since 1968 · direct tax rates for the fy 2018‐19 2 for individual below the age of 60 for sr....
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DIRECT TAX RATES FOR THE FY 2018‐19
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For Individual below the age of 60
For Sr. Citizen above the age of 60 but below 80
For Sr. Citizen above the age of 80
Rebate u/s 87A – Available for residentIndividuals whose income does not exceedINR 3,50,000 for the amount of INR 2,500 ortheir actual tax payable, whichever lower.
Health & Education Cess of 4% on total tax, forall taxpayers to continue
Flat 20% tax deduction with no tax credit, in case PAN is not provided
Standard Deduction for INR 40000 OR Taxable Income whichever is less
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Exemptions under Section 10
Actual HRA Received
40% (non‐metro cities) or 50% (metro cities) of Basic + DA
Rent paid minus 10% of Basic + DALeast of these 3 would be exempt/tax free
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Exemptions under Section 10 continued…
Leave Travel Assistance Exemption Section 10 (5)
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Set‐off Income/Loss from House Property
Home Loan Interest Section 24
• INR 2,00,000For Aquisition/construction
• INR 30,000For
Rennovation/Reconstruction/Repair/Renewal
Maximum allowable loss in a FY can not exceed INR
2,00,000 irrespective of the property status i.e. Self Occupied and Let‐out
Unabsorbed Loss can be carried over to next years (max 8 years). Overall Limit of the year would remain to be INR 2,00,000 after inclusion of carry over
loss also
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Set‐off Income/Loss from House Property continued…
Home Loan Interest Benefit can be claimed only if Construction is completed or Possession is taken
Only 1 property can be treated as self‐occupied. Thus if an individual own more than 1 property, can choose the property to be self‐occupied, other property would be Deemed to be Let‐out. Need to submit estimated deemed rental income for the calculation
Pre Construction/Pre Possession Period: Period starting from date of borrowing to the immediately preceding FY in which Construction is completed or Possession is taken
Co owner and Co applicant: Co owner is the person who has ownership share in the property. Co applicant not necessary to be owner of the property. Thus benefit against property can be taken only if employee do have ownership share in the property
Clarifications
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Set‐off Income/Loss from House Property continued…
Documents required to claim tax benefit
Copy of the possession letter or a construction completion certificate
Copy of certificate from the person/Bank/Institution to whom interest on housing loan has been paid/payable
In case of joint ownership, the employee will have to submit a declaration (will be generated online by system itself, you just need to fill the details and sign/get signed) from the joint owner (for not claiming benefit of interest on housing loan) to claim benefit of 100% of the amount.
Rental income/Deemed income
Copy of Receipt of Municipal taxes paid (if paid in current FY)
In addition, following also to be submitted if Property is Let‐out/Deemed to be let‐out
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Deductions under Chapter VIA – Section 80C
Investment Allowable for Document Required
LIPSelf, Spouse and Children Copy of premium paid certificate/receipt
ULIPSelf, Spouse and Children Copy of premium paid certificate/receipt
PPFSelf, Spouse and Children Copy of PPF passbook/receipt
NSC Self Copy of NSC
FD Self Copy of receipt
Mutual fund Self Copy of fund statement
ELSS Self Copy of account statement
Principal repayment of home loan including stamp duty and registration charges Self
Copy certificate from Bank/Financial Institution
Tution fee 2 children Copy of receipt
Bonds issued by NABARD Self Copy of Bonds
Senior Citizen Saving Scheme Self copy of deposit receipt
Sukanya Samriddhi SchemeFor girl child (max 2) upto the age of 10 yr copy of deposit receipt
PF Self Will be taken automatically from payroll
Documents required to claim tax benefit
Benefit under section 80C can be availed up to maximum of INR 1,50,000
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Investment SectionMax allowable amount Required Document
Contribution to notified Pension funds 80CCC
INR 1,50,000, within the overall limit of section 80C
Copy of contribution statement/payment receipt
Contribution to NPS 80CCD(1)
10% of Basic + DA or INR 1,50,000 whichever is less
Copy of contribution statement/payment receipt/Will be taken automatically from payroll if deducted from payroll
Employer Contribution to NPS 80CCD(2) 10% of Basic + DA
