Budget 2015

PRESENTATION ON TAX BENEFITSFOR THE FINANCIAL YEAR 2015-16

BYBARTON TRUST

PRESENTATION ON TAX BENEFITSFOR THE FINANCIAL YEAR 2015-16

BYBARTON TRUST

Upto Rs.250000 NIL

Rs.250001-500000 10%

Rs.500001-1000000 20%

Above Rs.1000000 30%

Notes

Surcharge at 12% is applicable on income above Rs.10000000

Education Cess at 3% is applicable on total income-tax and surcharge

Tax rebate under section 87A being lower of tax on total income or Rs.2000 is available wheretaxable income is less than or Rs.500000

Upto Rs.250000 NIL

Rs.250001-500000 10%

Rs.500001-1000000 20%

Above Rs.1000000 30%

Notes

Surcharge at 12% is applicable on income above Rs.10000000

Education Cess at 3% is applicable on total income-tax and surcharge

Tax rebate under section 87A being lower of tax on total income or Rs.2000 is available wheretaxable income is less than or Rs.500000

A maximum of Rs. 2,00,000 can be claimed as an exemption, if the property is self occupied.

There is no limit for claiming the Interest paid on Housing Loan, if the property is let out for rent.For this purpose, the employee has to provide Form 12C, which contains the detailed calculationof Loss on House Property taking the Rental Income Less property tax less 30% of the netamount.

For further details please refer Annexure

A maximum of Rs. 2,00,000 can be claimed as an exemption, if the property is self occupied.

There is no limit for claiming the Interest paid on Housing Loan, if the property is let out for rent.For this purpose, the employee has to provide Form 12C, which contains the detailed calculationof Loss on House Property taking the Rental Income Less property tax less 30% of the netamount.


What is the Limit ? Rs. 1.5 Lac is the limit. The Overall deduction will not exceed Rs. 1.5 Lac even if the Investments

are more than Rs.1.5 Lac.

The investments allowed for exemption are In the name of Self or Spouse or Children or joint names

Life Insurance Premium Public Provident Fund Housing Loan principal Sukanya Samriddhi Account Scheme

In the name of Self PF, Voluntary PF Pension Plan National Savings Certificate NSC Fixed Deposit (period not less than 5 years) Children Tuition Fee (Maximum 2 Children) Mutual Funds - only Equity Linked Savings Scheme New Pension Scheme NPS


What is the Limit ? Rs. 1.5 Lac is the limit. The Overall deduction will not exceed Rs. 1.5 Lac even if the Investments

are more than Rs.1.5 Lac.

The investments allowed for exemption are In the name of Self or Spouse or Children or joint names

Life Insurance Premium Public Provident Fund Housing Loan principal Sukanya Samriddhi Account Scheme

In the name of Self PF, Voluntary PF Pension Plan National Savings Certificate NSC Fixed Deposit (period not less than 5 years) Children Tuition Fee (Maximum 2 Children) Mutual Funds - only Equity Linked Savings Scheme New Pension Scheme NPS


Health/Medical Insurance Premium including Rs.5,000 spent for Preventive Health Check-up(copy of premium paid certificate should be submitted)

Note :- This deduction is not allowed if payment is made in cash except for preventive healthcheck-up

Deduction shall be allowed as below :-

Health/Medical Insurance Premium including Rs.5,000 spent for Preventive Health Check-up(copy of premium paid certificate should be submitted)

Note :- This deduction is not allowed if payment is made in cash except for preventive healthcheck-up


Amount of interest paid on a loan taken from any financial institution for pursuing any highereducation after senior secondary examination for himself or for his spouse or children

There is no limit for claiming rebate. Any amount of Interest but not the principal amount wouldbe allowed as a deduction out of total taxable income

Eligible persons are self, spouse and children

Date of sanction of loan should not be more than 7 years prior to the current financial year

