BHARAT HEAVY ELECTRICALS LIMITED TIRUCHIRAPALLI

Transcription

1 1 BHARAT HEAVY ELECTRICALS LIMITED TIRUCHIRAPALLI No.BP/AC/Estt/ Dt. 02 /09/ 2013 CIRCULAR Sub: Computation of Salary Income for Income Tax and deduction of Income tax at source from salary for Financial Year (Assessment Year: ). 1) Deduction of Income Tax from salary: Income tax is deductible at source, once the taxable income exceeds Rs.2,00,000/- during the financial year Tax structure for the financial year (Assessment year ) are given below: Income Tax Slab for Financial year ( Assessment year ) Men & Women Up Rs.2,00,000/- Rs.2,00,001/- Rs.5,00,000/- Rs.5,00,001/- Above Senior Citizen (Age 60 year ) Up Rs.2,50,000/- Rs.2,50,001/- Rs.5,00,000/- Rs.5,00,001/- Above Tax rate Education cess Higher Education cess Nil Nil Nil 10% 2% of IT 1% of IT 20% 2% of IT 1% of IT 30% 2% of IT 1% of IT Note : a) For an individual having Total Income of Rs.5 lakhs or less, a rebate of 100% of income tax payable on tal income or Rs.2000/- whichever is less, will be allowed as a tax rebate from the assessment year onwards. b) Senior citizens : Individual who is of the age of sixty years or more but less than eighty years at any time during the previous year. 2) House Rent Allowance U/S 10(13A): For employees who are residing in rental accommodation, HRA will be exempted from gross salary income, subject least of the following three conditions. a) Actual HRA received by the employee.(20% in case of Trichy and 10% in case of Thirumayam).

2 2 b) Actual rent payment in respect of rental accommodation occupied by him in excess of 10% of salary and c) An amount equal 50% of the salary where the residential house is situated in Bombay, Calcutta, Chennai and Delhi and 40% in respect of other places (Trichy, Thirumayam). The least of the above amounts is exempt from Income tax and the balance of HRA is taxable. It may, however, be noted that this concession is not applicable employees receiving HRA in respect of their own houses and the whole HRA received by them is treated as income for the purpose of Income Tax. If rent paid exceeds 1,80,000/- per annum, PAN no. of house owner be furnished the company ( BHEL ). For claiming exemption of House Rent Allowance, employees are requested use the forms available in under Employee KIOSK. 3) LTC / LTA Allowance U/S 10(5): The exemption is admissible an employee for going anywhere in India along with his family, in respect of two journeys performed in a block of four calendar years commencing from and up The amount exempted in respect of the value of travel concession received by or due the individual from his employer for himself and his family, in connection with his proceeding (a) On leave any place in India. (b) To any place in India after retirement from service or after the termination of his service. Family here is meant Spouse, up a maximum of two children( multiple births after one child is accepted ), parents, brothers and sisters who are wholly and mainly dependent upon the employee. The exemption is limited the actual expenses incurred on the journey and without performing any journey no exemption can be claimed. The exemption is strictly limited expenses on air fare, rail fare, bus fare only. Lodging, boarding charges, taxi fare, porter expenses, etc., will not qualify for exemption. The employee should be on leave in the organization at the time of performing the journey and employees who do not take any leave and wish avail this facility is not eligible for exemption. No IT exemption is available for foreign travel on LTC.

3 3 4) Children Education Allowance: Education allowance is exempted the extent of Rs.100/- per month per child up maximum of two children. 5) Hostel Charges: For claiming Hostel charges exemption of Rs.300/- per month per child up maximum of two children, employees are requested feed their claims in Original cash receipt issued by the Hostel Authorities should be submitted Accounts / ESTT. for verification. To get the exemption of children education allowance, hostel charges allowance, LTA/LTC, Conveyance allowance, employees must opt the above mentioned reimbursements in Cafeteria ( 46% perks ). 6) Housing Perks: Housing Perks for Township Residents will be 7.5% on Taxable salary reduced by the rent recovered from the employee. 7) Deduction u/s 24(b) in respect of House Property: a) Self occupied property: Deduction is allowed by way of interest on borrowed capital for the purpose of purchase, construction, repairs, renewal or reconstruction of house property. i. Rs.30,000/- for capital borrowed before 01/04/1999 ii. iii. Rs.1,50,000/- for capital borrowed after 01/04/1999 and the acquisition or construction of house property is made within 3 years. If capital is borrowed for repairs, renewal or reconstruction then maximum amount deduction on account of interest is Rs.30,000/-. b) Let-out property / Deemed let out property: i. Net Rental Value = Annual Rental Value - Municipal tax ii. Net Income/Loss = Net Rental Value - 30% of Net Rental Value (for the purpose of repairs and maintenance) - Interest paid on borrowed capital.

4 4 8) Deduction under section 80: a) Deduction U/s 80C: Eligible investments: i. Contributions made a PF, VPF, Recognised PF. ii. Life Insurance Premium for self, spouse & children subject maximum of 20% of Sum assured for policies taken on or before , 10% of sum assured for policies taken on or after iii. National Savings Certificate VIII Issue for self only subject maximum of 20% of Sum assured for policies taken on or before , 10% of sum assured for policies taken on or after iv. 15 year Public Provident Fund A/c (PPF) with Banks/Post Office for self, spouse & any child. v. Unit Linked insurance Plan (ULIP) for self, spouse & children. vi. Any principal payment wards the cost of purchase / construction of a residential property (including repayment of loan) for self. vii. NSS, Jivan Dhara / Jivan Akshay Policy Premium for self. viii. Contribution notified pension fund set up by Mutual Funds or U.T.I. for self. ix. Any sum paid as tuition fees whether at the time of admission or otherwise any University / College / Educational institution in India for full time education of any two child of the individual. x. Any amount of Time deposit / fixed deposit of not less than 5 years with a Post office/scheduled bank within overall ceiling limit. Deduction U/s 80CCC in respect of contribution specified Pension Funds. Deduction U/s 80CCD in respect of contribution Pension Scheme notified by Central Government. The aggregate amount of deduction U/s 80C, 80CCC & 80CCD shall not exceed Rs.1,00,000/- in any case. b) Deduction U/S.80CCG: This deduction in respect of investment made under an Equity Savings Scheme is available a new retail invesr, who invest directly in listed shares and listed units. i. Eligible deduction is 50% of Investments in Listed Equities with a lock in period of 3 years or Rs.25,000 whichever is less. ii. Gross Total income does not exceed Rs.12,00,000

