Budget 2016-17 has been presented in Parliament. The Finance Minister has kept the Personal Income Tax slab rates unchanged for the Financial Year 2016-17 (Assessment Year 2017-2018).
Let us understand all the important sections and new proposals with respect to Income Tax Deductions FY 2016-17. This list can help you in planning your taxes.
Income Tax Deductions FY 2016-17
Section 80c
The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80c are as below;
- PPF (Public Provident Fund)
- EPF (Employees’ Provident Fund)
- Five year Bank or Post office Tax saving Deposits
- NSC (National Savings Certificates)
- ELSS Mutual Funds (Equity Linked Saving Schemes)
- Kid’s Tuition Fees
- SCSS (Post office Senior Citizen Savings Scheme)
- Principal repayment of Home Loan
- NPS (National Pension System)
- Life Insurance Premium
- Sukanya Samriddhi Account Deposit Scheme
Section 80CCC
Contribution to annuity plan of LIC (Life Insurance Corporation of India) or any other Life Insurance Company for receiving pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.
Section 80CCD
Employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be upto 10% of the salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.
To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals and Gross income is applicable for non-salaried. The definition of Salary is only ‘Dearness Allowance.’ If your employer also contributes to Pension Scheme, the whole contribution amount (10% of salary) can be claimed as tax deduction under Section 80CCD (2).
Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.
Section 80D
Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure.
Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).
Section 80DD
You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings) who have 40% disability. The tax deduction limit of upto Rs 1.25 lakh in case of severe disability can be availed.
To claim this deduction, you have to submit Form no 10-IA.
Section 80DDB
An individual (less than 60 years of age) can claim upto Rs 40,000 for the treatment of specified critical ailments. This can also be claimed on behalf of the dependents. The tax deduction limit under this section for Senior Citizens is Rs 60,000 and for very Senior Citizens (above 80 years) the limit is Rs 80,000.
To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.
For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:
- 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) Parkinson’s Disease
- Malignant Cancers
- Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
- Chronic Renal failure
- Hematological disorders
- Hemophilia
- Thalassaemia
Section 24 (B)
The interest component of home loans is allowed as deduction under Section 24B for up to Rs 2 lakh in case of a self-occupied house. If your property is a let-out one then the entire interest amount can be claimed as tax deduction. (Read: Understanding Tax Implications of Income from house property)
Section 80EE
This is a new proposal which has been made in Budget 2016-17. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.
- The home loan should have been sanctioned in FY 2016-17.
- Loan amount should be less than Rs 35 Lakh.
- The value of the house should not be more than Rs 50 Lakh &
- The home buyer should not have any other existing residential house in his name.
Section 80U
This is similar to Section 80DD. Tax deduction is allowed for the tax assessee who is physically and mentally challenged.
Section 80GG
As per the budget 2016 proposal, the Tax Deduction amount under 80GG has been increased from Rs 24,000 per annum to Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
The extent of tax deduction will be limited to the least amount of the following;
- Rent paid minus 10 percent the adjusted total income.
- Rs 5,000 per month.
- 25 % of the total income.
Section 80G
Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. But deduction is not allowed for donations made in cash exceeding Rs 10,000. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G.
Section 80E
If you take any loan for higher studies (after completing Senior Secondary Exam), tax deduction can be claimed under Section 80E for interest that you pay towards your Education Loan. This loan should have been taken for higher education for you, your spouse or your children or for a student for whom you are a legal guardian. Principal Repayment on educational loan cannot be claimed as tax deduction.
There is no limit on the amount of interest you can claim as deduction under section 80E. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.
Section 87A Rebate
If you are earning below Rs 5 lakh, you can save an additional Rs 3,000 in taxes. Tax rebate under Section 87A has been raised from Rs 2,000 to Rs 5,000 for FY 2016-17 (AY 2017-18).
In case if your tax liability is less than Rs 5,000 for FY 2016-17, the rebate u/s 87A will be restricted up to income tax liability only.
Section 80 TTA
Deduction from gross total income of an individual or HUF, up to a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account with a bank, co-operative society or post office can be claimed under this section. Section 80TTA deduction is not available on interest income from fixed deposits.
Conclusion
It is prudent to avoid last minute tax planning. Do not invest in unwanted life insurance polices or in any other financial products just to save taxes. It is better you plan your taxes based on your financial goals at the beginning of the Financial Year itself. Plan your taxes from April 2016 itself, instead of waiting until late December 2016 (or) January 2017.
It is OK to pay some taxes when you can not save or cannot invest in right financial products. But, do not invest just to save TAXES. The cost of buying wrong financial products may outweigh the cost of taxes. Tax Planning is not a goal but a tool. Remember “Tax Planning alone is not Financial Planning.”
Also, kindly understand the tax treatment of the selected investment products across the different investment stages (i.e., investment, accrual & withdrawal) and then invest.
I believe that the above list is useful for your Tax Planning purposes. The above ‘Income Tax Deductions 2016-17’ are applicable for financial year 2016-2017 (Assessment Year 2017-2018).
(Image courtesy of Stuart Miles at FreeDigitalPhotos.net)
You may like reading : How Income Tax Dept tracks High Value Financial Transactions?
Form 12BB – New Form to claim Income Tax Deductions by Employees
Mutual Funds Taxation Rules – Capital Gains Tax Rates on MFs
How to make your Income Tax eFiling Account more secured?
e-Sahyog : New Online Facility to resolve ‘Income Tax Returns’ mismatch issues
I have three fixed deposit in Central Bank of India. The bank has deducted TDS of Rs. 2589 for the interest of Rs. 25881.15 on the same though it is not matured. While e-filing the return TDS of CBI comes automatically. Now my question is that whether I should show this income of Rs. 25881 in the income details column under head “Income from Other Sources” or not ? Because if I show that amount my refundable amount decreases and if not show refundable amount increases.
Dear Mahendrasinh,
You need to show the interest income under ‘income from other sources’ and also disclose the TDS details in ‘Tax paid’ sheet.
Hello Mr.Sreekanth,
I was searching for useful articles related to income tax exemptions and deductions and come across your article which is quite informational based on your detailed analysis or expertise.
The content of your blog seems very comprehensive and interesting to read.
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Is this something you would be interested in?
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Dear Harsh,
Thank you for your appreciation.
You may reach me through our Contact page. Cheers!
Respected Sir
In fy 2016-17 i invest Rs 150000 u/s 80c, & i invest Rs 20000 In NPS Tier -1 , can i take tax benefit u/s 80ccd(1) ? Or which u/s benefit receivable ?
Dear pravin ..Yes you can claim u/s 80 ccd (1b)
Dear pravin ..Yes you can claim u/s 80 ccd (1b)
Hi
My salary is 19 lakhs PA , I bought an new apartment for 50Lakhs , so I will pay my principle and interest which comes around 50k per month, but I am not occupied in the apartment it will get over by 2018 -19.
Can I claim full interest which I pair or there is maximum limit of 2 lakhs only.
Please clarify me on this .. Also in the section 80 EE there is 50,000..
Dear Ashok ,
As it is an under-construction property, you can not claim tax benefits on it till your take possession of the property.
The maximum loss that you can claim is up to Rs 2 Lakh only.
Rs 50,000 u/s 80EE can be claimed on under-construction property too (if the conditions are met).
Read :
IT deductions list for FY 2017-18.
Under-construction property & Tax implications.
Where to show standard deduction u/s 24A in ITR 1 excel form of ay 2027-18 ?
Dear Bidehjee ..You need include (claim it) in the calculation of ‘income from house property‘.
My father is an paralysis patient. i am salaried professional, can i avail 80dd deductions for my IT returns and if yes then can i claim 75000 rs?
