Income Tax Ready reckoner & calculator FY 2013-14 for salaried persons

ASSESSMENT YEAR 2014-2015  RELEVANT TO FINANCIAL YEAR 2013-2014 1. Tax Slab for an Individual (resident & below 60 years) or ...

ASSESSMENT YEAR 2014-2015 RELEVANT TO FINANCIAL YEAR 2013-2014

1. Tax Slab for an Individual (resident & below 60 years) or HUF/AOP/BOI/AJP

Income Slabs	Tax Rates
Total income up to Rs. 2 Lac	0% Tax
Total income above Rs. 2 Lac and below Rs.5 Lac	10% on amount exceeding Rs. 2 Lac
Total income above Rs. 5 Lac and below Rs.10 Lac	20% on Income exceeding Rs. 5 Lac + Rs. 30,000
Total income more than Rs. 10 Lac	30% on Income exceeding Rs. 10 Lac + Rs. 1,30,000

* u/s 87A the Individual having taxable income up to Rs. 5 Lac , can claim rebate, on the Actual Tax amount subject to a maximum of Rs.2,000

Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable

2. Tax Slab for an Individual (resident & above 60 years but below 80 years)

Income Slabs	Tax Rates
Total income up to Rs. 2.50 Lac	0% Tax
Total income above Rs. 2.50 Lac and below Rs.5 Lac	10% on amount exceeding Rs. 2.50 Lac
Total income above Rs. 5 Lac and below Rs.10 Lac	20% on Income exceeding Rs. 5 Lac + Rs. 25,000
Total income more than Rs. 10 Lac	30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000

Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable

* u/s 87A the Individual having taxable income up to Rs. 5 Lac , can claim rebate, on the Actual Tax amount subject to a maximum of Rs.2,000

3. Tax Slab for an Individual (resident & above 80 years)

Income Slabs	Tax Rates
Total income up to Rs. 5 Lac	0% Tax
Total income above Rs. 5 Lac and below Rs.10 Lac	20% on Income exceeding Rs. 5 Lac
Total income more than Rs. 10 Lac	30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac

Where the Taxable Income exceeds Rs. 1 crore, Surcharge @ 10% of Income tax is applicable

EDUCATION CESS

The amount of Income-tax shall be increased by Education Cess of 3% on Income-tax.

EXEMPTIONS/DEDUCTIONS FROM SALARY

1. VOLUNTARY RETIREMENT – 10(10C)

Amount received or receivable (ie.,in instalments) by an employee on his voluntary retirement or termination of his service in accordance with any scheme of Voluntary Retirement or scheme of voluntary separation is exempt to the extent of Rs.5,00,000, provided the Voluntary Retirement Scheme is in accordance with Rule 2BA of IT Rules. However no 89(1) relief can be claimed.

2. HOUSE RENT ALLOWANCE EXEMPT U/S.10(13A) – Read with Rule 2A of IT Rules 1962

1. a) Actual HRA received : Rs.xxxx
2. b) Rent paid in excess of 10% of Salary : Rs.xxxx
3. c) 40% of Salary : Rs.xxxx

Least of a), b), c) is exempt.

NOTE : Here Salary means Basic Salary as well as DA if the terms of employment so provide.In case of Cities of Delhi, Mumbai, Kolkata & Chennai, the limit in (c) shall be 50% of salary.

Further in FY 2013-14 submission of Land Lord pan is mandatory to be provided to employer ,if  rent paid exceeds one lakh in year.

Landlord's Pan mandatory if rent paid is more than one lakh yearly

3. CONVEYANCE ALLOWANCE : Any allowance granted to meet the expenditure incurred wholly, necessarily and exclusively on conveyance in performance of the duties of office and so certified by the employer is exempt u/s.10(14).

4. TRANSPORT ALLOWANCE : Any allowance granted to an employee to meet the expenditure for the purpose of commuting between the place of his residence and the place of his duty to the extent upto Rs.800/- per month is exempt u/s.10(14).

5. MEDICAL REIMBURSEMENT : An amount subject to ceiling of Rs.15,000 or the actual amount reimbursed by the employer whichever is less is exempt u/s.17(2).

6. PROFESSION TAX : Profession Tax levied by the State Government is allowable as a deduction from Gross Salary provided it has been paid.

