Deductions Under Chapter Vi A
Section 80C
- Life Insurance Premium
- Mutual Fund
- EPF ( Employee Contribution to PF (Normally 12% Of Basic + Da )
- PPF(Public Provident Funds)
- NSC (National Saving Certificates)
- KVP/IVP (Kisan Vikas Patra)
- FD>5Yrs
- Tuition Fees Of Children
- Housing Loan :( Principal Interest Repaid only)
Maximum Deduction is 150000 for Section 80C
Section 80D
Medical Insurance( Family 25000 + Parents 25000)
( Family 25000 + Parents 25000)( If Senior Citizen Then 30000)
( If Senior Citizen Then 30000)(Included In Above 5000 For Medical Lab Test)
(Included In Above 5000 For Medical Lab Test)
Section 80G
Certain Donations have100% Deduction like Pm Relief Fund
100% Deduction like Pm Relief Fund50% Deduction like Temple/NGO
50% Deduction like Temple/NGO
Existing (Financial Year 2016 - 2017 or AY 2017-18)
If Donation amount is more than 10000,it cant be made in Cash
New(Financial Year 2017 - 2018 or AY 2018-19)
If Donation amount is more than 2000,it cant be made in Cash
If made in cash,then deduction not allowed
Section 80TTA
Saving Bank Interest
Maxmium 10000 Deduction,
Section 80TTB
For Senior citizen Interest Income Deduction upto 50000
from F.Y 2018-19,
Interest Earned on Both Savings and FD
Total Interest Earned whether FD or Savings is Income from Other Sources
80TTA Deduction is only for Interest on Savings Max 10000 and
For Senior citizen under Section 80TTB Deduction for Interest earned on both saving and FD is 50000
Examples
Introduction
Suppose My Salary Income is 30000 per month. What is My Income from Salary?
Particular | Amount |
Monthly Salary | 30000 |
Income from Salary | 360000 |
less Standard Deduction | 40000 |
Net Income From Salary | 320000 (Annual Salary) |
Suppose My Salary Income is 30000 per month. Also I have Interest Income is 5000 per annum of Savings Account
What is My Income from Salary? Also what is my Gross Total income?
Paticular | For Senior Citizen | |
Monthly Salary | 30000 | 30000 |
Income from Salary | 360000 | 360000 |
less Standard Deduction | 40000 | 40000 |
Net Income From Salary | 320000 | 320000 |
Income from Other Sources | 5000 | 5000 (Total interest Income covered here) |
Gross Total income | 325000 | 325000 |
Suppose My Salary Income is 30000 per month. Also I have Interest Income is 5000 p.a of Savings Account. What is My Income from Salary?
Also what is my Gross Total income and Net Total Income
ViewFor Senior Citizen | ||
Monthly Salary | 30000 | 30000 |
Income from Salary | 360000 | 360000 |
less Standard Deduction | 40000 | 40000 |
Net Income From Salary | 320000 | 320000 |
Income from Other Sources | 5000 | 5000 (Total interest Income covered here) |
Gross Total income | 325000 | 325000 |
Deduction Section 80TTA | 5000 | 5000 (Deduction of Savings Bank Interest Available of 10000 max) |
Net Total Income | 320000 | 320000 |
Suppose My Salary Income is 30000 per month. Also I have Interest Income is 15000 per annum of Savings Account. What is My Income from Salary?
Also what is my Gross Total income and Net Total Income?
For Senior Citizen | ||
Monthly Salary | 30000 | 30000 |
Income from Salary | 360000 | 360000 |
less Standard Deduction | 40000 | 40000 |
Net Income From Salary | 320000 | 320000 |
Income from Other Sources | 15000 | 15000 (Total interest Income covered here) |
Gross Total income | 335000 | 335000 |
Deduction Section 80TTA | 10000 | 10000 |
Net Total Income | 325000 | 320000 |
Suppose My Salary Income is 30000 per month
Also I have Interest Income is 15000 per annum of Savings Account+8000 on FD Account
What is My Income from Salary
Also what is my Gross Total income and Net Total Income
ViewFor Senior Citizen | ||
Monthly Salary | 30000 | 30000 |
Income from Salary | 360000 | 360000 |
less Standard Deduction | 40000 | 40000 |
Net Income From Salary | 320000 | 320000 |
Income from Other Sources | 23000 | 23000 (Total interest Income covered here) |
Gross Total income | 343000 | 343000 |
Deduction Section 80TTA | 10000 | 0 (Deduction of Savings Bank Interest Available of 10000 max (in our case 5000 is Interest, so 5000 Deduction) |
Deduction Section 80TTB | 0 | 23000 (Deduction of Savings Bank Interest & FD Available of 50000 max for senior citizen) |
Net Total Income | 333000 | 320000 |
Suppose My Salary Income is 30000 per month. Also I have Interest Income is 8000 on FD Account. What is My Income from Salary?
