Download Automated Arrears Relief Calculator with Form 10E from F.Y.2001-02 to F.Y.2016-17 and Reduce tax liability on arrears relief calculator U/s 89(1),


When salary or other income arrears are received in any particular year, one’s tax liability for that year increases. Simply because one’s total income for that year has increased. Most salaried individuals will be able to identify with such situations. But having to pay a higher tax on account of arrears is unfair to the taxpayer. Had he originally received the money in the year(s) that he was supposed to receive it, the additional tax would have been staggered over this time, instead of converging in one year as a lump sum payment.

Our Income tax law has taken the same into consideration and allows a tax deduction under Section 89(1) for this additional tax burden on the tax payer. At times, the employee appraisal process (where the employee can expect a revised salary), takes longer than expected, and the actual payments are postponed. Also, commissions and other cash incentives for sales and marketing personnel, could be reconciled at a later date.

SECTION 89(1)
Basically, the relief under Section 89(1) is arithmetical. It involves ascertaining the two amounts of tax, the first is the amount of tax applicable to the total income, including the extra amount in the year of receipt. The second is calculating the amount of tax by adding the arrears to the total income of the years to which they relate. The difference between the two amounts is the deduction allowed.

In other words, if the taxpayer is required to pay any additional amount of tax (in the year of receipt) than what he would have otherwise paid, had he received the money in the year(s) he was supposed to receive it, such additional tax can be reduced from the tax payable.

Download Automated Arrears Relief Calculator with Form 10E From the Financial Year 2001-02 to Financial Year 2016-17 (Up to date Version) as per Finance Budget 2016.

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Income Tax Exemption for Salaried Persons as per Budget 2016,With All in One TDS on Salary for Non Govt employees for F.Y.2016-17 & A.Y.2017-18


Finance Minister Arun Jaitley had announced incremental tax benefits for common taxpayers in his recent Budget 2016

Here are some income tax changes that experts expect in the budget:

1) The basic income tax exemption limit should be raised from Rs. 2.5 lakh for male & female below 60 years age.

2) The current deduction limit of Rs. 2 lakh on home loan interest paid U/s 24B during a financial year is too & Additional Section 80EE where can get more Home Loan Interest Max Rs. 1.5 Lakh excluding U/s 24B.

3) A separate section for deduction on the principal paid on home loan should be introduced. Home loan principal repayment deduction is currently clubbed with other options under Section 80C, which has a ceiling of Rs. 1.50 lakh.

4) Home buyers can currently avail home loan interest deduction only after the completion of construction of property. In case construction is not complete within 3 years, the deduction is reduced to Rs. 30,000 per year from Rs. 2 lakh under current norms. This needs to be changed, given widespread construction delays.

5) The limit of Section 80C of Rs. 1.5 lakh which raised and linked to the Additional exemption U/s 80CCD(1B) Max. Rs. 50,000/- income-level of tax payers as some of the compulsory contributions like employee provident fund leave very little scope for other investments for people falling in highest tax bracket up to Rs. 2 Lakh.

6) Medical Insurance U/s 80D has raised the Max. limit of Rs. 25,000 per annum & Rs. 30,000/- for Sr.Citizen

7) The travel allowance, which is raised to Rs. 1,600 per month from Rs. 800 & Rs. 3200/- P.M. for above 80% Phy.disable persons.

8) The New Pension Scheme (NPS) should be made tax-exempt on withdrawal on the lines of other investments like PPF, insurance policies etc.

