Download TDS on Salary All in One for Central Govt Employees for Financial Year 2015-16 [ This Excel utility can prepare at a time your Tax Compute Sheet + Automatic HRA Calculation + Individual Salary Sheet + Individual Salary Structure as per Central Govt Salary pattern + Form 16 Part A&B and Part B for Assessment Year 2016-17 with all amended by the Budget 2015-16]
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| Central Govt Employees Salary Structure |
Deductions from Salary
This article discusses some important provisions relating to tax savings in India from income chargeable under the head `Salaries’.Voluntary retirement – 10(10c)
If on his voluntary retirement, an employee receives or is going to receive (in installments) any amount in accordance with any scheme of Voluntary Retirement, he is exempted from any tax liability up to the extent of Rs.5,00,000, provided the VRS is in accordance with Rule 2BA of IT Rules.House Rent Allowance Exempt – 10(13A):- Click here to download the Automatic HRA Exemption Calculator U/s 10(13A)
The least of the following three is exempted under HRA:- Actual HRA received : Rs. X
- Amount rent paid in excess of 10% of Salary : Rs.Y
- 50% of Basic Salary (including DA) in Metro Cities or 40% of Basic Salary (including DA) in other cities : Rs.Z
Transport Allowance Conveyance Allowances
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 up to Rs.1600/- per month & Rs. 3200/- for Phy.disable Persons is exempt u/s.10 (14).Medical Insurance U/s 80D
An amount of Rs.25,000 or the actual amount reimbursed by the employer whichever is less is exempt u/s.17(2). And Rs. 30,000/- for Sr.Citizen.Sever Medical Treatment U/s 80DDB:- Rs. 80,000/-
Deductions from gross total income (chapter VIA):
S.No
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I.T. Sec.
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Nature of Deduction
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Amount of Deduction
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1
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80 CCE
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Limit on Deduction u/s.80C, 80CCC & 80CCD
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Maximum overall Deductions allowed u/s. 80C, 80CCC & 80CCD is Rs.
1,50,000 (Employer contribution is deductible without any limit from fy
2011-12)
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1a)
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80 C
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Life Insurance Premium, 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.
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Maximum overall Deductions allowed u/s. 80C, 80CCC & 80CCD is Rs.
1,50,000 (Employer contribution is deductible without any limit from fy
2011-12)
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1b)
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80 CCC
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Premium paid towards approved Pension Fund (like LIC’s Jeevan
Suraksha) max. 1 lakh.
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Maximum overall Deductions allowed u/s. 80C, 80CCC & 80CCD is Rs.
1,50,000 (Employer contribution is deductible without any limit from fy
2011-12)
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1c)
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80 CCD
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Contribution to Central Government Pension Schemes. Up to 10% of
salary with matching contribution from Government.
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Maximum overall Deductions allowed u/s. 80C, 80CCC & 80CCD is Rs.
1,50,000 (Employer contribution is deductible without any limit from fy 2011-12)
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2a)
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80 D
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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 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 to
the Central Government Health Scheme.
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Up to Rs.25,000/-
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2c)
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80 D
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For Senior Citizens
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Up to Rs.30,000
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3
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80 DD
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(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%)
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4a)
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80 DDB
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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.
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Up to Rs.60,000
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4b)
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80 DDB
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For Senior Citizens(self or dependent on whom expenditure on
medical treated is taken)
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Up to Rs.80,000
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5
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80 E
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Interest on loan taken from Financial/Charitable Institutions
for Self/Spouse/Children for pursuing Higher Education (for a max. period of
8 yrs)
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Actual Interest repaid
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6a)
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80 G
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Donations made to National Defence Fund, Prime Minister’s Relief Fund,
approved Funds of repute
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50% or 100%
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6b)
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80 G
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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
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50% of Donation restricted to 10% of Adjusted Gross Total Income
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7
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80 GG
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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
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25% of income or rent paid in excess of 10% of income or ceiling of
Rs.24,000 p.a whichever is less
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8
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80 U
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Persons suffering from Permanent Physical Disability as specified in
Rule 11D
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Rs. 75,000/- ( 40% to 80%) and Rs. 1,25,000/-
above 80 %
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