Read more here

List of taxable and Non taxable allowance  Valuation of Motor car perquisites Valuation of concessional loan Interest  Valuation of rent free House accommodation Furnished /unfurnished Valuation of Medical reimbursement facility

DEDUCTIONS FROM HOUSE PROPERTY

1. DEDUCTION U/S.23(1) : For let out property, amount actually paid by the owner towards taxes levied by any local authority in respect of the property is deductible from Annual value taxes pertaining to any previous years.

2. DEDUCTION U/S.24(a) : For let out property, deduction of 30% of the Net Annual Value is allowed. No separate deduction for Repairs, Collection Charges, Insurance Premium, Annual Charge and Ground Rent is admissible.

3. DEDUCTION U/S.24(b) : Where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital.

3. INTEREST ON BORROWED LOAN(U/S.24(b)):FOR SELF OCCUPIED PROPERTY

a. If Property is acquired or constructed with loan taken after 01/04/99 and construction is completed within 3 years from the end of the financial year in which the capital was borrowed – Rs.1,50,000 or actual interest paid/payable whichever is less is deductible.

b. If new housing loan is taken for repayment of old loan – actual interest paid/payable subject to a ceiling of Rs.1,50,000.

c. If Property is acquired or constructed with loan taken before 01/04/99 - actual interest paid/payable subject to a ceiling of Rs.30,000.

CAPITAL GAINS:

With effect from 01/10/2004, Long Term Capital Gains arising on sale of equity shares or unit of equity oriented fund through recognized stock exchange is exempt if such transaction is chargeable to Securities Transaction Tax (u/s.10(38)).

Short Term Capital Gains arising on sale of equity shares or unit of equity oriented fund through recognized stock exchange is subject to tax at the rate of 15% if such transaction is chargeable to Securities Transaction Tax.

EXEMPTION U/S.54EC:

The Capital Gain arising out of sale of long term capital asset can be invested in National Highways Authority of India, Rural Electrification Corporation Limited, within six months from the date of sale subject to a ceiling of Rs.50 lakh during any financial year. (Lock-in period is 3 years)

Cost Inflation Index form 1981 to fy 2013-14 is given below

Financial Year	Cost Inflation Index
1981-1982	100
1982-1983	109
1983-1984	116
1984-1985	125
1985-1986	133
1986-1987	140
1987-1988	150
1988-1989	161
1989-1990	172
1990-1991	182
1991-1992	199
1992-1993	223
1993-1994	244
1994-1995	259
1995-1996	281
1996-1997	305
1997-1998	331
1998-1999	351
1999-2000	389
2000-2001	406
2001-2002	426
2002-2003	447
2003-2004	463
2004-2005	480
2005-2006	497
2006-2007	519
2007-2008	551
2008-2009	582
2009-2010	632
2010-2011	711
2011-2012	785
2012-2013	852
2013-2014	939

STANDARD DEDUCTION FOR FAMILY PENSION U/S.57(iia):

An amount of Rs.15,000 or 33&1/3% of family pension whichever is less is allowed as deduction.

If an assessee receives arrears of family pension, then Relief u/s.89(1) can be claimed by him.

Family Pension received by the widow or children or nominated heirs, as the case may be, of a deceased member of the armed forces(including para-military forces) of the union, where the death of such member has occurred in the course of operation, is exempt.

EXEMPTIONS – OTHER SOURCES

Any income by way of Dividends from company, Income received in respect of units from the Unit Trust of India, Income received in respect of the units of a mutual fund are exempt.

RATES OF INTEREST ON NSC

Year 01-03-2001 to 28-02-2002 01-03-2002 to 28-02-2003 01-03-2003 to 30-11-2011 01-12-2011 to 31-03-2012 01-04-2012 to 31-03-2013 01-04-2013 to 31-03-2014 1st Year 9.72 9.20 8.16 8.58 8.78 8.68 2nd Year 10.67 10.05 8.83 9.31 9.56 9.43 3rd Year 11.71 10.97 9.55 10.11 10.40 10.25 4th Year 12.85 11.98 10.33 10.98 11.31 11.14 5th Year 14.10 13.09 11.17 11.92 12.30 12.11 6th Year 15.47 14.29 12.08 N/A N/A N/A

DEDUCTIONS FROM GROSS TOTAL INCOME (CHAPTER VIA):
Special Mention :Deduction u/s 80CCD (Employer's contribution in CPF(contributory pension scheme is over and above 1,00,000Rs provided for deduction under section 80C,80CCC,80CCD(1).

