Tax Exemptions for the Assessment Year Financial Year:

Transcription

1 Tax Exemptions for the Assessment Year Financial Year:

2 Tax Slabs for the Assessment Year For Individuals (Men & Women) Taxable Income Up to 2,50,000 Income Tax- Nil Taxable Income above 2,50,000 and below 5,00,000Income Tax-10% - Tax Rebate under Section -87A Taxable Income above 5,00,000 and below 10,00,000Income Tax-20% Taxable Income above 10,00,000- Income Tax-30%

3 Tax Slabs for the Assessment Year For Senior Citizens (Age 60 years or more) Taxable Income Upto 3,00,000 Income Tax- Nil Taxable Income above 3,00,000 and below 5,00,000Income Tax-10% Rebate Under section 87-A: 5000 Taxable Income above 5,00,000 and below 10,00,000Income Tax-20% Taxable Income above 10,00,000 - Income Tax-30%

4 Tax Slabs for the Assessment Year For Super Senior Citizens (Age 80 years or more) Taxable Income Upto 5,00,000 Income Tax- Nil Taxable Income above 5,00,000 and below 10,00,000Income Tax-20% Taxable Income above 10,00,000 - Income Tax-30%

5 Conveyance Allowance & Medical Expenses Reimbursements Conveyance : - Exemption under Income Tax is 1600/- Per Month Medical Reimbursement - Exemption is allowed upto 15000/- during the year (Subject to Submission of Bills)

6 House Rent Allowance Least of the following: HRA Allowed (40 % on the Basic- and for Metros 50% on the Basic) Actual Rent Paid Actual Rent Paid-10% of Basic Metros: Delhi, Calcutta, Mumbai, Chennai

7 Deduction allowed for Self Occupied House Interest and Principal for Self Occupied House Maximum of 2,00,000 will be allowed as a deduction for the Interest paid during the year (If house purchased on or after 1st of April 2016 and the loan amount is 35 Lakhs and Property Value is 50 Lakhs, then there is an additional exemption of 50,000 will be allowed) Maximum of 1,50,000 will be allowed as deduction under sec-80c for the Principle amount paid during the year

8 Deduction allowed for Let out House Interest on Loan Taken for Let out Property Total Interest paid during the year for the loan taken for let out property Rental Income received from the let out property is treated as Income from House Property and tax will be calculated accordingly- Rental Income declared should not be less than the Municipal Rental value of the area Condition-1: Even if the house is vacant we need to provide the Notional Rental Value (Municipal Rental Value) in order to get the exemption of interest paid during the year Condition-2: Interest and Principal on housing loan on letout property is allowed if the house is not occupied by the employee due to the employment. i.e it is atleast 20 kms from the place of work 30% on Rent received will be allowed as exemption Deduction for Municipal Taxes Paid during the year will be allowed as deduction Maximum of 1,50,000 will be allowed as deduction under sec-80c for the Principle amount paid during the year

9 Deduction allowed for Mediclaim Policy Deduction allowed for Mediclaim policy Under Sec-80D For Self, Spouse, Children upto 25000/- will be allowed as deduction towards mediclaim policy premium paid during the year For Dependent Parents upto 30,000/- will be allowed as deduction towards mediclaim policy premium paid during the year

10 Deduction allowed for Education Loan-80E Interest paid during the year will be allowed as deduction under section80-e Deduction will be allowed for Self, Spouse, children

11 Deduction allowed for Donations Deduction allowed for Donations Under Sec-80G Donations deducted up to 50% or 100% based on the Notifications under Income Tax Act. Condition: Institution to which donation is made should be recognized by Government of India and exemption certificate has to obtain from Income Tax department by the institution Caution: Please check before making a donation whether the Institution is recognized and whether exemption is up to 50% or 100%

12 Deduction Under Section 80-C & 80-CCC Deduction under Section 80-C & 80CCC will be allowed upto 1,50,000 for the Investments made in the following Life Insurance premium Public Provident Fund Deposit in NSC ULIP Principal on Repayment of Housing Loan Contd..

13 Deduction Under Section 80-C & 80-CCC Deduction under Section 80-C & 80CCC will be allowed upto 1,50,000 for the Investments made in the following Mutual Funds ELSS Children Education expenses (Tution Fees) Fixed Deposits in Banks (more than 5 years) House Registration charges paid during the year Contribution to Pension Fund-80CCC Sukanya Samridhi Scheme

14 Deduction Under Section 80-CCD (1) Investments made in National Pension Schemes notified by the Government of India is 50,000 per year under section 80-CCD (1), this exemption is over and above the exemption allowed under section 80-C and 80-CCC

15 Deduction Under Section 80-DD Deduction in respect of maintenance including medical treatment of a dependent who is a person with disability Incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependent and any sums paid to the specified schemes to maintenance of the disabled dependent being a person with disability An amount of Rs. 75,000 will be eligible for deduction and if the severe disability deduction is allowed 125,000 in an year Assessee should submit Medical certificate in Form-10IA from a Government Hospital

16 Deduction Under Section 80-DD Diseases allowed under section -80DD Blindness Low vision Leprosy-cured Hearing impairment Locomotor disability Mental retardation Mental illness Autism Cerebral palsy Multiple disabilities Person with disability means suffering with not less 40% of the above diseases Person with severe disability means suffering with more than 80% or multiple disabilities contd

17 Deduction Under Section 80-DDB Deduction in respect of Medical Treatment etc for himself of or a dependent The Assessee shall be allowed a deduction of the amount actually paid or a sum of forty thousand which ever is less and if the dependent is senior citizen an amount of Rs. 60,000 or actual amount incurred which ever is less is eligible for deduction. An amount of Rs. 80,000 or actual amount incurred which ever is less will be eligible for deduction if the dependent is very senior citizen Assessee should submit Medical certificate in Form-10IA from a Neurologist, oncologist, urologist, hematologist, immunologist or such other specialist and may be prescribed contd

18 Deduction Under Section 80-DDB Diseases allowed under section -80DD (i) Neurological Diseases where the disability level has been certified to be of 40% and above, (a) Dementia (b) Dystonia Musculorum Deformans (c) Motor Neuron Disease (d) Ataxia (e) Chorea (f) Hemiballismus (g) Aphasia (h) Parkinsons Disease (ii) Malignant Cancers (ii0)acquired Immuno-deficiency Syndrome (AIDS) (iv) Chronic Renal Failure (v)hematological Disorders

19 Thank You