Income Tax Rates for FY 2015-16 (AY 2016-17) (2023)

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Last updated: August 13, 2019 | by Sreekanth Reddy

Indian Finance Minister, Shri Arun Jaitley has tabled today, the Union General Budget 2015-16 in Parliament. The Finance Minister has kept the Personal Income Tax rates unchanged.

Below are the Income Tax Slabs & Rates for FY 2015-16 or AY 2016 -17.

(FY is Financial Year. AY is Assessment Year)

Latest Income tax Rates for FY 2015-16

Income Tax Rates for FY 2015-16 (AY 2016-17) (1)

The above Income tax rates are for General category (Men / Women who are below 60 years of age).

The below table gives you clear idea about Income tax slabs / rates for all Tax payer categories. (For general category, Senior Citizens & Very Senior Citizens).

Income Tax Rates for FY 2015-16 (AY 2016-17) (2)

The education cess on income-tax @ 2% for fulfillment of the commitment of the Government to provide and finance universalized quality based education and 1% of additional surcharge called ‘Secondary and Higher Education Cess on tax and surcharge is proposed to be continued for the financial year 2015-16 for all taxpayers.

Surcharge at the rate of 12% on individuals, HUFs, AOPs, BOIs, artificial juridical persons, firms, cooperative societies and local authorities having income exceeding Rs 1 crore.

Details of tax deductions proposed are as follows:

  • Deduction u/s 80C Rs 1,50,000 is same.
  • Deduction u/s 80CCD has been increased by Rs 50,000 towards New Pension Scheme. The total contribution has been increased from Rs 1 Lakh to Rs 1.5 Lakh
  • Deduction on account of interest on house property loan (Self occupied property) Rs 2,00,000.
  • Deduction u/s 80D on health insurance premium Rs 25,000, increased from Rs 15000. For Senior Citizens it has been increased to Rs 30,000 from the existing Rs 20,000. 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. (Kindly read : )
  • Exemption of transport allowance Rs 19,200 (Increased from Rs 800 pm to Rs 1600 pm).
  • Payments (Interest & maturity amounts) on Sukanya Samriddhi Account Deposit Scheme is exempted from Income Tax Under Section 80c. So it comes under Exempt – Exempt – Exempt tax category. It looks better than PPF (Public Provident Fund) now.

Other Tax related proposals

  • Tax-free infra bonds proposed for funding irrigation, rail & road infrastructure projects. (Read : All you want to know about new Tax Free Bonds 2015-16)
  • Service tax rate increased from 12.36 % to 14%.
  • Wealth tax to be replaced with 2% additional surcharge on taxable income over Rs 1 cr.
  • 100% TAX DEDUCTION on contributions made to SWACHH BHARAT & CLEAN GANGA initiatives.
  • PAN must for any sale exceeding Rs 1 Lakh. (Read : “List of Financial Transactions where quoting PAN is mandatory“)
  • Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000 (under Section 80 U) . It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
  • Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens (Under Section 80DD of the Income Tax Act).
  • For the benefit of senior citizens, service tax exemption will be provided on Varishta Bima Yojana.

You may like reading below posts;

  • Budget 2016-17 : Income Tax Rates for FY 2016-17 (or) AY 2017-18

Sreekanth Reddy:

Sreekanth is the Man behind ReLakhs.com. He is an Independent Certified Financial Planner (CFP), engaged in blogging & property consultancy for the last 12 years through his firm ReLakhs Financial Services . He is not associated with any Financial product / service provider.The main aim of his blog is to "help investors take informed financial decisions.""Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

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  • Sir
    I am drawing TA of Rs. 800pm+DA onTA.
    Can I claim Income tax exemption of (TA+DA on TA )?

    • Dear Aneesa,
      Conveyance allowance/ Transport Allowance :
      Granted to employee to meet his/her expenditure for the purpose of commuting between place of his residences and the place of his duty.
      It is exempted up to Rs.800p.m.
      I believe that DA is fully taxable.

  • Hi shreekant..I am a retired journalist I need your help to clarify me flowing tax commitment s..1. I am 66yrs old. I sold my house July 2015 and bought a semi commercial property being used as shop in Ulsoor market area on august 24.. I have completed due process of tax formalities for the year ended march 2016..got some refund so for the excess tax paid. But due to family compulsions..age factors and recent govt policies I wanted to dispose of the property..2. I need tk know what wiil be the capital gain tax if I sell it now . 3. I have received rent fro. The premises for which TDs is dedudu ed..some internet from bank deposit of ABT 1.2 lakhs will be the only additional I come..property bank accounts are all in joint Names

    with my wife..so can you advice the tax commitment or is it right to sell the property now..I have an offer now and also family requirement to go ahead..what do you suggest..tks.. vtvasu** @gmail.com.another id. Tks again
    P’s. I just saw your blog in f. B and decided to seek your suggestion. Tsk

    • Dear Vasudevan Ji,
      If Land or house property is held for 36 months or less then that Asset is treated as Short Term Capital Asset. You as an investor will make either Short Term Capital Gain (STCG) or Short Term Capital Loss (STCL) on that investment.