Sl.No.	I.T. Sec.	Nature of Deduction	Amount of deduction
1. a. b. c.	80 CCE 80C 80 CCC 80 CCD	Limit on Deduction u/s.80C, 80CCC & 80CCD              Life Insurance Premia, PF, PPF, NSC, ELSS, Units of Mutual Fund referred to u/s.10(23D), Tuition Fees(max. 2 Children), Repayment of Principal of Housing loan, Bank Fixed Deposit of 5 yrs period, notified Bonds of NABARD, Deposit in an account under Senior Citizens Savings Scheme rules, 5 year time deposit in an account under Post Office Time Deposit Rules, 1981 etc. Premium paid towards approved Pension Fund (like LIC’s Jeevan Suraksha) max. 1 lakh. Contribution to Central Government Pension Schemes. Upto 10% of salary with matching contribution from Government.	Maximum overall Deductions allowed u/s. 80C, 80CCC & sec.80CCD(1) is Rs. 1,00,000
2.	80CCD	Contribution made by employer to New Pension Scheme(should be added to gross salary).	Actual amount or 10% of salary whichever is less
3.	80CCG RGESS	Deduction in respect of investment made in listed units of an equity oriented fund/ an equity savings scheme(only for Resident Individual). The deduction is available to a new retail investor whose gross total income does not exceed 12 lakh rupees.	50% of the amount invested subject to a maximum of Rs.25,000
4.	80D HEALTH INSURANCE	(a) Health Insurance Premium paid by an individual/HUF by any mode of payment other than cash to effect or keep in force an insurance on the health of the assessee(self) or his family(spouse & dependent children) for policies taken from General Insurance Corporation /other approved Insurance Regulatory and Development Authority or any contribution made by the assessee to such other health scheme as may be notified by the Central Government or any payment made on account of preventive health check-up subject to a maximum of Rs.5,000. (b) Medical Insurance Premium paid by an individual/HUF by any mode of payment other than cash to effect or keep in force an insurance on the health of his/her parent or parents for policies taken from General Insurance Corporation /other approved Insurance Regulatory and Development Authority or any contribution made to the Central Government Health Scheme or any payment made on account of preventive health check-up subject to a maximum of Rs.5,000. (c) For Senior Citizens in respect of (a) & (b) above	Upto Rs.15,000 Upto Rs.15,000 Upto Rs.20,000
5.	80DD DISABLE	(a) Any expenditure for Medical, Nursing & Rehabilitation incurred on dependant suffering from permanent disability including blindness, mental retardation, autism, cerebral palsy or multiple disabilities   (b) Deposits under LIC, UTI’s Scheme & other IRDA approved insurers for the benefit of physically handicapped dependent	Rs.50,000 (Rs.1,00,000 if the disability is severe exceeding 80%)
6.	80DDB MED TREATMENT	(a) Actual expenditure incurred on Medical treatment of Self or dependant or a member of HUF suffering from terminal diseases like Cancer, AIDS, Renal failure etc.  (b)  For Senior Citizens(self or dependent on whom expenditure on medical treated is taken)	Upto Rs.40,000 Upto Rs.60,000
7.	80E EDUCATION LOAN	Interest on loan taken from Financial/Charitable Institutions for Self/Spouse/Children for pursuing Higher Education (for a max. period of 8 yrs)	Actual Interest repaid
8.	80EE HOUSE LOAN INT.	An additional benefit for first-home buyers: Deduction in respect of interest payable on loan taken from any financial institution for the purpose of acquisition of a residential house property subject to the following conditions:- (i) the loan is sanctioned by the financial institution during the period beginning on 1st April, 2013 and ending on 31st March, 2014; (ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees; (iii) the value of the residential house property does not exceed forty lakh rupees; (iv) the assessee does not own any residential house property on the date of sanction of the loan.	Rs.1,00,000
9.	80G DONATION	(a) Donations made to National Defence Fund, Prime Minister’s Relief Fund, approved Funds of reputed Educational Institutions, National Trust for Welfare of persons with Autism, Cerebral Palsy etc. (b) Donations made to Jawaharlal Memorial Fund, PM’s Drought Relief fund, Any approved Charitable Institution/Trust, Religious Institutions, a corporation established by the Government for promoting interest of the members of a Minority Community	100% of Donation 50% of Donation restricted to 10% of Adjusted Gross Total Income
10.	80GG RENT	Deduction in respect of rents paid, provided the assessee is not in receipt of HRA and no house is owned by self, spouse, minor child or HUF in the place of work subject to filing of declaration in Form No.10BA	25% of income or rent paid in excess of 10% of income or ceiling of Rs.24,000 p.a whichever is less
11.	80TTA SAVING INTEREST	Deduction in respect in interest on deposits(not being time deposits) in a savings account with a banking company, a co-operative society and a post office	Rs.10,000
12.	80 U	Persons certified by the medical authority to be a person with disability	Rs.50,000 (Rs.1,00,000 in case of severe disability)

