Tamil Nadu Generation and Distribution Corporation Ltd.

:: METTUR THERMAL POWER STATION-I/METTUR DAM 6364

COMPUTATION STATEMENT OF INCOME TAX FOR FY 2017-2018 & AY-2018-19
Name R.EASWARAN Division: O&E PAN: AAPPE9524L
Mobile
Designation JUNIOR ENGINEER - II GR No
8608805010 Intercom No 4455
SOSP+ GPF/CPS FBF/ SPFG
Month Pay Gr.Pay DA HRA MA Th.All Total SPF LIC PLI HBA
OHA SUB. FSFS 2000
Mar-17 12610 4300 22321 1120 100 160 40611 3923 225 70 3839
Apr-17 12610 4300 22321 1120 100 160 40611 3923 225 70 3839
May-17 12610 4300 22998 1120 100 160 41288 4296 225 70 3839
Jun-17 12610 4300 22998 1120 100 160 41288 3991 150 70 3839
Jul-17 13120 4300 23691 1240 100 180 42631 4111 150 70 3846
Aug-17 13120 4300 23691 1240 100 180 42631 4111 150 70 3846
Sep-17 13120 4300 23691 1240 100 180 42631 4111 150 70 3846
Oct-17 13120 4300 24214 1240 100 180 43154 4319 150 70 3846
Nov-17 13120 4300 24214 1240 100 150 180 43304 4163 150 70 3846
Dec-17 13120 4300 24214 1240 100 150 180 43304 4163 150 70 3846
Jan-18 13120 4300 24214 1240 100 150 180 43304 4163 150 70 3846
Feb-18 13120 4300 24214 1240 100 150 180 43304 4163 150 70 3846
Total 155400 51600 282781 14400 1200 600 2080 508061 49437 2025 840 0 46124 0 0
I) ADD
a) Surrender of E.L. 15/30 days as on Rs 42351 3) Excess Pay/Audit recovery
b)DA Arr: May-17 3047 Sep-17 2092 Rs 5139 4) Gross Income
C) Bonus & Exgratia Rs 16800
d) Adhoc Bonus Rs 5) LESS Deducation U/S 16(I)A
e) Rs a) Professional Tax
f) Rs b) HBA interest (Max Rs.200000/-) US24
g) Others 1 Thermal Incentive bonus Rs 5800 c) 80 D Govt. Health insurance
2 Double Wages Rs 25700 d) 80 D Mediclaim Policy for self (Rs 25,000)
3 SOSP Arrear Rs 2480 e) 80 D Mediclaim Policy for parents (Rs 30,000)
TOTAL Rs 98270 f) 80 DD Handicapped Treatment
2) LESS HRA EXEMPTED UNDER I.T Rules Section 10 [13A] g)
a) Actual House Rent received Rs 14400 Total
b) Actual rent paid Rs 0
c) Expenditure of rent in excess Rs Total
10% of salary (Pay + DA) Rs
Total Rs 14400
ETTUR DAM 636406.

DOB: 14.07.1985

PROF
Hl. Ins. IT
TAX
180
1250 180
180
180
180
180
180
1250 180
180
180
180
180
2500 2160 0

Rs 591931

Rs 2500
Rs
Rs 2160
Rs
Rs 30,000) Rs
Rs
Rs
 Rs 4660
0
C/O Rs 587271

contd….2
 -2-
Total Taxable Income B/F Rs
6) Less Deducation VI A:
a) GPF Subscription U/S 80C Rs 49437
b) FSFS / SPF/SPFG2000 Rs 2865
c) LIC Premium Rs 46124
1) 705896650 (10677 X 1) 10677
2)
3)
d) PLI Premium /PPF Rs 14409
e) Contribution to ULIP / UTI Rs 29500
f) Tution Fees (Max. two children) Rs
g) Repayment of Principal amount HBA Rs
h) LIC jeevan Suraksha U/S 80 CC Rs
i) Rs
j) Rs
k) Rs
l)Others Rs
Total under section 80C + 80CCC+80CCD(1) Rs 153012
(Aggregate should not exceed Rs. 1.5 Lakh) NET 150000
6a) Spl Deduction in New pension scheme -80CCD (1B) Rs
upto an amount of Rs.50,000
Total ( 80CCE + 80CCD(1B)) Rs 150000
Rs
7) Taxable Income
(Rounded off to the nearest 10 Rupees) Rs
Total Taxable Income Not Exceeds Rs
8) COMPUTATION OF TAX
a) Tax exemption Ltd to Rs 2,50,000/- NIL Rs
1) Rs 2,50,001/- to Rs 5,00,000/- 5% Rs
2) Rs 5,00,001/- to Rs.10,00,000/- (12500+20%) Rs
3) Rs 10,00,001/- and above (112500+30%) Rs
Rs
9) GROSS INCOME TAX Rebate u/s 87A Rs
10) ADD : Education CESS at 3 % Rs
11) NETT: Income Tax Payable Rs
12) LESS : Income Tax recovered so far Rs
13) LESS : Income Tax relief under 10E Rs
14) Balance Payable Jan-18 Feb 18 Rs
1) Certified that the above details furnished by me are true to the best of my knowledge
and belief and nothing has been omitted to be included in the statement.
2) Certified that I am occupying Rental House and paying monthly rent.
3) Certified that my dependent i.e(Husband/Wife/Son/Daughter) Deposits are taken in to my
IT deduction since he/She is fully depend on me.

Place : Mettur Dam SIGNATURE OF THE EMPLOYEE

Date: . .2018 R.EASWARAN
Encl: JUNIOR ENGINEER - II GR/O&E/MTPS-I
FOR OFFICE USE
Checked and admitted
 ASST.ADM.OFFICER / MTPS-I/METTUR DAM-6
Thiru R.EASWARAN, JUNIOR ENGINEER - II GR/O&E/MTPS-I
Through the officers concerned
 587271

587271

437271
437280

9364
0
0
9364
9364
281
9645
0

9645
my knowledge

s are taken in to my

E OF THE EMPLOYEE

R - II GR/O&E/MTPS-I
PS-I/METTUR DAM-6
IN BUDGET 2016-17 THE FOLLOWING HAS BEEN ANNOUNCED FOR NPS A

NEW DELHI: In Budget 2016, the finance minister has made withdrawals from NPS on maturity tax
instruments such as PPF and EPF where the total withdrawal was tax free. This is a major step towar
attractive for investors to withdraw the corpus after 60 years (and not before) as any withdrawal befo
before 60 years. Hence for getting the maximum tax benefit, it seems prudent to withdraw after 60 y
taxfree. As per current tax laws, under Sections 80 CCD (1) and 80CCE an investment of up to 10%
income. A self employed person can also claim tax deduction up to 10% of his gross income under S
taxable income that can be claimed is capped at Rs 1.5 lakh for all investments under Section 80CCE
from gross taxable income for investing in NPS under Section 80 CCD (1B). This deduction is over
NPS under Section 80 CCD (1) and Section 80 CCD (1B) is Rs 2 lakh. Only an investor in Tier I acc
scheme. On turning 60, an investor can exit from the NPS but 40% of the pension wealth has to be u
of the accumulated corpus for buying an annuity. These exit conditions only apply to NPS Tier I acco
NPS is currently subject to Exempt Exempt Tax (EET) tax structure. This means that contributions to
to the EEE tax structure applicable to other long term investment instruments like PPF and EPF whe
the pension wealth has to be utilised for purchase of an annuity. If an investor withdraws the corpus b
conditions only apply to NPS Tier I account which is a prerequisite for having a Tier II account in N
For an NPS investor in the highest tax bracket, this currently means that almost one third of the corp
uses 100% of the accumulated corpus for buying an annuity then he won't be subject to taxation. Onl

