Friends, All tax payee well known about Taxable Limit mostly Employee. In case of Computation Income or Tax Plan for forth coming Assessment Year, Salary Person (Employee) have to adjust some exemptions given by Income Tax of India Law. Although these exemptions are also allowed on other income yet it don't need to adjust these exemptions in order to compute TDS. In order to find the amount of TDS on Salary these exemptions are considered very important. Each & every accountant must know these exemptions otherwise they are bound to annoy employees whose TDS are being deducted.
Sections and Exemption Allowed Limit:
Sections and Exemption Allowed Limit:
- U/s 80C, 80CCC & 80CCD- the limit of exemption is only 1 Lac (Combined). It mean your expenditure u/s 80C, 80CCC & 80CCD are exempted upto 1 Lac. You will not get any more exemption if you spend more than 1 Lac under these sections.
- U/s 80CCF (Infrastructure Bond)- If you spend under this section you will get 20000/- more exemption besides above. It means your exemption limit will raise to 1.2 Lac.
- U/s 80D- 20000/- for Sr. Citizen & 15000/- for others
- U/s 80DD- 50000/- but 1 Lac for 80% or more disability
- U/s 80DDB- 40000/- or actually paid whichever is less
- U/s 80E- 100%
- U/s 80G- 100% or 50% as per restriction
- U/s 80RRB- 3 Lac or Actually Received whichever is less
Sections and Its Usages:
- 80C- Under this section you can invest in PPF, LIC, Repayment of House Loan, FD of Nationalised Bank (5Yrs), Tuition Fee for 2 Children,Deposit in CTD of Post Office Saving Bank Scheme, etc.
- 80CCC- Premium for Annuity Plans
- 80CCD- Contribution to Pension Account
- 80CCF- Investment in Infrastructure Bond
- 80D- Medical Insurance (For Assessee and Family Members)
- 80DD- Rehabilitation of Handicapped Dependents, It means expenses on their medical treatment, Deposit to specified scheme for their maintenance
- 80DDB- Medical Expense on Self or Dependent suffering from specified ailment,i.e., AIDS etc.
- 80E- Interest on Loan for Higher Studies for self/relative
- 80G- Various Donations
- 80GG- House Rent Paid (I will tell you about this calculation under Computation U/s 80GG.)
- 80U- Employee suffering from physical disability
- 80RRB- Royalty of a Patent
How to exempt U/s 80GG:
The following three is exempt u/s. 80GG:
The following three is exempt u/s. 80GG:
- Rent Paid minus 10% of Total Income
- 24000/- (@ Rs 2000/- PM for 1 Year)
- 25% of Total Income
Conditions of above Exemption:
- Assessee or Spouse or Minor Child should not own residence at the place of employment
- He should not be in Receipt of House Rent Allowance
- He should not have self occupied residence in any other place
Tax Exemptions 11 Important Plans (Click Here)
Importance of House Loan (Click Here)
Taxable & Non-Taxable Payments (Click Here)
Exemption u/s 10(14)(ii) (Click Here)
Click Here to Download Income Tax Relief/Benefit/Exemption List
Importance of House Loan (Click Here)
Taxable & Non-Taxable Payments (Click Here)
Exemption u/s 10(14)(ii) (Click Here)
Click Here to Download Income Tax Relief/Benefit/Exemption List
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