Benefits available only to
Individuals & HUFs
|
S.N.
|
A.Tax Rates and Relief
|
Benefits
|
Available to
|
|
1.
|
Maximum amount of income which is
not chargeable to Income-tax
|
Rs. 2,50,000
|
Individual/HUF
|
|
2.
|
Maximum amount of income which is
not chargeable to Income-tax in the hands of a resident senior citizen,
who is at least 60 Years of age at
any time during the previous year but less than 80 Years of age on the last
day of the previous year
|
Rs. 3,00,000
|
Resident Senior Citizen
|
|
3.
|
Maximum amount of income which is
not chargeable to Income-tax in the hands of a resident super senior citizen
who is at least 80 Years of age at
any time during the previous year
|
Rs. 5,00,000
|
Resident Super Senior Citizen
|
|
4.
|
Rebate to resident individual
whose total income does not exceed Rs. 3,50,000 [Section 87A]
|
Tax payable but subject to maximum
of Rs. 2,500
|
Resident Individual
|
|
5.
|
HUF is assessed to tax as a
separate entity
|
HUF is treated as a person
distinct from Individual members or Karta.
|
HUF
|
B. Income Exempt from Tax
|
S.N.
|
Section
|
Particulars
|
Limit of exemption
|
Available to
|
|
1.
|
Amount received by individual
member from HUF. [Subject to the provisions of Section
64(2)]
|
Entire amount
|
Individual, being a member of an
HUF
|
|
|
2.
|
Share of profit received by
partners from a partnership firm.
|
Entire amount
|
Partners in a partnership firm
|
|
|
3.
|
Interest on money standing to the
credit in a Non-resident (External) account in India.
|
Entire amount
|
Person resident outside India
(under FEMA Act) and person who has been permitted to maintain said account
by RBI
|
|
|
4.
|
Interest on notified savings
certificates issued before 01-06-2002 by the Central Government and
subscribed to in convertible foreign exchange.
|
Entire Amount
|
Individual, being a citizen of
India or a person of Indian Origin, who is a non resident.
|
|
|
5.
|
Leave travel concession or
assistance received by an employee (Subject to certain conditions and limited
to amount actually spent)
Notes:
• The amount should be received by employee
from his employer or former employer for leave to any place in India during
term of service or after retirement/termination;
• Exemption shall be available for amount
incurred in respect of fare for going anywhere in India by employee along
with his family. The family means — her/his spouse and children, parents,
brothers and sisters only when they are wholly or mainly dependent on the
assessee.
• The exemption can be availed for two
journeys in a block of 4 calendar years.
• Exemption shall be available for journey
performed by a shortest route and by prescribed mode of transportations in
prescribed situations.
|
Limited to amount actually spent
and subject to maximum limits as specified
|
Individual - Salaried Employee
|
|
|
6.
|
Remuneration received by Foreign
Diplomats/Consulate and their staff (Subject to conditions)
|
Entire Amount
|
Individual (not being a citizen of
India)
|
|
|
7.
|
Remuneration received by
non-Indian citizen as employee of a foreign enterprise for services rendered
in India, if:
a) Foreign enterprise is not engaged in any trade or
business in India
b) His stay in India does not exceed in aggregate a period
of 90 days in such previous year
c) Such remuneration is not liable to deducted from the
income of employer chargeable under this Act
|
Entire Amount
|
Individual - Salaried Employee
(not being a citizen of India)
|
|
|
8.
|
Salary received by a non-resident,
for services rendered in connection with his employment on a foreign ship if
his total stay in India does not exceed 90 days in the previous year.
|
Entire Amount
|
Non-resident Individual - Salaried
Employee (not being a citizen of India)
|
|
|
9.
|
Remuneration received by an
Individual, who is not a citizen of India, as an employee of the Government
of a foreign state during his stay in India in connection with his training
in any Government Office/Statutory Undertaking, etc.
|
Entire Amount
|
Individual - Salaried Employee
(not being a citizen of India)
|
|
|
10.
|
Foreign allowances or perquisites
paid or allowed by Government to its employees posted outside India
|
Entire Amount
|
Individual- Salaried Employee
(being a citizen of India)
|
|
|
11.
|
Foreign income and remuneration
received from Foreign Government in connection with any co-operative
technical assistance programme and projects in accordance with agreement
entered into by Central Government and Foreign Government (Subject to certain
conditions).