Click to Download All in One TDS on Salary for Non-Govt employees for Assessment Year 2017-18 & Financial Year 2016-17 [ This Excel based Software can prepare at a time Tax Compute Sheet + Individual Salary Structure + Individual Salary Statement + Automatic H.R.A. Exemption Calculation + Automatic Form 16 Part A&B and Form 16 Part B + Automatic Form 12 BA ]

Income Tax Exemptions For 2015-16 For Salaried Persons for A.Y.2016-17, with All in One TDS on Salary for Central Govt Employees for F.Y.2016-17


Download the All in One TDS on Salary for Central Govt Employees for F.Y.2015-16 [ This Excel Based Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure + Individual Salary Sheet + Automatic HRA Exemption Calculation + Form 16 Part A&B and Form 16 Part B ]

Income Tax Exemptions and deductions, give you plenty of opportunities to save tax. By using wisely these exemptions and deductions, you can reduce your tax out-go. In this post, I am listing the available exemptions, and deduction under income tax act.

Allowances Exempted Under Section 10 of Income Tax Act

1. House Rent Allowance (HRA)

You get a  job and shift to another city. Because of your job, you live in a different place. You are forced to live in a rented accommodation. The rented flat is not by choice but because of the duty. Hence, the expense on rent is because of your job. You can’t avoid this, even if you wish. Therefore, government  exempt the rent from income tax. However, your employer must pay the   house rent allowance.

Click here to Download and Calculate your House Rent Exemption U/s 10(13A)

Leave Travel Allowance

LTC or LTA is exempted if the same is actually spent

Transport Allowance

You daily go to your office or workplace from you house. You also spend on the local transport. This expenditure is also forced upon you. Therefore, the government has exempted transport allowance from the income tax, provided your employer gives you the transport allowance. You don’t need to give any receipt of this local travel. However, the tax exemption is Rs 1600/month and for Phy. Disable Persons can get Rs.3200 Per Month.

Children Education Allowance

Children Education allowance in also exempted from income tax. Your employer must give this allowance for availing the tax exemptions. It is Rs. 100 per month per child up to a maximum of 2 children.

Hostel Subsidy

This is another tax exemption related to your child’s education. It is Rs. 300 per month per child up to a maximum of two children.

Other Allowance Eligible For Income Tax exemptions

Uniform Allowance, Special Compensatory Allowance, High Altitude Allowance, allowances applicable to North East, Compensatory Field Area Allowance, Counter Insurgency Allowance, High Active Field Area Allowance, island duty allowance, tribal allowance etc. These allowances are tax-free, but you need to produce the proof of the actual expense in some cases.

Income Tax Exemption on Interest Paid on Housing Loan U/s 24B

This Exemption  is also related to your accommodation because of the job. After shifting to a different place, you may opt  for your own house instead of rented accommodation. If you take  home loan for the house, the interest payment is  tax exempted. You can get maximum exemption of  Rs 2 lakh on  housing loan interest.  There are some conditions for this exemption.

The house should be self-occupied. You may get this exemption if your home is under  construction. however the  construction should complete within 3 years.

Tax Deduction Under Section 80C, Max limit Rs.1.5 Lakh

The Government wants to encourage some certain types of investments and expenses. To achieve this goal it gives the benefit of tax deductions. There are many investments and expenses under section 80C, 80CCC and 80CCD. However, the total deductions under this section are limited to Rs 1.5 lakh.

  • Employee Provident Fund
  • Pension/ Annuity Schemes
  • Life insurance premium
  • Tax Saving mutual fund (ELSS)
  • Home loan principal payment
  • Sukanya Samriddhi Account
  • Tuition fees of children
  • PPF Account Contribution
  • National Saving  Certificate
  • Tax-saving fixed Deposit
  • Post office time deposits

Section 80CCC: Deduction For Annuity Plan

You can also get a deduction for the annuity plan of insurance companies. There are some limitations on this deduction.

  • You can’t contribute more than 10% of your salary or gross income.
  • You can’t enjoy the deduction of more than Rs 1.5 lakh in a year.

Section 80CCD(1) :  Contribution For Pension Plan

Similar to annuities, contribution in pension plans is also eligible for tax deduction. For example contribution to National Pension Scheme (NPS) will get deduction benefit under this rule.