      Short Term Capital Gains are included in your taxable income and taxed at applicable income tax slab rates.

      Kindly read: How to save Capital Gains Tax on Sale of Land / House Property?

  • sir i have a query i am business during one year if in my account having 20lakh rupees submitted b/w 1 January to 1 December and before 1 December i have risen 18lakh rupees then at what type tax will be used on me. tell me soon sir i am confused.

    • Dear Rajkumar,
      Are these cash transactions?
      As long as you file your ITR correctly, it should not be of any issue.

  • my father is suffering from heart disease and mother from lung disease can I claim deduction

    • Dear manish ..Kindly go through this article, you may find useful and related info : List of income tax deductions.

  • sir i am virendra rawat and i have sale out my land after 22 month than how can save tax on capital gain . sir plz advis me

    • Dear virendra ..Capital gains tax on Short term gains is unavoidable and no exemptions are available to minimize your tax liability.
      Kindly read : How to save capital gain taxes?

  • in which section i can put Traveling Allowance for AY-2016-17

    • Dear Ankur..Its section 10.

  • Hello Sir,
    Thanks for solving all my query,one more query i noticed while filing itr1 in form 16 homeloan,lic,registration is not shown details of form16 given by employer i.e income chargeable under head dalaries 2,97,960 deduction 80c 18,688 so total income is 2,79,270 tax on total income is2,927 Rebate 2,000 Tax on total income after rebate 927 Educational cess 28 Tax payable 955 deduction tax deducted at source is 1,380 So tax payable/refundable is -425 so my question is filing filing itr 1 Salary 2.97,960 income under house property -1,29,695 so total is 1,68,265 and deduction under 80c is 1,63,380(principal+pf+registration+lic) so the system calculated only 1,50,000 instead of 1,63,380 So total income is 18,265 but the rebate is not getting calculated while filing itr1 its showing zero why it is showing zero am i had done anything while filing itr1

    Secondly as per form16 tax refund is 425 but when i filed with all details i.e home loan lic etc…it showing refund 1,380 which one is right please tell me

    Thirdly about TDS issued by employer i.e details of tax deducted and deposited in the central govt. Account through challan where to show the tax deposited amount of Rs.1,380 in itr1 should i show in income from salary or income other than salary if the show it in income other than salary then the refund is 1,380 but if i show in income from salary and income other than salary refund is 2,760 (1,380+1,380)

    Please tell me where to take TDS and which amount and what will be my Tax refund amount

    • Hello sir,
      Please reply

      • Dear Samina,
        It is not wise to advise you on this without looking into the documents and tax calculation.
        If your employer has not considered tax deductions then you can claim them when filing your income tax return.
        TDS details can be shown in ‘taxes paid & verification’ sheet of ITR.

  • Sir, i am a salaried person and also involved in a small trading business. While filing an ITR , i have to show the income from my trading business – under the head ” INCOME FROM OTHER SOURCES ” . My doubt is that – here the INCOME amount that is to be showed is excluding the VAT Amount i.e my Total Sale amount – ( minus ) Total Purchase Amount ( Excluding VAT ). I am not wrong – since i have already made a serpate payment of VAT Tax – this amount would be exempted while computing Income tax – as per section 43B. Pls confirm

    • Dear Shikha ..Kindly take help of a CA regarding this matter.

  • Kindly provide notification for conveyance exemption under income tax act with Details

  • Please help me to solve this. It is given in the pay slip gross salary including allowances is Rs. 358259, where HRA =65824 ,transport allowance = 19097 for the PY 15-16. Again deduction shown in payslip
    PF= 15800 , PT= 832, Income tax = 5411, mobile deduction = 6874.
    Now I want to know which we have to take net salary or gross salary to calculate total income and whether Mobile deduction is calculated or not. Please help

    • Dear kashmeri,
      If your office duty require mobile / telephone / internet connection. You can claim 100% exemption against billed amount by producing original bills (only post-paid connections).
      To calculate total income you just need to add all the allowances, basic salary etc.,
      Use this calculator to know your tax liability, click here..

