2000/- p.m
2).25% of total income
|80GGA||All assessees not having any income chargeable u/hPGBP||For donation to entities in scientific research or rural development||Amount deducatable: Sum paid as donations|
|80GGB||Indian companies||Contribution give to political parties||Amount deducatable: Sum contibuted to political parties|
|80GGB||Assessee||Contribution give to political parties||Amount deducatable: Sum contibuted to political parties|
|80TTA||Indl/HUF||Interest in savings account||Amount deductible: Max is Rs 10,000/-|
|80U||Indl/HUF||Income of person with disability||Amount deductible: RS 50,000 which goes to Rs 1,00,000 in case taxpayer is suffering from severe disability.|
|80EE||Ind/Huf||Extra Tax Relief from House Building Loan Interest w.e.f. 1/4/2013||Maximum Rs. 1 Lakh get relief from the House Building Loan Interest since 01/04/2013 and on-words financial year|
The most popular Income Tax Section 87A,Tax Rebate Rs. 2000/- ( Who’s taxable income less than 5 lakh) can get this Financial Year 2014-15 as before.