It is also limited to 10% of salary or 10% gross income (if not salaried).

Section 80CCD(2): Contribution To Pension Plan By employer

This section gives you extra tax saving opportunity. If your employer contributes into your pension plan, it would be also tax-free. This contribution does not come under the overall limit of 1.5 lakh.

You can ask your employer to contribute 10% of your salary into your pension plan. It will not affect your employer financially, but you would be able to save some more tax.

Deductions Under Chapter VIA of Income Tax Act

Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)

This scheme also gives you the extra tax saving. To avail this benefit, you must be the first-time investor in the share market. Your annual income should not be more than Rs 10 lakh. You can invest up to Rs 50,000 under this scheme. However, the tax deduction would be available for the 50% of your investment. So, if you invest Rs 50,000, you will get the tax deduction of only Rs 25,000. There is some mutual fund scheme which is designed for RGESS. However, due to the complex rules,  it could not become popular.

Section 80D:  Medical Insurance Deduction

This scheme also gives you a chance to save tax over and above the 1.5 lakh. One must use this tax saving opportunity. In the budget 2015 the government does not change income tax slab, but it has increased the limit for section 80D. Section 80D can give you a tax deduction of up to Rs 65,000. Medical insurance of self, family and parents are eligible for tax deduction under section 80D.

Section 80D: Tax Deduction For Medical Insurance In FY 2015-16

Section 80DD: Deduction For Maintenance of Disable Dependent

Under this section, one can get extra tax deduction of Rs 50,000. To avail this deduction, you must fulfill some conditions.

  1. A person with a disability must be dependent upon you. The disability may be physical or mental.
  2. You must produce a certificate from the doctor.
  3. You must incur the expense of treatment, rehabilitation, nursing and training.

If you deposit any amount in any scheme for the disabled, it would be also eligible for tax deduction.

If dependent person is with severe disability, you can claim deduction up to Rs 1,00,000.

Section 80DDB: Serious Illness Deduction

This deduction is for the treatment of serious illness. An assessee can get an income tax deduction of Rs 80,000 under this section. Amended by the Finance Budget 2015

  1. The deduction is for the expense of illness of self or dependent.
  2. The illness should be within the prescribed list.
  3. There should be real expense. Any reimbursements of insurance claims should be subtracted.
  4. You must give a certificate from the government doctor.
  5. For senior citizens this deduction limit is Rs 80,000.

Section 80E: Deduction on Loan for Higher Studies

Like the home loan interest, one can also claim income tax deduction for education loan interest.

  1. You must take education loan from a financial institution.
  2. You can avail this tax deduction maximum of 7 years.
  3. You can take the benefit of this deduction only for the higher education.
  4. You can take this benefit only for the education of self, spouse or children. If you are the legal guardian of a student, you can also take this benefit.

Section 80G: Deduction for Donations

The donations specified in Section 80G are eligible for deduction. The deduction may of 100% of donation or 50%, It depends upon the type of receiver.

Section 80GG: Deduction on House Rent Paid

This deduction is for those, who don’t get the house rent allowance from their employer. Such person can avail this deduction according the specified rules.

Deduction is the least of

  1. Rent paid less 10% of total income
  2. Rs. 2000/ month, i.e. Maximum Deduction available is 24,000.
  3. 25% of total income

There are some conditions for this benefit.

  • Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
  • He should not get a house rent allowance (HRA).
  • He should not have self occupied residential premises in any other place.

Section 80TTA: Saving Account Interest Deduction

Interest earned on a saving account is not added in taxable income, if it is less than Rs 10,000 in a financial year.

Section 80U: Deduction For Disabled

Under section 80U a person with disability gets extra deduction from his/her taxable income. Such person can deduct Rs 75,000 from the taxable income. In case the disability is severe, the deduction is up to Rs 1,25,000. To avail this deduction one should obtain a certificate from the government doctor.