|
Entire Amount
|
Individual
|
|
|
12.
|
Foreign income and remuneration
received by consultant (agreement relating to his engagement must be
approved) out of funds made available to an international organization
(agency) under a technical assistance grant agreement between that agency and
the Government of a foreign State (Subject to certain conditions).
|
Entire Amount
|
Individual, being a:
a) A non-resident engaged by the agency for rendering
technical services in India;
b) Non-Indian citizen; or
c) Indian citizen who is not ordinarily resident in India
|
|
|
13.
|
Foreign income and remuneration
received by an employee off the consultant as referred to in Section
10(8A) (contract of service must be approved by the
prescribed authority before commencement of service).
|
Entire Amount
|
Individual, being a:
a) Non-Indian citizen; or
b) Indian citizen who is not ordinarily resident in India
|
|
|
14.
|
Income of any member of family of
any individual [referred to insection
10(8), 10(8A) or 10(8B)]
which accrues or arises outside India and is not deemed to accrue or arise in
India and which is subject to tax in that foreign country
|
Entire Amount
|
Individual
|
|
|
15.
|
Death-cum-Retirement Gratuity
received by:
(i) Government employees
|
Entire Amount
|
Individual - Salaried Employee
|
|
|
(ii) Other employees who are
covered under Gratuity Act, 1972
|
Least of following amount is
exempt from tax:
1. (*15/26) X Last drawn salary** X completed year of
service or part thereof in excess of 6 months.
2. Rs. 10,00,000
3. Gratuity actually received.
*7 days in case of employee of
seasonal establishment.
** Salary = Last drawn salary
including DA but excluding any bonus, commission, HRA, overtime and any other
allowance, benefits or perquisite
|
|||
|
(iii) Other employees who are not
covered under Gratuity Act, 1972
|
Least of following amount is
exempt from tax:
1. 1/2 X Average Salary* X Completed years of service
2. Rs. 10,00,000
3. Gratuity actually received.
*Average salary = Average Salary
of last 10 months immediately preceding the month of retirement
**Salary = Basic Pay + Dearness
Allowance (to the extent it forms part of retirement benefits)+ turnover based
commission
|
|||
|
16.
|
Commuted value of pension received
by:
a) Government employee
|
Entire Amount
|
Individual - Salaried Employee
|
|
|
b) Other employees
|
1. 1/3rd of full value of commuted
pension, if gratuity is received by the employee
2. 1/2 of full value of commuted pension, if gratuity is
not received by the employee
|
|||
|
18.
|
Encashment of unutilized earned
leave at the time of retirement by:
a) Government employee;
|
Entire Amount
|
Individual - Salaried Employee
|
|
|
|
b) Other employees
|
Least of the following shall be
exempt from tax:
a) Amount actually received
b) Unutilized earned leave* X Average monthly salary
c) 10 months Average Salary**
d) Rs. 3,00,000
*While computing unutilized earned
leave, earned leave entitlements cannot exceed 30 days for each year of
service rendered to the current employer
**Average salary = Average Salary*** of last 10 months
immediately preceding the retirement
***Salary = Basic Pay + Dearness
Allowance (to the extent it forms part of retirement benefits)+ turnover
based commission
|
||
|
19.
|
Retrenchment Compensation received
by a workman under the Industrial Dispute Act, 1947. (Subject to certain
conditions)
|
Least of the following shall be
exempt from tax:
a) An amount calculated as per section 25F(b) of the
Industrial Disputes Act, 1947;
b) Rs. 5,00,000; or
c) Amount actually received.
|
Individual - Salaried Workmen
|
|
|
20.
|
Compensation received for any
disaster from Government/ Local Authority (Subject to certain conditions)
|
Entire amount except for the amount allowed as deduction
under this Act on account of loss caused by such disaster.
|
Individual or his Legal heir
|
|
|
21.
|
Amount received on Voluntary
Retirement or Voluntary Separation (Subject to certain conditions).
|
Least of the following is exempt
from tax:
1) Actual amount received as per
the guidelines i.e. least of the following
a) 3 months salary for each completed year of services
b) Salary at the time of retirement X No. of months of
services left for retirement; or
2) Rs. 5,00,000
|
Individual - Salaried Employee
|
|
|
22.
|
Tax paid by the employer on
perquisites (not provided for by way of monetary payments) given to employee
|
Entire Amount
|
Individual - Salaried Employee
|
|
|
23.