Dear dhiraj ..I believe that Paralysis comes under Section 80U.
Section 80U is similar to Section 80DD. Tax deduction is allowed for the tax assessee who is physically and mentally challenged.
Thanks for the Blog , it has been really helpful.
Dear Naren ..You may go through my latest article on – Important IT exemptions list for FY 2017-18 / AY 2018-19.
Hi,
I have received my Apr,May,June month salary from the company, but after that the company was not paying salary to us and after three month it got closed without paying any salary and reimbursements. Management is fighting in court for their dues. I have lost my three month salary and also the reimbursements. How should i show this loss of income in my ITR. I have also not received the Form 16 from previous employer as the company was closed. whatever i have earned in three month salary almost i have lost the same amount in form of reimbursements. Kindly advise.
Dear Dheeraj ..I believe that these are not loses but dues have not been paid.
You need to file your ITR based on the income that you have received in FY 2016-17.
Hi
My father is 62 and dependent on me. In June 2016 he had pacemaker implantation which cost around 2.36 lakh. out of which I got 1.55 lakh from insurence claim. Can I claim 40k under section 80DDB amount for tax deduction.
Dear Sushil ..Kindly note that Sec 80DDB is applicable for the above listed Medical treatments only.
sir,
my father is having 80% disability certificate which clearly states that no further reassessment is required. regarding 80DD my query is i am getting all the claims for his expenses incurred from health insurance provided by my employer.Should this claim amounts credited in my account by the insurance company be also shown as my income to claim 80dd.
Dear sharath ..I believe that same expenses can not be claimed twice..
my salaried income is 445200 and investment under 80c is 51500 i have also pay 60000 as annual house rent
what will be the exemption under 80gg
kindly help
Dear Saninder,
Under Section 80GG, you can claim the least of the below applicable amounts:
Rs. 60,000 annually (Rs. 5,000 monthly)
The amount that is equal to the total rent paid minus 10% of the total income
25% of annual salary
Provided , you do not get HRA benefits in your salary.
My wife undergone Kidney transplant in Feb 2016. But I did not claim any tax deduction.. Now our expense is atleast Rs. 10000 a day.. Can I claim tax deduction under 80DDB?
Dear Vikas,
I have provided the eligible list of diseases / ailments in the above article.
If your spouse’s medical treatment is for any of the above ailments, you can claim tax deduction u/s 80DDB.
For FY 2016-17, I have already invested in ELSS for Rs.150000/- I have also made a donation to a registered Charitable Institution (IT Dept accepted) for Rs.15000. How much deduction I can claim in the return.
Dear Narasimhan,
Your investment of Rs 1.5 Lakh can be claimed u/s 80c.
50% of donation made to charitable institution can be claimed u/s 80G.
hi, srikant,
iam a retired psu employee. now ihave income from interests on bank fds and cpaital gains on mutual funds and shares. which IT form to be filled. pl., let me know.
can i personally contact u for future investment plans pl provode your mob no:
Dear sudhakar Ji,
Kindly go through this article : Which ITR form to fill? (This is as per AY 216-17)
How to calculate the i.tax for individual & pvt comp & its director , M.D for f.y-2016-17/ A.y-2017-18
Dear chittaranjan ..Kindly consult a CA.
Although the Research fellowships, grants received from govt. universities are all tax-exempted, is it necessary to show the income(from fellowship) while filing the return.
or how one can show the income for his loan EMI’s if he is getting fellowship.
Dear Ankit,
I believe that one can disclose it under Exempt Income section of ITR.
Can show the bank statements (if accepted & considered by the lending insti) which reflect the income.
thanks sir
this will help me a lot for my home loan EMI’s
One more query is about HRA, apart from my income under scholarship i am also getting an amount of Rs 76500/- pa as HRA, so where this HRA is to be declared, I think It should be declared under the head “Income from salaries” may I right?
if is it so what exemptions are applicable over this HRA received under section 10(13a) since the income under the head salary is zero
Dear Ankit,
As the entire income is tax-exempt, need not worry about HRA exemption as it is also a part of your income.
thanks
i am kishor, i need the details for house rent how much possible to get income tax deduction for me, because iam staying in my own house. i can possible to get house rent deduction for my income tax deduction for the year 2016-17.
Sir,
My mother is 84 years of age and suffering from hypertension, vertigo and cardiac disease. She has been hospitalized twice in this financial year. My query is can I claim rebate for the hospital bill under 80DD or 80DDB as only some specified diseases are given from which we can claim rebate. She does not have mediclaim.
Dear Velarian,
The tax claim under sections 80DD or 80DDB are limited to certain conditions only, as given in the above article.
I believe that you can claim up to Rs 30,000. For very senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure u/s 80D.
Kindly read : Section 80D & tax benefits.
Srikanth sir i have heard about i can claim only 24000/- for tution fee for two children please clear i can take exceed for this
Dear Syed ..If you are referring to claiming of Tuition fee under section 80c, then the limit is up to Rs 1.5 Lakh..
What is the maximum permissible IT exemption under chapter VI A? Is it capped at 3,50,000 even if the home loan being repaid is for a flat that is not self occupied but has been let out?? Please clarify
Dear Ravi,
The principal repayments can be claimed under section 80c up to the limit of Rs 1.5. Lakh.
For FY 2016-17, there is no limit to claim interest payments u/s 24.
However, the new Budget 2017 has proposed to put the restriction to Rs 2 Lakh.
Thank you so much
Dear Sir,
Please explain Section 80 GG in the context of my problem.
I have received HRA for 4 months during 2017-18 FY.
I then joined a private job and did not get any HRA for the rest of the 8 months.
Can I claim deduction for these 8 months OR the deduction can only be claimed for a complete financial year.
Dear Vijay,
Tricky one;
The condition is : If individual is a salaried employee and receives House Rent Allowance (HRA) at any time during the Financial Year, he/she is not eligible for deduction.
A house property purchased in Feb 2015, in the names of spouse (first name) and self (second name) with contribution of about 15% and 85% respectively (without any specific mention thereof) , is being intended to give on rental.
(1) In whose hands the rental income is to be declared. Individually, spouse’s income is very nominal and below the taxable limit and I am a tax payer.
(2)Whether expenditure/income can be shown in the respective hands if part of the flat is shown as rental in the hands of children
Dear Mr Marari,
1 – Rental income has to be declared by both the owners as per the share of owneship in the property, by default 50:50 can be considered.
2 – Is the property co-owned by children also???
Dear Sreekanth,
Thanks for your valuable suggestions.Can I know is there 80CCF infra bonds which qualifies for tax deduction in fy 16-17.one more question is deduction under 80ccc Contribution to annuity plan(1.5lacs) is above 80c(1.5 lacs).
Dear balnagesh,
1 – 80CCF is not available for FY 16-17.
2 – The overall limit is Rs 1.5 Lakh only.
I am a serviceman. My total income on fy 2016-17 rs 694188.00 .Deduction p .tax 2496.00 and other g pf ,gis ,on 80cc etc will 150000.00 . Calculate my income tax.
Dear sahabuddin ..You may kindly use this calculator ….
i am a salaried person during last fy 2015-16 i received the salary up to the month of November 2016 but till 31st march my total saving under section 80 c was 100000 so my total income taxa was nil.
now i have received the remaining part of my salary in this fy 2016-17
should i file the revised itr or salary of previous year received in fy 2016-17 would be commuted in this year income
Dear saninder,
It is arrears received now, in different FY. Suggest you to kindly consult a CA and take advice.