All in One TDS on Salary for Central Govt employee for F.Y.2015-16 with Major Changes in Income Tax by the Budget for F.Y 2015-16 for Salaried persons.


Download the All in One Income Tax Preparation Excel Based Software for Only Central Govt Employees for Financial Year 2015-16 [ This Excel Utility can prepare at a time your Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure as per Central Govt Salary Pattern + Automatic HRA Calculation + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2015-16 with the all modified section by the Finance Budget 2015-16]

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Major Changes in Income Tax by the Budget for F.Y 2015-16 as given below

       Popular  Income Tax                            Section Existing Provisions for FY 2014-15

AY 2015-16

Changes as per Budget for FY 2015-16

 AY 2016-17

Surcharge on taxable income exceeding Rs. 1 Crore for Individuals, Senior Citizens, Very Senior Citizens, HUFs, AOPs, BOIs, artificial juridical persons, firms, cooperative societies and local authorities 10% of Income Tax 12% of Income Tax
Comparison of Benefits under various IT Sections
Exempted amount of transport allowance Rs. 800/- per month Rs. 1,600/- per month & for Phy.Disable Persons Rs.3200/- P.M.
Section 80D – Deduction for Health  Insurance premium Rs. 15,000/- Rs. 25,000/-
Section 80D – Deduction for Health  Insurance premium for Senior Citizens Rs. 20,000/- Rs. 30,000/-
Investment in Sukanya Samriddhi Scheme 1.5 Lakh Eligible for deduction u/s 80C and any payment from the scheme shall not be liable to tax.
Section 80DDB – Deduction in case of very senior citizens on expenditure on account of specified diseases Rs. 60,000/- Rs. 80,000/-
Section 80DD – Maintenance, including medical treatment of a dependent who is a person with disability Rs. 50,000/- Rs. 75,000/-
Section 80DD – Maintenance, including medical treatment of a dependent who is a person with severe disability Rs. 1,00,000/- Rs. 1,25,000/-
Section 80U – Person with disability 50% to 80% Rs. 50,000/- Rs. 75,000/-
Section 80U – Person with severe disability,above 80% Rs. 1,00,000/- Rs. 1,25,000/-
Section 80CCC – Contribution to provident fund of LIC or IRDA approved insurer Rs. 1,00,000/- Rs. 1,50,000/-
Section 80CCD – Contribution by the employee to National Pension Scheme (NPS) Rs. 1,00,000/- Rs. 1,50,000/-

Now under Section 80CCD, a deduction of upto Rs. 50,000  is allowed over and above the limit of Rs. 1.50 lakh under Section 80C  in respect of contributions made to NPS is also allowed.   Thus, now the total deduction that can be claimed under Section 80C+Section 80CCD = Rs 2 lakh.

In case any employer contributes to the NPS scheme on behalf of the employee and the benefit of the same would be availed by the employee, the employee would also be allowed a deduction under Section 80CCD(2) for the amount of contribution made by the employer.

TWO STEPS EXCEL CALCULATOR U/A 10(13A) OF HOUSE RENT ALLOWANCE EXEMPTION,WITH ARREARS RELIEF CALCULATOR U/S 89(1) WITH FORM 10E SINCE 2000-01 TO 2015-16


Owing a home is a dream of every salary earning individual. It takes a lot of time and efforts to fulfill this dream. The best part of owning a home is not to pay the rent. This the financial benefit and there are many other social benefits too. It sucks when you pay the rent. But then there is a concept of House Rent Allowance (HRA) which comes to our rescue. HRA is an important ingredient of salary. Not only it compensates the rent paid, but also helps in claiming tax exemptions.  So let us discuss the calculation of House rent allowance exemption.

Many of the salaried class taxpayers remain confused relating to the taxability of HRA received by them. HRA is an allowance a sum of money regularly paid to meet expenditure relating to rent.