|
Any sum received under a Life
Insurance Policy including bonus (excluding Keyman Insurance Policy) (Subject
to certain conditions)
|
Entire Amount
|
Any Assessee
|
|
|
24.
|
Payment from Public Provident Fund
or Statutory Provident Fund
|
Entire Amount
|
Individual and HUF
|
|
|
24A.
|
Any payment from an account,
opened in accordance with the Sukanya Samriddhi Account Rules, 2014
|
Entire amount (including interest
accrued on the deposit made in such account) shall be exempt from tax
|
Individual (who deposited the
amount in accordance with Sukanya Samriddhi Account Rules, 2014)
|
|
|
25.
|
Accumulated balance payable to
employee participating in recognized PF (subject to certain conditions).
|
To the extent provided in Rule 8
of Part A of the Fourth Schedule of the Income-Tax Act.
|
Individual - Salaried Employee
|
|
|
25A
|
Sum received from the National
Pension System Trust by an employee on account of closure or opting out of
the pension scheme referred to in section
80CCD.
|
Exempt up to 40% of amount due at
the time of closure or opting out of the scheme.
|
|
|
|
25B
|
Partial withdrawal from National
Pension System Trust (section
80CCD)
|
Exempt up to 25% of amount of
contributions made by the employee
|
Employee
|
|
|
26.
|
Payment from Approved
Superannuation Fund on death or retirement of employee, etc. (Subject to
certain conditions)
W.e.f assessment year 2017-18, any
amount transferred from superannuation fund to the notified pension scheme
referred to in Section 80CCD shall also be exempt from tax.
|
Exempt subject to certain limits
|
Individual - Salaried Employee
|
|
|
27.
|
House Rent Allowance
|
Least of the following is exempt
from tax:
(i) 50% of salary* for metro cities** and 40% of salary
for other cities
(ii) Actual HRA received
(iii) Excess of rent paid over 10% of salary*
* Salary = Aggregate of basic
salary, DA (to the extent it forms part of retirement benefits) and turnover
based commission
** Delhi, Mumbai, Kolkata, Chennai
|
Individual - Salaried Employee
|
|
|
28.
|
Prescribed allowances for performance of official duties.
|
To the extent allowance actually
incurred for the performance of official duties.
|
Individual - Salaried Employee
|
|
|
29.
|
Interest on Notified Capital
Investment Bonds notified prior to 01-06-2002.
|
Interest Amount
|
Individual and HUF
|
|
|
Interest on notified Relief Bonds.
|
Interest Amount
|
Individual and HUF
|
||
|
Interest on notified bonds
(notified prior to 01-06-2002) purchased in foreign exchange (subject to
certain conditions)
|
Interest Amount
|
Individual, being a:
a) NRI or nominee or survivor of NRI;
b) Individual to whom bonds have been gifted by NRI.
|
||
|
Interest payable by scheduled bank
on deposits in foreign currency where acceptance of such deposits by the
bank is duly approved by RBI.
|
Interest Amount
|
a) Non-resident
b) Individual or HUF being a resident but not ordinary
resident
|
||
|
Interest received from Government
on deposits in notified scheme out of moneys due on account of retirement.
|
Interest Amount
|
Individual, being an employee of
Central and State Government or Public Sector Company.
|
||
|
Interest on deposits made on or
after 01.04.2005 is an offshore banking unit referred to in Section 2(u) of
the Special Economic Zones Act, 2005.
|
Interest Amount
|
Person who is a non-resident or
not ordinarily resident.
|
||
|
30.
|
Scholarships granted to meet the
cost of education.
|
Entire Amount
|
Individual
|
|
|
31.
|
Daily Allowances received by
members of Parliament.
|
Entire Amount
|
Individual - Member of Parliament
or State Legislature or any Committee thereof.
|
|
|
Any Allowance received by MP under
Member of Parliament (Constituency Allowance) Rules, 1986.
|
Entire Amount
|
Individual - Member of Parliament
|
||
|
Any Constituency Allowance
received.
|
Entire Amount
|
Individual - Member of State
Legislature
|
||
|
32.
|
Pension received by an individual
who has won specified/notified gallantry awards and family pension received
by any family member of such individual
|
Entire Amount
|
Individual - Central or State
Government Employees or his family member
|
|
|
33.
