8/13/2015

IncomeTax201415ExemptionsavailabletoSalariedEmployees

IncomeTax201415ExemptionsavailabletoSalariedEmployeesfortheFinancialYear201415(AssessmentYear201516)FinanceAct2

followingchangesrelatingtodeterminationofIncomeTaxpayablebySalariedEmployees,whichprovideincometaxexemptionvariedfrom
30,000onthebasisoftaxableincomeofindividual.1.Taxable

Income Tax 2014-15

GConnectTeam

October29,2014

Exemptions available to Salaried Employees

IncomeTax

IncomeTax201415ExemptionsavailabletoSalariedEmployeesfortheFinancialY
15(AssessmentYear201516)

FinanceAct2014hasmadefollowingchangesrelatingtodeterminationofIncomeTaxpayablebySala

whichprovideincometaxexemptionvariedfromRs.15,000toRs.30,000onthebasisoftaxableincom
1.TaxableIncomeeligibleforfullexemptionfromincometaxincreasedfromRs.2lakhtoRs.2.5lakh
2.AdditionaldeductionofRs.50,000underSection80C,CCC,CCD(1):

DeductionallowedunderSection80C,80CCC,andSection80CCD(1)forsavings/investments,premiumforannuity/pensionfundandemplo
toNPSrespectivelyhasbeenincreasedtoRs.1.5lakhfromRs.1lakh(Section80CCELimit)
3.IncomeTaxexemptiononInterestpaidonhousingloanunderSection24oftheIncomeTaxActincreasedfromRs.1.5lakhtoRs.2lakh

Inadditiontoabovethreenewchanges,IncomeTaxRebateofRs.2000fortaxableincomeuptoRs.5lakhcontinuesthisyearalsounderSectio
TaxAct

ClickheretoreachGConnectIncomeTaxCalculator201415(A.Year201516)withsaveoption
ClickheretoreachInstantGConnectIncomeTaxCalculator201415(A.Year201516)
Abriefonalleligibleincometaxexemptionsapplicablefortheyear201415isasfollows

AllowancesexemptedunderSection10ofIncomeTaxAct
HouseRentAllowance:

Whenrentisactuallypaidbyanindividual,he/sheisentitledtoexemptioninrespectofHouseRentAllowancewhichislimitedtoleastofthefo
1.ActualHRAreceived.
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8/13/2015

IncomeTax201415ExemptionsavailabletoSalariedEmployees

2.Rentpaidless10%ofsalary.

3.40%ofSalary(50%incaseofMumbai,Chennai,Kolkata,Delhi)SalaryisdefinedasBasicPay.Dearnessallowancewillformpartofsalaryif
intocomputationofretirementbenefits

ClickheretoreachIncomeTaxExemptiononHRACalculator
LeaveTravelAllowanceorLeaveTravelConcession:
LTCorLTAisexemptedifthesameisactuallyspent

TransportAllowance:

TransportAllowancegrantedtoanemployeetomeetexpenditureforthepurposeofcommutingbetweentheplaceofresidenceandplaceofd
ExemptiononTransportAllowanceisrestrictedtoRs.800permonth.

ChildrenEducationallowance:
Rs.100/permonthperchilduptoamaximumof2children.

HostelSubsidy:
Rs.300/permonthperchilduptoamaximumoftwochildren.

OtherAllowancesexemptedunderSection10ofITAct.

Tour TA, Tour Daily Allowance, Academic, research or training allowance, uniform Allowance, Special Compensatory Allowance, High Alti

ClimateAllowance,allowancesapplicabletoNorthEast,HillyareasofU.P.,H.P.andJ&K,borderareaallowance,CompensatoryFieldAreaAll
InsurgencyAllowance,HighActiveFieldAreaAllowance,islanddutyallowance,tribalallowanceetc.

IncomeTaxExemptiononInterestpaidonHousingLoan/IncomeorlossfromHouseProperty:

TotaldeductionforinterestpaidonHousingLoanwhenthepropertyisselfoccupiedhasbeenincreasedtoRs.2lakhasperamendmentmade
theIncomeTaxActin2014.

ClickheretocalculateIncomeTaxExemptiononInterestpaidonHousingLoan

Also, in addition to Deduction of of Interest payable on Housing Loan up to Rs. 2 Lakh from the total income (and without any limit for H

rentedoutforanannualvalue),thenewsectionintheformofSection80EEintroducedinthelastBudget(2013)providesforadditionalded

TaxExemptionforInterestpaidonhousingloanuptoRs.1lakhinrespectofhousingloansanctioned/disbursedduringtheyear201314fora

buyerwithtotalpropertycostandamountofloanarenotexceedingRs.40lakhandRs.25lakhrespectively.ThisadditionaldeductionofRs.1la

availed fully in the income tax assessment year 201415 (Financial Year 201314) or partly in 201415 and remaining balance in Assessmen
FinancialYear201415)incaseinterestpayableinA.Year201415wasnotexceedingRs.1lakh.