  • DEAR SRIKANTH SIR,
    WHERE I CAN SHOW CONVEYANCE ALLOWANCE RS 19,200 IN MY FILING OF A.Y.2016-17

    • Dear GUNASEKHAR..It is exempted u/s 10 from your Gross salary.

  • Dear Sir,

    I have taken a housing loan in the year 2013 and while filing a return AY 2016-17 there is no option to show my interest payment towards housing loan. Whether Im not eligible to claim my interest payment or it has been removed. Pls clarify.

    • Dear Harish,
      You have to calculate ‘income from house property’ and show your interest payments in this calculation under this head.
      Kindly read:

      • Dear Sreekanth,

        Thanks for the information, yesterday i tried to file a return in the income tax website and there is no option to update the deductions under section 24 b. and i dont know where to update the interest payment details.

        • Dear Harish..Suggest you to kindly take help of a CA and file the return.

  • Dear Sir,

    Can tax-benefits via medical reimbursements be availed, even if the employer is providing medical allowance?

    • Dear Anuj..Kindly go through this article: Medical Insurance – Tax Benefits – Medical Allowance.

  • Hello,

    Can an employee only take either Conv Allowance or Car Fuel. Both can not be availed at same time. Is this true ?
    Please help.

    Regards
    Rahul Chitte

    • Rahul,

      Yes it is true. You can either claim Conveyance Allowance or Car Fuel Reimbursement, not both, unless your company has a special allowance (generally for High Office Bearers).

      Regards,
      Ashutosh

    • Dear Praveen,
      The amount of income-tax shall be increased by a surcharge at the rate of 10% of such tax, where total income exceeds one crore rupees. This is applicable for AY 2016-17.
      15 % Surcharge on income of more than 1 crore rupees yearly will be levied for AY 2017-18.

  • Is rebate under Section 87 A is still available to Senior Citizens for the financial year ending 31st March 2016? If yes, what is the amount of rebate?

    • Dear RUSIRAJ ..Yes is it available and the rebate amount is up to Rs 2,000.

  • Hi I have declared 1500 per month as conveyance allowance ,so i have to submit proof for this like HRA, every month 1500 will be deducted from my salary ?

    • Dear shyam..Not required to submit any proofs.

  • I have filed returns for 2016-17 on 5th April and EVC accepted on 6th April. How many days it will take to get refund?

    I heard that this year all refunds above Rs.50000 will also be credited to bank account and not through bank. Is this implemented? Anyone got refund for AY 2016-17?

    • Dear MANI..May be it is too early to talk about refunds 🙂
      Presently all the income tax refund for amount below Rs. 50,000/- are directly credited to the bank account. For refund exceeding Rs. 50,000/- the income tax department issues physical cheques for refund. However the income tax department is in the process of implementing the system of direct credit to the bank account for all the refunds without any limit in immediate future.As of now even I am not sure if this is place or not??

  • Hi Sreekanth,

    When we can file returns for financial year 2015-16 in efilling website.

    Thanks in advance.

    • Dear Naveen..Central Board of Direct Taxes (CBDT) will release a notification on this. Generally the ITRs will be accepted between Apr and July.

      • Dear srikanth.On what basis provision for tax created?our company fiancial period from January to December. We have to create Provision for Tax for 12 Months or 9 Months.Please give replay as soon as possible

        • Dear Rajkumar..I am not an expert in company taxation law, suggest you to kindly consult a CA.

        • The Companies Act 2013, which has partially replaced Companies Act, 1956, by introducing certain new provisions related to corporate law. The Companies Act 2013 partially made effective w.e.f. September 12, 2013, and introduce effective 98 sections. One of important change made by The Companies Act 2013 is that now all the companies are required to have a uniform financial year. In other words every company’s financial year will be the period ending on 31 March every year.

          so provision is to be made for 12 months ie From 1st April 2015 to 31st March 2016 @30.9%

  • Hi,

    Please let me know how can the provision be made for gratuity? what are the options where a company can invest for making a provision for Gratuity..we are in IT company of less than 50 employees, but more than 20..

    • Dear Deepa..Kindly read :

  • Hi
    What is the tax calculation for very senior citizen (age more than 8- yrs) upto 5,00,000 nil tax above 5,00,001 — 10%. In addition to this do they have 80c deductions, medical insurances if so what is their limit ?

    Thanks in advance
    cheers

    • Dear Manivannan,
      Kindly read below articles:
      Tax deductions list for AY 2016-17.

  • Hi,
    An employee joined in a company in 2011 and worked till 2015 sep. then he resigned from there & joined the sisternconcerned company for the period oct–nov’2015. and again he joined the old company in dec’15.
    in all total he has 3 epf a/c no. now how can he view all the amount in total that has been deposited to his a/c for both employer & employee.