|
Family pension received by the
widow, children or nominated heirs of a member of the armed forces (including
paramilitary forces) where death of such member has occurred in the course of
operational duties (subject to prescribed conditions and circumstances)
|
Entire Amount
|
Individual - Widow or children or
nominated heirs of members of the armed forces.
|
|
|
34.
|
Notional annual value of any one
palace occupied by former Ruler.
|
Entire amount
|
Individual
|
|
|
34A
|
Any income received by a unit
holder from an investment fund [being of the same nature as income chargeable
under the head PGBP]
|
That proportion of distributed
income which is of the same nature as income chargeable under the head PGBP.
|
Unit holder of an investment fund
specified under Section 115UB
|
|
|
34B
|
Any income received by a unit
holder from business trust, not being that proportion of the income of
business trust which is in the nature of:
a) interest received or receivable from a SPV; or
b) any income from renting or leasing or letting out any
real estate asset owned directly by such business trust (REIT)
|
Any income (except interest
received from a SPV or any rental income) distributed by business trust to
its unit holders
|
Unit holder of a business trust.
|
|
|
35.
|
Specified income of a member of
Specified Scheduled Tribes residing in Specified Areas.
|
Entire Amount
|
Individual being a member of Scheduled
Tribe
|
|
|
36.
|
Income from any source in the
State of Sikkim or income by way of dividend or interest on securities
(Subject to certain conditions).
|
Entire Amount
|
Individual, being a Sikkimese
(other than Sikkimese Woman who, after 31-03-2008, marries non-Sikkimese)
|
|
|
37.
|
Income of minor child clubbed
under Section
64(1A) with parent’s income.
|
Rs. 1,500 per child or Income of
Minor, whichever is lower
|
Individual
|
|
|
38.
|
Capital gains arising on
compulsory acquisition of urban agriculture land, if:
a) Compensation is received after 31-03-2004; and
b) Agriculture land was used by taxpayer or his parents
for agricultural purpose during last two years
(Subject to certain conditions)
|
Entire Amount of capital gains
|
Individual and HUF
|
|
|
38A
|
Capital Gains arising on transfer
of land under Land Pooling Scheme under the Andhra Pradesh Capital City Land
Pooling Scheme (Formulation and Implementation) Rules, 2015.
|
Entire amount of capital gains
|
Individual and HUF
|
|
|
39.
|
Amount received by an Individual
as a loan under reverse mortgage scheme referred to in Section
47(xvi)
|
Entire Amount
|
Individual
|
|
|
40.
|
Any notified allowance/ perquisite
paid to the Chairman/retired Chairman or any other member/ retired member of
UPSC
|
Entire Amount
|
Individual - Chairman/ Retired
Chairman or any other member/ retired member of UPSC
|
*For detailed conditions refer
Income Tax Act, 1961
C. Deductions allowable from Taxable
Income to Individual/ HUF
|
S.N.
|
Section
|
Particulars
|
Limit of exemption
|
Available to
|
|
I. Deduction from Salaries
|
||||
|
1.
|
Entertainment Allowance
|
Least of the following is exempt
from tax:
a) Rs 5,000
b) 1/5th of salary (excluding any allowance, benefits or
other perquisite)
c) Actual entertainment allowance received
|
Individual - Government Employee
|
|
|
2.
|
Employment Tax/Professional Tax.
|
Amount actually paid during the
year
|
Individual - Salaried Employee
|
|
|
3.
|
-
|
Lump-sum payment made gratuitously
or by way of compensation or otherwise to widow or other legal heirs of an
employee who dies while still in active service [Circular No. 573, dated
21-08-1990]
|
Enter amount paid in lump-sum
|
Individual - Widow or other legal
heirs of employee.
|
|
4.
|
-
|
Ex-gratia payment to a person (or
legal heirs) by Central or State Government, Local Authority or Public Sector
Undertaking consequent upon injury to the person or death of family member
while on duty [Circular No. 776, dated 08-06-1999]
|
Enter amount paid as ex-gratia
|
Individual or legal heirs.
|
|
5.
|
Any portion of salary received in
arrears or in advance or profit received in lieu of salary [Subject to
certain conditions and circumstances]
|
Relief to the extent computed in
accordance with Section 89
|
Individual - Salaried Employee
|
|
|
6.
|
Allowances (Subject to certain
conditions and circumstances)
|
Various allowances allowed to an
employee are exempt from to tax up to certain limit*.