Provisional interest certificate issued by the bank should be submitted

Amount of interest paid on a loan taken from any financial institution for pursuing any highereducation after senior secondary examination for himself or for his spouse or children

There is no limit for claiming rebate. Any amount of Interest but not the principal amount wouldbe allowed as a deduction out of total taxable income

Eligible persons are self, spouse and children

Date of sanction of loan should not be more than 7 years prior to the current financial year

Provisional interest certificate issued by the bank should be submitted


In case of dependent person with disability = Rs.75,000

In case of dependent person with severe disability = Rs.125,000

This deduction is allowed only if the below condition is satisfied:-

The dependants have not claimed any deduction under section 80U

Notes :-

Person with Disability means A person suffering from not less than forty (40%) of any disabilityas certified by a medical authority

Person with Severe Disability means A person suffering from not less than Eighty (80%) ormore of one or more disabilities as certified by a medical authority

Eligible persons are spouse, children, parents, brothers and sisters

Copy of disability certificate should be submitted


In case of dependent person with disability = Rs.75,000

In case of dependent person with severe disability = Rs.125,000

This deduction is allowed only if the below condition is satisfied:-

The dependants have not claimed any deduction under section 80U

Notes :-

Person with Disability means A person suffering from not less than forty (40%) of any disabilityas certified by a medical authority

Person with Severe Disability means A person suffering from not less than Eighty (80%) ormore of one or more disabilities as certified by a medical authority

Eligible persons are spouse, children, parents, brothers and sisters

Copy of disability certificate should be submitted


In case of persons whose age is less than or equal to 60 years = Rs.40,000 In case of persons whose age is above 60 or equal to 80 years = Rs.60,000 In case of persons whose age is above 80 years = Rs.80,000

This deduction is allowed only if the below conditions are satisfied:-

A certificate issued by a specialist working in a Government Hospital is submitted The certificate submitted should be in Form No. 10-I Amount of medical expenditure incurred or received by the insurer or reimbursed by the

company is known Eligible persons are spouse, children, parents, brothers and sisters


In case of persons whose age is less than or equal to 60 years = Rs.40,000 In case of persons whose age is above 60 or equal to 80 years = Rs.60,000 In case of persons whose age is above 80 years = Rs.80,000


A certificate issued by a specialist working in a Government Hospital is submitted The certificate submitted should be in Form No. 10-I Amount of medical expenditure incurred or received by the insurer or reimbursed by the

company is known Eligible persons are spouse, children, parents, brothers and sisters

To claim benefit under this scheme

Gross total income should not be more than Rs.12 lakhs

The investment is made for the first time

The investment is made in such listed equity shares/Units of Equity oriented fund specified underthe scheme as may be notified by the Central Government of India

Deduction allowed is 50% of the amount invested or Rs.25,000 whichever is less

The investment is made for a period not less than 3 years

Such other conditions as may be prescribed

Eligible persons are Self, Spouse, Children

Copy of e-statement should be submitted

To claim benefit under this scheme

Gross total income should not be more than Rs.12 lakhs

The investment is made for the first time

The investment is made in such listed equity shares/Units of Equity oriented fund specified underthe scheme as may be notified by the Central Government of India

Deduction allowed is 50% of the amount invested or Rs.25,000 whichever is less

The investment is made for a period not less than 3 years

Such other conditions as may be prescribed

Eligible persons are Self, Spouse, Children

Copy of e-statement should be submitted

Sr.No.

ANNEXURE

DescriptionSection

80CEligiblePersons

Maximum Amount(Rs.)

