ANKUSH CHOPRA & CO. Chartered Accountants. This booklet is intended for client service and internal use only

Transcription

1 ANKUSH CHOPRA & CO. Chartered Accountants This booklet is intended for client service and internal use only

2 HOW TO SAVE TAX FOR A/Y (1 APRIL,2015 to 31 MARCH,2016)

3 Income tax Slabs Individuals ( Resident and Non Resident) Taxable Income Upto Rs.2,50,000 Tax Rate Nil Rs.2,50,000 to Rs. 5,00,000 10% Rs 5,00,000 to Rs.10,00,000 20% Above Rs 10,00,000 30% Resident Senior Citizen (60years to 80Years) Taxable Income Tax Rate Upto Rs.3,00,000 Nil Rs.3,00,000 to Rs.5,00,000 10% Rs.5,00,000 to Rs.10,00,000 20% Above Rs. 10,00,000 30% Resident Senior Citizen (Above 80Years) Taxable Income Upto Rs.5,00,000 Tax Rate Nil Rs.5,00,000to Rs.10,00,000 20% Above Rs. 10,00,000 30% 12% on amount of Income Tax, If Total Income exceeds Rs. 1 Crores.( Sub. To Marginal Relief ) Education on amount of Income Tax Secondary and Higher Education on amount of Income Tax Rebate under Section 87A: If total income does not exceed Rs.5,00,000, 100% of income-tax or Rs. 2,000, whichever is less.

4 TAX ON SALARY CMPONANT FULLY TAXABLE Basic Salary Dearness Allowance Special Allowance Band pay Over time Arrears Personal Pay Food Allowance Shift Allowance Furniture Allowance PARTIALLY TAXABLE/TAX FREE Medical Reimbursement up to Rs per year Transport Allowance up to Rs.1600 per month Leave Travel Allowance Vehicle maintenance House Rant Allowance Uniform Allowance Children Education Allowance (Rs.100 p.m./ per Child)(Rs.300 p.m. for Hostel Expenditure) Max2 Children Newspaper/Journal Allowance uptors per year Telephone Allowance Meal Coupons Helper Allowance Tour Allowance, Daily Conveyance Allowance

5 HOUSE RENT ALLOWANCE Minimum of CALCULATION OF HRA EXEMPTION 1. HRA Received 2. 40% (50% for Metros)of Basic + Dearness Allowance 3. Rent Paid 10% of Basic + Dearness Allowance If Annual Rent paid more than Rs. 1,00,000, PAN Card no. of Landlord is required. If landlord does not have PAN Card, declaration thereof is required. HRA and Home Loan both can be taken together. You should have to stay in rented house and pay the rent regularly. For HRA up to Rs p.m., need not to produce Rent Receipt.

6 COMPANY CAR/CAR MAINTENNACE ALLOWANCE If the company provides a car for personal and official purposes and reimburses the fuel, insurance, maintenance and driver salary the taxable value shall be In case car is owned by you, the reimbursement of running and maintenance cost up to In case the car is less than or equal to 1600CC Rs.1800 p.m. In case the car is less than or equal to 1600CC Rs.1800 p.m. In case the car is greater than 1600CC Rs.2400 p.m. In case the car is greater than 1600CC Rs.2400 p.m. Also Rs.900 per month in case company Provides driver. Also Rs.900 per month in case company provides driver.

7 MEAL COUPENS Meal Coupons are tax free subject to Rs.50 per meal Assuming 25 days working month and 2 meals per day, Meal coupon up to Rs per month is tax free, Annually Rs /- MOBILE PHONE/INTERNET BILLREIMBURSEMENT The reimbursement of mobile and internet bills used for company purpose is tax free Company can fix any limit for reimbursement depending on work profile for other uses. LEAVE TRAVEL ALLOWANCE You can claim twice LTA for two domestic trips with family in block of four years. The present block is Family includes spouse, children, parents, brothers, sisters who are wholly or mainly dependent. No max. limit, it is to be decided by Company. Expenses incurred on travelling is covered, No claim for Hotel stay, food bills etc.

8 HOME LOAN: INTEREST AND PRINCIPAL HOME LOAN Principal Deduction u/s 80C up to Rs.1.5 Lakh Interest Deduction u/s 24 up to Rs.2 Lakhs The deduction is only available from the year of possession/completion of the house. All the tax benefits will be reversed if the house property is sold within 5 years from purchase You can claim both HRA and Home Loan together. In case the Home loan is taken before April1,1999 the deduction on interest is only Rs.3000/- The Pre-EMI interest paid before the completion of house can be claimed as 5 equal installments starting from the year construction is completed. The house should be registered in the name of assessee.