Sir
I am 43 years old, having salary income of around 6-7 lakhs. I have my own house regsitered in my name, but due to some reasons i have to stay with my father in law in the same city, and i am paying him rent of rs.15000/- pm. , Can i take benefit of HRA under the head income from salaries (HRA).
Dear Navdeep ..Are you going to claim the house owned by you, as Self-occupied property in your Income tax return?
Hi Sreekanth,
I used to pay rent to my father till 2013 when he expired.The house is in the name of nmy father tilldate.
Who should I pay my rent and show it for tax benefit(I am Salaried)–To my mother or to my mother(Who is the
first legal inheritor)? Kindly clarify it.
Thank you and best regards
Dear Kallol,
Both of you can have equal share in the property. So, are you relinquishing your share in the property?
Hi Sreekanth,
I want to have tax benefit by paying rent in this case to my mother.How can I do that?
Thanks for your reply
Dear Kallol ..If that’s the case, then property should be solely owned by your mother only.
An employee received an amount of Rs. 200000 as medical reimbursement of his ailing father (above 60 years). How many amount will be exempted for income tax (A.Y.2017-18)
Dear Vinod,
If medical allowance is part of your salary, you can claim up to Rs 15,000 ..
Read : Section 80D & medical allowance.
Hi Srikanth,
I home loan sanctioned on 26/03/2012. and i took possession on 06/12/2013. the interest which accrued in that period is about 125000/- which i dint claim till now.
i just want to know that can i divide 125000 in five equal parts and claim that in this financial year and coming financial years.
Dear Prakash,
You can not claim the previous years’ PPI installments now in this fY.
However the installment which is applicable for this FY 2016-17 can be claimed in ITR AY 2017-18.
Sir
I am a state gOvt.Pensioner of kerala.aged 61.After eligible deductions of 150000/ under 80c,Medi claim (80D)Rs 15 895/ my tax laiability comes to Rs9000/-
1.can I deduct Rs .5000/under 87 a from this (total taxable income below 5 lakha)
2.Any other plan for me to save this tax
3.Can I claim addl Rs.5000/ for preventive health Check up in addition to mediclaim.
Dear Anilkumar Ji,
Kindly check the applicable ceiling limit in your case under Section 80D, kindly read this article..
Kindly use this IT dept’s TAX Calculator, to check if 87A rebate can be claimed or not.
I (1 st time home buyer) have bought a flat in Feb’2017 . For FY 2016-17 , I have to pay (Principal amount : Rs. 8745.75 /- + Interest : Rs. 11756.25 /). So from INCOME CHARGEABLE UNDER THE HEAD ‘SALARIES’ this interest amount will be deducted as ” INTEREST ON BORROWED CAPITAL U/S 24(1)(VI)” .
But for FY 2017-18 , this interest amount is more than Rs. 2 Lakh. Upto 2 lakh I will show under INTEREST ON BORROWED CAPITAL U/S 24(1)(VI) as Rs. 2 lakh is maximum I can show under this head. For the Balance amount
, could I avail additional deduction under 80E for FY 2017-18 ?
Dear Ipsita ..Yes, can avail tax deduction u/s 80EE also. (Section 80E is for Deduction for interest on Education loan).
First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.
The home loan should have been sanctioned in FY 2016-17.
Loan amount should be less than Rs 35 Lakh.
The value of the house should not be more than Rs 50 Lakh &
The home buyer should not have any other existing residential house in his name.
Dear Reddy Sir
Kindly confirm, whether medical reimbursement received by state govt employee is taxable or exempt up to Rs 15000/-, in case of expenditure is upon dependent father of Individual (Senior Citizen)
Dear Ali,
TA – up to Rs 1600 pm is tax-exempt.
Medical reimbursement of Rs. 1,250 is exempt from tax and if it is part of the salary structure.
Read : Section 80D & Medical allowance – tax benefits
Dear Sir,
I would like to know, how much amount can be availed for 80C exemption for the tuition fees for my son, who is doing Bachelors. The Tuition Fees are INR 2,00,000=00 per annum (each semester 1,00,000=00). How much can be exempted under section 80C !!! Kindly guide me ASAP, Sir.. Thank you so much for your valuable time and response, which definitely serves purposes from many others like me, reading the above opinions and expert responses, Sir.. Much appreciated work, Sir…
Dear Minesh Ji,
It is up to Rs 1.5 Lakh can be claimed u/s 80c.
Thank you for your kind words.
Hi..
Does Fixed deposit comes in 80C ?
Dear Swati…Yes, 5 year tax saving FDs.
Is there any entertainment allowance under section 16(ii)?
Dear Kuzhali,
For private sector employee, it is fully taxable.
For govt sector employee, the taxable amount is total Entertainment allowance received minus least of below;
* 1/5th of basic salary.
* Rs 5000 (or)
* Actual allowance received
sir i had been on leave for two month due to which I did not get transport allowance and secondly transferred. intially i was getting 800 aas transport allowance and now i am getting 1600 as transport allowance. so how much transport allowance i can claim for rebate means actual or 19200.
Dear SANJAY …It is actuals only (up to Rs 9600 pa).
Dear Reddy Sir
Whther TA received is exempt up to Rs 1600/- pm (19200/- yearly)…. kindly correct me if I am wrong..
Further kindly clarify me Medical Reimbursement received by state govt employee during 16-17 is completely exempt or exempt up to Rs 15000/- for dependent parent of Individual.
your immediate response is highly appreciated.
Hi sir,
i joined one company, there they deduct HRA amount, but after 3 month i left that company, now i am working another company where they didnt provide HRA amount here(not deducted) for this fiscal year 2016-17, then here i can claim on that 80GG on this or not for HRA not getting now.
Please suggest me.
Thanks,
Manas
Dear Manas,
You must not have availed any HRA during the entire financial year. If you were employed for 1 month in the financial year (and availed HRA) and were self-employed during the remaining period, you cannot avail tax relief under Section 80GG.
I have paid Rs.5274/- towards individual personal accidental premium to Apolo Munic Health Insurance. Whether IT benifit is allowed on this.
Dear Debdas..Kindly note that personal accident policies do not have any tax benefits.
Sir,
My son in under going treatment in Govt hospital for Autism. where we should submit “FORM NO. 10-IA” I usually fill returns online. Is it a declaration or we have to post the document (xerox or original)
Dear Vishwanath Ji,
I believe that there is no need to upload or file this form along with your ITR, but kindly keep the document with you for future reference or to upload in your Employer’s database (if salaried & required).
“Medical treatment expenses for the specified disease (Section 80DDB) : Medical Bills / expenditure incurred by way of medical treatment for a specified disease along with a certificate from a hospital in the prescribed form. (To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt hospital only. This condition causes undue hardship to the persons intending to claim tax deduction. Now, CBDT (Central Board of Direct Taxes) has issued a notification relaxing this condition. Specialist Doctors working in Private hospitals also can issue a ‘certificate / prescription’ now). Download Form 10I.”
Dear sir,
I am(indian resident) a research scholar in an indian govt university receiving:
Fellowsip: Rs 378000/- pa
HRA: Rs 76500/- pa
How much is the taxable income from the above?
and how can I save the tax?
I am staying in rented house costing Rs 6200/-pm as rent
Dear Ankit,
Kindly note that Research fellowships, grants received from universities are all tax-exempt.
Kindly read this article, click here….
Thanks
thanks
then is it require to declare that income(fellowship+hra) under any other head (like income from other sources)?
if it is required to declare it, under which section I can get the tax exemption?
Dear Ankit ..There is no need to file tax return.