PREVIOUS NPS RELATED DETAILS BEFORE 2016-17

Finance Minister Arun Jaitley in Budget 2015-16 introduced an additional income tax deduction of Rs 50,00

Under this scheme, subscribers invest in a fund chosen by them and at the time of retirement they get a lu

Here is your 10-point cheat-sheet

1) Tax savings: The extra deduction of Rs 50,000 on NPS can help those in the highest tax bracket of 30

2) More tax-saving options: This extra deduction of Rs 50,000 on NPS will increase the total deduction a

3) Other Budget proposal: The Finance Minister also said that the government is planning to give an opti

4) Tax on withdrawal: Mr Jaitley however did not extend tax breaks on withdrawal from NPS. So contribut

5) NPS structure: The scheme is structured into two tiers: Tier-I and Tier II accounts. The Tier-I account is
Tier-II account is a voluntary withdrawable account which can be opened only when there is an active Tier

6) Withdrawal options: Subscribers can exit from NPS upon attaining the age of 60 (for all subscribers ot

Subscribers can exit from NPS even before attaining the age of 60 by using at least 80 per cent of the accu

7) Fund options: NPS offers a range of investment options and choice of pension fund manager who will

8) Minimum deposit: For Tier-I account, Rs. 6,000 has to be deposited by the subscriber in a year and the

9) Portability: After opening an NPS account, a subscriber gets a Permanent Retirement Account Number
Income Tax Act provides for various deductions under Chapter VIA for Contribution to Pension Plans.
These Deductions are available under Section 80C, Section 80CCC & Section 80CCD and can be claimed at the time
10)
ThisOpening andfocuses
article mainly tracking
on of account:
Deductions Many under
allowed banksSection
are registered
80CCD. with Pension Fund Regulatory and De
Section 80CCC: Deduction for Contribution for Pension Plan of Insurance Company
Section 80C: Deduction for Contribution Pension Plan of UTI/Mutual Fund
Deduction under Section 80CCD Section 80CCD provides for Income Tax deductions for contributions made to the n
Pension Scheme (NPS).
Deduction under this Section is only available to Individuals and not to HUF’s. The Individual claiming deduction un
Section 80CCD(1): Deduction to NPS Scheme for Contribution by the Individual Deduction under Section 80CCD(1
also contribute to the NPS Scheme and avail deduction for the same.
The maximum amount allowed as a deduction under Section 80CCD(1) is: In case of an employees: 10% of his salar
other Allowances and Perquisites) In case of nonemployees: 10% of the Gross Total Income in the Financial Year Am
contribution to NPS was limited to Rs. 1 Lakh [Sub Section 1A of Section 80CCD].
However, with a view to encourage people to contribute towards NPS, the maximum amount allowed to be invested i
Lakhs

Moreover, in the Budget 2015 announced by Arun Jaitley – a new subsection 1B has also been introduced so as to pr
for contributions made by any Individual assessees under NPS. This additional benefit of Rs. 50,000 is over and abov
80C. Therefore, now the total deduction that can be claimed under Section 80C + Section 80CCD = Rs. 2 Lakhs.
Section 80CCD(2): Deduction to NPS Scheme for Contribution by the Employer In case any employer contributes to
be availed by the employee, the employee would also be allowed a deduction under Section 80CCD(2) for the amoun
himself to the NPS Scheme would be allowed as a deduction under section 80CCD(1) and the contribution made by t
80CCD(2). The Deduction allowed under Section 80CCD(2) would be allowed for Employers Contribution up to 10%
Tax on Amount received back from the National Pension Scheme
The contribution made to the NPS Scheme would be received back by the employee as Pension after retirement or on
or on closure of the NPS Account either by the individual himself or by the nominee which has earlier been claimed a
of the recipient and would be taxed as per the Income Tax Slabs in the year of receipt.
If the amount received by a taxpayer has been used for purchasing an annuity plan in the same year in the year of rece
NPS Scheme and therefore no tax would be levied on the same.
CED FOR NPS ACCOUNT HOLDERS

NPS on maturity tax free upto 40% of the total corpus accumulated. Currently, none of the withdrawals were t
s a major step towards making the NPS schememore attractive and bringing it on par with the other EEE pensi
any withdrawal before 60 years requires the utilisation of 80% of the corpus for purchasing annuity. This mean
withdraw after 60 years. This is because after 60 years you can withdraw upto 60% of the corpus and out of th
tment of up to 10% of Basic Pay plus Dearness Allowance or a maximum of Rs 1.5 lakh, whichever is lower, i
oss income under Section 80 CCD (1) within the overall ceiling of Rs 1.5 lakh under Section 80CCE. Howeve
nder Section 80CCE which includes investments under section 80C. From FY201516, an investor is allowed a
s deduction is over and above the maximum tax deduction of Rs 1.5 lakh allowed under Section 80 CCE. Hen
nvestor in Tier I account can claim the above tax benefits. National Pension System (NPS) is a voluntary defin
n wealth has to be utilised for purchase of an annuity. If an investor withdraws the corpus before reaching 60 y
y to NPS Tier I account which is a prerequisite for having a Tier II account in NPS.
that contributions to NPS and accumulation/growth of these are not taxed but the lump sum withdrawn on exi
e PPF and EPF where the maturity amount is also not taxed. 2/29/2016 Budget 2016: Withdrawal from NPS on
thdraws the corpus before reaching 60 years of age, he will have to invest 80% of the accumulated corpus for b
Tier II account in NPS.
ne third of the corpus is eroded by way of tax. The amount that is used to buy the annuity is however not subje
ject to taxation. Only the pension income that he gets will be taxed like any other pension.

deduction of Rs 50,000 for contribution to the New Pension Scheme (NPS) under Section 80CCD. NPS is a voluntary

irement they get a lump sum amount depending on the performance of that fund. The returns from NPS are not guar

est tax bracket of 30 per cent save an additional Rs 16,000 in taxes. Those in 20 per cent tax bracket can save over R

the total deduction allowed under Section 80C and 80CCD of Income Tax Act to Rs 2 lakh, says Mayur Shah, execu

anning to give an option to employees to opt out of Employees Provident Fund (EPF) and instead invest in NPS for re

om NPS. So contribution to NPS up to Rs 1.5 lakh and the interest earned are not taxed but the withdrawal becomes