1 Life Insurance Premium (LIC)(copy of premium paid certificate should be submitted)

2 (i) Self, Spouse andchildren

150,000 or

1) Where date ofcommencement/Riskdate of insurance isbefore 01-Apr-2012:- 20% of sumassured or amountof premium paidwhichever is less

2) Where date ofcommencement/Riskdate of insurance ison or after 01-Apr-2012 :- 10% of sumassured or amountof premium paidwhichever is less

3) Where date ofcommencement/Riskdate of insurance ison or after 01-Apr-2013 :- 15% of sumassured or amountof premium paidwhichever is less.This is only inrespect of assessescovered by sections80U

2 Public Provident Fund(copy of passbook should be submitted)

2 (v) Self, Spouse andchildren

150,000

3 National Savings Certificate(copy of certificate should be submitted)

2 (ix) Self 150,000

4 Unit Linked Insurance Plan(copy of premium paid certificate should be submitted)

2 (x) Self, Spouse andchildren

150,000

5 Mutual Fund Only ELSS (referred to in clause23D of Section 10)(copy of e-statement should be submitted)

Note Mutual Fund means

a. Fund registered under the Securities andExchange Board of India (SEBI) Act, 1992 orregulations made there-under

b. Such other Fund set up by a public sector bankor a public financial institution or authorized bythe RBI and subject to such conditions as theCentral Government made by notification in theOfficial Gazette specify in this behalf

2 (xiii) Self 150,000

6 Pension Fund(copy of premium paid certificate should be submitted)

2 (xv) Self 150,000

7 Tuition Fees (excluding development fees or donationor payment of similar nature)(copy of fee receipt should be submiited)

2 (xvii) Any two children 150,000

8 Principal Housing Loan (including stamp duty,registration fee for the purpose of transfer of such houseproperty) (copy of provisional certificate issued by bankshould be submitted)Notes :-

a. Loan for purchase of residential site, is notallowed

b. Loan for any addition or alteration to, orrenovation or repair of the existing houseproperty is not allowed

2 (xviii) Self (to be splitin case of jointholders of theproperty)

150,000

9 5 year Fixed Term Deposit with any IndianScheduled Banks(copy of deposit certificate should be submitted)

2 (xxi) Self 150,000

10 5 year Post Office Time Deposit(copy of deposit certificate should be submitted)

2 (xxiv) Self 150,000

11 National Pension Scheme (NPS)(copy of e-statement should be submitted)


a. Where the contributions are made by onlyemployee

b. Where the contributions are made by bothemployee and company

Notes

Employee contributions are deducted within theoverall limit of Rs.150,000 under section 80C

Company contributions are deducted over andabove the section 80C limit subject to maximumof 10% of basic salary

80CCD Self

10% of basic salary(additionaldeduction up toRs.50000 onpayment in excessof 10% of basicsalary)

10% of basic salaryor the amount ofcontributionwhichever is less

12 Rajiv Gandhi Equity Scheme(copy of e-statement should be submitted)

This deduction is allowed for 3 consecutive assessmentyears and only if the below conditions are satisfied:-

a. Gross total income is not more than Rs.12 lakhsb. The investment is made for the first timec. The investment is made in such listed equity

shares specified under the scheme as may benotified by the Central Government of India

d. The investment is made for a period not lessthan 3 years

e. Such other conditions as may be prescribed

80CCG Self 50% of the amountinvested or

Rs.25,000 whicheveris less

13 Health/Medical Insurance Premium includingRs.5,000 spent for Preventive Health Check-up(copy of premium paid certificate should be submitted)

Note :- This deduction is not allowed if payment is madein cash except for preventive health check-up


a. Where premium is paid for self, spouse and/orchildren

b. Where premium is paid for self, spouse and/or

80D Self, spouse,children andparents

25,000

30,000

children and age of any one member exceeds 60years

c. Where premium is paid for parents (fatherand/or mother) whose age does not exceed 60years

d. Where premium is paid for parents (fatherand/or mother) whose age exceeds 60 years

e. Where medical expenditure either for self orparent (only one member) whose age is 80years or more without any medical insurance

(Amount of deduction in all the above 4 cases isincluding Rs.5,000 spent for Preventive Health Check-up)Maximum deductions will be as below

a + c = Rs.50,000 b + c and a + d = Rs.55,000 b + d and d + e = Rs.60,000

25,000

30,000

60,000(self 30000 +

parents 30000)