* Refer the document of ‘Allowance
available for different category of taxpayers’
|
Individual - Salaried Employee
|
|
|
II. Income from Business
and Profession
|
||||
|
1.
|
Computation of income from
eligible business on presumptive basis under Section
44AD provided turnover of eligible business does not exceed
Rs. 2 crore (Subject to certain conditions).
Note: If an assessee opts out of the presumptive taxation
scheme, after a specified period, he cannot choose to revert back to the
presumptive taxation scheme for a period of five assessment years thereafter.
[Section 44AD(4)]
|
Presumptive income of eligible
business shall be 8 % of gross receipt or total turnover.
Note: Presumptive income shall be
calculated at rate of 6% in respect of total turnover or gross receipts which
is received by an accountpayee cheque or draft or use of electronic clearing
system.
|
Resident Individual, Resident HUF
or Resident Partnership Firm (Other than LLP)
|
|
|
2.
|
Computation of income from
specified profession on presumptive basis if the total gross receipts from
such profession do not exceed fifty lakh rupees in a previous year.
(Subject to conditions)
|
Presumptive income of such
profession shall be 50% of total gross receipt.
|
Resident Assessee
|
|
|
III. Deductions from
Capital Gains
|
||||
|
1.
|
Investment of long-term capital
gains, arising from sale of residential house or land appurtenant thereto, in
purchase/construction of one new residential house (Subject to certain
conditions and limits).
|
Amount invested in one new house
or capital gain, whichever is lower.
|
Individual and HUF
|
|
|
2.
|
Investment of capital gains,
arising from transfer of land used for agricultural purposes by an individual
or his parents or a HUF, in other agricultural land (Subject to certain
conditions and limits).
|
Amount invested in agricultural
land or capital gains, whichever is lower.
|
Individual and HUF
|
|
|
3.
|
Investment of long-term capital
gains, arising from transfer of any long term asset other than a residential
house property, in one new residential house property, provided that on the
date of transfer the assessee should not own more than one residential house
property (Subject to certain conditions and limits).
|
Amount invested in one new asset X
capital gains/ et Consideration
|
Individual and HUF
|
|
|
4.
|
Investment of long-term capital
gains arising from transfer of long-term capital asset, being a residential
property, for subscribing the equity shares of an eligible company and such
company has, within one year from the date of subscription, utilized this
amount for purchase of specified new asset (subject to certain conditions and
limits).
Note:
1. W.e.f. April 1, 2017, eligible start-up is
also included in definition of eligible company.
2. Provisions of this section shall not apply
to any transfer of residential property made after March 31, 2017. However,
in case of an investment in eligible start-up, the residential property can
be transferred up to March 31, 2019.
|
Amount invested in new asset by
eligible Co. X Capital gains/Net Consideration
|
Individual and HUF
|
|
|
IV. Deductions from Income
from Other Sources
|
||||
|
1.
|
Any sum of money or immovable
property or movable property received on or after April 1, 2017 without
consideration or for inadequate consideration from a relative or member of
HUF (subject to certain conditions and circumstances).
|
The whole amount received from
specified relatives or in specified circumstances shall not be included in
taxable income.
|
Any
person
|
|
|
V. General-Deductions
related to certain payments
|
||||
|
1.
|
1. Life insurance premium for
policy:
a) in case of individual, on life of assessee, assessee’s
spouse and any child of assessee
b) in case of HUF, on life of any member of the HUF
2. Sum paid under a contract for a
deferred annuity:
a) in case of individual, on life of the individual,
individual’s spouse and any child of the individual (however, contract should
not contain an option to receive cash payment in lieu of annuity)
b) in case of HUF, on life of any member of the HUF
3. Sum deducted from salary
payable to Government servant for securing deferred annuity or making
provision for his wife/children [qualifying amount limited to 20% of salary]
4. Contributions by an individual
made under Employees’ Provident Fund Scheme
5. Contribution to Public
Provident Fund Account in the name of:
a) in case of individual, such individual or his spouse or
any child of such individual
b) in case of HUF, in the name of any member there of
6. Contribution by an employee to
a recognized provident fund
7. Contribution by an employee to
an approved superannuation fund
8. Subscription to any notified
security or notified deposit scheme of the Central Government.