Sir,
I have deposited following amount in the shape of fee of nsit new delhi (Affiliated to University of Delhi ) for the academic session 16-17 of my son. :-
tuition fee Rs 23700
Institutional fee Rs 34500
non govt. component Rs.17200
examination fee Rs.2020
mark sheet + form Rs.210
total amount Rs.77630
Kindly clarify how many amount will be tax free in the above fee.
thanking you sir,
Dear prasad Ji,
I believe that you can claim only tuition fee u/s 80c.
thank your sir,
p n pd.
DEAR SIR,
MANY THANKS FOR YOUR VALUABLE ADVICE. I WOULD LIKE TO KNOW THAT HOW CAN I GET I.T DEDUCTION IN INVESTING IN A ELSS FUND (EITHER IN A LUMP SUM AMT. OR IN A SIP)? PL. EXPLAIN IN DETAIL.
YOUR EARLY REPLY IS HIGHLY SOLICITED.
Dear KAUSHIKI ..You can just submit MF statement which reflects your investments in ELSS fund to your employer (if salaried), else you can just claim the investment amount in section 80c when filing your ITR.
Read : IT declaration & investment proofs.
DEAR SIR,
MANY THANKS FOR YOUR EARLY REPLY.
BUT I CAME TO KNOW FROM A WEBSITE THAT ONLY 50% OF AMT. INVESTED IN A ELSS FUND IS ELIGIBLE FOR TAX DEDUCTION, IS IT RIGHT?
YOUR COOPERATION IS HIGHLY SOLICITED.
Dear Kaushiki..It is wrong. 100% (up to Rs 1.5 Lakh) can be claimed.
sir,
under 80D CAN I DEDUCT FULL AMOUNT AS PER THE RECEIPT or half of it for eg if the bill contains Rs 2040 for 2d echo and blood test can i deduct total 2040 or half 0f it pl clearifi about 80g also
Dear Dr sowbhagya,
Upto Rs 5000 can be claimed for health check-ups u/s 80D.
Kindly read: Section 80D tax deduction.
Under which section I will get deduction for Medical Reimbursement and what is the Maximum Limit. I am getting Rs 28500/- towards hospitalization expenses. please advice me
Dear vikash ..You are referring to medical allowance..Kindly read this article : Section 80D tax deduction..
Dear Sreekanth ji,
Can a person claim deduction under 80DD and 80DDB for the same ailment?
Thanks,
Kanwal
Dear Kanwal ..I am not sure about this.
Dear Sir, Mr.Sreekanth ji, what is the procedure and rules for calculating HRA exemption for those who submits rent receipts for the financial year 2016-17. I heared some amendments issued by Govt. of India for this fy 2016-17 during December 2016 for this.
Dear Krishna Rao,
I am assuming you are referring to new Form 12BB
Mr.Sreekanth,
I am a government employee and coming under New Pension Scheme.
Well, clerks of our department seems to have little knowledge about NPS. Hence, we all new employees end up paying more taxes.
Here, I want to enquire about the actually amount I can claim exemption from my total salary.
In 2016-17, I have invested 1,50,000 (1.5 lacs) in PPF and which come under Section 80 C and Rs 54,888 (total) were deducted under NPS from my actual salary throughout the last financial year. Hence, total saving stated in my annual income statement given to me through my clerical wing was Rs 2,04,888/- and this was stated without mentioning any sections {80c, 80 c (1b)} in my annual salary slip. So, they said maximum limit for tax exemption is Rs 1.5 lacs only. Therefore, I end up paying additional tax on remaining amount of Rs 54,888/-.
So here I am seeking you guidance whether am I eligible for tax ememption of Rs 1.5 lacs only or Rs.15 lacs under Section 80C and additional Rs 50,000 under Section 80c (1b) – Total 2 lacs.
Apart from this, private CA told me that they couldn’t help me because my clerical wings haven’t mentioned under which section they are deducting these saving. So, kindly send me links of all possible government notification regarding these tax exemption along with your INSIGHT ABOUT MY PROBLEM.
Many many thanks in advance.
With best wishes,
Ramandeep Singh
Dear Ramandeep,
You can claim up to Rs 50,000 under Section 80CCD (1b)on investments in NPS, along with Rs 1.5 Lakh u/s 80c.
Kindly do check with your employer, if they are deducting the contributions under 80 ccd (1b) or not.
Under which section I will get deduction for Medical Test and what is the Maximum Limit. This is other than Rs.15,000/- Medical Reimbursement.
Dear Hitesh ..Can be claimed under Section 80D.
Read: Section 80D – tax benefits.
What about 80 CCF (RS 20000)?
Plz reply
Dear Rose ..I believe that 80 CCF exemption is not available for FY 2016-17/AY 2017-18.
Dear Sreekanth,
The link you provided by you is for the FY 2015-2016. If they released the same for FY 2016-2017, Please let me know
Thanks.
Dear Sateesh..Kindly check this link…
Sir, In month of December, 2016,( IGNOU) I had paid Rs 4,500 towards my education. I have not taken any loan for it. Can I get rebate in my IT for same amount for current FY?
Dear Chatterjee ..No such provision is available, you can not claim a tax deduction on this.
Sir,
I need the following circular from CBDT.
Please provide the link for the same.
INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2016-17 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961
Dear Sateesh,
Kindly check out this link, click here..
Dear sir
i have taken education loan in 2011-12 at time of admission in collage till final year 2015. i got job on 19 sept 2016. till now did not pay any amount to bank . now my basic is 24900 .
now what i can do for tax exemption
please suggest
Dear munesh,
You can start repaying your loan and can claim interest repayment amount in a Financial year as tax deduction u/s 80E.
Principal Repayment on educational loan cannot be claimed as tax deduction.
There is no limit on the amount of interest you can claim as deduction under section 80E. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.
Kindly confirm if the interest amount is Rs.20,000 on higher education loan, then under section 80E, the full amount of Rs.20,000 can be claimed as deduction i.e. the total income will come down by Rs.20,000 .
Yes, you can claim dear Sham ..
dear sir,
I am already taking the rebate of Rs 150000 including contributary pension scheme deduction further I want to take additional rebate of Rs 50000 by additional contribution in NPS under sec 80CCD(1b)
Kindly suggest how I can do that ?
How I can contribute additional amount in NPS?
Dear Prakash ,
If you make additional contribution of up to Rs 50,000 to Tier-1 account then you can claim extra tax benefit.
Kindly read: Is NPS a good investment option?
Dear sir .I am retired ,live in rent house ,can i claim HRA exemption?
Dear Kannan Ji,
You can claim the rent paid u/s 80GG.
Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
The extent of tax deduction will be limited to the least amount of the following;
Rent paid minus 10 percent the adjusted total income.
Rs 5,000 per month.
25 % of the total income.
Dear Sir, I am really impressed with your website..it is of real help..thank you a lot. My query is regarding Section 80DDB. My father is a chronic renal patient of 73 yrs. Please let me know what are the things I can claim under this deduction… doctor’s fees..expenditure on various tests..medicine bills…??
Dear Soumyadeep,
You can claim expenses (treatment / bills ) of up to Rs 40,000 under the said section.
Dear sir,
thank you for the excellent website. My query is regarding u/s80ccd (1b)
u/ s 80 c , i can claim for 1,50,000/-
i have opened an NPS- New Pension Scheme account. If i voluntarily deposit 50,000/- yearly, can I claim for u/s80ccd (1b)? . If yes, then can i calim for u/s 80 c- 1,50,000 and u/s 80ccd (1b) – 50,000 that is 2,00,000 for this year ? please guide me .
the provisions as per your website contents are
Employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be upto 10% of the salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.
eagerly waiting for your reply sir
Dear parag,
Yes, you may do so and claim tax benefit.