The Tier-I account is the non-withdrawable account meant for savings for retirement. The contribution to Tier-I accou
here is an active Tier I account in the name of the subscriber. The withdrawals are permitted from this account as per

for all subscribers other than government employees). At least 40 per cent of the accumulated pension wealth of the

0 per cent of the accumulated pension wealth for purchase of an annuity for providing for the monthly pension. The b

d manager who will manage subscribers' funds. Individuals also have an option to switch over from one investment o

iber in a year and the minimum contribution is Rs 500 at one time.

ment Account Number (PRAN), which is a unique number and remains with the subscriber throughout his/her lifetime.
n Plans.
be claimed at the time of filing of the income tax return.
d Regulatory and Development Authority (PFRDA) to provide NPA-related services to individuals. NPS account can b

ributions made to the notified Pension Scheme of the Central Govt i.e. for contribution to the National

claiming deduction under this Section may be Resident or NonResident.

under Section 80CCD(1) is not only available to Salaried Individuals but nonsalaried individuals can

oyees: 10% of his salary for the financial year (Salary includes Dearness Allowance but excludes all
the Financial Year Amendment vide Budget 2015 in Section 80CCD Earlier the deduction allowed for

llowed to be invested in National Pension Scheme has been increased from Rs. 1 Lakhs to Rs. 1.5

n introduced so as to provide for additional deduction in respect of any amount paid, of upto Rs. 50,000
0,000 is over and above the benefit of Rs. 1.5 Lakhs allowed to be claimed as a deduction under Section
CD = Rs. 2 Lakhs.
employer contributes to the NPS Scheme on behalf of the employee and the benefit of the same would
CCD(2) for the amount of contribution made by the employer. The contribution made by the employee
contribution made by the employer to the NPS Scheme would be allowed as a deduction under Section
Contribution up to 10% of the Salary of the Individual.

n after retirement or on surrender of the policy (as the case may be). The amount so received as Pension
s earlier been claimed as a deduction under Section 80CCD, would be regarded as Income in the hands

year in the year of receipt, the taxpayer would be deemed to have not received any amount from the
 withdrawals were taxfree unlike other competing
the other EEE pension schemes. This has implicitly made it
g annuity. This means that only 20% can be withdrawn
corpus and out of this as per the new proposal 40% will be
whichever is lower, is deductible from gross taxable
on 80CCE. However, the total deduction from gross
nvestor is allowed an additional deduction of Rs 50,000
ection 80 CCE. Hence the total tax benefit for investing in
is a voluntary defined contribution retirement savings
before reaching 60 years of age, he will have to invest 80%

m withdrawn on exit from NPS is taxed. This is in contrast

drawal from NPS on maturity made taxfree upto 40% of
mulated corpus for buying an annuity. These exit

is however not subject to tax. This means that if an investor

D. NPS is a voluntary pension scheme, which is regulated by the Pension Fund Regulatory and Development Author

om NPS are not guaranteed; they are market-linked. NPS was introduced in 2004 for the new government employee

acket can save over Rs 10,000 while those in 10 per cent can save over Rs 5,000.

Mayur Shah, executive tax director at EY. The combined limit earlier was Rs 1.5 lakh. Section 80C relates to deduct

d invest in NPS for retirement savings.

withdrawal becomes taxable. Other savings schemes such as public provident fund (PPF) and employee provident fu

bution to Tier-I account is only eligible for tax benefits.

m this account as per the needs of the subscriber. The Tier-II account is more like a bank savings account.

ension wealth of the subscriber needs to be mandatorily used for purchase of an annuity for the monthly pension of

onthly pension. The balance is paid as a lump sum payment to the subscriber.

rom one investment option to another or from one fund manager to another. The returns are, however, totally market-

ghout his/her lifetime. NPS provides portability across jobs and across locations.

s. NPS account can be opened to anyone from 18 years to 60 years of age. All transactions as well as the current fun
 Development Authority.

overnment employees but from 2009, it was extended to all on a voluntary basis.

80C relates to deduction allowed under investments in instruments like PPF and insurance policies. Section 80CCD r

mployee provident fund (EPF), however, enjoy tax benefits in all the three stages: contribution, interest earned and w
s account.

monthly pension of the subscriber and the balance is paid as a lump sum payment to the subscriber. Annuity service

wever, totally market-linked. Investors have the option for choosing stocks, government bonds and other securities as

well as the current fund value can be tracked online.

es. Section 80CCD represents deduction with respect to a pension plan notified by the government, including NPS. T

nterest earned and withdrawal.

criber. Annuity service providers are responsible for delivering a regular monthly pension to the subscriber after exit fr

nd other securities as their asset choice. But the equity part of the allocation cannot exceed 50 per cent.
ment, including NPS. The limit on deduction on 80CCD, including contribution to the New Pension Scheme, was also
ubscriber after exit from the NPS.
n Scheme, was also increased in the Budget to Rs 1.5 lakh from Rs 1 lakh. This will help investors have more tax-sa
rs have more tax-saving options.
d Rates for FY 2015-16 and AY 2016-17 (Also given for the previous FY i.e. FY 2014-15 )
The following INCOME TAX RATES ARE applicable for the Financial Year ending March 31, 2016 (i.e. Financial Year 2015
Every year the income tax rates are changed and it is important to get the latest income tax rates. We give below the Income Tax Rates a
[As there was no change in Income Tax slabs for FY 2015-16 (i.e. AY 2016-17), the following rates were also applicable for FY

Women (Below 60 years of age)

(This category is abolished from this year and is

Income Range General (non-senior citizens) Category thus is same as that of General Category
Upto Rs. 2,50,000 Nil Nil
Rs. 2,50,001 to Rs. 3,00,000 10% * 10% *
Rs. 3,00,001 to Rs. 5,00,000 10% * 10% *
Rs. 5,00,001 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% ** 30% **
Thus, we can say :-
1. The basic exemption limit for individuals (i.e. below 60 years of age) is Rs 2.50 lakhs
2. The basic exemption limit for Senior citizens (60 years to below 80 years) is : Rs 3.00 lakhs
3. The basic exemption limit for Very Senior Citizens(80 years and above) is Rs3.50 lakhs
* A tax rebate of Rs 2,000 from tax calculated will be available for people having an annual income uptoRs 5 lakh. However, this benefit o
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 cred
above, the tax will be Rs25,000 + 20% tax on income above Rs 5 lakh;
The education cess to continue at 3 percent.
** The Surcharge @ 12% for the FY 2015-16 or AS 2016-17 will be payable if the income is above Rs 1 crores). For the FY 2

Major Changes in Budget for FY 2015-16

Particulars Existing Provisions for FY 2014-15 Changes as per Budget for FY 2015-16

OR OR
AY 2015-16 AY 2016-17
Surcharge on taxable income exceeding Rs. 1 10% of Income Tax 12% of Income Tax
Crore for Individuals, Senior Citizens, Very Senior
Citizens, HUFs, AOPs, BOIs, artificial juridical
persons, firms, cooperative societies and local
authorities