    • Dear Uday..Has he transferred the monies from old PF a/cs? If so, he can just download the latest EPF statement and verify the credits.

      • Hi Sreekanth,

        Thanks for your reply.

        He has not done anything right now. Please suggest me the procedure to be followed in regard to the same. bcoz when is seeing in the UAN passbook update statement is not appearing.
        what are the procedure to followed for the case described above as he has 3 different PF A/c no.

        • Dear UDAY,
          He can transfer the old EPF a/c monies to the latest one.
          Kindly read: EPF online transfer claim – process.

  • Hi Sreekanth,

    Im earning 11 lakhs per annum. Say for example if im including home loan, medical bills, HRA, Transport allowance, PPF, etc., im exempting 3 L and government has already announced no tax until 2.5 L. Will i be charged 20% tax for 4.5 L and 30% for 1 L. Please correct me if im wrong.

    Thanks
    Dinesh

  • our ngo arunodaya shikshan samiti chhattisgarh india issu- education,health,rural development and old age

  • Hi,

    I have few bills of medical diagnostic like MIBG scan, PET CT etc for current financial year, but my condition is still undiagnosed, Can i avail tax deduction under medical expenses, and do i need any kind of certificate? I only have prescription from private doctors

    • Dear Vivek..Are you referring to ‘medical allowance’? Kindly read :

  • Sir i have two home loans. First home loan from SBM where self occupied and second from HDFC which is rented rented. I have Life insurances too. How do i claim for Interest and Principal amount paid as under.

    PRINCIPAL COMPONENT1,15,491.00 (2nd home – HDFC) 74,886.00 (1st home – SBM)

    INTEREST COMPONENT 4,85,169.00 (2nd home – HDFC) 1,22,714.00 (1st home – SBM)

    • Dear Jayadev,
      Principal repayments of up to Rs 1.5 Lakh can be claimed under Section 80c.
      For SOP : Interest payments of up to Rs 2 Lakh (here it is Rs 1.22 L) can be claimed.
      For Let out one : You can claim full amount u/s 24.
      Read : “Understanding Tax Implications of Income from House / Property”.

  • Dear SIr,

    While we calculating on Income ax, we have claimed under travelling allowance as Rs.800/- PM till last year. Now it extended upto 1600/- know. Can we calculate as 1600/- as travelling expenses now or should we consider only 800/-

    • Dear YASODHA..It is up to Rs 1600 (or) actual amount received whichever is less, you need to consider that figure for tax exemption purposes.

  • nps( my contribution 70000+ employer’s contribution 70000). how much more should be invested for saving tax in the assessment year 2016-17. thanks.

    • Dear Raj,
      Kindly go through this article : Income Tax Deductions list for AY 2016-17.

  • i want to know if conveyance given by company is fixed per month
    can we get exemption??
    the above conveyance is used for official purposes

    • Dear Sandeep..Yes. Rs 800/- per month is allowed as Conveyance Allowance ie Rs 9600/- pa.

  • I m drawing 800 as transport allowance and with DA the total is around 1720/-pm. Is it ok to claim a tax deduction of 1600/- pm

    • Dear Rahul..I believe that you can claim only Rs 800 pm.

    • I am drawing transport allowance Rs. 800 plus D.A. thereon. Am I entitled to get exemption Rs. 1600

      • Dear Shankar..If you are receiving TA of Rs 800, then you can claim only Rs 800 as tax exemption amount.

  • Please accept my sincere compliments for the magnificent job being done by you Mr Reddy.
    It’s a great effort towards the society in making them financially literate in the best of manner.

    Warm Regards

    • Dear Vikrant..Thank you so much for your kind and motivating words. Keep visiting 🙂

  • I have taken housing loan for extension of house. Am I eligible to show house loan repayment and less house loan interest?. The treasury of Tamilnadu government last year replied that extension of house loan is not allowed for reduction of tax. Only construction purpose loan is allowed to tax exemption. Is is correct? Can you explain? Please help me to find out the rules and regulation for this. Please reply for me.

    • Dear Albert,
      I believe that home loan taken for home extension is eligible for tax benefits.
      But tax benefits are not limited to Rs 30,000 only if loan is for home improvement purposes.

  • I have a Medical reimbursement of 2500 every month , so yearly it will be around 30,000 So I want to know what amount of Medical bills needs to be submitted to get tax exemption.
    If I submit medical bills for 15000 would that be sufficient ?