Also what is my Gross Total income and Net Total Income?
For Senior Citizen | ||
Monthly Salary | 30000 | 30000 |
Income from Salary | 360000 | 360000 |
less Standard Deduction | 40000 | 40000 |
Net Income From Salary | 320000 | 320000 (Total interest Income covered here) |
Income from Other Sources | 8000 | 8000 (Total interest Income covered here) |
Gross Total income | 328000 | 328000 |
Deduction Section 80TTA | 0 | 0 (Deduction of Savings Bank Interest Available of 10000 max) |
Net Total Income | 328000 | 320000 |
DOWNLOAD AND TRY
Q1 Calculate Gross Total Income, Deductions and Net total Income in following Cases
Particulars | Case 1 | Case 2 | Case 3 | Case 4 |
Income from Salaries | 400000 | 400000 | 400000 | 400000 |
I nterest Income | ||||
On FD | 3000 | 13000 | 30000 | 0 |
On Savings | 2000 | 12000 | 0 | 40000 |
Total | 5000 | 25000 | 30000 | 40000 |
Particulars | Case 1 | Case 2 | Case 3 | Case 4 |
Monthly Salary | 40000 | 40000 | 40000 | 40000 |
Income from Salaries | 480000 | 480000 | 480000 | 480000 |
Less Standard Deduction | 40000 | 40000 | 40000 | 40000 |
Net Income From Salary | 440000 | 440000 | 440000 | 440000 |
Income from Other Sources | 5000 | 25000 | 30000 | 40000 (Total interest Income covered here) |
Total Gross Income | 445000 | 465000 | 470000 | 480000 |
Less Deduction - Chapter VIA | ||||
80 TTA | 2000 | 10000 | 0 | 10000 (Deduction of Savings Bank Interest Available of 10000 max (no deduction of fd) |
Net Total Income | 443000 | 455000 | 470000 | 470000 |
TAX | 9650 | 10250 | 11000 | 11000 |
REBATE | 0 | 0 | 0 | 0 |
NET TAX | 9650 | 10250 | 11000 | 11000 |
CESS | 386 | 410 | 440 | 440 |
TAX+ CESS | 10036 | 10660 | 11440 | 11440 |
MONTHLY TDS | 836 | 888 | 953 | 953 |
Gross Salary | 40000 | 40000 | 40000 | 40000 |
TDS | 836 | 888 | 953 | 953 |
Net Salary | 39164 | 39112 | 39047 | 39047 |
Q2
Particulars | Case 1 | Case 2 | Case 3 | Case 4 |
Income from Salaries | 400000 | 400000 | 400000 | 400000 |
Medical Insurance Made | ||||
Self | 8000 | 10000 | 10000 | 30000 |
Wife | 8000 | 10000 | 10000 | 30000 |
Children | 10000 | 10000 | 30000 | |
Father (Senior Citizen) | 0 | 0 | 30000 | 60000 |
Calculate Gross Total Income,Deductions and Net total Income
View AnswerParticulars | Case 1 | Case 2 | Case 3 | Case 4 |
Monthly Salary | 40000 | 40000 | 40000 | 40000 |
Income from Salaries | 480000 | 480000 | 480000 | 480000 |
Less Standard Deduction | 40000 | 40000 | 40000 | 40000 |
Net Income From Salary | 440000 | 440000 | 440000 | 440000 |
Income from Other Sources | 0 | 0 | 0 | 0 |
Total Gross Income | 440000 | 440000 | 440000 | 440000 |
Less Deduction - Chapter VIA | ||||
Section 80D | ||||
Family | 16000 | 25000 | 25000 | 25000 (MAX 25000 FOR SELF,WIFE AND CHILDREN) |
Parents | 0 | 0 | 30000 | 50000 (MAX 25000 FOR PARENTS,50000 FOR SENIOR CITIZENS) |
Total 80D | 16000 | 25000 | 55000 | 75000 |
Net Total Income | 424000 | 415000 | 385000 | 365000 |
TAX | 8700 | 8250 | 6750 | 5750 |
REBATE | 0 | 0 | 0 | 0 |
NET TAX | 8700 | 8250 | 6750 | 5750 |
CESS | 348 | 330 | 270 | 230 |
TAX+ CESS | 9048 | 8580 | 7020 | 5980 |
MONTHLY TDS | 754 | 715 | 585 | 498 |
Gross Salary | 40000 | 40000 | 40000 | 40000 |
TDS | 754 | 715 | 585 | 498 |