Comparison of Benefits under various IT Sections

Exempted amount of transport allowance Rs. 800/- per month Rs. 1,600/- per month
Section 80D - Deduction for Health Insurance Rs. 15,000/- Rs. 25,000/-
premium
Section 80D - Deduction for Health Insurance Rs. 20,000/- Rs. 30,000/-
premium for Senior Citizens
Investment in SukanyaSamriddhi Scheme - Eligible for deduction u/s 80C and any
payment from the scheme shall not be
liable to tax.
Section 80DDB - Deduction in case of very senior Rs. 60,000/- Rs. 80,000/-
citizens on expenditure on account of specified
diseases
Section 80DD - Maintenance, including medical Rs. 50,000/- Rs. 75,000/-
treatment of a dependent who is a person with
disability
Section 80DD - Maintenance, including medical Rs. 1,00,000/- Rs. 1,25,000/-
treatment of a dependent who is a person
with severe disability
Section 80U - Person with disability Rs. 50,000/- Rs. 75,000/-
Section 80U - Person with severe disability Rs. 1,00,000/- Rs. 1,25,000/-
Section 80CCC - Contribution to provident fund of Rs. 1,00,000/- Rs. 1,50,000/-
LIC or IRDA approved insurer
Section 80CCD - Contribution by the employee to Rs. 1,00,000/- Rs. 1,50,000/-
National Pension Scheme (NPS)
Now under Section 80CCD, a deduction of uptoRs.
50,000 is allowed over and above the limit of Rs.
1.50 lakh under Section 80C in respect of
contributions made to NPS is also allowed. Thus,
now the total deduction that can be claimed under
Section 80C+Section 80CCD = Rs 2 lakh.

In case any employer contributes to the NPS

scheme on behalf of the employee and the benefit
of the same would be availed by the employee, the
employee would also be allowed a deduction under
Section 80CCD(2) for the amount of contribution
made by the employer.

Wealth Tax Has been Abolished in the Budget for 2015-16

Changes that were effected from earlier year ie 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 la

PPersonal Income-tax exemption limit raised by Rs 50,000/- that is, from Rs. 2 lakh to Rs. 2.5 lakh in the case of individu
Important Rules for filing of Tax Return
1. Filing of income tax is compulsory for all individuals whose gross annual income exceeds the maximum amount which is not charageble to inco
resident individuals
2. The last date for filing of income tax return is usually July 31 for individuals (sometimes the same is extended). However, for the FY 2014-15 i
upto 31st August 2015.
3. The penalty for non filing of income tax return is Rs.5,000/-

(1) Deductions from Taxable Income (Section 80C) :-

VARIOUS INVESTMENTS OPTIONS AVAILABLE TO INDIVIDUALS AND TAX BENEFITS AVAILABLE UNDER EAC
A new section 80C was introduced (replacing section 88) from the financial year 2005-06. Under this Section, a deduction of upto Rs.1,50,000/-
the investments made in some specified schemes. The schemes are similar as were available in Section 88 earlier. Now there are no sectoral caps
(now even in PPF it is allowed uptoRs. 150 lac as against only Rs.1 lakh upto March 2014).. The tax payers can plan their investments / savings so
alongwith some major features of each of these are given below : -

(last reviewed in July, 2015)

Saving Scheme Sec. under which Tax Benefit available Return

8.50% for VIII Series 5 Year NSCs; and

National Saving Certificates - ( NSC scheme ) Section 80C 8.80% for 10 year NSCs for FY 2015-16
Varies from year to year (Market
Equity Linked Savings Schemes (ELSS) Section 80C linked)

Life Insurance Policies Section 80C Varies from year to year

Unit Linked Insurance Plan (ULIP) Section 80C Varies from year to year
 Varies from issue to issue. These were around 8%
+ in Dec 2011. These have lost their charm as
Infrastructure Bonds (NO LONGER AVAILABLE FOR Additional Tax rebate of Rs 20,000 is NOT given
FRESH INVESTMENT) Section 80C now from FY 2012-13 onwards.

8.75% on EPF for 2013-14 (announced

Contribution to EPF / GPF / Voluntary PF Section 80C in August 2013)

Insurance Policies Section 80C 6 to 7% only

ULIPS Section 80C Market linked

Public Provident Fund (PPF) Section 80C 8.70% for FY 2015-16

NPS Section 80C Market Linked

Tuition Fees including admission fees or college
fees paid for full time education of any two
children of the assessee. Section 80C Not applicable
Repayment of Housing Loan (Principal) Section 80C Not applicable
Bank Tax Saving Fixed Deposits Schemes - 5 Varies from bank to bank (around
Years Section 80C 7.50% - 8.75%)

Senior Citizens Savings Scheme 2004 (from financial

year 2007-08) Section 80C 9.30% for FY 2015-16
Post Office Time Deposit Account (from financial
2007-08) Section 80C 8.50% for five year Time Deposit

PS Note : Now some of the above investments (like PPF and 5 Year Senior Citizens Saving Schemes etc.) are linked to the benchmark of 10 year
investments will vary as and when the yield on government bonds changes. Therefore, now remember that you will not have fixed rate of return o
schemes GoI will advise before 1st April every year, the rates applicable for those schemes for the next FY. Such instruments will continue to have
clarification see below the notification which is self explanatory]

Deductions Allowed In Sections Beyond 80 C :

(1) Deductions Under Section 80CCC(1) :
Under this section, the contributions by individuals towards "Pension" schemes of LIC or any other Insurance company, is allowed as deduction of
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 max
(2) Deductions Under Section 80 D :

Basic Deduction under Section 80D, Mediclaim premium paid for Self, Spouse or dependant children has now been raised to Rs 25,00
The deduction for senior citizens is raised from Rs 20,000 to Rs 30,000. For uninsured super senior citizens (more than 80 years old) medica
deduction under section 80D. However, total deduction for health insurance premium and medical expenses for parents shall be limited to Rs
However, there are a few conditions:

You can not claim tax benefit on health insurance premium paid for your in-laws;
Proof of payment of premium has to be furnished, in order to avail the tax benefit
The health insurance premium must be paid from taxable income of that year only if you want to claim a deduction. Thus, if one has
received, then one is not eligible for tax benefits under this section.
However, you have to remember that the premium paid by any mode of other than cash is eligible. Note prior to 1st April 2009, premium
now even the payments through Credit card or other on line mechanism are allowed. Thus, now all payment modes except cash payment
 (3) 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 in
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
siblings (brother / sister) or other relatives (in-laws, nephew, niece, etc.) would not qualify for section 80E benefit.
The amount of interest paid is eligible for deduction and moreover there is no cap on the amount to be deducted. You can de
income. However there is no benefit available on the repayment of principal amount of the loan.    Deduction shall be allowe
assessment year* and seven assessment years immediately succeeding the initial assessment year or until the interest is paid
benefits on education loan are only valid once you start the repayment and moreover they are only available up to eight year
you cannot claim for deductions beyond eight years.