For this purpose, Sukanya
Samriddhi Account Scheme has been notified vide Notification
No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya
Samriddhi Account by an individual would be eligible for deduction.
Amount can be deposited by an
individual in the name of her girl child or any girl child for whom such an
individual is the legal guardian.
9. Subscription to notified
savings certificates [National Savings Certificates (VIII Issue)]
10. Contribution for participation
in unit-linked Insurance Plan of UTI:
a) in case of an individual, in the name of the
individual, his spouse or any child of such individual
b) in case of a HUF, in the name of any member thereof
11. Contribution to notified
unit-linked insurance plan of LIC Mutual Fund:
a) in the case of an individual, in the name of the
individual, his spouse or any child of such individual
b) in the case of a HUF, in the name of any member thereof
12. Subscription to notified
deposit scheme or notified pension fund set up by National Housing Bank [Home
Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme,
2008]
13. Tuition fees (excluding
development fees, donations, etc.) paid by an individual to any university,
college, school or other educational institution situated in India, for full
time education of any 2 of his/her children
14. Certain payments for
purchase/construction of residential house property
15. Subscription to notified
schemes of (a) public sector companies engaged in providing long-term finance
for purchase/construction of houses in India for residential purposes/(b)
authority constituted under any law for satisfying need for housing
accommodation or for planning, development or improvement of cities, towns
and villages, or for both
16. Sum paid towards notified
annuity plan of LIC or other insurer
17. Subscription to any units of
any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving
Scheme, 2005)
18. Contribution by an individual
to any pension fund set up by any mutual fund which is referred to in section
10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)
19. Subscription to equity shares
or debentures forming part of any approved eligible issue of capital made by
a public company or public financial institutions
20. Subscription to any units of
any approved mutual fund referred to in section
10(23D), provided amount of subscription to such units is
subscribed only in ‘eligible issue of capital’ referred to above.
21. Term deposits for a fixed
period of not less than 5 years with a scheduled bank, and which is in
accordance with a scheme framed and notified.
22. Subscription to notified bonds
issued by the NABARD.
23. Deposit in an account under
the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)
24. 5-year term deposit in an
account under the Post Office Time Deposit Rules, 1981 (subject to certain
conditions)
|
Up to 1,50,000 (Subject to overall
limit of Rs. 1,50,000 underSection 80C, 80CCC and 80CCD)
|
Individual and HUF
|
|
|
2.
|
Contribution to certain specified
Pension Funds of LIC/other insurer (Subject to certain conditions).
|
Up to 1,50,000 (Subject to overall
limit of Rs. 1,50,000 underSection 80C, 80CCC and 80CCD)
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Individual
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3.
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Contribution to Pension Scheme
(NPS) notified by the Central Government (Subject to certain conditions).
Note:-
1. Deduction under section
80CCD(2) on account of contribution made by the employer to a
pension scheme is not subject to ceiling limit of Rs. 1,50,000 as provided
under section
80CCE.
2. Addition deduction of Rs.
50,000 shall not be allowed in respect of contribution which is considered
for deduction under section
80CCD(1), i.e., limit of 10% of salary/gross total income
3. Any payment from NPS to an
employee because of closure or his opting out of the pension scheme is exempt
to the extend of 40%. However, with effect from the assessment year 2017-18,
the whole amount received by the nominee from NPS on death of the assessee
shall be exempt from tax.
4. Any partial withdrawal from NPS
shall be exempt to the extent of 25% of amount of contributions made by the
employee.
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Amount contributed to pension
scheme or 10% of salary/gross total income*, whichever is less (subject to
ceiling limit of Rs. 1,50,000 as provided under Section 80CCE) shall be
allowed as deduction under section
80CCD(1).
Additional deduction to the extent
of Rs. 50,000 shall also be available to the assessee under section
80CCD(1B). The additional deduction is not subject to ceiling
limit of Rs. 1,50,000 as provided under Section 80CCE.
Contribution made by employer
shall also be allowed as deduction under section
80CCD(2) while computing total income of the employee.
However, amount of deduction could not exceed 10% of salary of the employee.
*10% of salary in case of
employees otherwise 20% of gross total income.
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Individual
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4.
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Amount invested by specified
resident individuals in listed shares or listed units in accordance with
notified scheme for a lock-in period of 3 years (Subject to certain
conditions).