1) DOWNLOAD THE AUTOMATIC HOUSE RENT EXEMPTIONCALCULATOR  IN EXCEL

2)   DOWNLOAD THE ARREARS RELIEF CALCULATOR U/S89(1) WITH FORM 10 E SINCE F.Y.2000-01 TO F.Y.2015-16


Condition
EXEMPTION OF HRA UNDER SECTION 10(13A) & Rule 2A

Under Section 10(13A), the condition to claim HRA Exemption is that the person who is in receipt of HRA, does not live in his own house, and pays rent in excess of 10% of his salary for his residential accommodation.

No Entitlement for Exemption:

  • When an employee stays in his house
  • When an employee does not pay any rent or incur any expenditure towards rent.
  • When the rent paid is less than 10% of salary

Points to be Considered:

  • The exemption shall be calculated on the basis of where the accommodation is situated
  • If Place of employment is the same for the whole year, then HRA Exemption shall be computed for the whole year. If there is change I place of employment is the same for the whole year, then HRA exemption shall be computed for the whole year. If there is change in place of employment during the previous year, then HRA exemption shall be calculated on monthly basis.
  • Exemption should be calculated in respect of the period during which rental accommodation is occupied by the employee during the previous year.

HOW TO CLAIM HRA EXEMPTION

As per income Tax Act, 1961 the employer need to deduct the TDS on salary of employee. He calls for all deduction/exemption proof from the employee. As an employee you need to provide the House rent receipts duly signed & Stamped to your employer. Generally every employer collects the HRA receipts at the end of the year.

As per the Circular 17/2014 issued by CBDT for deduction of TDS on salary, it has been decided that as an administrative measure that salaried employees drawing HRA upto Rs. 3000/- p.m will be exempted from production of rent receipt. However this concession is only for the purpose of TDS, a income tax officer may call for rent receipt below Rs. 3000/-.

Further if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

Automated up to date Arrears Relief Calculator U/s 89(1), with Form 10E since FY 2000 to 2015-16


Download the Arrears Relief Calculator U/s 89(1) Up to Date [ Since FY 2000-01 to FY 2015-16]

 

As the New Finance Budget 2015 has already declare the Income Tax Slab have not changed and same as past Financial Year, but some changes have been made and raised some maximum limit of some Tax Section in this Financial Year 2015-16. 

1) The Income Tax Section 80 D Raised up to Rs. 25,000/- for general and up to Rs. 30,000/- for Sr.Citizen. 

2) A new deduction U/s 80C have introduce in this Finance Budget 2015 in the name of Sukanya Samriddhi Scheme Account which is Max Limit Rs. 1,50,000/-.Read this deduction in details

3) The Section 80CC have also raised up to Rs. 1,50,000/- in this Finance Budget 2015 for Pension Account.

4) Transport/Conveyance Allowance is double up to Max Rs. 1600 P.M.

5) Tax Rebate Rs.2,000/- U/s 87A and Savings Bank Interest up to Rs. 10,000/- U/s 80TTA will be continue in the Financial Year 2015-16.

In  Future it will be indispensable  the Arrears Relief Calculator, as the Central Govt and other some State Govt have already arrange to set the 7th Pay Commission to the Govt employees. In this Regard it may helpful to calculate the Arrears Relief of Salary which can calculate by the Income Tax Section 89(1) for Relief of Arrears.

We have already prepared the Up to Date Arrears Relief Calculator U/s 89(1) Since the financial year 2000-01 to Financial Year 2015-16 with Form 10E.

Download the Arrears Relief Calculator U/s 89(1) Up to Date 

Income Tax Section 80C after Budget 2015-16,available to the Salaried Persons, with Automated All in One TDS on Salary for Bihar State Employees for F.Y.2015-16


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 in respect of which tax rebate u/s 88 was earlier available. The total deduction under this section (along with section 80CCC and 80CCD) is limited to Rs. 1.50 lakh only.