(4) 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.2,00,0
fulfilled)
We have seen that the principal amount in the repayment of a home loan can be added to the 80C limit of Rs1.5 lakh for tax savings. However, th
Section 24 B for up to Rs2 lakh in case of a self-occupied house. In case the house is in the joint name of your spouse and you (joint loan), each on
is only for self-occupied house. If you have property which is rented out, you can deduct the full interest paid on the home loan. The rent on the pro
the loan interest, it will lower your overall tax liability.

PS : 1A) Section 80CCF : Infrastructure Bonds : (NOT PERMITTED FROM FY 2012-13) onwards) :
Section 80CCF allowed you to invest an additional Rs. 20,000 in infrastructure bonds, and such an investment was reduced from your tax
from the other instruments listed above. You were to get the tax benefit only in the year in which you have invested in these instruments.
TAX FREE INCOMES :
Some of the incomes are completely exempted from income tax and that too without any upper limit. The following incomes which are tax
(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
investors in case of debt-oriented Mutual Fund schemes. (However, the Asset Management Company is liable to deduct 22.44% distributio
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. H
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 onwards)
(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 tran

GIFT TAX :
Gift tax was abolished with effect from October 1, 1998. The gifts are no longer taxable in the hands of donor or donee. However, w.e.f. S
will be included in taxable income, if the amount of tax exceeds Rs.25,000/-. However, gifts received from any of the following will continu
(i) Spouse;
(ii) Brother or sister;
(iii) Brother or sister of the spouse;
(iv) Brother or sister of either of the parents of the individual;
(v) Any lineal ascendant or descendant of the individual
(vi) Any lineal ascendant or descendant of the spouse of the individual
(vii) spouse of the person referred to in (2) or (6) or received on the occasion of marriage or under a will by way of inheritance

Capital Gains :
Capital gains arise when an individual sells at a profit certain assets like property or shares or mutual funds or bonds etc The treatment of such in
are two types of capital gains, viz Short Term Capital Gains or Long Term Capital Gains.
(a) Short Term Capital Gains : Capital gain is considered as Short Term Capital Gain, if immovable property is sold / transferred within three years of acqui
such as mutual funds are sold within one year of purchase, the profit earned is treated as Short Term Capital Gain.
Short term capital gain is included in the gross taxable income and normal tax rates are applicable. However, w.e.f. 1st October, 2004, the short term capita
fund schemes are taxed only at a flat rate of 10%, irrespective of the tax slab on other sources of income, provided securities transaction tax is paid on such

(b) Long Term Capital Gains : Capital gain is considered as the Long Term, if the immovable property is sold after three years from purchse, or financial sec
close ended schemes of mutaula funds are disposed (i.e. sold / redeemed / transferred) after holding the same for more than twelve months, then the gain is

Long term capital gains on transfer of listed shares / units of equity oriented mutual funds schemes has been exempted from tax w.e.f. 1st October, 2004, pro
assets other than the listed shares / units of mutual funds schemes, tax is payable in respect of long term capital gains at a flat rate of 20% and the amount of

Long term capital gains tax in respect of bonds and debt securities or debt oriented mutual fund schemes listed on stock exchanges is payable at a flat rate o
avail the benefits of indexation, then tax has to be paid at normal long term capital gains tax rate of 20%.

  Section 54EC of the I-T Act, 1961 : Relief from Capital Gains Tax

You can make good use of this Section to save Taxes specially when you sell some property. The Income Tax laws provides for
individuals and foreign firms and 30 per cent for domestic companies. However, Section 54EC of the I-T Act, 1961, provides reli
on transfer of a long-term capital asset can be exempted from tax if the money is invested in bonds of specified institutions suc
(REC), SIDBI or the National Highway Authority of India. Such bonds are redeemable after three years. However, to save tax,
from the date of transfer of the original asset. Thus investing in these bonds will effectively mean that your money is locked in
one or two years after transferring the original asset, you will have to either wait or look for alternative funds. After the lock-in
is free to put in his money in any kind of asset. However, the interest on the bond is taxable.

On the other hand, State Bank of India, offers SBICapgains Plus Scheme where lock-in period is absent, a slightly higher intere
is offered. The proceeds of the sale of the capital asset can be parked in the fixed deposit scheme under the Capgains Plus pl
bonds under Section 54 EC would fetch. The interest earned will be taxed at prevailing rates. However, unlike the bonds under
different kind of asset. The plan stipulates that re-investment should be made on the specified asset only. Therefore, this sche
but haven't been able to purchase the property within the stipulated period. Once a final decision is taken on the property y
Plan, but you will need to get a certificate of consent from the assessment officer.
Latest Circulars Regarding Rate of Interest on Small Savings etc.
RBI CIRCULAR FOR RATE OF INTEREST ON PPF and SCSS 2004 Schemes
RBI/2014-15/536

IDMD(DGBA).CDD.No.4521/15.02.001/2014-15

April 01, 2015

Madam/Dear Sir,

Revision of interest rates for Small Savings Schemes

Please refer to our circular RBI/2011-12/359 dated January 20, 2012 regarding interest rates on small savings s

2. The Government of India have vide their Office Memorandum (OM) No.6/01/2011-NS.II dated March 31,

Scheme Rate of Interest w.e.f. 01.04.2014 (Old rates) Rate of Interest w.e.f. 01.04.2015
5 year SCSS, 2004 9.20% p.a 9.30% p.a
PPF, 1968 8.70% p.a 8.70% p.a
KisanVikasPatra 8.70% p.a 8.70% p.a
SukanyaSamriddhi Account Scheme 9.10% p.a 9.20% p.a
3. The contents of this circular may be brought to the notice of the branches of your bank operating the PPF 1968, SCSS 2004, KisanVikasPatra&SukanyaSamri
boards of your branches for information of the subscribers to these Schemes.
Yours faithfully

(ShrikantHamine)

Manager

Revision of Interest Rates for Small Savings Schemes for the Financial Year 2015-16 Announced

Various decisions taken by the Government of India on the recommendations of the ShyamalaGopinath Committee for Comprehensive Rev
communicated to all concerned by the Government through its Office Memorandum dated 11 th November, 2011.