    • Dear Sudhee,
      The tax exemption limit for Medical Reimbursement is Rs.15,000.
      For example : An employee is eligible to a medical allowance of Rs.20,000 and he/she submits proofs of Rs.10,000 for the financial year. In this case, the employee gets a tax exemption of Rs.10,000, which is the minimum of the above three amounts.

      • isn’t it 25000.?

  • I have already a housing loan and in this F.Y. I have taken a loan for renovation/re modelling loan on that house. The interest on both loans is around 2 lakhs. Can I claim full interest or 30,000/- only on second loan?

  • i AM PAYING YEARLY 32000/- TOWARDS MY SONS SCHOOL FEE EVERY YEAR.CAN I CLAIM TAX BENEFIT UNDER SECTION 80C?

    • Dear KIRAN..Yes, tuition fees can be claimed under Section 80c.
      Kindly read:
      Income tax investment proofs.
      IT deductions list.

  • Hi Srikanth,

    Thanks for the info shared by you across the portal on various Personal Finance Management topics.

    I would like to know more about “Deduction u/s 80CCD towards New Pension Scheme of Rs 1.5 Lakh.”
    As i am in 30% slab & my PF contribution is very low, i would like to go for this.
    Can you please provide more details like how to take NPS? various vendors, etc so that i can go with it immediately.

    Thanks in advance.
    Cheers,

    • Dear Venu,
      I am not very positive on NPS. Investing in Mutual funds can be fruitful in long-term.

      • Dear Sreekanth
        I would like to have more light by you “Why you are not positive on NPS”.
        I’m also thinking but would like to have your opinion please
        I may able to save 20% Tax on the amount invested.

        • Dear Shashikant,
          As per current laws, the maturity proceeds are taxable.
          When we have an investment avenue like mutual funds, why to go for a product which is comparatively less liquid, transparent and not tax efficient?
          Also, taking annuity product is compulsory. The annuities are taxable during withdrawal phase.Instead I prefer to accumulate corpus by investing in equity oriented mutual funds and make withdrawals which are tax-free (after 1 year).
          Let us not always look at saving some taxes at the cost of good returns over a longer period.
          Are you positive on NPS? Kindly share your views.

          • Dear Shreekant,

            As per new DTC this taxation is going to be waived on NPS withdrawal.
            If you look at NPS internal split, it takes care of investment in equity, govt bonds etc. Which is less of a risk compared to only equity.
            Since its controlled by govt my pension is gauranteed compared to equity returns.
            As a responsible person in family, I would not keep all eggs in one basket.
            Kindly share your view on this.

            • Dear Nilesh,
              It is a proposal..so let’s wait (on taxation part).
              If a portion of contributions are invested in Equity, how can the returns be guaranteed?
              How about comparing Balanced fund (equity oriented fund) Vs NPS then? Also, buying annuity product is mandatory.
              Kindly share your opinion.

              • Dear Shreekant,

                You had missed what I said.
                I said my pension is gauranteed in NPS.
                Only 30% of my NPS cont is invested in equity.
                As far as balanced fund is concern I am at risk of more than 60% in equity and rest all in debt fund. Debt fund is really horrible and my future still would be at complete risk and none is gauranteed forget about pension.
                I would still invest in NPS over it. DTC FY 2016 will have this announcement.
                Remember I said will not keep all eggs in one basket.
                This is my view.

                • Dear Nilesh,
                  I was not trying to prove you wrong, but trying to understand your view point.
                  If you have the conviction that NPS is good and meets your requirements, do stay invested with NPS.
                  Personally I prefer to have flexibility & liquidity with my investments. I do not want to buy an annuity product.
                  Nevertheless, thank you for sharing your views and do keep visiting.

  • Sir,
    I get TA Rs.800/- per month.
    DA on Ta is Rs.952/- per month.
    Now, FY 2015-16 TA is exempted till Rs.1600/- per month.
    My annual total of TA is Rs.9600/- and DA on TA is Rs.11040
    As per new rule, there is TA is exempted till Rs.1600/- per month, therefore can I get TA exemption till Rs.19200/- for FY2015-16.

    • Dear Vijay..Transport Allowanec is exempted to the extent of amount received or the limit specified which is Rs 1,600 pm, WHICHEVER IS LESS..

      • Mr Reddy … in above circumstances is it ok to claim a deduction of 19200 ??

  • Can some one help me regarding info on submitting proof as PAN of house owner+rent agreement if we are not exceeding the rent beyond 1 lakh yearly. Earlier we were not supposed to submit PAN+rent agreement if our rent was less than 1 lakhs yearly.

    Is the rule same or we will have to submit PAN of house owner+rent agreement for rent less than 1 lakh?