Section80C:

Thetotaldeductionunderthissection(alongwithsection80CCCand80CCD)islimitedtoRs.1.50lakh.Someinvestments,savings,expend

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8/13/2015

IncomeTax201415ExemptionsavailabletoSalariedEmployees

underSection80Careasfollows
LifeInsurancePremium
Premium/SubscriptionfordeferredannuityForindividual,onlifeofself,spouseoranychild.
SumdeductedfromsalarypayabletoGovt.ServantforsecuringdeferredannuityforselfspouseorchildPaymentlimitedto20%ofsalary.
ContributionmadeunderEmployeesProvidentFundScheme.
ContributiontoPPFForindividual,canbeinthenameofself/spouse,anychild&forHUF,itcanbeinthenameofanymemberofthefamily.
ContributionbyemployeetoaRecognisedProvidentFund.
Sumdepositedin10year/15yearaccountofPostOfficeSavingBank
Subscriptiontoanynotifiedsecurities/notifieddepositsscheme.e.g.NSS
Subscriptiontoanynotifiedsavingscertificate,UnitLinkedSavingscertificates.e.g.NSCVIIIissue.
ContributiontoUnitLinkedInsurancePlanofaMutualFund
ContributiontofundsetupbytheNationalHousingScheme.
HousingLoanPrincipalamountpaid

Tuitionfeespaidatthetimeofadmissionorotherwisetoanyschool,college,universityorothereducationalinstitutionsituatedwithinIndiafo
fulltimeeducationofanytwochildren.Availableinrespectofanytwochildren

Section80CCC:
PremiumPaidforAnnuityPlanofanInsuranceCompany

PaymentofpremiumforannuityplanofLICoranyotherinsurerDeductionisavailableuptoamaximumofRs.100,000/.(Thislimithasbee
Rs.10,000/toRs.1,00,000/w.e.f.01.04.2007).

ThepremiummustbedepositedtokeepinforceacontractforanannuityplanoftheLICoranyotherinsurerforreceivingpensionfromthefun

Note: The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD(1) (combined together) is Rs. 1,50,000/ (Rs. o
thousandonly).

Section80CCD(1):DeductioninrespectofContributiontoPensionAccount(byAssess

DeductionavailablefortheamountpaidordepositedinapensionschemenotifiedorasmaybenotifiedbytheCentralGovernmentsubjecttoa
(a)10%ofsalaryinthepreviousyearinthecaseofanemployee(b)10%ofgrosstotalincomeinanyothercase.

Section80CCD(2):DeductioninrespectofContributiontoPensionAccount(byEmpl

Deduction available for the amount paid or deposited by the employer of the assessee in a pension scheme notified or as may be notified

Governmentsubjecttoamaximumof10%ofsalaryinthefinancialyear.ThisexemptionisinadditiontoRs.1.5lakhlimitprovidedunderSe
deductionsunderSection80C,CCC,and80CCD(1)

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IncomeTax201415ExemptionsavailabletoSalariedEmployees

DeductionsunderChapterVIAofIncomeTaxAct

Section80CCG:RajivGandhiEquitySavingScheme(RGESS)

AspertheBudget2012announcements,anewschemeRajivGandhiEquitySavingScheme(RGESS)willbelaunched.Thoseinvestorswhosea

lessthanRs.10lakh(proposedRs.12lakhfromA.Y.201415)caninvestinthisschemeuptoRs.50,000andgetadeductionof50%oftheinve

investRs.50,000(maximumamounteligibleforincometaxrebateisRs.50,000),youcanclaimataxdeductionofRs.25,000(50%ofRs.50,00

Section80D:DeductioninrespectofMedicalInsurance

Deduction is available up to Rs. 20,000/ for senior citizens and up to Rs. 15,000/ in other cases for insurance of self, spouse and dep

Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 20,000/ if parents are senior

15,000/inothercases.Therefore,themaximumdeductionavailableunderthissectionistotheextentofRs.40,000/.FromAY201314,wi
limitadeductionofuptoRs.5,000forpreventivehealthcheckupisavailable.

Section80DD:DeductioninrespectofRehabilitationofHandicappedDependentRela
DeductionofRs.50,000/w.e.f.01.04.2004inrespectof
1. Expenditureincurredonmedicaltreatment,(includingnursing),trainingandrehabilitationofhandicappeddependentrelative.
2. Paymentordeposittospecifiedschemeformaintenanceofdependenthandicappedrelative.

Further,ifthedefendantisapersonwithseveredisabilityadeductionofRs.100,000/shallbeavailableunderthissection.Thehandicappedd

be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician

Note:Apersonwithseveredisabilitymeansapersonwith80%ormoreofoneormoredisabilitiesasoutlinedinsection56(4)ofthePersons
(Equalopportunities,protectionofrightsandfullparticipation)Act.

