Brief details on Sections ,Deductions,Exemption income tax for FY 2014-15

 Brief detail on Sections ,Deductions,Exemption 

Individual resident aged below 60 years (i.e. born on or after 1st April 1955)

  income slabs                                                             

              tax rates

Where the total income does not  exceed Rs. 2,50,000/-.                     -NIL-
Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.
                                                                        10% of amount by which the total income    exceeds Rs. 2,50,000/-
Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.

Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.
Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.

Where the total income exceeds Rs.

Rs. 125,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.

A tax rebate of Rs 2,000 from tax calculated will be available for people having an annual income upto Rs 5 lakh.   However, this benefit of Rs2,000 tax credit will not be available if you cross the income range of Rs 5 lakh.  Thus we can say that tax payable in 10% slab will be maximum Rs23,000 (taking into account Rs 2000 tax credit), but for people who fall in income range of Rs5 lakh and above, the tax will be Rs25,000 + 20% tax on income above Rs 5 lakh;

Section 80C:    (Limit -Up to Rs.1,50,000  )

Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.
i)      Premium paid towards Life Insurance Policy not exceeding 20%  of the total sum assured to keep in force an insurance on the life of individual, spouse or children
ii)     Contribution by an individual to any provident fund to which the Provident Funds Act, 1925 (19 of 1925) (not being repayment of loan availed from such fund)
iii)    Contribution to a Provident Fund set up by the Central Government or to a recognized Provident Fund
iv)    Contribution by an employee to an approved superannuation fund.
v)     Subscription to any savings certificate as defined in clause (c) of section 23 of the Government Savings Certificates Act, 1959 (46 of 1959), as the Central Government may, by notification4 in the Official Gazette, specify in this behalf;
vi)    Contribution for participation in any unit-linked insurance plan of the LIC Mutual Fund  Central Government may, by notification6 in the Official Gazette, specify
vii)   Contribution by an individual to any pension fund set up by any Mutual Fund  as the Central Government may, by notification11 in the Official Gazette, specify
viii)  Approved Mutual Fund Investment referred to u/s 10(23)D
ix)    Repayment of principal amount borrowed for the construction of a residential house payable by way of installment to:-
i)      Housing Board or any authority engaged in the construction and sale of house property.
ii)     A cooperative Society of which the assessee is a shareholder towards the cost of the house property allotted to him.
iii)    Central Government or any State Government any bank including co-operative bank
iv)    Life Insurance Corporation or National Housing Bank
v)     Any public company engaged in long term finance for the construction or purchase of houses in India for residential purposes.
x)     Payment of Tuition fees towards full-time education of wife or husband any two children of the assessee (excluding any payment towards any development fees or donation or payment of similar nature). The Assessee cannot claim to himself.
xi)    as subscription to any such deposit scheme of, or as a contribution to any such pension fund set up by, the National Housing Bank as the Central Government may notify
xii)   Fixed Deposit/Term deposit with any of any Scheduled Bank  by the Central Government.
xiii)  Deposit in an account under the Senior Citizens Savings Scheme Rules, 2004
xiv)   Five year time deposit in an account under the Post Office Time Deposit Rules, 1981.
xv)    as subscription to equity shares or debentures forming part of any eligible issue of capita by a public company or public financial institution

xvi)   Investment in Equity Shares Debentures of approved Public Finance Institution or Company

Employee’s contribution – Section 80CCD:
Taxpayer can avail deduction in the year in which contribution is made. Any contributions in excess of 10% of salary (in case of taxpayer being an employee) or 10% of gross total income (in case of tax payer being self employed) are not deductible. Maximum amount of deduction allowed under section 80CCD(1) is Rs 1,00,000

Under Section 80CCD(2): Employer contribution to the Employee’s NPS Account (this does not form part of Section 80C)

Amount of Deduction :10% of Salary (Salary for this purpose includes DA as well but excludes all other allowances
Deductions Under Section 80CCC :
Under this section, the contributions by individuals towards "Pension" schemes of LIC or any other Insurance company, is allowed as deduction of Rs.10,000/-.  However, as provided under section 80CCE, the aggregate deduction u/s 80C, and u/s 80CCC and 80CCD can not exceed Rs.1,50,000/-.  Thus effectively, now these are covered under the maximum limit of  Rs.1,50,000/- under section 80C.

 Under Section 80 CCE :  Aggregate of deduction u/s 80C, 80CCC and sub section (1) of Section 80CCD shall not exceed Rs.1, 50,000.

Section 80EE: Deduction in respect of Interest on Residential House Property
The deduction under this sub-section is available w.e.f. AY 2014-15. The maximum deduction available is Rs. 1 lac. In a case where the interest payable for the financial year 2013-14 is less than Rs. 1 lac, the balance deduction amount shall be available in AY 2015-16.
The deduction under sub-section (1) shall be subject to the following conditions :
i. the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2013 and ending on the 31st day of March, 2014;
ii. the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;
iii. the value of the residential house property does not exceed forty lakh rupees;
iv. the assessee does not own any residential house property on the date of sanction of the loan.
If deduction for Housing Loan Interest is availed under this section, no deduction can be availed for such interest under any other provisions of the Act for the same or any other assessment year.
Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account
Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office, is allowable w.e.f. 01.04.2012 (Assessment Year 2013-14).
Section 80CCG: Rajiv Gandhi Equity Saving Scheme (RGESS)
As per the Budget 2012 announcements, a new scheme Rajiv Gandhi Equity Saving Scheme (RGESS) will be launched. Those investors whose annual income is less than Rs. 10 lakh (proposed Rs. 12 lakh from A.Y. 2014-15) can invest in this scheme up to Rs. 50,000 and get a deduction of 50% of the investment. So if you invest Rs. 50,000 (maximum amount eligible for income tax rebate is Rs. 50,000), you can claim a tax deduction of Rs. 25,000 (50% of Rs. 50,000)