Note: No deduction shall be allowed under this Section from
Assessment Year 2018-19. However, an assessee who has claimed deduction under
this Section earlier shall be allowed deduction till assessment year 2019-20.
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Deduction of 50% of total
investment subject to maximum of Rs. 25,000 is allowed for 3 consecutive
assessment years, beginning with the assessment year relevant to the previous
year in which the listed shares or list units of equity oriented funds are
first acquired
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Specified Resident Individual
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5.
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Amount paid (in any mode other
than cash) by an individual or HUF to LIC or other insurer to effect or keep
in force an insurance on the health of specified person*. An individual can
also make payment to the Central Government health scheme and/or on account
of preventive health check-up.
* specified person means:
- In case of Individual - self, spouse, dependent children
or parents
- In case of HUF - Any member thereof
Note:
1. Deduction for preventive health check-up shall not
exceed in aggregate Rs. 5,000.
2. Payment on account of preventive health check-up may be
made in cash.
3. Within overall limit, deduction shall also be allowed
up to Rs. 30,000 towards medical expenditure incurred on the health of
specified person provided such person is a very senior citizen and no amount
has been paid to effect or to keep in force an insurance on the health of
such person.
4. 'Senior citizen' means an individual resident in India
who is of the age of sixty years or more at any time during the relevant
previous year.
5. 'Very senior citizen' means an individual resident in
India who is of the age of eighty years or more at any time during the
relevant previous year.
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In case of Individual, amount
paid:
a) For self, spouse and dependent
children: Up to Rs. 25,000 (Rs. 30,000 if specified person is a senior
citizen or very senior citizen)
b) For parents: additional
deduction of Rs. 25,000 shall be allowed (Rs. 30,000 if parent is a senior
citizen or very super senior citizen)
In case of HUF, up to Rs. 25,000
(Rs. 30,000 if specified person is a senior citizen or very senior citizen).
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Individual/HUF
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6.
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a) Any expenditure incurred for the medical treatment
(including nursing), training and rehabilitation of a dependent, being a
person with disability
b) Any amount paid or deposited under an approved scheme
framed in this behalf by the LIC or any other insurer or the Administrator or
the specified company for the maintenance of a dependent, being a person with
disability
(Subject to certain conditions).
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Rs. 75,000 (Rs. 1,25,000 in case
of severe disability)
Note:
"dependant" means—
(i) in the case of an individual,
the spouse, children, parents, brothers and sisters of the individual or any
of them;
(ii) in the case of a HUF, any
member thereof,
dependant wholly or mainly on such
individual or Hindu undivided family for his support and maintenance, and who
has not claimed any deduction under section 80U in computing his total income
for the assessment year relating to the previous year.
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Resident Individual and HUF
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7.
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Expenses actually paid for medical
treatment of specified diseases and ailments for:
a) In case of Individual: Assessee himself or wholly
dependent spouse, children, parents, brothers and sisters
b) In case of HUF: Any member of the family who is wholly
dependent upon the family
(Subject to certain conditions).
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Up to Rs. 40,000 (Rs. 60,000 in
case of senior citizen and Rs. 80,000 in case of very senior citizen)
With effect from assessment year 2016-17, the prescription
for medical treatment may be obtained from any specialist doctor not
necessarily from a doctor working in Government hospital only.
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Resident Individual and HUF
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8.
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Amount paid out of income
chargeable to tax by way of payment of interest on loan taken from financial
institution/approved charitable institution for pursuing higher education
(Subject to certain conditions).
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The amount of interest paid during
initial year and 7 immediately succeeding assessment years (or until the
above interest is paid in full).
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Individual
|
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9.
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Interest payable on loan taken up
to Rs. 35 lakhs by taxpayer from any financial institution, sanctioned during
the FY 2016-17, for the purpose of acquisition of a residential house
property whose value doesn't exceed Rs. 50 lakhs.
Note:
1. On the date of sanction of loan, taxpayer
should not own any other residential house property.
2. The deduction is available from AY 2017-18
and subsequent assessment years.
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Deduction of up to Rs. 50,000
towards interest on loan.
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Individual
|
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10.
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Rent paid for
furnished/unfurnished residential accommodation (Subject to certain
conditions)
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Least of the following shall be
exempt from tax:
a) Rent paid in excess of 10% of total income*;
b) 25% of the Total Income; or
c) Rs. 5,000 per month.