One of the decisions of the Government based on the recommendations of the Committee relates to revision of interest rates every financial
with the approval of the Finance Minister, the rates of interest on various small savings schemes for the Financial Year 2014-15 effective from 01.04
in in the schemes, shall be as under :

Scheme Old Rate of interest Rate of Interest

w.e.f.01.04.2014 w.e.f. 01.04.2015
1 2 3
Savings Deposit 4 4

1 Year Time Deposit 8.4 8.4

2 Year Time Deposit 8.4 8.4
3 Year Time Deposit 8.4 8.4
5 Year Time Deposit 8.4 8.5
5 Year Recurring 8.4 8.4
Deposit
5 Year SCSS 9.2 9.3
5 Year MIS 8.4 8.4
5 Year NSC 8.5 8.5
10 Year NSC 8.8 8.8
PPF 8.7 8.7

SukanyaSamriddhi Account Scheme 9.1 9.20

Deduction U/s. 80G of

Income Tax Act, 1961
for donation
INSPITE of all the contributions made to social causes, there is a huge gap between the demand of
money from the needy and the amount donated by philanthropists. This probably, is the reason why
the Government has given tax benefits on donations. The amount donated towards charity attracts
deduction under section 80G of the Income Tax Act, 1961. Section 80G has been in the law book
since financial year 1967-68 and it seems it’s here to stay. Several deductions have been swept
away but the tax sop for donations appears to have survived the axe. The main features of tax
benefit with respect to charity are as follows:

Allowable to all kind of Assessee:- Any person or ‘assessee’ who makes an eligible donation is
entitled to get tax deductions subject to conditions. This section does not restrict the deduction to
individuals, companies or any specific category of taxpayer.

Donation to Foreign Trust:- Donations made to foreign trusts do not qualify for deduction under
this section.

Donation to Political Parties:- You cannot claim deduction for donations made to political parties
for any reason, including paying for brochures, souvenirs or pamphlets brought out by such parties.

Only donation made to made to prescribed funds and institutions qualify for deduction: – All
donations are not eligible for tax benefits. Tax benefits can be claimed only on specific donations i.e.
those made to prescribed funds and institutions.

Maximum allowable deduction:- If aggregate of the sums donated exceed 10% of the adjusted
gross total income, the amount in excess of 10% ceases to be entitled for tax benefit.

Documentation Required for

Claiming deduction U/s. 80G

Stamped receipt: For claiming deduction under Section 80G, a receipt issued by the recipient
trust is a must. The receipt must contain the name , address & PAN of the Trust, the name of the
donor, the amount donated (please ensure that the amount written in words and figures tally). In
case of donation which are eligible for 100% deduction recipient should also insist on form 58
from trust. Form 58 contains the details of project cost (for which the donation is received),
amount authorised under this project and the actual amount collected. Without form 58, the claim
for 100% deduction could be rejected even if the receipt mentions 100% deduction.
 Mention of Registration No. of the Trust Under 80G on receipt:- The most important
requirement is the Registration number issued by the Income Tax Department under Section
80G. This number must be printed on the receipt. Generally, the Income Tax Department issues
the registration for a limited period (of 2 years) only. Thereafter, the registration has to be
renewed. The receipt must not only mention the Registration number but also the validity period
of the registration.

Validity of Registration U/s. 80G on the date of Donation:- The donor must ensure that the
registration is valid on the date on which the donation is given. For example, the registration of a
trust may be valid from April 1, 2007 to March 31, 2009. Now, if the trust does not get its
registration renewed on or after April 1, 2009 then even if donation receipt is issued by the trust
to the donor for donations received on or after April 1, 2009, the donor would not get any tax
benefit.

With Effect from 1st October 2009 it is not required for a trust to apply for renewal of 80G
certificate, if the same is valid on 01.10.2009 or valid upto a date thereafter unless
department specifically ask Trust to apply for renewal. So Old 80G certificate will remain
valid if the same is valid on 01.10.2009.

Photocopy of the 80G certificate :- Check the validity period of the 80G certificate. Always
insist on a photocopy of the 80G certificate in addition to the receipt.

Only donations in cash/cheque are eligible for the tax deduction:-Donations in kind do not
entitle for any tax benefits. For example, during natural disasters such as floods, earthquake, and
many organisations start campaigns for collecting clothes, blankets, food etc. Such donations will
not fetch you any tax benefits. No deduction under this section is allowable in case of amount
of donation if exceeds Rs 10000/- unless the amount is paid by any mode other than cash.

Donation made by NRI: – NRIs are also entitled to claim tax benefits against donations, subject to
the donations being made to eligible institutions and funds.

Deduction if donation deducted from Salary and donation receipt certificate is on the name of
employer:- Employees can claim deduction u/s 80G provided a certificate from the Employer is
received in which employer states the fact that The Contribution was made out from employee’s
salary account.

Limit on donation amount: -There is no upper limit on the amount of donation. However in
some cases there is a cap on the eligible amount i.e. a maximum of 10% of the gross total income.
Deduction amount U/s. 80G:- Donations paid to specified institutions qualify for tax deduction
under section 80G but is subject to certain ceiling limits. Based on limits, we can broadly divide all
eligible donations under section 80G into four categories:

a) 100% deduction without any qualifying limit (e.g., Prime Minister’s National Relief Fund).

b) 50% deduction without any qualifying limit (e.g., Indira Gandhi Memorial Trust).

c) 100% deduction subject to qualifying limit (e.g., an approved institution for promoting family
planning).

d) 50% deduction subject to qualifying limit (e.g., an approved institution for charitable purpose other
than promoting family planning).

List of Institution donation to whom is eligible to 100% deduction without any qualifying
limit, eligible to 50% deduction without any qualifying limit, 100% & Subject to qualifying limit
and of those eligible for 50% deduction subject to qualifying limit are as follows :-

Donations with 100% deduction

without any qualifying limit:

1. Prime Minister’s National Relief

Fund

2. National Defence Fund

3. Prime
Minister’s Armenia Earthquake
Relief Fund

4. The Africa (Public Contribution –

India) Fund

5. The National Foundation for

Communal Harmony

6. Approved university or educational

institution of national eminence
7. The Chief Minister’s Earthquake
Relief Fund, Maharashtra

8. Donations made to Zila Saksharta

Samitis.

9. The National Blood

Transfusion Council or a State Blood
Transfusion Council.

10. The Army Central Welfare Fund

or the Indian Naval Benevolent Fund
or The Air Force Central Welfare
Fund.

11. Army Central Welfare Fund,

Indian Naval Ben. Fund, Air Force
Central Welfare Fund.

12. National Illness Assistance Fund

13. Chief Minister’s or Lt. Governor’s

Relief Fund

14. National Sports Fund

15. National Cultural Fund

16. Govt./ local authority/ institution/

association towards promoting
family planning

17. Central Govt.’s Fund for

Technology Development
& Application

18. National Trust for Welfare of

Persons with Autism, Cerebral Palsy,
Mental Retardation
& Multiple Disabilities

19. Indian Olympic Association/

other such notified association
20. Andhra Pradesh Chief Minister’s
Cyclone Relied Fund

Donations with 50% deduction

without any qualifying limit.