    • Dear Anubhav,
      It is mandatory to submit your Landlord’s PAN details to your employer if the rent paid is greater than Rs 1 Lakh. If it is less than then it is not mandatory. However, your employer might insist on submitting the PAN details.

  • Dear Sir,

    I made the Health insurance of my family with premium is 12000Rs-/year and my parents (Senior citizen) = 35000 Rs./year…

    My question is for AY-2016-17 (FY2015-2016)

    How much amount I can claim U/S 80D

    1. 12000 + 35000 = 47000?
    Or
    2. 12000+30000 = 42000?

    Regards,
    AMAN

    • Dear AMandee,
      You can claim Rs 42k u/s 80D.
      Kindly read :

  • please provide me salary break up of 15,00,000 – CTC

    how to calculate TDS on salary? calculate on Net Salary or Gross Salary of Cost To Company

    please provide with calculation

    • Dear Kamaal,
      How is it possible for me to provide YOUR salary break up. Check with your employer.

  • Dear Shreekanth,

    I have two houses:
    1. @ Pune purchased in 2006 for Rs 17 Lakhs with current cost at Rs 50 Lakhs
    2. @ Bangalore Purchased in 2012 For Rs 1.25 Crores with current cost at Rs 1.50 Crores
    3. I have an outstanding housing loan on Bangalore Property of 69 Lakhs.
    4. My only income is pension of self & wife at Rs 80,000 a month.

    If I sell both the above property at the current cost and after repaying the loan of Rs 69 lakhs what will be the Income Tax I need to pay ?

    Thanks,

    • Dear Prem,
      Kindly contact a Chartered Accountant and get this done.
      You may go through my article for reference; How to calculate capital gains on sale of property?

  • Hi,

    For Assessment year 2016-2017, i already have the 1.5L 80c limit (insurance + PF + House loan premium ) .

    Only 80CCD will give 50,000 additional tax benefit apart from common 80C limit (1.5) ? is there any other additional benefits apart from common 80c limit?

    Only NPS scheme gives 80CCD benifit? or other banks like LiC or SBI or HDFC will also have plans for 80CCD?

  • HI Srikanth Ji
    I have few doubts about certain fields while filing ITR-I online …

    Income from salary/Pemsion in “Income details” tab ….A
    Income under salary (Auto Populated) in”Tax Details” tab…..G
    G is gross income given by employer it is directly available in efiling site and also in Traces.
    While A is actual income after 10 u/s deductions given in form 16 by employer.

    Is my assumption correct or both A and G same , I need to enter same value in both the fields?

    how to fill these two fields?

    • A & G varies in most cases.

      In G the Salary show is what the Employer files in his TDS Salary Return (24Q). Some Employer’s submit the Gross Salary whereas some submit the Take Home Salary.

      Hence it will vary as Net Taxable Salary is different and in most cases A is less than G.

      • Dear Mahesh..thank you for sharing your inputs. Keep visiting!

    • Dear RAGHU,
      You can enter ‘A’ value and deduct applicable Tax exemptions and calculate your tax liability.

  • Dear Srikanth,
    I am a pensioner of 60+ years as on today. I got rs 7,00,000/ approximately as pension( Basic+DA).
    I do’t have a house, live in a rented house. I wish to minimise my tax incident. I have nearly 1.5 lakh savings every year under 80c, 25000 under 80d-medical insurance. In which way I can minimise, how, demonstrate.

    • Dear Satyanarayana,
      Let me know your investments list u/s 80c?
      Kindly go through the list of Tax deductions.

      • insurance poliies 1,00,000
        ELSS 50,000
        Med insurance 30,000
        no house
        rented at Banglore @9,000pm
        Mabe we have medical expenses like medical diagnostic tests, medicines(we r diabetic)
        GSNRaju

        • Dear Satyanarayana,
          Kindly let me know the name of life insurance plans?
          Do you have any financial commitments or have any family member who is financially dependent on you?

  • Dear Sreekanth garu

    My father is a Chronic Renal Failure patient and the disease comes under specified diseases under 80DDB where deduction is allowed up to 80,000/- for 2015-16 (AY 2016-17) for senior citizen. I have couple of queries.

    1. Is the certificate from a Govt Doctor required? or a Prescription from a Private Doctor (Urologist)who is treating him will suffice?
    2. Medical Insurance premium under 80D is now enhanced to 30, 000/- for senior citizens. Does this include a Rs.5000/- limit towards Preventive medical check up expenses as earlier?. Further, If some senior citizen does not have insurance , but have spent on medical check ups. can this be claimed for deductions?

