Budget
2015: Exemptions available to individual tax payers
I
have compiled a summary of exemptions now available for tax payers in this
table and hope it is useful.These are based on my understanding and for informative purposes. For filing your returns, please take the assistance of your tax consultant.
Section
|
Amount in Rs.
|
Details
|
80CCC
|
150000.00
|
PPF, EPF, Mutual Fund ELSS,
Insurance Premium, NSC, Senior Citizen Savings Scheme, 5 yr. PO and Bank Deposits,
NPS contributions, any notified pension scheme, Deposits in Sukanya Samriddhi
Yojana for girl child, Repayment of home loan; tuition fees of children. In addition to this
deduction of 150000.00 there is further deduction allowed now u/s 80CCD….see
below
|
80CCD
|
Additional 50000.00
|
Contribution
towards a notified pension scheme subject to 10% of salary + 50000.00. Total
deduction under 80CCC and 80CCD should not be > 200000.00 That is you can
use 150000.00 deduction in the above 80CCC schemes and additional amount in a
pension scheme notified by the Government
|
80CCG
|
25000.00
|
50%
of investment subject to a maximum of Rs. 25000 in ESS of Mutual Fund or in
equity(earlier called RGESS )
|
80D
|
25000.00 (30000.00 for
senior citizens) + 5000.00
|
Payment
towards mediclaim premium. In addition Rs. 5000.00 additional deduction
allowed for amount paid towards preventive health check-ups
|
80DD
|
75000.00
|
Deduction
for medical expenses on a dependant who has 40% disability. If disability is
80%, an amount of Rs 125000.00 is deductible
|
80DDB
|
40000.00
|
Deduction
allowed towards treatment of a critical ailment. The amount is 60000.00 for a
senior citizen (60 yrs.) and Rs 80000.00 for a senior citizen above 80 yrs.
|
80G
|
50%
of donation paid to a charitable trust can be deducted from income
|
|
80GGC
|
Any
amount paid to an electoral trust of political party
|
|
80GG
|
24000.00
|
Rent
paid on accommodation – upto a maximum
of 25000.00 p.a or 25% of income provided one does have any other HRA or own
a residence
|
24B
|
200000.00
|
The
interest component of home loans is allowed as deduction under Section 24 B
for up to Rs. 2 lakh in case of a self-occupied house. Was earlier 150000.00
|
80E
|
Deduction
allowed for interest paid towards education loan for higher studies. Maximum
period of deduction is 8 years or till loan is repaid
|
Thanks a lot for the wonderful snapshot.
ReplyDeleteQueries:
1. My understanding is 1.5lac for 80CCC + 50000 for 80CCD (1) in NPS as subscriber contribution + 10% of basic salary as employer's contribution (without any monetary limit) under section 80CCD (2). Is my understanding correct?
2. For 80D, my understanding is Rs 25000 for self/family + Rs 25000 (Rs 30000 if senior citizen) for parents. So, a) Rs 5000 for preventive health check is within Rs 25000 and not in addition to that and b) Rs 25000/Rs30000 for parents in addition to that, taking total deduction to Rs 50000 (Rs 55000 in case of senior citizen parents). Just check and clarify
Hi Harish
DeleteDisclaimer first :)) - Am not a tax expert and pl contct your tax consultant
Regarding your queries:
!. You seem to have got it right and pl see the links below. I refer to these for my queries
From Incometaxindia.guv.in >>> http://www.incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aaspx?grp=act&cname=cmsid&cval=102120000000037023&opt=&isdlg=1
A more detailed explanation is given here and do read this from Chartered Club >>> http://www.charteredclub.com/section-80ccd/
2. Here also , you have understood the section 80D which is confusing. AS per the linkbelow which gives illustrations, you can pay for parents and claim the deduction. The 5000.00 is part of this amount 25000/30000 . You cannot claim for yourself AND parents. The total is 5000 and is within this.
Pl see the link to which I refer http://www.charteredclub.com/section-80d/ http://www.charteredclub.com/section-80d/
So your understanding is the same as I am going by.
DeleteThanks for reading and commenting