14 Medical Treatment of a dependant person withdisability(copy of disability certificate should be submitted)


a. In case of dependent person with disabilityb. In case of dependent person with severe

disability

This deduction is allowed only if the below condition issatisfied:-

a. The dependants have not claimed any deductionunder section 80U

Notes :-

a. Person with Disability means A personsuffering from not less than forty (40%) of anydisability as certified by a medical authority

b. Person with Severe Disability means A personsuffering from not less than Eighty (80%) ormore of one or more disabilities as certified by amedical authority

80DD Spouse, children,parents, brothersand sisters

75,000125,000

15 Deduction for Medical TreatmentDeduction shall be allowed as below :-

a. In case of persons whose age is less than orequal to 60 years

b. In case of persons whose age is above 60 orequal to 80 years

c. In case of persons whose age is above 80 years

This deduction is allowed only if the below conditions aresatisfied:-

a. A certificate issued by a specialist working in aGovernment Hospital is submitted

b. The certificate submitted should be in Form No.10-I

c. Amount of medical expenditure incurred orreceived by the insurer or reimbursed by thecompany is known

80DDB Self, Spouse,children,parents, brothersand sisters

Form10-I.pdf

40,000

60,000

80,000Or the amount

equivalent to thevalue of the valid

bills (original)submitted whicheveris less as reduced bythe amount received

by the insurer oramount reimbursed

by the company

Deduction for Interest paid on Housing Loan [Section 24(b)](refer note (infra) on Pre-construction period interest)


a. Loan is taken for the purpose of purchase/acquisition or construction of the house propertyb. Loan is taken on or after 01-Apr-1999c. House property must be purchased or constructed within 3 years from the end of the

financial year in which loan was takend. A certificate detailing the interest and principal amounts issued by the banker is submittede. Possession certificate issued by the builder or self declaration by the employee along with

Form 12C is submitted

This deduction is not allowed in the below cases :-

a. Loan is taken for repair, renewal or reconstruction of the house propertyb. Loan taken to pay the interest on unpaid interestc. Loan taken and is paid outside India

Notes :-

a. Deduction is allowed on accrual basisb. Interest on fresh loan taken to repay the original loan is allowed

16 Deduction for payment of interest on HigherEducation Loan(copy of provisional certificate should be submitted)

This deduction is allowed only if the below condition issatisfied:-

a. Date of sanction of loan should not be morethan 7 years to the immediate assessment year

80E Self, Spouse,children

Amount of interestpaid

17 Deduction is case of a person with disability(copy of disability certificate should be submitted)

For the purpose of deduction the provisions of Section80DD (supra) are to be applied to this section

Deduction shall be allowed as below :-a. In case of dependent person with disabilityb. In case of dependent person with severe

disability

80U Self

75,000125,000

18 Sukanya Samriddhi Account Scheme(copy of passbook should be submitted)

a. A legal Guardian/Natural Guardian can openaccount in the name of Girl Child

b. Account can be opened up to age of 10 yearsonly from the date of birth

c. Minimum Rs.1000 and Maximum Rs.150,000 in afinancial year

80C Dependent Girlchild aged belowor equal to 10years

150,000

19 Deduction for interest on deposits in savings bankaccount(copy of passbook should be submitted)

Deduction is allowed if the below conditions are satisfied

a. Savings account should be with any Indian Bankand or Post Office

b. Deduction is allowed only for savings bankaccount

c. Maximum deduction allowed is Rs.10,000

80TTA Self 10,000

c. Commission or brokerage paid s not allowedd. Maximum deduction is Rs.200,000 in case of self occupied property including both normal

interest and pre-construction period interest


Case 1 :- Property is self occupied :-

Deduction in this case is available if the below conditions are satisfied :-

a. Own Property is occupiedb. Own property is not let outc. No any other benefit is derived from such property