Kindly go through this article : Why NPS is not a great investment option, given the current tax structure!
Sir,
I am a government employee from Tamilnadu and contributing to state govt recognised pension scheme i.e., CPS (Contributory Pension Scheme). My subscription towards CPS is 10% of (Basic pay / Duty pay + Grade pay + Dearness allowance) every month. My government is also contributing the amount equal to my subscription amount. Kindly let me know,
(1) How the above amount (both employee and employer) is deducted under sec 80C series i.e., 80CCD(1), 80CCD(1B) and 80CCD(2) with an example apart from various investments amounts to Rs.1,50,000/- deductible u/s 80C.
(2) What does that additional tax benefit Rs.50,000/- u/s 80CCD(1B) mean?
(3) Is the government contribution deductible u/s 80CCD (2)? Then, it has to be shown as the income for next financial year?
Please clarify. Thank you.
Dear Karthikeyan,
1 – Under Section 80 CCD (1) is your contribution amount can be claimed.
3 – Employer’s contribution can be claimed u/s 80CCD 2 (whole contribution subject to 10% of salary).
2 – To claim u/s 80CCD (1b), one needs to make an additional investment of up to Rs 50,000. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above the Sect 80C series Rs 1.5 Lakh limit.
MY TRAVELLING ALLOWANCE IS Rs. 800/- Now how many Rupees I deducted in My Income Tax Returns
Dear KEZANDIRANE ..TA of up to Rs 800 can be claimed.
Can i deduct House Rent Allowance from my Gross salary?
Sir,
While submitting From 12BB, employee should include all his investments i.e. Salary Deduction & orher than Salary Deduction or only investments made by employee other than salary deduction should be included in Form 12BB
Dear Jayesh ..all the details (expenses / investments) that an employee would like to claim from his/her employer. For ex: HRA (rent receipts), Medical premium (80D), ELSS investments (80C) etc.,
Read:
All you need to know about Form 12BB.
Income tax declaration & investment proofs.
Sir,
I have a confusion that how an individual can avail rebate of 5000 u/s 87a please tell me in details with an example.
Dear Ramashankar,
Tax rebate of Rs 5,000 is applicable if your net income equals to or less than Rs 5 lakh (under section 87A ).
Only Individual Assesses earning net income up to Rs.5 lakhs are eligible to enjoy tax rebate u/s 87A.
For Example : Suppose your yearly pay comes to Rs.6,00,000 and you claim Rs.1,50,000 u/s 80C. The total net income in your case comes to Rs.4,50,000 which makes you eligible to claim tax rebate maximum of Rs.2,000.
* The amount of tax rebate u/s 87A is restricted to maximum of Rs.5,000. In case the computed tax payable is less than Rs.5,000, say Rs.2,500 the tax rebate shall be limited to that lower amount i.e. Rs.2,500 in our case.
* The Tax Assesse is first required to add all incomes i.e. salary, house income, capital gains, business or profession income and income from other sources and then deduct the eligible tax deduction amounts u/s 80C to 80U and under section 24(b) (Home Loan Interest) to come up with the net taxable income.
* If the above net taxable income happens to be less than Rs.5 lakhs than the tax rebate of Rs.5,000 comes in the picture and should be deducted from the calculated total income tax payable.
Click here to know more about Section 87A.
Hi Sreekanth,
Many Thanks for the article. Very informative. I’ve been searching for these infos since a while.
Got a qustion aboute NPS , after reading this. You mentioned NPS in 80C and 80ccc. Are the similar?
Prajith
Dear Prajith,
We can call it as Section 80C series..
Section 80CCD(1) – Employee’s contribution
Section 80CCD(1B) – Employee’s contribution.
Section 80CCD(2) – Employer’s contribution.
I’m clear. Thanks for explaining.
Hi Sreekanth,
In form 16, amount paid/credited value calculation on what basis. And also amount of tax deducted calculation on what basis. Is tax deducted depends on amount paid/credited valve. If depends so then what is percentage of it???????
Dear PAVAN,
It depends on your salary structure, your investments, other sources of income declared (if any) etc.,
Sir
I am a divorce…raising a child as a single mother…and as per the courts order i am supposed to get Rs 20 lakhs as settlement from my ex husband. My ex husband is an NRI. I just want to know whether i need to pay tax on the above amount.
Thanking you
Dear Tehseen,
I believe that lump sum received as part of alimony (due to divorce) is not taxable. But monthly alimony is taxable.
hello Sreekanth just wanted to know that, if a man divorced then according to penal action of court he has to pay a settlement amount to his wife so my question is if he is getting more than 500000 annually and he has to pay equally to his ex-wife so his income is taxable or not and he can also applied in any section under 80c-80g?
Dear Pankaj,
I believe that Alimony paid is a purely personal expenditure of the payer. It is not an allowable deduction/expenditure. So, your income can be subject to taxes.
my father-in-law is an paralysis patient. i am salaried professional, can i avail 80dd deductions for my IT returns and if yes till what amount can i claim it?
Dear Rajkumar..One can not claim it is for Father in law.
Dear Sir,
I have savings under PPF, LIC and EPF, cumulating to over Rs. 1.5 L, thus covering the limit under sec. 80 C. If I join NPS and contribute Rs. 50 K now, will I get the overall exemption of Rs. 1.5 L + 0.5 L = Rs. 2.0 L?
Kindly send your clarifications by Email.
Regards,
S.K.Venkatachalam. 14-11-2016
Dear VENKATACHALAM,
Kindly read below articles;
Why you should think beyond TAX when investing!
National Pension Scheme (NPS) – Why it is not a good Investment Option?
Hi sir ,you are doing superb job .
1) Would like to know the difference between 80 ccd(1),80ccd(2) & 80ccd(1b) ,& also want to know which on to be included in the limits of 15,0000 & which one to be included in the additional limit of 50000.
2)Could I claim health preventive check up amount of Rs.5000/- apart from the limit of u/s 80D( is Rs.25000/-)
3) can we get the knowledge of exemption u/s 10.
Dear Pritam,
80CCD (1) & 80CCD (1b) are your contributions.
80CCD (2) are the ones contributed by the employer.
Additional Rs 50k tax deduction is u/s 80CCD(1b).
2 – No, it is inclusive. Kindly read: Mediclaim tax benefits …
3 – HRA, Leave encashment, gratuity, Medical allowance etc come under section 10.
Kindly read:
Leave Encashment & Tax Implications
13 FAQs on Gratuity Benefit Amount & Tax Implications
Thanks Sir …One more query how could I claim the loss of house property….any form is there & under which section.
Dear Pritam,
Kindly read: Understanding Tax Implications of Income from House / Property
Rebate under Section 87A is listed as effective only from 01.04.2017 in the Income-tax site. But in many online forums and articles, including yours, it is mentioned as w.e.f. the financial year 2016-17 (assessment year 2017-18).
Could you please shed some light on this.
Dear Nirmal,
Kindly note that 2016 – 17 is Financial Year and 2017-18 is Assessment Year.
Yes, it can be claimed from AY 2017-18 only.
It means we can deduct new Rebate amount rs. 5000 in Financial Year 2016-17???
Yes dear Sachin.
Dear Sreekanth,
Can I open an NPS account in the name of my wife (self-employed, with no taxable income) and claim deduction upto Rs,50,000/- u/s 80CCD (1b) . This facility is available for PPF, NSC, Sec-80D etc. but I am not sure about the same.
Dear Paddy ..No, not eligible.
Kindly read: Tax saving investments : in whose name can they be done?
Thanks …it was very imp.