  • Life Insurance Premium For individual, policy must be in self or spouse’s or any child’s name. For HUF, it may be on life of any member of HUF.
  • Sum paid under contract for deferred annuity for individual, on life of self, spouse or any child .
  • Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self-spouse or child Payment limited to 20% of salary.
  • Investment in Senior Citizens Savings Scheme 2004 for 5 year by resident individuals.
  • Contribution made under Employee’s Provident Fund Scheme.
  • Contribution to PPF For resident individual, can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
  • Deposit in Sukanya Samriddhi Account as natural / legal guardian of girl child.
  • Contribution by employee to a Recognised Provident Fund.
  • Sum deposited in 10 year/15 year account of Post Office Saving Bank
  • Subscription to any notified securities/notified deposits scheme. e.g. NSS
  • Subscription to any notified savings certificate, Unit Linked Savings certificates. e.g. NSC VIII issue.
  • Contribution to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanrakhsa 1989
  • Contribution to notified deposit scheme/Pension fund set up by the National Housing Scheme.
  • Certain payment made by way of instalment or part payment of loan taken for purchase/construction of residential house property.
  • Investments in Sukanya Samriddhi Scheme (w.e.f. 01.04.2015}

    Condition has been laid that in case 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.

  • Contribution to notified annuity Plan of LIC(e.g. Jeevan Dhara) or Units of UTI/notified Mutual Fund. If in respect of such contribution, deduction u/s 80CCC has been availed of rebate u/s 88 would not be allowable.
  • Subscription to units of a Mutual Fund notified u/s 10(23D).
  • Subscription to deposit scheme of a public sector, company engaged in providing housing finance.
  • Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.
  • Tuition fees paid at the time of admission or otherwise to any school, college, university or other educational institution situated within India for the purpose of full time education of any two children. Available in respect of any two children

 Download Automated TDS on Salary All in One for only BIHAR STATE EMPLOYEES for F.Y.2015-16 [ This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure for Bihar State Salary Pattern + Automatic HRA Exemption Calculation + Automatic Form 16 Part A&B and Part B for F.Y.2015-16]

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. 150,000/-.

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.

Note: The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD(1) (combined together) is Rs. 1,50,000/-.

Section 80CCD (1): Deduction in respect of Contribution to Pension Account (by Assessee}

Deduction available for the amount paid or deposited in a pension scheme notified or as may be notified by the Central Government subject to a maximum of :
(a) 10% of salary in the previous year in the case of an employee
(b) 10% of gross total income in any other case.

The maximum deduction allowable under the secion is Rs. 1.00 lac. Rs. 1.50 lacs w.e.f. 01.04.2015 in case of contribution to New Pension Scheme (NPS).

Section 80CCD (2): Deduction in respect of Contribution to Pension Account (by Employer}

Deduction available for the amount paid or deposited by the employer of the assessee in a pension scheme notified or as may be notified by the Central Government subject to a maximum of 10% of salary in the financial year.

Section 80CCD: Additional Contribution to New Pension Scheme (NPS)

A deduction of upto Rs. 50,000 is available over and above the limit of Rs. 1.50 lakh in respect of contributions made to NPS under Section 80CCD(1).

Section 80CCG:

Amount invested by resident individuals, whose gross total income does not exceed Rs. 12 lakhs, in listed shares or listed units in accordance with notified scheme for a lock-in period of 3 years (Subject to certain conditions).

Deduction of 50 % of total investment subject to maximum of Rs. 25,000 in 3 consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed shares or list units of equity oriented funds are first acquired.