Net Salary | 39246 | 39285 | 39415 | 39502 |
Q3
Particulars | Case 1 | Case 2 | Case 3 | Case 4 |
Monthly Flat Salary | 20000 | 35000 | 80000 | 200000 |
Employees has no Savings,However his PF Deducted @ 12%
View AnswerParticulars | Case 1 | Case 2 | Case 3 | Case 4 |
Monthly Salary | 20000 | 35000 | 80000 | 200000 |
Income from Salaries | 240000 | 420000 | 960000 | 2400000 |
Less Standard Deduction | 40000 | 40000 | 40000 | 40000 |
Net Income From Salary | 200000 | 380000 | 920000 | 2360000 |
Income from Other Sources | 0 | 0 | 0 | 0 |
Total Gross Income | 200000 | 380000 | 920000 | 2360000 |
Less Deduction - Chapter VIA | ||||
80C | 28800 | 50400 | 115200 | 288000 (12% PF is allowed as deduction under 80C) |
Total Deduction | 28800 | 50400 | 115200 | 288000 |
Net Total Income | 171200 | 329600 | 804800 | 2072000 |
TAX | 0 | 3980 | 73460 | 434100 |
REBATE | 0 | 2500 | 0 | 0 |
NET TAX | 0 | 1480 | 73460 | 434100 |
CESS | 0 | 59 | 2938 | 17364 |
TAX+ CESS | 0 | 1539 | 76398 | 451464 |
MONTHLY TDS | 0 | 128 | 6367 | 37622 |
Gross Salary | 20000 | 35000 | 80000 | 200000 |
TDS | 0 | 128 | 6367 | 37622 |
Net Salary | 20000 | 34872 | 73633 | 162378 |
If we Repay Housing Loan EMI
In case of Self Occupied Property,
We can claim loss from House Property of Maximum 200,000 of Interest Amount
Also,we can claim Deduction of Principal Amount under Section 80C
(Max Deduction of 80C is 150000)
Q4
Particulars | Amt | Remarks |
Basic Salary | 60000 | |
Children Education Allowance | 4500 | (1500*3 children) |
Variable Pay | 15000 |
Employee pays Tuition fees of Rs.6000(per quarter) per child
Out of which Rs.900 is reimbursed by the company
Also he has 4800 savings bank interest
Emploee PF @12% is deducted
View AnswerParticulars | Amt Recd | Exmpt | Taxable |
Basic Salary p.m | 60000 | 0 | 60000 |
Children Education Allowance | 4500 | 200 | 4300 |
School Fees reimbursement | 0 | 0 | 0 |
Variable Pay | 15000 | 0 | 15000 |
Total | 79500 | 200 | 79300 |
Particulars | Amt |
Monthly Taxable Salary | 79300 |
Income from Salaries | 951600 |
Less Standard Deduction | 40000 |
Net Income From Salary | 911600 |
Income from Other Sources | 4800 |
Total Gross Income | 916400 |
Less Deduction - Chapter VIA | |
80C | 150000 |
80TTA | 4800 |
Total Deduction | 154800 |
Net Total Income | 761600 |
TAX | 64820 |
REBATE | 0 |
NET TAX | 64820 |
CESS | 2593 |
TAX+ CESS | 67413 |
MONTHLY TDS | 5618 |
Gross Salary | 79500 |
Monthly TDS | 5618 |
NET SALARY | 73882 |
Working note for 80C
Particulars | Amt |
Provident Fund | 86400 |
Tuition Fees | 72000 |
1 58400 | |
Max deduction allowed | 150000 |
Q5
Particulars | Case 1 | Case 2 | Case 3 | Case 4 |
Monthly Salary | 20000 | 30000 | 50000 | 100000 |
Interest Income | ||||
On FD | 3000 | 13000 | 30000 | 0 |
On Savings | 2000 | 12000 | 0 | 40000 |
Total | 5000 | 25000 | 30000 | 40000 |
Donation made through cheque | ||||
NGO | 15000 | 60000 | 20000 | 40000 |
Kerala Relief fund | 5000 | 20000 | 20000 | 30000 |
Employees PF is deducted @ 12%
View AnswerParticulars | Case 1 | Case 2 | Case 3 | Case 4 |
Monthly Salary | 20000 | 30000 | 50000 | 100000 |
Income from Salaries | 240000 | 360000 | 600000 | 1200000 |
Less Standard Deduction | 40000 | 40000 | 40000 | 40000 |