This is off the topic but can you plz share all method of calculation of Depreciation on assets.
i am a school teacher bu my husband has a small business. i can show my husband’s lic policy in my taxable are?
Dera Soumen..Yes, you can claim it u/s 80C.
Dear Sreekanth,
I am a salaried employee. I am receiving HRA from my employer. I want to declare my HRA investment under 80GG instead of 80C which has a limit of 1,5 Lakh as I am already exceeding 1.5 Lakh limit with my other investments like(LIC,PF,Home Loan Principal,Car running and food expense). Could you please suggest if I can avail the tax deduction under 80GG for my house rent of say 60k?
Thanks in Advance!!
Dear Sourav,
Kindly note that HRA is exempted from your income and not shown as a deduction under section 80C. It is shown u/s 10.
As you are receiving HRA from your employer, you can not claim the rent u/s 80GG.
Dear srikanth sir,
I Paid rent to 3 houses at 1 year , example first 6 month one house Rs.108000/-, next 3 month another house Rs.45000/- & next 3 months third house paid rent rs.51000/-can i claim rent u/s 10 full amount.
Dear purusothaman,
It depends on the actual HRA received by you.
Dear Sreekanth, I am a salaried employee and my income is in 30% slab. Except Sec 80C (1.5 lacs) i dont have any othe rebate to claim. I am not having any Loan (housing, Vehicle, Education) and Medical Insuance policies. My EPF deduction is about Rs. 1.0 lac pa
Can you pl advice me on tax planning for this f/y
Dear Narendra,
You may buy a health cover and can claim tax deduction u/s 80D.
It’s ok to pay taxes but you can plan investing in right investment options for your financial goals.
Read:
Think beyond TAXES when investing!
List of investment options!
Hi,
I have query, if you can help me it will be grateful for me. i am just confused about it.
I am salaried person and I have taken a personal loan of Rs.15 lac from 3 banks for purchasing a land for new house construction.Can I claim tax exemption for interest payment on EMI’s under Section 80EE or 24B of Income Tax.some of my friends tell me that i can claim exemption if i am able to prove that personal loan i have taken is for land purchase or for construction of house.
—
Dear Nilesh,
There are conflicting opinions on this. There is no clear law on this.
Some tax experts believe that only business people can claim u/s 24 (personal loans). And some believe one can claim tax exemption.
I believe that section 80EE is on home loans only.
I moved to US in 2014 and I did not earn anything in India in year 2015-16. I am earning in US and paying taxes here. Do I need to file ITR in India? In 2014-15 I filed ITR in India for the earning in India.
In 2015-16 I got interest on savings bank account which is less than 10k.
Dear PB,
If your Residential status is NRI, and you do not have any earnings here in India then no need to file ITR in India.
Sir ,I am working in govt sector ,joined on 02 sept 2016 .now my basic pay us 44900/month( no allowance now),before that I was in training period from 02 sept 2014 that time my stipend was 10500/month.
I have an education loan ,for that I paid 30000 toward interest in February 2016.
Now tell me sir can I get tax benefit according to sec 80E??
Will I get rebate(5000)?
Please suggest me sir
Dear SURENDRA,
Yes, you can get tax deduction u/s 80E. Did you claim it in FY 2015-16 tax return?
Tax rebate of Rs 5,000 is applicable if your net income equals to or less than Rs 5 lakh (under section 87A ).
HI Srikant ,
A wonderful explanation .. appreciate it ..A quick question regarding NPS . AS a part of the employer provident fund a part of that amount goes as EPS can I take this into consideration for tax deduction ?
Dear Ashish,
Employer’s contributions to EPS can not be taken for Tax deduction.
By the way are referring to NPS or EPF??
I have not paid earlier LIC premium (2014 to 2016) but now my income is taxable. I want to pay the last two year LIC premium in 2016-17 FY. Whether, it will come under tax deduction?
Dear Arun..The payments related to FY 2016-17 only can be claimed in AY ITR 2017-18.
pls contact me for LIC
my no. 9711594809
You Can Pay and claim Tax deduction without contacting any one
Dear Mr.Sreekanth,
I have a query related to section 87A. My Total earning is for the F.Y 2016-17 is Rs. 5,62,000 p.a. And i am claiming deduction under section 24B for repayment of homeloan principle amount of Rs. 50000 and conveyance deduction Rs. 20000. Am i eligible for the rebate under section 87A.
Dear Isha,
If your net total income (after deduction of allowances, tax claims like 80c , section 24 etc.,) is below Rs 5Lakh then you can claim Section 87A rebate.
Dear Sreekanth,
I thank you for providing deductions ready reckoner for FY 16-17. It is quite handy and useful for my 2016-17 planning. I need an advice on an old matter. Can you help please.
My employers in 2013-14, deducted Tax from my salary for 6 months but deposited only 3 months tax to govt. Total amount deposited Rs.96924/-. In 2014-15 again they deposited Rs 94000/-.
We mentioned the same in my ITR for AY 2014-15 , however IT dept raised a tax demand of Rs.74000/- which I disputed.
My query are as below: 1) Can I take the benefit of tax credit of Rs. 198000/- in ITR of FY 2015-16? if not then
2) can this tax credit be adjusted against pending tax demand?
I look forward to your valuable advice.
Dear Deepak,
You may have to first check with your employer the reason for not depositing the TDS.
Kindly request them to rectify the TDS entries and make sure the correct details are reflected in your Form 26AS.
You may then file Rectified Return accordingly.
Hi Deepak,
Seeing your query, FY 15-16 credit can only be taken in ITR of FY 15-16 only. Assessee as himself/herself cannot set off multi year tax credit / demands, however if the same case is under Assessment by department then a request could be made to the respective ITO to do the set-off. Whereas if there is refund in one year and payable balance in 2nd year then refund is received separately and payment of balance tax for 2nd year is made separately.
Regards
Vijender Singh
Dear Sreekanth,
Just a quick query.
My employer has shared the Form 16 with me for last FY 2015 16.
Additionally do I need to mention the interest income (around 6 k) earned on my savings account while filing my returns for last FY?? Kindly confirm.
Thanks & Regards
Sujit
Dear Sujit,
Yes, you have to include Rs 6k under the head ‘income from other sources’ of your income tax return (ITR).
However, deduction of up to Rs 10,000 is allowed as tax deduction u/s 80TTA.
So you can show Rs 6k as other source of income and also claim tax deduction of Rs 6k u/s 80TTA.
Dear Sreekanth,
Thanks for providing information in a simple and lucid way.one can understand very easily the tax matters.very good effort.please keep it up.
Very useful infomation and well organized & quite helpful.. Thanks yo
Hi Sreekanth,
I would like to thank you for your efforts towards this blog. You are doing great.
I have an query in section 80EE – We have an land, planning to construct house. this is our first home and will be going for “house construction loan”. Is that eligible for 80EE deduction?.
Regards,
Lavanya.
Yes dear Lavanya , you can claim tax deduction u/s 80EE.
Hi, sreekanth.
i wanted to know if tax deductions can be claimed upto 2.5 lakhs in the following fashion.
u/s 80C:- a) EPF (rs 78945) and b) ELSS mutual funds (rs 74000) with a maximum of Rs 1,50,000/-
u/s 80 CCD (2):- employers contribution to NPS:- rs 62,068
u/s 80 CCD (1b):- employee (individual contribution) to NPS:- rs 50,000/-
thus total deductions upto 2,62,068/- under section 80C and family.
the above are actuals from my salary. Please post a suitable reply to my query.
Dear Ashay,
80 c – fine.
80CCD – fine if it is subject to 10% of salary (DA).