Section 80D: Deduction in respect of Medical Insurance

Deduction is available upto Rs. 30,000/- (enhanced from Rs. 20,000 w.e.f. 01.04.2015) for senior citizens and upto Rs. 25,000/- (enhanced from Rs. 15,000 w.e.f. 01.04.2015) 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. 30,000/- (enhanced from Rs. 20,000 w.e.f. 01.04.2015) if parents are senior Citizen and Rs. 25,000/- (enhanced from Rs. 15,000 w.e.f. 01.04.2015) in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 60,000/-. 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 available to resident Individual and HUF in respect of Rehabilitation of Handicapped Dependent Relative

Deduction of Rs. 75,000/- (enhanced from Rs. 50,000 w.e.f. 01.04.2015) in respect of

  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 defendant is a person with severe disability a deduction of Rs. 125,000/- (enhanced from Rs. 1,00,000 w.e.f. 01.04.2015) shall be 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 allowed to resident Individual and HUF in respect of Medical Expenditure on Self or Dependent Relative

A deduction to the extent of Rs. 60,000/- (Rs. 80,000 in case of senior citizen) 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 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 80EE: Deduction in respect of Interest on Residential House Property

The deduction under this sub-section is available w.e.f. AY 2014-15. The maximum deduction available is Rs. 1 lac. In a case where the interest payable for the financial year 2013-14 is less than Rs. 1 lac, the balance deduction amount shall be available in AY 2015-16.

The deduction under sub-section (1) shall be subject to the following conditions :

  1. the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2013 and ending on the 31st day of March, 2014;
  2. the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;

iii.                               the value of the residential house property does not exceed forty lakh rupees;

  1. the assessee does not own any residential house property on the date of sanction of the loan.

If deduction for Housing Loan Interest is availed under this section, no deduction can be availed for such interest under any other provisions of the Act for the same or any other assessment year.

Section 80G: Deduction in respect of Various Donations

The various donations specified in Sec. 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Sec. 80G

Section 80GG: Deduction in respect of House Rent Paid

Deduction available is the least of

  1. Rent paid less 10% of total income
  2. Rs. 2000/- per month i.e. Maximum Deduction available is 24,000/-
  3. 25% of total income, provided

Assessee or his spouse or minor child should not own residential accommodation at the place of employment.

He should not be in receipt of house rent allowance.

He should not have self occupied residential premises in any other place.

Section 80GGA: Deduction in respect of certain donations for scientific research or rural development

Section 80GGC: Deduction in respect of contributions given by any person to political parties

Section 80QQB: Royalty Income of resident individuals on patents.

Maximum deduction Rs. 3,00,000/-

Section 80RRB: Royalty Income of resident individual authors of certain books other than text books.

Maximum deduction Rs. 3,00,000/-

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. 01.04.2012 (Assessment Year 2013-14).

Section 80U: Deduction in respect of Person suffering from Physical Disability

Deduction of Rs. 75,000/- (enhanced from Rs. 50,000 w.e.f. 01.04.2015) to a resident 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. 125,000/- (enhanced from Rs. 1,00,000 w.e.f. 01.04.2015) shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.

Deductions Allowable under Section 24 of Income Tax Act :

Where a housing property has been acquired / constructed / repaired / renewed with borrowed capital, the amount of interest payable yearly on such capital is allowed as deduction under Section 24 of Income Tax Act, subject to the limits stated below. Penal interest on housing loan is not eligible for deduction. If a fresh loan has been raised to repay the original loan and the new loan has been used only for the purpose of repaying the original loan then, the interest accrued on such fresh loan is allowed for deduction.

  1. If the property is acquired or constructed with the capital borrowed on or after 01-04-1999 and such acquisition or construction is completed within 3 years of the end of the financial year in which capital was borrowed then the actual interest payable is allowed as deduction subject to a maximum Rs. 2,00,000/- (Rs. 1,50,000/- upto 31.03.2015).
  2. In other case interest up to maximum Rs. 30,000/- is deductible.
  3. The ceiling of Rs.2,00,000/- (Rs. 1,50,000 upto 31.03.2015) or Rs. 30,000/- is only in case the property is self occupied. There is no limit on deduction of interest if the property is let out.

The visitors may visit the web site of Income Tax Department for resolving their doubts or for clarifications.