    Thanking you in anticipation of your reply

    G H Reddy

    • Dear Mr Reddy,
      In order to claim this deduction, you will have to submit Form 10-1 from a specialist doctor working in a government hospital in India, confirming the treatment of the disease. If there is any insurance claim , then deduction shall be allowed by reducing the insurance amount received from expenditure incurred .
      Yes, Section 80d includes Rs 5k towards preventive medical check up and it is not over and above Rs30k.
      Yes, it can be claimed if even an individual do not have medical insurance.

  • dear sir

    my Total Income 7,50000 of tax calculation

  • Dear Sir,

    Thanks for the lucid write-up.

    I am 60+ but less than 80.

    During FY 2014-15 AY 2015-16 my income works out Rs 3,50,000.00 and has been directed to produce savings for Rs 50,000.00 without taking into account the benefits under section 87A and my tax liability works out ‘Nil’ Can I claim the benefits under section 87A while filing the IT return?

    It has been clarified in the write-up ibid that the personal Income Tax during FY 2015-16 and AY 2016-17 has remained unchanged. If so, can I claim the benefits under section 87A?

    With regards,

    Yours sincerely,

    (S Subramaniam)
    01 Aug 15

    • Dear Subramaniam,
      If the total tax payable by is less than Rs. 2000/-, rebate u/s 87A is restricted to “total tax payable”.

      • Dear Sir

        The income tax rebate under Section 87A is admissible to resident Indians whose annaul income is upto Rs 5,00,000.00 and there is no ceiling which may please be reexamined and clarified.

        The other two points i.e. whether the benefits of Section 87A is admissible during FY 2015-16/AY 206-17 or not; and whether I can claim the benefits under Section 87A since I was instructed to produce savings without taking into account the provisions of Section 87A.

        With regards,

        Yours sincerely,

        (S Subramaniam)
        01 Aug 15

        • Dear Subramaniam,
          Section 87A is available for FY 2015-16 too.
          I did not understand your second point.

  • what is the maximum exemption limit u/s 80DD for AY 2015-16 & 2016-17?

    I HAVE PAID RS. 80000/- U/S 80DD IN FY 2014-15. WHAT WOULD BE MY EXEMPTION AMOUNT UNDER SAID SECTION FOR AY 2015-16?

    • Dear Gourab,
      For FY 2014-15, it is Rs 50,000 and for FY 2015-16 it is now been increased to Rs 75,000.
      Kindly read my article – Tax deductions list for FY 2015-16 (AY2016-17)

  • I am getting a basic salary + transportation, there is NO medical allowance or medical reimbursement.

    Can I get the benefit of Rs. 15000/- as medical reimbursement of medical expenses while filing the income tax return? even though I am not getting medical allowance.

    • Dear Paresh,
      If you are not receiving such allowance, it is not advisable to claim it, right?

  • Dear Sreekanth,

    Your articles are very informative.
    Request you to please give me a little clarification.
    I am an 83 year old man.Kindly let me how how I can claim Rs 30000 as a deduction u/s 80D.
    I do not have any medical insurance.However I get my medical reimbursed from my ex company.
    Please let me know what documents are required to be submitted to the incometax authorities.
    Grateful for the response.

    Regds
    SVS

    • Dear Subramanian,
      You need to have health insurance policy to claim the premium as tax deduction u/s 80D.
      Request you to go through this article: Section 80D – mediclaim – Tax benefits.

      • Dear Sreekanth,
        As per your own article,deduction of 30000 is allowed for super senior citizens who cannot take health cover.Maybe I qouted a wrong section. Would be grateful if you can let me know how I can claim this benefit
        Is it ok if I just submit a statement of medical expenses incurred or copy of bills?
        Thx and regds,
        SVS

        • Dear SUBRAMANIAN,
          I believe , some mis-communication here..
          Rs 30k is applicable if one has mediclaim policy.
          I believe you are talking about Medical allowance. In any case, there is no need to submit any medical bills/documents to Income Tax department. You just need to file your Income Tax Return (ITR) and send a copy of ITR V acknowledgment to CPC Bangalore address. You may also e-verify your ITR (if you do so, then there is no need to send ITRV physical copy).

  • Tax is a compulsory levy

  • for Tax free infrastructure bonds, under which section of income tax Act deduction will be allowed?

    • Dear Vipul,
      The applicable section for Tax free infra bonds is section 80ccf.

  • Sir,

    When employee not given PAN number to company that case how much % deducted the TDS and which Account deposit the TDS Deduction Amount

    • Dear Gopal,
      I believe that now all companies ask for employees PAN number without which they can not deduct TDS.

