Download Automated All in One TDS on Salary for Non-Govt employees for FY 2015-16 & AY 2016-17 [ This Excel Utility can prepare at a time Tax Compute sheet + Automated HRA Calculation + Automated Form 16 Part A&B and Part B + Form 12 BA]
Brief the tax section with deduction
Traveling Allowance/Conveyance Allowance:-
Raised up to Rs. 1600/- P.M. and Phy. disable persons Rs. 3200/- P.M.
Entertainment Allowance:
The first deduction which you claim from salary is Entertainment Allowance. Entertainment allowance received is first included in the employee’s income and then a deduction is allowed in case of government employees, for a sum equal to 1/5th of salary (excluding all allowances, benefits and other perquisites) or Rs. 5,000, whichever is less.
Professional Tax:
Tax on employment by whatever name called, levied by a State under Article 80C 276 of the Constitution shall be allowed as a deduction. [Sec. 16(iii)]
Payment of Medical Insurance Premiam (Mediclaim) or contribution to Central Government Health Scheme. [Sec. 80D]:
Deductible upto a maximum of Rs. 25,000 (Rs. 30,000 in case the person insured is a senior citizen).
Expenditure on medical Treatment etc. and deposit for maintenance of handicapped dependents. [Sec. 80DD]:
A deduction is allowed to compensate for any expenditure incurred by an assesses, during a year, for the medical treatment (including nursing), training and rehabilitation of one or more handicapped relatives wholly dependent on him, and for amount deposited in an approved scheme of LIC or UTI, for the benefit of a handicapped dependent. A fixed deduction of Rs. 50,000 is allowable, in aggregate for any or both the purpose specified above, irrespective of the actual amount of expenditure incurred.
Expenditure or Medical Treatment of assess/dependant relative [Sec. 80DDB]:
Deduction for the amount of expenditure incurred or Rs. 40,000, whichever is less, is allowable for any year during which expenditure is actually incurred for the medical treatment of specified diseases or ailments for the assesses himself or a dependent relative. If the patient is a senior citizen the deduction allowable shall be the expenditure incurred or Rs. 80,000 whichever is less. Besides, any amount received under a medical insurance policy shall be reduced from the amount of deduction allowable.
Interest on Loan taken for Higher Education. [Sec. 80E]:
Any amount paid by way of interest on a loan taken from any financial institution or any approved charitable institution for the purpose of pursing his higher education, is deduction without any limit.
Interest on Loan taken for first residential house. [Sec. 80EE]:
Deduction is allowable for interest on housing loan from a bank/housing finance company, for allowable is Rs. 1, 00,000, subject to specified conditions. The deduction is allowable for A.Y. 2014-15 and A.Y. 2015-16 only.]
Donation for Charitable Purposes [Sec. 80G]:
There are a number of donations in respect of which deduction is permissible under Sec. 80G. Deduction @ 50% is available for donation to Jawaharlal Nehru Memorial Fund, Prime Minister Drought Relief Fund, [National Children’s Fund] Indira Gandhi Memorial Trust or Rajiv Gandhi Foundation etc. 100% deduction is allowed for donations to National Defense Fund, Prime Minister’s National Relief Fund, [National Children’s Fund,]National Foundation for Communal Harmony, Chief Minister’s/Lt. Governor’s Relief Fund etc. Deduction is granted subject to the prescribed maximum ceiling and on furnishing of appropriate certificate from the done organization.
Donation of a sum exceeding Rs. 10,000 shall be eligible for deduction, only if it paid by a mode other than cash.
Expenditure on Rent. [Sec. 80GG]:
Rent paid by an assesses not owning a house and not in receipt of house rent allowance u/s 10(13A) for residential accommodation whether furnished or unfurnished, is deductible subject to the prescribed ceilings. [w.e.f 1-4-2014, for A.Y. 2014-15]
Donations to specified institutions/associations for Research or for Rural Development [Sec. 80GGA]:
Donation of a sum exceeding Rs. 10,000 shall be eligible for deduction, only if it paid by a mode other than cash.
Physical Disability [Sec. 80U]:
Rs. 75,000 for disability and Rs. 1, 25,000 for severe disability.