1. Jawaharlal Nehru Memorial Fund

2. Prime Minister’s Drought Relief
Fund
3. National Children’s Fund
4. Indira Gandhi Memorial Trust
5. The Rajiv Gandhi Foundation
6. Donations to govt./ local authority
for charitable purposes (excluding
family planning)
7. Authority/ corporation having
income exempt under erstwhile
section or u/s 10(26BB)
8. Donations for repair/ renovation of
notified places of worship
9. World Vision India
10. Udavum Karangal

Donations to the following are

eligible for 100% deduction
subject to 10% of adjusted gross
total income
1. Donations to the Government or a
local authority for the purpose of
promoting family planning.
2. Sums paid by a company to
Indian Olympic Association

Donations to the following are

eligible for 50% deduction subject
to 10% of adjusted gross total
income

1. Donation to the Government or

any local authority to be utilized by
them for any charitable purposes
other than the purpose of promoting
family planning.
Qualifying Limit:- The qualifying
limits u/s 80G is 10% of the adjusted
gross total income. The limit is to be
applied to the adjusted gross total
income. The ‘adjusted gross total
income’ for this purpose is the gross
total income (i.e. the sub total of
income under various heads)
reduced by the following:
Amount deductible under
Sections 80CCC to 80U (but not
Section 80G)
Exempt income
Long-term capital gains
Income referred to in Sections
115A, 115AB, 115AC, 115AD and
115D, relating to non-residents
and foreign companies.

Eligible Donation:- There are thousands of trusts registered in India that claim to be engaged in
charitable activities. Many of them are genuine but some are untrue. In order that only genuine
trusts get the tax benefits, the Government has made it compulsory for all charitable trusts to
register themselves with the Income Tax Department. And for this purpose the Government has
made two types of registrations necessary u/s. 12A & U/s. 80G. Only if the trust follows the
registration U/s. 12A, they will get the tax exemption certificate, which is popularly known as 80G
certificate. The government periodically releases a list of approved charitable institutions and funds
that are eligible to receive donations that qualify for deduction. The list includes trusts, societies and
corporate bodies incorporated under Section 25 of the Companies Act 1956 as non-profit
companies.

Tax benefit depends on rate of Tax applicable to the Assessee:- Let us take an illustration. Mr. X
an individual and M/s. Y Pvt. Ltd., a Company both give donation of Rs. 1,00,000/- to a NGO called
Satyakaam. The total income for the A.Y. year 2011-2012 of both Mr. X and Ms. Y Pvt. Ltd. is Rs.
3,00,000/-. The tax benefit would be as shown in the table:
Mr. X MS. Y Pvt. Ltd.
i) Total Income for the year 2011- 300,000.00 300,000.00
12
ii) Tax payable before Donation 14,000.00 90,000.00
iii) Donation made to charitable 100,000.00 100,000.00
organisations
iv) Qualifying amount for 50,000.00 50,000.00
deduction (50% of donation
made)
v) Amount of deduction u/s 80G 30,000.00 30,000.00
(Gross Qualifying Amount subject
to a maximum limit 10% of the
Gross Total Income)
iv) Taxable Income after 270,000.00 270,000.00
deduction
v) Tax payable after Donation 11,000.00 81,000.00
vi) Tax Benefit U/S 80G (ii)-(v) 3,000.00 9,000.00
Note :

Education Cess & Sec. & Higher Educ. Cess has not been included in working of tax benefit.

ILLUSTRATION OF BENEFITS UNDER SECTION 80G

1. Donations to private trusts
Step 1: Find out the qualifying
amount

The qualifying amount under this category will be lower of the following two amounts:
a) The amount of donation

b) 10 per cent of the gross total income as reduced by all other deductions under Chapter VI-A of
the Income Tax Act such as 80C (PPF, LIC etc.), 80D (mediclaim), 80CCC (pension schemes etc.).

For example, a taxpayer named Laxmi Arcelor as taxable salary of Rs 500,000. He has deposited
Rs 70,000 in Public Provident Fund and Rs 60,000 in his company provident fund. He donates Rs
45,000 to CRY (Child Relief & You) trust. Presuming he has no other income & presuming that
Donation is eligible for 50% deduction, his taxable income will be computed as under:
Gross salary Rs 500,000
Less: Deduction under section Rs 100,000
80C restricted to
Gross total income (before 80G) Rs 400,000

After making donation to CRY, his

qualifying amount for 80G will be:
Actual amount of donation Rs 45,000
10% of Gross total income as Rs 40,000 whichever is lower
computed above

Since 40,000 is lower, the qualifying

amount will be Rs 40,000
Step 2: Find out actual deduction
The next question that arises is how
much would be the actual
deduction? In the case of donations
to private trusts, the actual amount
of donation would be 50 per cent of
the qualifying amount.

Therefore, in the example given

above, since the donation is made to
a private trust, the deduction will be
50 per cent of the qualifying amount
ie 50 per cent of Rs 40,000 = Rs
20,000.

So,

Gross total income (Before 80G) Rs 400,000

Less: deduction under section Rs 20,000

80G
Total income (taxable income) Rs 380,000

Step 3: Check upper limit

Finally, the deduction under section

80G cannot exceed your taxable
income. For example, if your income
before deduction is Rs 3 lakh and if
you have given donation of Rs 5
lakh to the Prime Minister’s National
Relief Fund, please do not expect to
claim a loss of Rs 2 lakhs. Your
income will be NIL (Rs 3 lakh – Rs 3
lakh). The deduction will be
restricted to the amount of your
income.

ii) Donations to trusts/funds set

up by the Government
In this category, the entire amount
donated i.e. 100 per cent of the
donation amount is eligible for
deduction. There is a long list of 21
funds/institutions/purposes for which
donations given would qualify for
100 per cent eligibility. Notable
among this list are:

– The National Defence Fund

– The Prime Minister’s National

Relief Fund
– Any fund set up by the State
Government of Gujarat for
earthquake relief
The funds that figure in this long list are all set up by the Government. Private Trusts do not figure in
this list.

Thus, in this category of donations, the ceiling of 10 per cent of the gross total income as reduced by
all other deductions under Chapter VI-A of the Income Tax Act does not apply.
In the above example, if instead of donating to CRY, had the donation been given to say, The Prime
Minister’s National Relief Fund, then the calculations would have different as shown below:
Gross Total Income (Before 80G) Rs 400,000

Less: Deduction under section Rs 45,000

80G
Total Income (Taxable Income) Rs 355,000

(Updated on 08.01.2015)
2016 (i.e. Financial Year 2015-16) - Assessment Year 2016-17)
below the Income Tax Rates and Slabs applicable for the FY 2015-16 or AY 2016-17.
s were also applicable for FY 2014-15 (AY 2015-16)

Senior Citizens (Men and Women above 60 years of Very Senior Citizens (Men and Women above 80
age), but below 80 years years of age)
Nil Nil
Nil Nil
10% * Nil
20% 20%
30% ** 30%**

s 5 lakh. However, this benefit of Rs2,000 tax credit will not be available if you cross the
ng into account Rs 2000 tax credit), but for people who fall in income range of Rs5 lakh and

ve Rs 1 crores). For the FY 2014-15 it was 10% .

 lakh.
ed from Rs.1.5 lakh to Rs. 2 lakh.