87A 2000/- REBATE

Rebate of Rs 2000 for individuals having total income up to Rs 5 lakh

 Where the total income of an assessee, being an individual resident in India, does not exceed 5 lakh rupees. rebate of Rs.2,000 or actual tax payable whichever is less is allowed from the tax payable.(read more)

PENALTY U/S.271F:  If  a person who is required to furnish a return of income as required under section 139(1) or by the proviso to that sub-section, fails to furnish such return before the end of the relevant assessment year, shall be liable to pay by way of penalty a sum of Rs.5,000.

INTEREST U/S.234A: Where in any financial year, the return of Income of any assessment year u/s.139(1) or 139(4) or in response to a notice u/s.142(1), is furnished after the due date as specified in sub-section 1 of section 139, or is not furnished, the assessee shall be liable to pay simple interest at the rate of one percent for every month or part of a month comprised in the period commencing on the date immediately following the due date.

INTEREST U/S.234B: Where an assessee who is liable to pay advance tax(where tax liability exceeds Rs.10,000 after TDS) under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than 90% of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one percent for every month or part of a month comprised in the period from the 1st day of April following the financial year.

No advance tax shall be paid by an individual resident in India, who does not have any income chargeable under the head “Profits and gains of business or profession and is of the age of sixty years or more at any time during the previous year.

INTEREST U/S.234C: Where an assessee other than a Company, who is liable to pay advance tax (where tax liability exceeds Rs.10,000 after TDS)under section 208 has failed to pay such tax or,

1)   The advance tax paid by the assessee on his current income on or before the 15th day of September is less than 30% of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than 60% of the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one percent per month for a period of three months on the amount of the shortfall from 30% or, as the case may be, 60% of the tax due on the returned income.

2)   The advance tax paid by the assessee on his current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one percent on the amount of the shortfall from the tax due on the returned income.

DUE DATES FOR FILING RETURN OF INCOME : All Individuals/HUF/Firms deriving Income from Salary, House Property, Capital Gains, Business or Other Sources and  not covered under section 44AB are required to file the Return of Income by 31st July of the assessment year.  All Tax Audit Cases covered under section 44AB & Companies are required to file the Return of  Income by 30th September of the assessment year.  In the case of an assessee being a company, which is required to furnish a report referred to in section 92E(Transfer Pricing), the due date is 30th November of the assessment year. 

MODE OF FILING INCOME-TAX RETURNS : All persons having taxable income more than 5 lakhs are required to be filed their returns online.All  Individuals, HUFs & Partnership Firms who are required to get their accounts audited u/s.44AB are also required to compulsorily file their income-tax return electronically with digital signature.  All companies are also required to compulsorily file their income tax return electronically with Digital signature.

PERMANENT ACCOUNT NUMBER: Every person who is required to furnish a return of income u/s.139 is required to obtain 10 Alpha numeric Permanent Account Number (PAN) and quote the same in his returns, challans & correspondence.  PAN can be obtained by applying in new Form No.49A at the following designated Service Centres of UTITSL OR NSDL(Log on to our website).  

PAN is essential for processing the Return of Income and for giving credit for taxes paid. If a person who is required to quote his Permanent Account Number fails to do so or intimates or quotes false number which he either knows or believes to be false or does not believe to be true, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs.10,000.(S.272B)

TAX PAYMENTS : Advance tax payments and Self-assessment tax payments have to be made in Challan No.280.  The BSR Code and the Serial No. on the counterfoil of the challan has to be quoted in the return  of income.

CENTRALIZED PROCESSING CENTRE (CPC) :  ITR-V(where returns are efiled) has to be sent to CPC, Post Bag No.1, Electronic City Post Office, Bangalore – 560 100 by ORDINARY/SPEED POST only. For any queries on efiled return, call 1800-4252229

FORM NO.26AS : Assessees can view their Annual Tax Statement (Form No.26AS) online by logging on to www.incometaxindia.gov.in or www.tin-nsdl.com

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