Net Income From Salary | 200000 | 320000 | 560000 | 1160000 |
Income from Other Sources | 5000 | 25000 | 30000 | 40000 |
Total Gross Income | 205000 | 345000 | 590000 | 1200000 |
Less Deduction - Chapter VIA | ||||
80C | 28800 | 43200 | 72000 | 144000 |
80TTA | 2000 | 10000 | 0 | 10000 |
80G | 12500 | 49180 | 30000 | 50000 |
Total deductions | 43300 | 102380 | 102000 | 204000 |
Net Total Income | 161700 | 242620 | 488000 | 996000 |
TAX | 0 | 0 | 11900 | 111700 |
REBATE | 0 | 0 | 0 | 0 |
NET TAX | 0 | 0 | 11900 | 111700 |
CESS | 0 | 0 | 476 | 4468 |
TAX+ CESS | 0 | 0 | 12376 | 116168 |
MONTHLY TDS | 0 | 0 | 1031 | 9681 |
Gross Salary | 20000 | 30000 | 50000 | 100000 |
TDS | 0 | 0 | 1031 | 9681 |
Net Salary | 20000 | 30000 | 48969 | 90319 |
Working Note for 80G
Particulars | Case 1 | Case 2 | Case 3 | Case 4 |
Calculation of Qualifying amount | ||||
Gross total income | 205000 | 345000 | 590000 | 1200000 |
Less:Deduction Under cht VIA | 30800 | 53200 | 72000 | 154000 |
Adjusted GTI | 174200 | 291800 | 518000 | 1046000 |
10% of Adjusted GTI | 17420 | 29180 | 51800 | 104600 |
Deductions covered under qualifying limit | ||||
NGO Donation(50%) | 7500 | 30000 | 10000 | 20000 |
Max donation allowed | 7500 | 29180 | 10000 | 20000 |
Deductions not covered under qualifying limit | ||||
Kerala Relief fund | 5000 | 20000 | 20000 | 30000 |
Total deduction under 80G | 12500 | 49180 | 30000 | 50000 |
Deduction u/s 80G
Amount of deduction
- On certains deductions 100% deduction is allowed
- On certain deductions 50% deduction is allowed
Some of these deductions (both 50%/100% are subject to qualifying limit)
Q6
Particulars | Amt |
Basic Salary p.m | 60000 |
Special Pay p.m | 40000 |
Uniform Allowance p.m | 2000 |
(Declaration Given) | |
Transport Allowance p.m | 2500 |
Annual Income | |
Free Alto Car and Driver Given by Co | |
Car Cost | 350000 |
Car cc | 1000 |
Driver Salary p.m | 8000 |
(for Partly official Partly personal) | |
Annual Savings | |
EPF | 12% |
Life Insurance | 10000 |
Medical insurance | |
Self | 11000 |
Spuse | 11000 |
Mother | 11000 |
Father (Senior Citizen) | 11000 |
44000 | |
Donation to PM Relief fund | 3000 |
Donation to Temple | 2000 |
Interest income | |
on FD | 3000 |
On Savings | 14000 |
SALARY
Particulars | Amt Recd | Exmpt | Taxable |
Basic Salary p.m | 60000 | 0 | 60000 |
Special Pay p.m | 40000 | 0 | 40000 |
Uniform Allowance p.m | 2000 | 2000 | 0 |
Transport Allowance p.m | 2500 | 0 | 2500 |
Car | 600 | ||
Driver | 900 | ||
Total | 104500 | 2000 | 104000 |
Particulars | Amt |
Monthly Taxable salary | 104000 |
Income from Salaries | 1248000 |
Less Standard Deduction | 40000 |
Net Income From Salary | 1208000 |
Income from Other Sources | 17000 |
Total Gross Income | 1225000 |
Less Deduction - Chapter VIA | |
80C | 96400 |
80D | 44000 |
80G | 4000 |
80TTA | 10000 |
Total Deduction | 154400 |
Net Total Income | 1070600 |
TAX | 133680 |
REBATE | 0 |
NET TAX | 133680 |
CESS | 5347 |
TAX+ CESS | 139027 |
MONTHLY TDS | 11586 |
Gross Salary | 104500 |
Monthly TDS | 11586 |
Net salary | 92914 |
Q7
Suppose in last question
Housing Loan int repaid | |
Principal | 160000 |
Interest | 260000 |
Total | 420000 |
All other Data Same
View AnswerParticulars | Amt |