80 CCD 1b – Fine.
Me (Software Engineer) & My Father (Govt. Employee) together took a home loan for a fully constructed house in which my parents are already staying in that house and myself & my father together repaying the loan.. Here main applicant is my father and I am applicant2.
I am staying in Hyderabad and my parents are 150kms far from Hyderabad where the actual house is located.
How can I declare my investments and how can my father can declare?
Are we allowed to share the amount 1 lakh each within the limit of 2 lakhs while declaring for investments?
If we take the loan for the FY2016-17, are we eligible for declaring the investments for the next FY as well?
Dear Suresh,
Yes, you can share the tax benefits. Ideally in 50:50 ratio if ownership share is not mentioned in the sale deed.
I did not understand your last sentence ‘If we take the loan for the FY2016-17, are we eligible for declaring the investments for the next FY as well?’
my bad.. I mean to say that, we took the loan in this year and are we eligible for tax exemption for the next years also?
could you please let me know clearly more about “if ownership share is not mentioned in the sale deed”.
The registration is done on my father name. and the bank processes are done on both of our names.
I think, since we took the loan in this year 2016, we are eligible for 2.5 lakhs of this FY. right?
Am I also eligible for submitting HRA as I am staying in a rented house in Hyderabad in this case?
Dear Suresh,
Are n’t you the co-owner of the property? Is the property solely owned by your father?
i do not find any column to claim rebate u/s 24 (b) while i am filing my income tax return online in ITR1, what should i do?
Dear MOHD,
You have to calculate ‘income from house property’ and disclose it under Part-B section.
While calculating income from house property you can deduct LOSS ie interest payments towards home loan.
Read: Income from house property & income tax benefits on home loan.
I an a Govt salary person. MY GROSS INCOME IS 4.9 LACKS. Tution fee paid rs 40000 per annum for only one children (Residential school ) ,Can i rebate this amount in 80C or 80CC, Is RAJIB Gandhi Bond is applicable in F.Y-2016-2017.Please reply.
Dear N.K.CHOUDHART…Its 80c.
Read: IT declaration & Investment proofs…
there is not 80 ee section in the new form ..where should i put that item while filing tax?
Dear saurabh ..its applicable from FY 2016-17 / AY 2017-18.
Hello,
I ‘m unable to find 80 EE or 24 (s) section to fill my Home loan interest in Form 16 online 2016-17. Please help me to understand where do i enter this details.
Dear Rishi ..It’s applicable from AY 2017-18 only.
Thanks. But where do you enter Home Loan interest in Form 16 of AY 2016-17?. Can you please let me the column number or name?
Dear Rishi ..If you have provided the home loan statement proofs to your employer, they would have included it in your Form-16.
If not, you can claim it when filing your income tax return.
Kindly read:
Income tax declaration & investment proofs.
Form 16 – details.
Income from house property & tax benefits on homeloan.
unable to find 80EE in AY-16-17.
in which point it is available..
Dear tamanna ..One claim tax deduction under section 80EE from AY 2017-18 only.
Hi,
Can Section 80EE be claimed for Rental property , or is it only for Self-occupied property ?
Thanks and Regards,
Anup
I have one doubt. Whether deductions under section 24 b & section 80EE (Home loan interest tax exemption) can be claimed as both on one financial year.
Kindly confirm
Dear packiya..Yes.
the above information is helpful to the individuals who don’t know the it details
Hi
I am married guy and working for MNC, now I am going to claim the returns where I have NIL. But last time in Dec when I submitted the tax proofs I showed my mother(55yr) LIC premium u/s 80C and they accepted now from a Site where I am filling returns they are telling to pay tax for my mother LIC premium
Can you tell me, Parents LIC premium will not cover Under section 80c
Dear Vishal,
Please note that life insurance premium paid by for parents (father / mother / both) Brother, Sisters or in-laws is not eligible for deduction under section 80C.
dear Sir,
I have purchased Travel insurance for my mother(senior citizen), who was going to USA for personal visit. Can I claim for Section 80D of income tax rebate
Dear Anil..No income tax exemption is available on Travel insurance premium.
My annual package is 800000. how save tax for the financial year 2016-2017.
Below is my declarations:
HRA——> Rs. 20758
Convayance——> Rs. 18200
Medical ——> 15000
PF——-> 45648
ELLS—–> 104000
Children Education—-> 9600
Father medical——-> 50000
Total 450036
HRA is 200758
Dear Harshendra,
‘Father medical’ is it Health insurance premium? Is your Section 80c full?
I have provided all the possible & important deductions list in the above article, kindly go through it again.
To know exactly what ur taxability would be , u need to give further details such as all ur salary components, existing investment and others
09540044913
Basic Salary: 43243.00
HRA : 17299
TA : 1600
Children Education Allownce : 200
Children Hostal Allowance : 600
Medical Reimburshment : 1250
Uniform Allowance : 352
Total is = 64548
Group medical policy by company: 3456
Self Apollo Munich medical policy : 4560
PF Contribution from my self : 26172
HRA : 100000
ELLS: Mutual Funds: 120000
My Age is 30 & I’m live in Gurgaon and wife live in Jhansi city. My wfie is not working. But I have pay rent for her. There will be any chance to also her rent is examption to show as HRA Part. I have not taken any type of loan. My father and my wife is dependent on me. Father age is 78 Years and wife 26.
Dear Sreekanth:
Many thanks of providing simplified version of various sectons of Income Tax. I found it extremely useful.
I would like to know, if my kid ( age 9 yeras) is having his RD and Saving account in the bank, and also have Pan Card, whether I can file separate IT Return in his name OR his interest income will be clubbed with my income and I need file income tax on total amount.
Please provide your expert comments.
Dear Nand..Clubbing rules will be applied. The interest income will be clubbed to your income and has to file Tax return accordingly.
I am preparing form 16 for employee working with me in our company. There are all having income below 5 lacs and after deductions u/s 80c & 80D & nps, they are sometimes liable to get refund or NIL.
These employees do not deduct TDS from salary of every month.
Now I like to know that u/s 80 D, if employee is below 60 years(including spouse,children) & he/she also pays mediclaim insurance of his/her prents, what would be exact scenario of deductions.
Please let me know, as in this Financial Year ending,I, when i make Form 16, these employees get perfect Form 16 from my side.
Dear Ashesh,
Kindly read: Medical insurance premium & Section 80D deduction
Hi
Under which is the 15000 Rs we submit for medical bills to our employer ,fits in .
Also the 5000 for prevention checkup ,under which section can that be claimed too .Is blood tests qualify for that ? Or there is some prescribed tests only we can claim .
Rgds,
Nirjhar
Dear Nirjhar,
Suggest you to go through this article : Section 80D & Medical Allowance – Tax benefits details..
I want to go for composite loan (plot + construction). P+C loan will be booked as one loan code by the finance companies. Construction will be started after one year of Plot purchase, might be it will be in F.Y. 2017-18 till then can I claim interest paid towards plot purchase under sec 24B?
Request your clarification pls.
Dear Syed..No you can not claim tax benefits until you take possession of your house.
Dear Mr.Sreekanth.
I have an employee of Limited Company, my salary is Rs.40000, how much tax have to per year, please let me know – thanks
Dear Chinna..Kindly use the tax calculator available at this link, click here..
Hi Sreekanth, Nice to see quick and prompt replies. I have one doubt regarding the extra tax deduction under section 80EE.
For the first time home buyers of with loan sanction in FY2016, will the benefit of this deduction would be available till the time the repayment of the loan continues? or is it for only 1 year?
Dear Prasad..As of now, this section is applicable for FY 2016-17. We need to wait for budget 2017 to know if this is continued are not. I believe that it is a one-time benefit.