Section80DDB:DeductioninrespectofMedicalExpenditureonSelforDependentRe

AdeductiontotheextentofRs.40,000/ortheamountactuallypaid,whicheverislessisavailableforexpenditureactuallyincurredbyresi

himselfordependentrelativeformedicaltreatmentofspecifieddiseaseorailment.ThediseaseshavebeenspecifiedinRule11DD.Acertificate
befurnishedbytheassesseefromanyRegisteredDoctor.

Section80E:DeductioninrespectofInterestonLoanforHigherStudies

Deductioninrespectofinterestonloantakenforpursuinghighereducation.Thedeductionisalsoavailableforthepurposeofhighereduca
w.e.f.A.Y.200809.

Section80G:DeductioninrespectofVariousDonations

ThevariousdonationsspecifiedinSec.80Gareeligiblefordeductionuptoeither100%or50%withorwithoutrestrictionasprovidedinSec.80

Section80GG:DeductioninrespectofHouseRentPaid
Deductionavailableistheleastof
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8/13/2015

IncomeTax201415ExemptionsavailabletoSalariedEmployees

1. Rentpaidless10%oftotalincome
2. Rs.2000/permonthi.e.MaximumDeductionavailableis24,000/
3. 25%oftotalincome,provided
1. Assesseeorhisspouseorminorchildshouldnotownresidentialaccommodationattheplaceofemployment.
2. Heshouldnotbeinreceiptofhouserentallowance.
3. Heshouldnothaveselfoccupiedresidentialpremisesinanyotherplace.

Section 80GGA: Deduction in respect of certain donations for scientific research

development

Section80GGC:Deductioninrespectofcontributionsgivenbyanypersontopoliticalp
Section80QQB:RoyaltyIncomeonpatents.
MaximumdeductionRs.3,00,000/

Section80RRB:RoyaltyIncometoauthorofcertainbooksotherthantextbooks.
MaximumdeductionRs.3,00,000/

Section80TTA:DeductionfromgrosstotalincomeinrespectofanyIncomebywayo
onSavingsaccount

DeductionfromgrosstotalincomeofanindividualorHUF,uptoamaximumofRs.10,000/,inrespectofinterestondepositsinsavingsac
deposits)withabank,cooperativesocietyorpostoffice,isallowablew.e.f.01.04.2012(AssessmentYear201314).

Section80U:DeductioninrespectofPersonsufferingfromPhysicalDisability

DeductionofRs.50,000/toanindividualwhosuffersfromaphysicaldisability(includingblindness)ormentalretardation.Further,iftheindiv

withseveredisability,deductionofRs.100,000/shallbeavailableu/s80U.CertificateshouldbeobtainedfromaGovt.Doctor.Therelevantru
RELIEFUNDERSECTION89(1)

Relief u/s 89(1) is available to an employee when he receives salary in advance or in arrear or when in one financial year, he receives salary

months,orreceivesprofitinlieuofsalarycoveredu/s17(3).Reliefu/s89(1)isalsoadmissibleonfamilypension,asthesamehasbeenallowed
2002(withretrospectiveeffectfrom1/4/96).

ClickheretoreachGConnectIncomeTaxCalculator201415(A.Year201516)withsaveoption
ClickheretoreachInstantGConnectIncomeTaxCalculator201415(A.Year201516)

Check Also

AlsocheckthefollowinglinksformoreIncomeTax201415relatedinformation

ITR for 2013-14 and 2014-15 can be

HowtoefileITR?StepbyStepguidetofileIncomeTaxReturnonline
verified online using EVC

http://www.gconnect.in/personalincometax/incometax201415exemptionsavailablesalariedemployees.html

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8/13/2015

IncomeTax201415ExemptionsavailabletoSalariedEmployees
verified online using EVC

EfilingITRStepstoregisteratIncomeTaxwebsiteforfilingIncomeTaxReturnOnline

Time limit for Submission of

ITRV for the year 201314 and
ITRIncomeTaxReturn201415(A.Year201516)Explained
201415 was recently extended
to 31.10.2015. Such returns can
ITRVfor201314and201415canbesubmittedupto31stOctober2015
beverifiedonlinenow.

OnlineITR201415(A.Year201516)launchedbyGovt
WhoshouldfileITRonlinethisyearonthebasisofTotalIncome?
DownloadITR1,ITR2,ITR2A201415forSalariedEmployeesreleasedbyITDept
LastdateforfilingIncomeTaxReturn201415extendedto31stAugust2015

RevisedIncomeTaxReturnswillbesimpleSaysFinanceMinister
IncomeTaxReturn(ITR)for201415toberevised

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