Deductions Under Section 80 D :
Basic Deduction under Section 80D,   Mediclaim premium paid for Self, Spouse or dependant children is allowed upto Rs 15,000.Payment of an amount of Rs.5000/-  incurred towards Preventive Health Check-up can also be claimed as deduction within the overall ceiling as above. In case any of the persons specified above is a senior citizen (i.e. 65 years or more as of end of the year) and Mediclaim insurance premium is also paid for such senior citizen, deduction amount is enhanced to Rs. 20,000.
Additional deduction: Mediclaim premium paid for parents. Maximum deduction Rs 15,000. In case any of the parents covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.
Section 80DD : a).Any  expenditure on dependent  for Medical, Nursing & Rehabilitation incurred on dependent relative suffering from permanent physical Disability, Autism, Cerebral Palsy, Mental Retardation, and Multiple disabilities.     b).      Deposits under LIC, UTI’s Scheme &  other IRDA approved Insurers for the benefit of Physically Handicapped dependent

Up to Rs.50,000    if  disability  is  over  40%  &   Rs.1,00,000 if disability is severe (i.e., 80% or more of one or more disabilities).

Section 80 DDB :a). Actual expenditure incurred on medical treatment of self, or dependent family     members  suffering from terminal  diseases like Cancer, AIDS, Renal     Failure etc. Up to Rs.40,000

b). For Senior Citizens.  Up to Rs.60,000
Section  80U : Persons suffering from permanent physical    Disability and includes Autism, Cerebral Palsy, Multiple Disability, Person with Disability and Severe Disability. It should be certified by the     medical authority. Rs.75, 000 if disability is over 40% and Rs.1,00,000/- if disability is over 80%.
Section 80G :      Any donations for to Prime Ministers National Relief Fund, Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund, National Children Fund through their respective employers  and payments made by any mode other than cash  100 per cent/50 percent or 10 percent of the Gross Total Income
Section 80GG: If an individual is not in receipt of HRA and he does not own any residential accommodation at the place where he resides or perform his duties and if he files declaration in Form 10BA then the following amounts, the least of which, will be deductible.   a)       Rs. 2000 per month
b)       25% of total income(TI)
c)       Rent paid over 10% of total income

Deductions Under Section 80 E : 
Under this section, deduction is available for payment of interest on a loan taken for higher education from any financial institution or an approved charitable institution. The loan should be taken for either pursuing a full-time graduate or post-graduate course in engineering, medicine or management, or a post-graduate course in applied science or pure science.Loan should have been taken for the purpose of pursuing higher studies of Individual , Spouse, Children of Individual or of the student of whom individual is legal Guardian. . Hence parents are also eligible to claim deduction of interest paid by them on loan taken for their children’s education.The amount of interest paid is eligible for deduction and moreover there is no cap on the amount to be deducted. You can deduct the entire interest amount from your taxable income. However there is no benefit available on the repayment of principal amount of the loan. 
The deduction is available for the first year when the interest is paid and for the subsequent seven years.

Deductions under Chapter VI-A will be allowed only on production of   relevant documents in original.
Deductions Under Section 24(b) :
Under this section, interest on borrowed capital for the purpose of house purchase or construction is deductible from taxable income upto Rs.2,00,000/- is deductible from income.  (certain conditions are to be fulfilled)
Some of the incomes are completely exempted from income tax and that too without any upper limit.   The following incomes which are tax free :-
(a) Interest on EPF / GPF / PPF
(b) Interest on GOI Tax Free Bonds / Tax Free Bonds issued with specific stipulation to this effect
(c) Dividends on Shares and Mutual Funds.  Dividend income from companies / Equity Oriented Mutual funds is completely exempt in the hands of investors.  Dividend is also tax free in the hands of investors in case of debt-oriented Mutual Fund schemes.  (However, the Asset Management Company is liable to deduct 22.44% distribution tax in case of non individuals / non HUF investors and 14.025% in case of individuals or HUF investors.)
(d) Capital receipts from Life Insurance policies i.e. sums received either on death of the insured or on maturity of Life insurance plans.  However, in case of life insurance policies issued after March 31, 2004, exemption on maturity payment u/s 10(10D) is available only if   premium paid in any year does not exceed 20% of the sum asssured;
e) Interest on Saving Bank accounts in banks upto Rs10,000/- per year (from FY 2012-13)
(f) Long term capial gains on sale of  shares and equity mutual funds after 01/10/2004, if security transaction is paid / imposed on such transactions.
Some Changes effected from  the FY 2014-15 (AY 2015-16)
Investment limit under section 80C of the Income-Tax Act raised from Rs.1 lakh to Rs. 1.5 lakh.

 Deduction limit on account of interest on loan in respect of self occupied house property raised from Rs.1.5 lakh to Rs. 2 lakh.

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