Deduction Amount will be as below :-

a. Where loan is taken on or after 01-Apr-1999 for purchase or construction of the houseproperty Rs.200,000 is deducted

b. Where loan is taken before 01-Apr-1999 for purchase, construction, repair, renewal orreconstruction of the house property then only Rs.30,000 is deducted and not Rs.200,000

c. Where loan is taken on or after 01-Apr-1999 for repair, renewal or reconstruction of thehouse property then only Rs.30,000 is deducted and not Rs.200,000

Case 2 :- Property not occupied or is vacant due to employment at any other place :


a. Own Property is not occupied due to employment at any other placeb. Should reside in a rented house situated at the employment placec. Own property is not let outd. Any benefit is not derived from the own property


a. Where loan is taken on or after 01-Apr-1999 for purchase or construction of the houseproperty Rs.200,000 is deducted

b. Where loan is taken before 01-Apr-1999 for purchase, construction, repair, renewal orreconstruction of the house property then only Rs.30,000 is deducted and not Rs.200,000.

c. Where loan is taken on or after 01-Apr-1999 for repair, renewal or reconstruction of thehouse property then only Rs.30,000 is deducted and not Rs.200,000.

Note In this case the property can be occupied by the family members

Case 3 :- Partly self occupied property and partly let out property :-


a. Own property has two or more unitsb. One unit is self occupied and other unit or units are let out


A Self occupied Unit

a. Where loan is taken on or after 01-Apr-1999 for purchase or construction of the houseproperty Rs.200,000 or proportionately distributed interest amount whichever is less

b. Where loan is taken before 01-Apr-1999 for purchase, construction, repair, renewal orreconstruction of the house property Rs.30,000 or proportionately distributed interest amountwhichever is less

c. Where loan is taken on or after 01-Apr-1999 for repair, renewal or reconstruction of the

house property Rs.30,000 or proportionately distributed interest amount whichever is less

B- Let out unit or units

a. If deduction allowed in self occupied property is less than or Rs.200,000 then the balanceinterest in excess of Rs.200000 is allowed which should be proportionately or equallydistributed among the let out unit or units

Notes The aggregate deduction in this case will be equal to or less than interest amount (ie self

occupied unit + let out unit or units) Loan borrowed should be allocated between all the units in the property based on the build

up area of each unit

Case 4 :- Self occupied for part of the year and let out for other part of the year :-

In this case deduction is allowed as if the property is let out.

For calculation provisions of case 1 (supra) are to be applied

Note In this case entire interest can be claimed without any limit

Case 5 :- More than one house properties are self occupied :-

In this case only one house as selected will be considered as self occupied and other properties aredeemed to be let out whether they are actually let out or not.


A Self occupied property

a. Where loan is taken on or after 01-Apr-1999 for purchase or construction of the houseproperty Rs.200,000 or proportionately distributed interest amount whichever is less

b. Where loan is taken before 01-Apr-1999 for purchase, construction, repair, renewal orreconstruction of the house property Rs.30,000 or proportionately distributed interest amountwhichever is less

c. Where loan is taken on or after 01-Apr-1999 for repair, renewal or reconstruction of thehouse property Rs.30,000 or proportionately distributed interest amount whichever is less

B- Let out property/properties

In this case deduction is allowed as if the property is let out

For calculation provisions of case 1 (supra) are to be applied

Note In this case entire interest can be claimed without any limit for each property/properties

Pre-construction Period Interest:-

1. It is a period starting on the date of borrowing loan and ending on

a. 31st March immediately prior to the date of completion of construction or purchase of house or

b. Date of repayment of loan - whichever is earlier

2. It is deductible in 5 equal installments

3. The first installment is deductible in the year in which construction of property is completed orproperty is purchased

Disclaimer

This presentation is meant to provide an overview of certain tax exemptions available. This should not be construedas a tax advice. The exemptions and deductions need to be evaluated on a case-to-case basis and will depend onspecific fact pattern. It is recommended to obtain suitable expert assistance.

Budget 2015

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