Hi
I have taken home loan Rs. 20 Lakh in which my father is co-applicant but the property fully registered with name of my father’s can i take benefit under section 80C or 24b
Dear varun..No. Kindly note that you have to be either owner/co-owner of the property to claim tax benefits on home loan.
Any additional Tax exemption for women over and above the 1.5 lakh + NPS 50,000?
Dear Bindu..No.
Sir,
Is standard deduction is allowed for pensioners..if allowed how much
Regards
Bapaiah
Sir
I am purchased plot at Rajahmundry, Homelone sanction 34,76,820 on 30/3/2016. Plot hand over to me in January 2017.How much interest eligible to tax exemption in the 2016-17 financial year.please clarify me sir immediately.
Dear Venkata Ramana,
One can not claim income tax benefits on loan taken for vacant plot.
Read: Under-construction property & income tax benefits on home loan.
I registered under construction flat in April 2016 at Nagpur and took 34 Lakhs home loan. I am getting possession till March 2018.
I don’t think there is any option to claim Income tax rebate either in 80C, 24B, 80EE for FY 2016-17.
Could you please advise me if there is any way to claim same.
Dear Abhijit,
Till one gets the possession of the house, can’t claim any tax benefits.
Kindly read: Under Construction Property & Home loan tax benefits.
Dear Sir,
I’m purchasing property worth of 44 laksh. I have paid advance 4lkhs and remaining 40 laksh going for home loan.
Bank going to sanction loan in a couple of days. The property is under construction by the end of the year it will be handover to me. Registration of property 4lakhs around.
Could you please answer few queries for the below.
1) Can I avail the tax exemption on 80C(home loan principal amount 1.5 lakh) & Section 24 for Principal and interest on loan ( home loan interest 2lakh) ?
2) Can I avail Registration of property 4lakhs under 80C. ?
3) The very important one, can i avail 80EE section 50000 tax exemption. ?
Since the home loan 40 lakhs I am sure I cannot avail 80ee section, so thats why I thought I should go 5 laksh personal loan and 35 laksh home loan so that I can avail 80ee section 50000 tax exemption till next home loan tenure 20 years.
Please advise me in detail on 3rd query
Dear srinath,
1 – If you get the possession in FY 2016-17 then yes you can claim tax benefits for AY 2017-18 or FY 2016-17.
2 – Yes. But payment of stamp duty etc and possession of the house have to happen in the same financial year (2016-17).
3 – Kindly calculate the net benefit that you are going to get. Tax deduction (Rs 50k) Vs the high interest amount that you are going to pay on personal loan. What if the govt discontinues this new section 80EE from next financial year??
Dear Sreekanth,
You are doing an amazing ‘Social Service’…Helping millions of hapless Indians to manage their money and survive.
Kindly help me in planning my Sun-set Years –
1. I am 65 and self-employed with spare Rs.2,40,000/- per year to invest in MF to build a Corpus in next 5-10 years for generating income by Systematic Withdrawal Plan.
2. Please suggest 4(four) ideal MF to regular SIP/ Investment for Growth & Build a 1Cr Corpus.
3. I have NO Loans/Liabilities, Living in own house and leading a healthy active life.
4. I have Insurance & few FDs for support.
Thanks & Warm Regards,
Dear Darshan Pandher,
Kindly note that I have already replied to your query @ List of best investment options. Suggest you to continue the discussion in the same post.
Sir,I work for Govt.of Kerala. Went through the page for calculating anticipatory Income Tax Statement for the FY 2016-17.Found very useful & informative.
Thank you so much.
Dear Sir,
Can you provide me information related to 80 G Tax benefits
Actually i have a big group working in different companies with different salaries .
Do you have any calculations any information or link which will Show the Employee How much benefit he will get if the Employee donates X amount to an NGO . I need to mail my group this information .
Can you please Help me . Thanks !
Looking forward.
Best Regards,
Chirag.
Dear Chirag..As of now I do not have this data/required calculator. Kindly consult a CA.
Dear Sir ,
I am planning to put 1lakh in PPF on 1st april , to get benefit of returns from the start of the year , reaming my employer dedcuts epf . so 80c , i will get 150000 tax benefit .
having said that , i was planning to start sip for long term 25 years horizon , example may be in Axis LTE mf . but now i dont require tax deduction benefit . what do you suggest . To go with ELSS or some other fund .
Is the decision correct to go for PPF , or should i go for MIP dividend option > example BSL mip ii growth option .
Thank you for your valuable time
Dear kunal,
Kindly start your investment plan by identifying your financial goals first, tax planning should not be the starting point. So, let me know your financial goals..
Read :
How to create a solid investment plan?
Think beyond TAXES when investing..
section 80EE benefit is available for under construction property?, if yes what will be treatment for first home purchased before 1 April 2016 (under construction), but loan was sanction in 1 April 2016 to 31 March 2017 ?
Dear Pratik..Yes you can avail the tax deduction of Rs 50,000 u/s 80EE under the said scenario.
Thanks for sharing article in very simple language which is very helpful to learn,
Dear Sir,
I am a regular reader of your blog and find it very helpful for tax planning and investments. I have a doubt.
I am a Govt employee. My gross salary for FY 2015-16 is Rs. 4,60,000/-. The mandatory deduction for NPS from my salary is Rs. 46,000/- and the same matching amount is contributed by the employer. I have also invested Rs. 1,40,000/- in PPF and ELSS funds. Please tell me how much deduction can I claim:-
(1) Only Rs 1,50,000/- under Section 80C or
(2) Rs. 1,40,000/- under Section 80C + Rs. 46,000/- under Section CCD (1B) i.e. total Rs. 1,86,000/-
Your guidance will be very helpful to me.
Thanks!
Dear Sanket,
There seems to be some confusion in the financial community regarding this.
However, as per my understanding, you can claim Rs 1.5 L u/s 80c & 80ccd(1), Rs36,000 u/s 80ccd (1b) & the entire employer contribution 80ccd (2).
Dear Sir,
Your blog is very useful,helpful of every taxpayer. We feel and trust on your blog.
Sir, I would like take advice on following case :
1 ) I have purchased flat in dec2006 amt Rs 12.00 Lacs and same sold in Jun15 amt Rs 33.00 Lacs.
How much long term capital gain tax attract ? how I can save capital gain tax ?
If I invested in Agricultural land on name of my wife and constructed house on it, it’s permissible ?
2 ) One small flat on name of my wife but housing loan on my name, in this situation if purchased small flat/resale flat on my name, then I will be entitled for taking a benefit as per new budget i.e deduction of Rs 50000/-etc.
Sir, your valuable advice very helpful to me as well my family.We will thankful and oblige for your advice.
Milind K
New Panvel
Mumbai
Dear Milind,
1 – Kindly read: How to save capital gain taxes on sale of property?
2 – If you are the owner/co-owner of the property, you can not claim tax benefits on home loan.
Thankyou So much…
Hi Srikanth,
Very sweet and short. I appreciate your framing of sentences to make every one can understand.
I think you could take example of 5 or 10 lakh per anum and how much they can save by planning well ahead.
May be this is the right time…..for financial planning next year. Having said, i strongly believe ONLY to save the tax, we should not purchase the products.
Good luck !!!
Dear Sreedhar,
Thank you for your appreciation.
I have purposefully note provided any example, thought I would be giving too much importance to invest in all possible products just to save taxes.
It is Very Useful to those who are tax payers
Hi sir,
Complete list of sections of Income Tax Act, 1961 2016-17 AY 17-18
Dear Sir,
What is the total amount eligible for exemptions under all sections of IT for FY 2016-17