.5 lakh in the case of individual taxpayers, below the age of 60 years.

unt which is not charageble to income tax (e.g. Rs.3,00,000 for Senior citizens, Rs.2,50,000/- for

). However, for the FY 2014-15 i.e. Assessment Year 2015-16, the last date has been extended

S AVAILABLE UNDER EACH OF THEM - Financial Year 2015-16

a deduction of upto Rs.1,50,000/- (wef FY 2014-15) is allowed from Taxable Income in respect of
er. Now there are no sectoral caps and individuals can save in any of the schemes upto Rs.1,50,000/-
plan their investments / savings so as to achieve their financial goals. The details of such schemes

Tax benefits for earnings (i.e. interest

received / dividend received) Lock in Period and other Remarks

5 years (reduced wef Dec 2011 from 6

years to 5 years for new investments). The
yield on these NSCs will now be revised
every year and will be 25 bps above the 5
Taxable year government bond yields

Dividend is tax free 3 years

Varies from scheme to scheme Varies from scheme to scheme

Varies from scheme to scheme (15 to 20
Varies from scheme to scheme years)
 Taxable 3 to 5 years

Till retirement (loans are permitted only

Interest earned is tax free after 5 years)

Earnings are tax free in most of the cases Locked till maturity
Earnings are tax free Partial withdrawal allowed

15 years and extendable. Withdrawals

allowed after 7 years. Yield on PPF will
vary and will be fixed at 25 basis point
Interest earned is tax free above the 10 year government bonds.

Interest earned is tax free Withdrawal not permitted before maturity

Not applicable Not applicable

Not applicable Not applicable

Taxable 5 Years

As per the guidelines issued in December

2011, there will be spread of 100 basis
points above the 5 year bonds yields for
Taxable this scheme.

Taxable

inked to the benchmark of 10 year / 5 Year government bond yields, and thus the return on these
will not have fixed rate of return on these investments. On the other hand, for other Small Saving
h instruments will continue to have same return for the whole tenure of the investment. [For

mpany, is allowed as deduction of Rs.10,000/-. However, as provided under section 80CCE, the
hese are covered under the maximum limit of Rs.1,50,000/- under section 80C.

has now been raised to Rs 25,000 wef FY 2015-16.

ns (more than 80 years old) medical expenditure incurred up to Rs 30,000 shall be allowed as a
for parents shall be limited to Rs 30,000.

m a deduction. Thus, if one has paid the premium from ones savings or from gifts of money

prior to 1st April 2009, premium payment was required to be paid only by cheque. However,
ent modes except cash payment are accepted
nstitution or an approved charitable institution. The loan should be taken for either pursuing a full-time
r pure science.

f Individual or of the student of whom individual is legal Guardian. Education loan taken for
benefit.
nt to be deducted. You can deduct the entire interest amount from your taxable
.    Deduction shall be allowed in computing the total income in respect of the initial
ar or until the interest is paid by the assessee in full, whichever is earlier.  The tax
nly available up to eight years. For instance if your loan tenure exceeds eight years,

rom taxable income upto Rs.2,00,000/- is deductible from income. (certain conditions are to be

akh for tax savings. However, the interest component of home loans is allowed as deduction under
pouse and you (joint loan), each one can avail of Rs2 lakh interest component deduction. This limit
the home loan. The rent on the property does become part of your income. If the rent is lesser than

ment was reduced from your taxable income in addition to the Rs.100,000 deduction you get
e invested in these instruments. NOW THIS IS NOT ALLOWED

following incomes which are tax free :-

unds is completely exempt in the hands of investors. Dividend is also tax free in the hands of
able to deduct 22.44% distribution tax in case of non individuals / non HUF investors and

turity of Life insurance plans. However, in case of life insurance policies issued after March 31,
xceed 20% of the sum asssured;

on is paid / imposed on such transactions.

nor or donee. However, w.e.f. September 1, 2004, any gift received by an individual or HUF
any of the following will continue to remain tax free :-

y way of inheritance

nds etc The treatment of such income is not the same as income from other sources. There

sferred within three years of acquiring the same. Similarly, if shares or other financial securities
ctober, 2004, the short term capital gains from sale of equity shares or units of equity oriented mutual
ies transaction tax is paid on such sale.

years from purchse, or financial securties such as shares, deep discount bonds, units of open ended or
n twelve months, then the gain is considered to be long term capital gain.

m tax w.e.f. 1st October, 2004, provided securities transaction tax has been paid on such sale. For
flat rate of 20% and the amount of gain has to be adjusted for inflation through indexation benefit.

xchanges is payable at a flat rate of 10% of the capital gains amount. In case an individual wishes to

come Tax laws provides for taxes on long-term capital gains at 20 per cent for
e I-T Act, 1961, provides relief from capital gains tax. Under this Section, gains
s of specified institutions such as NABARD, the Rural Electrification Corporation
ears. However, to save tax, you have to invest in these bonds within six months
hat your money is locked in for three years. If you want to buy a new property
ative funds. After the lock-in period or on the maturity of the bonds, the investor

sent, a slightly higher interest rate compared to the capital gain tax saving bonds
e under the Capgains Plus plan at an interest rate marginally higher than what
ever, unlike the bonds under 54 EC, the depositor cannot put the money in a
et only. Therefore, this scheme is a boon for people who have sold their property
n is taken on the property you want to reinvest in, you can opt for an exit from SBI

st rates on small savings schemes, wherein it was indicated that as per Government’s decision on revision of interest on small sa

11-NS.II dated March 31, 2015, advised the rate of interest on various small savings schemes for the financial year 2015-16. Acc
004, KisanVikasPatra&SukanyaSamriddhi Account Schemes. These should also be displayed on the notice

ommittee for Comprehensive Review of National Small Savings Fund (NSSF), were

of interest rates every financial year, to be notified before 1 st April of that year. Accordingly
Year 2014-15 effective from 01.04.2014, on the basis of the interest compounding/payment built-
Income Tax Slab Rates for FY 2017-18(AY
2018-19)
For FY 2017-18, the slab rate for income tax up to Rs. 5 lakh has gone down from 10% to 5%.
PART I: Income Tax Slab for Individual Tax Payers & HUF
(Less Than 60 Years Old) (Both Men & Women)
Income Slab
Income up to Rs 2,50,000*
Income from Rs 2,50,000 – Rs 5,00,000
Income from Rs 5,00,000 – 10,00,000
Income more than Rs 10,00,000
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 2,50,000 for individual & HUF other than those covered

PART II: Income Tax Slab for Senior Citizens (60 Years O
Or More but Less than 80 Years Old)(Both Men & Wome
Income Slab
Income up to Rs 3,00,000*
Income from Rs 3,00,000 – Rs 5,00,000
Income from Rs 5,00,000 – 10,00,000
Income more than Rs 10,00,000
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh upto Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-1 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab for Senior Citizens(80 Years O

Or More) (Both Men & Women)

Income Slab
Income up to Rs 2,50,000*
Income up to Rs 5,00,000*
Income from Rs 5,00,000 – 10,00,000
Income more than Rs 10,00,000
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)
 Tax
Rate
No tax
5%
20%
30%

ered in Part(II) or (III)

Tax
Rate
No tax
5%
20%
30%

Tax
Rate
No tax
No tax
20%
30%