  • Hi,
    Kudus for doing such a brilliant job. I have a simple question.
    My salary is Rs 7,00,000 fixed per year.
    I have no obligations/responsibilities as of now. So what is the maximum limit of amount(X) I can invest in various schemes to avail tax benefits. I can also put the question in different way.
    I found out the maximum tax I need to pay (if i don’t declare a single penny) is Rs 65000.
    What is the minimum tax I need to pay(if I declare X amount in various schemes) ??

    • Dear Vivek,
      You can claim tax deductions u/s 80c up to Rs 1.5 lakh. Additional tax deduction if you invest in NPS is available ie up to Rs 50k.
      Suggest you to kindly go through my article : Tax deductions list for FY 2015-16.

    • dear you can call me on 9811409667. i will give you best suggestion.

  • I am Salaried person drawing a salary of Rs.30000/- per month and i am paying rent of Rs.17000/- in Bangalore am i under taxable income plz help as my company is deducting Rs.1100/- as TDS b’coz. I want to understand the scene.

    • Dear Amith,
      I need to have more details to answer your query.
      Suggest you to use ITR forms (or any tax calculator) to arrive at your taxable income and tax liability.

  • I am aged 64 years and retired.Living in an small own apartment in Bangalore.

    Getting about Rs.150000/- from FD interest annually and filing form 15H.
    Paying Rs.16000/- as mediclaim policy.

    Past 3 years I am not failing any return as my income is very much less than the limit.

    From 2007 to 2010 i paid annual premium of Rs.50000/- (totally Rs.200000/-) towards SBI life unit pension plan with the life cover of just Rs. 1.2 L. under 80C.

    As the NAV is not fetching as projected by the SBI, I pre closed in this month and got Rs.3.22 L after TDS of about 2%.(Rs.6500/-)

    Now how to compute my tax? How to get back the TDS by investing in tax free FD.

    • Dear PARTHASARATHY,
      Since it is a pension plan, I believe that the surrender value is taxable. You need to file your Income Tax Returns accordingly.

  • Hi,

    If I invest 50,000 in NPS u/s 80CCD, Will I get tax deduction of 50,000 on salary.

    Waiting 4 ur reply. Thank You.

    • Yes, dear Nilesh. Kindly go through my article – “Income Tax deductions FY – 2015-2016

  • Dear Sir,

    I am 61 year pensioned person. I am share holder of a co-operative society. Please assist to confirm weather interest earned from FD in same Co-operative Society is taxable. If yes then please assist to confirm percentage of tax to be paid.

    Thanks and Regards,
    Nilesh

    • Dear Nilesh,
      No TDS (Tax deduction at source) is applicable on the interest payments by a Co-operative society. However, you need to show this income in your Income Tax Returns (if your income is over and above the basic exemption limit).

  • the co-operative society is also have to pay the income tax?
    their is any compulsion?
    and if not paid income tax by co-operative society then any penalty for them?

    • Dear Sheetal,
      A Co-Operative Society is a taxable entity under the Income Tax Act, 1961. You need to use ITR 5 form to file the taxes.

  • Hi Sreekanth,

    Thanks for posting this. Very handy and useful.
    I am a salaried person and I am working in a private company. Is there any way to get some tax benefit on Internet/Broadband, Office attire (uniform), telephone bill ? My last company was providing those tax benefits and they have considered them if we were able to submit the bills. But when I proposed those items to my current employer, they rejected as invalid (no where mentioned in the income tax document). Can you please check whether still those items can be tax exempted or they are really invalid items ?

    Thanks and regards

    • Dear Santanu,
      Yes reimbursements of telephone expenses (employer provided, but connection in the name of employee), uniform related expenses etc can be considered for tax exemption.

  • SERVICE TAX IN CASE OF TRANSPORT

  • Dear Sir/Madam,

    Any exemption for Mentally Handicapped children like down Syndrome persons any TDS Excemption for the New Financial Year 2015-16 pl. advice to me… Mobile # 98841 555**

    • Dear Stephen,
      Kindly go through my article “Income Tax deductions 2015-2016“.
      Kindly check if Section 80dd or Section 80ddb are applicable..

  • Hi,

    I have a section in my salary which says ‘ medical allowance’, and this amounts to ₹1250/month and company CA says that it is exempted from income tax. Is this allowance hiked in this financial year?

    However pls note that I do not have any medical insurance.

    Is medical allowance different from medical insurance?

    • Dear Abhinaba,
      Kindly go through my article ““.
      I have provided an explanation about the difference between ‘mediclaim’ & ‘medical allowance’.
      Medical allowance has not been increased for FY 2015-2016.

      • According to IT ACT medical allowance is not exempted from tax,it is a fully taxable but reimbursement of medical expenses is exempted up to Rs-15000/- P.A.

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