9 TAX SAVING SECTIONS Investment & Expenditure Maximum Rs. 1.5 Lakhs Deduction for Income Tax combining these 3 sections Section 80C Lots of options like PPF, ELSS, FD etc. Section 80CCC Pension Products Section 80CCD Central Government Pension Scheme NPS Section 80CCD (IB) Additional exemption of Rs. 50,000 for investment in NPS

10 Health & Well Being Section 80D Premium paid for Med claim/ Health Insurance of Self, Spouse, Children, Parents( dependent or not) but not parents in laws. If below 60 years max Rs else Rs Addition Rs (Rs in case of senior citizen parents) for parents. Premium should have been paid other than cash. Rs can be claimed for preventive Health Checkup (included in max limit). Section 80DD Maintenance & Medical Treatment of disabled dependent Dependent can be parents, spouse, children, sibling but should not have claimed this deduction. For 40% to 80% disability Rs (For above 80% disability Rs ) or the expenses incurred whichever is less can be claimed. Certificate is required. Section 80 DDB Treatment of Certain Disease/Ailment of self or dependent parents, spouse, children, siblings. For very Senior Citizen Rs , Senior Citizen Rs and for others Rs If expenses incurred are reimbursed by the insurance company or employer, such amount cannot be claimed. Section 80U Physically Disabled Assessse The taxpayer can claim for normal physical disability 40% or more, Rs and for severe disability 80% or more Rs

11 Section 80E Interest paid on Education Loan taken for self, spouse or children for any full time course from approved charitable institution or financial institution. The deduction is available from the year interest payment is started to seven years (total eight years). There is no limit on the amount. Section 24 Interest payable on Housing Loan & Home Improvement Loans Loans In case of single non rented house deduction up to Rs In case of rented or multiple house, there is no limit provided the rent received will be treated as income from house property. In case self occupied property that is not acquired or constructed within three years, the deduction is only Rs If Loan is taken for repair, reconstruction, the interest paid before completion is not allowed. In other cases the deduction is allowed in five equal amounts. Deduction is available on accrual basis. There is no restriction on sale of property.

12 Section 80G Donations Donation to Certain Charitable Funds, Charitable Institutions etc. Some donations are allowed 100% and some are allowed 50%.The max. exemption can be 10% of Gross annual income. Signed stamped receipt along with PAN no of the Charitable Institution is must to claim this deduction. Donation in kind is not eligible. The organization or institution must be approved and registered with income tax. In case donation amount exceeds Rs , it would have been paid other than cash only. Section 80 GGA 100% deduction is allowed for donation for certain specified scientific research or Rural Development Section 80 GGC 100% deduction is allowed to donations to political parties registered u/s 29A of Representation of the people Act,1951. The max. exemption is 10 % of Gross annual income. Section 80GG Section 80 CCG Section 80TTA Others For paying Rent in case of no HRA Deduction is lower of Rs.2000 p.m., 25% of Annual Income Rent paid-10% of Annual Income Rajiv Gandhi Equity Saving Scheme Deduction up to Rs. 25,000 (50% of amount of Investment) Interest received in Saving Bank Account (not on fixed deposits) Deduction up to Rs.10,000/-

13 Section 80C/80CCC/80CCD The maximum deduction combining all these investment/expenditure is Rs. 1,50,000/- Investment Options (Debt) Provident Fund (EPF/VPF) Public Provident Fund (PPF) Sukanya Samridhi Account National Saving Certificates (NSC) Senior Citizen`s Saving Scheme (SCSS) Tax Saving Fixed Deposits (For 5 Years) Investment Options (Others) Life Insurance Premium Pension Plans from Mutual Funds Pension Plans from Insurance Companies New Pension Scheme (NPS) Tax Saving Mutual Funds (ELSS) Central Govt. Employees Pension Scheme Expenditures Principal Payment on Home Loan Stamp duty and registration cost of the House Tuition Fee for 2 Children

14 CONTACT US: DEHRADUN I Floor, Friends Plaza Behind Raj Plaza 75A Rajpur Road Dehraun Uttarakhand India DELHI C/o CA Sanjay Vijayvergiya A-1/5B & 6 Upper Ground Floor Flat A (Left Side) Near Metro Pillar756, Mohan Garden, Uttam Nagar New Delhi India BIKANER C/o Sh. Ramesh K. Arora Pokhar Qrts Rani Bazar Bikaner Rajasthan India : : ankush@accoca.com ; doonacco@gmail.com : ; ;