Total Income = Gross total
income minus long term capital gains, short-term capital
gains under section
111A, deductions undersections
80C to 80U (other
than 80GG)
and income under section
115A
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Individual not receiving HRA
|
|
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11.
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Royalty income of authors of
certain specified category of books other than text books
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Least of the following shall be
exempt from tax:
a) In case of Lump sum payment - Amount of royalty income
subject to maximum of Rs. 3,00,000
b) In other cases — amount of such income subject to
maximum of 15% of value of books sold during the previous year.
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Resident Individual — Authors
|
|
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12.
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Royalty in respect of patents
registered on or after 01.04.2003 (subject to certain conditions)
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100% of royalty subject to maximum
of Rs. 3,00,000
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Resident Individual - Patentee
|
|
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13.
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Interest on deposits in saving
account with a banking company, a post office, co-operative society engaged
in banking business, etc. (Subject to certain conditions)
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100% of amount of such income
subject to maximum of Rs. 10,000
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Individual and HUF
|
|
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14.
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A resident individual who, at any
time during the previous year, is certified by the medical authority to be a
person with disability [as defined under Persons with Disabilities (Equal
Opportunities, Protection of Rights and Full Participation) Act, 1995]
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Rs. 75,000 (Rs. 1,25,000 in case
of severe disability)
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Resident Individual
|
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D. Tax Deducted at Source and
Advance Tax
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S.N.
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Section
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Particulars
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Nature of exemption
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Available to
|
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1.
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Lower rate of TDS under Section
194C in case of payments to a contractor or sub-contractor
Tax is required to be deducted
only if sum paid exceeds Rs. 30,000 or aggregate of sum paid during the
financial year exceeds 75,000 (Rs. 100,000 from 01.06.2016).
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Deduction of tax at source at 1%
if recipient is an Individual or HUF
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Individual or HUF
|
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1A.
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No TDS from interest paid on 4.25%
National Defence Bonds, 1972, 4.25% National Defence Loan, 1968, or 4.75%
National Defence Loan, 1972
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No TDS from interest
|
Resident Individual
|
|
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2.
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No TDS from interest paid on
debentures issued by a company in which public are substantially interested.
Provided interest is paid by account payee cheque.
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No TDS if interest during the
financial year does not exceed Rs. 5,000
|
Resident Individual or HUF
|
|
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3.
|
-
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No obligation to deduct tax at
source under Section
194A, 194C,194H, 194-I and 194J if
an Individual or HUF carries on a business or profession and total sales,
turnover or gross receipts from such business or profession does not exceed
the monetary limit specified under Section
44AB during the financial year immediately preceding the
financial year in which sum is to be credited or paid.
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Not liable to deduct tax at source
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Individual or HUF
|
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4.
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No deduction of tax shall be made
under Sections
194 and 194EE,
if resident individual furnishes to the payer a written declaration in
prescribed form that tax on his estimated total income of the previous year
will be nil.
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No tax shall be deducted from
specified payments if the sum paid does not exceed the maximum amount which
is not chargeable to tax
|
Resident Individual
|
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5.
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No deduction of tax shall be made
under section
192A, 193, 194,194A, 194DA, 194EE and 194K if
resident senior citizen furnishes to the payer a written declaration in
prescribed form that tax on his estimated total income of the previous year
will be nil.
With effect from assessment year
1-6-2016, the scope of section
197A has been extended to cover section
194-I (payment of rent)
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No tax shall be deducted from
specified payments
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Resident Individual — Senior
Citizen and Super Senior Citizen
|
|
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6.
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Exemption from payment of advance
tax by a resident senior citizen or resident super senior citizen not having
any income from business or profession
(who is at least 60 Years of age
at any time during the previous year)
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Not liable to pay advance tax
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Resident Senior Citizen and
Resident Super Senior Citizen
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7.
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Assessee who has opted for
presumptive taxation scheme underSection
44AD
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No need to pay advance tax in
installments. Assessee can pay whole amount in one installment on or before
15th March of the financial year
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Resident individual, Resident HUF
or Resident Partnership Firm (Other than LLP)
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|
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8.
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Assessee who has opted for
presumptive taxation scheme under section 44ADA
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No need to pay advance tax in
installments. Assessee can pay whole amount in one installment on or before
15th March of the financial year
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Resident assessee who is engaged
in a profession referred to in section 44AA(1)
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