Monthly Salary | 104000 |
Income from Salaries | 1248000 |
Less Standard Deduction | 40000 |
Net Income From Salary | 1208000 |
Income From House Property | -200000 |
Income from Other Sources | 17000 |
Total Gross Income | 1025000 |
Less Deduction - Chapter VIA | |
80C | 150000 |
80D | 44000 |
80G | 4000 |
80TTA | 10000 |
Total Deduction | 208000 |
Net Total Income | 817000 |
TAX | 75900 |
REBATE | 0 |
NET TAX | 75900 |
CESS | 3036 |
TAX+ CESS | 78936 |
MONTHLY TDS | 6578 |
Gross Salary | 104500 |
Monthly TDS | 6578 |
NET SALARY | 97922 |
Working note for 80C
Particulars | Amt |
Provident Fund | 86400 |
LIC | 10000 |
Interest | 160000 |
Total | 256400 |
Max Deduction allowed | 150000 |
Q9
Particulars | Amt | Remarks |
Basic Salary | 40000 | |
Lunch Allowance | 4000 | |
Transport Allowance | 2500 | (No Bill Submitted) |
Children Education Allowance | 4500 | (1500*3 children) |
Variable Pay | 30000 | |
HRA | 15000 | (He had given declaration that he would submit Rent receipts by march of 18000 of Noida but in March had failed to do so) |
Employee Savings Declared
Housing Loan | Declared | Submitted |
Principal | 40000 | 38000 |
Interst | 30000 | 32000 |
Medical ins (Self) | 15000 | 14000 |
Calculate TDS from April to Feb and in March
View AnswerApr-Feb
Particulars | Amt Recd | Exmpt | Taxable |
Basic Salary | 40000 | 0 | 40000 |
Lunch Allowance | 4000 | 0 | 4000 |
Transport Allowance | 2500 | 0 | 2500 |
Children Education Allowance | 4500 | 200 | 4300 |
Variable Pay | 30000 | 0 | 30000 |
HRA | 15000 | 14000 | 1000 |
Total | 96000 | 14200 | 81800 |
Particulars | Amt |
Income from Salaries | 981600 |
Less Standard Deduction | 40000 |
Net Income From Salary | 941600 |
Income From House Property | -30000 |
Income from Other Sources | 0 |
Total Gross Income | 911600 |
Less Deduction - Chapter VIA | |
80C | 40000 |
80D | 15000 |
80G | 0 |
80TTA | 0 |
Total Deduction | 55000 |
Net Total Income | 856600 |
TAX | 83820 |
REBATE | 0 |
NET TAX | 83820 |
CESS | 3353 |
TAX+ CESS | 87173 |
MONTHLY TDS | 7264 |
Gross Salary | 96000 |
Monthly tds | 7264 |
NET SALARY | 88736 |
Calculation For HRA
Particular | Amount |
Actual Received | 15000 |
Rent Paid-10% of Basic+DA | 14000 |
40% of Basic+DA | 16000 |
Whichever Is Less | 14000 |
March
Particulars | Amt Recd | Exempt | Taxable |
Basic Salary | 40000 | 0 | 40000 |
Lunch Allowance | 4000 | 0 | 4000 |
Transport Allowance | 2500 | 0 | 2500 |
Children Education Allowance | 4500 | 200 | 4300 |
Variable Pay | 30000 | 0 | 30000 |
HRA | 15000 | 0 | 15000 |
Total | 96000 | 200 | 95800 |
Particulars | Amt |
Income from Salaries | 1149600 |
Less Standard Deduction | 40000 |
Net Income From Salary | 1109600 |
Income From House Property | -32000 |
Income from Other Sources | 0 |
Total Gross Income | 1077600 |
Less Deduction - Chapter VIA | |
80C | 38000 |
80D | 14000 |
80G | 0 |
80TTA | 0 |
Total Deduction | 52000 |
Net Total Income | 1025600 |
TAX | 120180 |
REBATE | 0 |
NET TAX | 120180 |
CESS | 4807 |
TAX+ CESS | 124987 |
MONTHLY TDS | 45083 |
Gross Salary | 96000 |
Monthly tds | 45083 |
NET SALARY | 50917 |
Working Note | |
Total Tax | 124987 |
Less Tax Already Deducted | 79904 |
Balamce Tax | 45083 |
Balance Months | 1 |
TDS | 45083 |