5 5 c) Deduction U/S. 80D : Medical insurance premium (premium paid other than cash): i. Rs.15,000 for self, spouse and dependent children (including cash payment up Rs.5,000 for preventive checkup expenses). ii. Additional deduction of Rs.15,000 for parents of the taxpayer whether dependent or not (including cash payment up Rs.5,000 for preventive checkup expenses) iii. Additional Rs.5,000 in case of senior citizen (i.e. resident and 60 years or more at any time during the previous year) d) Deduction U/S. 80DD : Medical treatment including nursing, training etc. of handicapped dependents or for payment or deposit made for the maintenance of such dependant is qualified for deduction. The amount of deduction are allowed up Rs.50,000/- (for persons having disability of 40% or more but less than 80%) & Rs.1,00,000/-(for deficiency of 80% or more). e) Deduction U/S. 80E : This section allows the Assesse for deduction of interest paid for the loan taken by the individual for the purpose of the higher education specified under the section for self, spouse/child. The interest has be paid out of the income chargeable tax and the documentary proof shall be produced for verification. Period of deduction is 8 years from the date of repayment of loan or completion of the loan whichever is earlier. f) Deduction U/S. 80EE : This section has been introduced in the Finance bill 2013, for giving additional deduction of Rs.1 lakh for interest payable on loan taken for new house. The following conditions should be satisfied in order claim the above deductions. i. 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; ii. 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; iv. The assessee does not own any residential house property on the date of sanction of the loan. v. Maximum interest deduction U/S.80EE is Rs.1,00,000/-.

6 6 g) Deduction U/S. 80U : This section is applicable for Self. The amount of deduction are allowed up Rs.50,000/- (for persons having disability of 40% or more but less than 80%) & Rs.1,00,000/-(for deficiency of 80% or more) in case of blind, mentally retarded and physically handicapped employee. 9) Declaration of Investment, Deposits & Verification of documentary proof: i. Employees are requested feed all eligible personal savings (except for House Rent Receipt) in the Forms available in acchome and will be verified by the following area wise staff from 1 st 18 th of the following month between Hrs Hrs. For Thirumayam & SSTP employees the following staff will be verified the declarations and for the other employees verification shall be done at Bldg.24/II floor/finance / ESTT. Sl.No. Area Name Designation 1. Thirumayam Sri Alok Kumar Sahu Accounts Officer /FIN 2. SSTP Sri Sansh Jai Kishen Asst.Officer/FIN ii. iii. iv. One Finance staff will be available for verification of documents in HR 2&4 Bldg. on every Wednesday between 1 st and 18 th of the following month from hrs hrs. Whenever the certificate issued by the Lending agencies for housing loan for Principal and interest payable during the year, the signed copies of the lending agencies are required for verification. Xerox copies are not acceptable as instructed by income tax department. The exemption u/s 80DD (Handicapped-Dependent) & 80U (Handicapped-Self) are allowed only based on a request letter justifying the amount claimed and supported by a certificate issued by the MEDICAL BOARD and the same should be routed through HR department for acceptance. v. While declaring private savings under Section 80C& 80CCC, employees are requested feed only the extent of balance of Rs.1,00,000/- after deducting savings through salary (like PF, VPF & Insurance Premium). 10) Request: i. As per the Income Tax Act 1961 the employer have file E-return the Income Tax Department on Quarterly basis for the monthly income tax recovery made from each employee and the remittance thereon. In these circumstances it is hereby advised that each one of the employee may please monir their monthly income tax recovery vis-à-vis the eligible savings furnished them periodically

7 7 through intranet and if any correction / clarification is needed may please bring the notice of the concerned dealing staff immediately. ii. iii. iv. All employees are requested verify the correctness of PAN number displayed in the Finance homepage, while feeding their personal savings with their PAN card and intimate the correction, if any. Employees should possess a PAN card with their phograph. Employees having more than one PAN card are advised retain one PAN card and contact IT department, Trichy for cancellation of other PAN cards. The newly recruited Engineer/Executive Trainees, Supervisory Trainees, Artisan Grade IV employees, Temporary employees and employees transferred from other Units/sites are requested furnish their PAN No. Accounts/Establishment along with a copy of PAN card update the same in the IT Master. Not furnishing PAN will result in tax deduction at higher of the prescribed rate or 20% on all transactions liable TDS. v. Private savings declaration of the employee will be accepted only from those who have submitted PAN CARD copy Accounts Establishment as per circular FIN/PAN/2012/01 dt vi. All employees are requested plan and declare their savings including Housing Loan well in advance, so that actual monthly tax due can be determined and deducted accordingly. vii. The last date for verification of Personal Savings will be 15 th March All are requested co-operate. Distribution : All Notice Boards All users through Mail Desk S. THIRISANGU MANAGER/FINANCE ESTABLISHMENT