Will be taken automatically from payroll
Contribution to NPS 80CCD(1B)
INR 50,000, over and above the limit of INR 1,50,000 under section 80C
Copy of contribution statement/payment receipt
Deductions under Chapter VIA – Section 80CCC/80CCDContribution to Pension Fund/Scheme
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Deductions under Chapter VIA – Section 80CCGRajiv Gandhi Equity Linked savings scheme
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Deductions under Chapter VIA – Section 80D
MAXIMUM ALLOWABLE AMOUNT
Self, Spouse& Children
Self, Spouse &Children (if Sr.Citizen)
Parents notbeing Sr. Citizen
Parents being Sr.Citizen
INR 25,000 INR 50,000 INR 25, 000 INR 50, 000
Medical/Health InsuranceInsurance Premium payment should notbe in CASH
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Particulars 80DD 80U 80DDBEligible person Resident Individual Resident Individual Resident Individual
Allowable for
Spouse, children, parents, brothers and sisters, who are dependent on him/her Self
Spouse, children, parents, brothers and sisters, who are dependant on him/her
Maximum Allowable Amount where disability exceeds 40% but less than 80% INR 75,000 INR 75,000
Maximum Allowable Amount where disability exceeds 80% (severe disability) INR 1,25,000 INR 1,25,000
Maximum Allowable AmountActual exepense or INR 40,000 whichever is less
Maximum Allowable Amount where age is above 60
Actual expense or INR 1,00,000 whichever is less
Required Document Form 10IA from Medical AuthorityForm 10IA from Medical Authority
Original bills of expenditure and Prescription from a specialist
Deductions under Chapter VIA – Section 80DD, 80U & 80DDB
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Deductions under Chapter VIA – Section 80DD, 80U & 80DDB continued…Clarifications
Disabled person has not claimed any deduction under section 80U
Disability should not be less than 40%.
Disability means person suffering from blindness, leprosy‐cured, hearing impairment, locomotor disability, mental retardation, mental illness.
Deduction under section 80DDB is available against medical treatment of specified diseases or ailments
Diseases for the purpose of claiming deduction under section 80DDB are, Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, Hemiballismums, Aphasia, Parkinsons Disease, Malignant Cancers, Full Blown AIDS, Chronic Renal Failure, Hematological disorders‐ Hemophilla & Thalassaemia
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Deductions under Chapter VIA – Section 80E
Loan must have been taken from any bank or financial institution or an
approved charitable institution approved for the purpose of providing educational
loans.
Deduction in respect of Interest on Education Loan taken
Allowed for the higher education of self, spouse and children or that student for
whom the individual is the legal guardian. Higher education means all fields of studies (including vocational studies) pursued after passing the senior secondary examination or its equivalent from any
school, board or university recognized by the central government or state government or local authority or by any other authority authorized by the central or state
government or local authority to do so.
Deduction is allowed for continuously 8 years starting from the year in which
employee starts paying the interest or until the above interest is paid in full, whichever
is earlier.
Principal repayment does not quality for deduction
Required Document: Copy of certificate indicating interest paid
Quantum of deduction: no limit
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Deductions under Chapter VIA – Section 80EEDeduction in respect of Interest on Home loan taken for first house
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Previous Employment Income and Income other than salary
Previous Employment
Income
Applicable only for the Employees who have
joined current organization in current
FY
Required Document: Copy of tax
computation sheet (at the time of exit/F&F or provisional Form 16
with seal and signature
Please do not submit pay slips and projection
details
Interest on Saving Bank Account
Would be added to Taxable income as Other Income
Deduction under section 80TTA would be provided against it up to max of INR
10,000
Senior citizen can not avail deduction under
this section
Interest on Deposits
Would be added to Taxable income as Other Income
Deduction under section 80TTB would be provided against it
up to max of INR 50,000
Only Senior citizen (Age>60) are eligible
for it
Other Income
Any other Income like, rental income, fee etc. can also be submitted so that tax can be deducted along with salary
If any tax is deducted at source,
Proof of tax deduction is to be submitted, i.e. Form 16A or Form 26AS
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