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If the employee has rendered continuous service with the employer for five years or more
Again, if the balance includes amount transferred from the individuals PF account
maintained by previous employer(s), then the years of continuous service rendered to
the former employer(s) would be included for the purpose of computing the five-year.
If the employee has not rendered continuous service of five years, but the service is
terminated by reason of the employees ill health or discontinuance of the employers
business or reasons beyond the control of the employee, the amount will be tax-exempt.
Another tax-exempt case is when, on the cessation of the employment, the employee
finds another job and the the accumulated PF balance is transferred to his individual PF
account maintained by the new employer.
Sl. No.
Section
Details of deduction
Limit
1.
80C
Maximum Rs
1,50,000 is allowed. Investment
need not be from taxable
income.
2.
80CCC
3.
80CCD
Deduction
in
respect
to
contribution to new pension
scheme (NPS) Employees of
central Government and others
are eligible
4.
80D
5.
80DD
6.
80DDB
7.
80E
8.
80G
9.
80GG
10.
80GGA
11.
80U
Deduction in respect of
permanent physical disability
including
blindness
to
taxpayer.
12.
80QQB,
80RRB
Perquisite includes:
i.
ii.
iii.
iv.
rquisites
ursement of health club, sports club membership fees and similar facilit
o all employees would not be taxable in your hands.
s provided to you through paid vouchers, not transferable and usable only at eat
e extent of Rs 50 per meal are safe.
ursement of telephone expenses including a mobile phone actually incurred
of your employer is not taxable in your hands. Telephone facility received by Em
dence provided by employer is also not taxable in hand of employee as against
Allowance.
enditure incurred on your medical treatment or any of your dependents is exem
00 per annum as medical reimbursement subject to provision of bills. If you are p
allowance instead of reimbursement, the same is fully taxable.
nce to the extent actually incurred to meet the cost of travel on tour or
ncurred on conveyance in the performance of official duties, expenditure on help
the performance of duties, daily charges on account of absence from normal pla
r are exempt.
ement of health insurance premium by your employer for you and your fami
und: Under Section 80C, provident fund contribution deducted from the employe
exempted from tax up to an amount of Rs. 1.5 lakh or 12% of the employees sa
ce allowance for commuting between home and office is exempt up to Rs 1600
The rules for valuation of perquisite are as under: Accommodation: - For purpose of valuation of the perquisite of
unfurnished accommodation, salaried taxpayers valuation of
perquisite in respect of accommodation would be at prescribed
rates, as discussed below:
Where the accommodation provided to the employee is owned by
the employer, the rate is 15% of salary in cities having
population exceeding 25 lakh as per the 2001 census. The rate is
10% of salary in cities having population exceeding 10 lakhs but
not exceeding 25 lakhs as per 2001 Census. For other places, the
perquisite value would be 7.5 % of the salary.
Where the accommodation so provided is taken on lease/ rent by
the employer, the prescribed rate is 15% of the salary or the
actual amount of lease rental payable by the employer, whichever
is lower, as reduced by any amount of rent paid by the employee.
IV
VI. Use of assets: It is common practice for an asset owned by the employer to be
used by the employee or any member of his household. This perquisite is to be charged
at the rate of 10% of the original cost of the asset as reduced by any charges recovered
from the employee for such use. However, the use of Computers and Laptops would
not give rise to any perquisite.
VII. Transfer of assets: Often an employee or member of his household benefits from
the transfer of movable asset (not being shares or securities) at no cost or at a cost less
than its market value from the employer. The difference between the original cost of the
movable asset (not being shares or securities) and the sum, if any, paid by the
employee, shall be taken as the value of perquisite. In case of a movable asset, which
has already been put to use, the original cost shall be reduced by a sum of 10% of such
original cost for every completed year of use of the asset. Owing to a higher degree of
obsolescence, in case of computers and electronic gadgets, however, the value of
perquisite shall be worked out by reducing 50% of the actual cost by the reducing
balance method for each completed year of use. Electronic gadgets in this case mean
data storage and handling devices like computer, digital diaries and printers. They do
not include household appliance (i.e. white goods) like washing machines, microwave
ovens, mixers, hot plates, ovens etc. Similarly, in case of cars, the value of perquisite
shall be worked out by reducing 20% of its actual cost by the reducing balance method
for each completed year of use.
Income Tax Slabs for the Financial Year 2014-15Assessment Year 2015-16
Tax credit of Rs. 2,000 for all with income up to Rs. 5 lakhs
Rajiv Gandhi Equity Savings Scheme (under section 80CCG)to enable first time investors to park funds in
MF (RGESS) An Assessee with income less that Rs. 12 lakhs would tax incentives for investing up to
Rs. 50,000.
Higher deduction of Rs 1 lakh for home loan EMIs for those who are taking home loan for the first time
during the period 2013-2015.
Educational cess @ 3% of Income Tax.
Income Level
Male/Female
Senior Citizen ( Senior Citizen
(less than 60
60 80 Years) (More than 80
Years) Assessee Assessee
years) Assessee
Income up to
Rs. 2 .5 lakhs
No Tax
No Tax (up to
3.0 lakhs)
No Tax (up to
Rs. 5 lakhs)
10%
10% (3.0 to 5
lakhs)
No Tax
20%
20%
Above 10 lakhs
30%
30%
30%