INCOME TAX STATEMENT INCOME TAX CALCULATOR 2016-17

Income Tax Statement 2016-17 Income Tax Calculating Free Software for Government Employees and Other Tax Payers

As were about to reach the closure of the financial year, the doubts of the ordinary tax payers are seen accelerating!  A lion share of the Tax Payers is still in black about various sections of the Income Tax Act. Of Course, the Income Tax Act covers a vast area, the ordinary tax payers are not expected to understand all the sections of the Act.

 Before using this software you are hereby advised to go through the following lines.

RATES OF INCOME-TAX AS PER FINANCE ACT, 2016:

As per the Finance Act, 2016, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2016-17 (i.e. Assessment Year 2017-18) at the following rates:

A. Normal Rates of tax:

1 Where the total income does not exceed Rs. 2,50,000/-. Nil

2 Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. 10 per cent of the amount by which the total income exceeds Rs. 2,50,000/-

3 Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 25,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.

 4 Where the total income exceeds Rs. 10,00,000/-. Rs. 1,25,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-

B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:

1 Where the total income does not exceed Rs. 3,00,000/- Nil

2 Where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000/- 10 per cent of the amount by which the total income exceeds Rs. 3,00,000/-

3 Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- Rs. 20,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.

 4 Where the total income exceeds Rs. 10,00,000/- Rs. 1,20,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-

C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

1 Where the total income does not exceed Rs. 5,00,000/- Nil

2 Where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000/- 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-

3 Where the total income exceeds Rs. 10,00,000/- Rs. 1,00,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-

Surcharge on Income tax:

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, having a total income exceeding one crore rupees, be increased by a surcharge for the purpose of the Union calculated at the rate of fifteen per cent of such income-tax:

 Provided that in the case of persons mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Education Cess on Income tax:

The amount of income-tax including the surcharge if any, shall be increased by Education Cess on Income Tax at the rate of two percent of the income-tax.

Secondary and Higher Education Cess on Income-tax:

An additional education cess is chargeable at the rate of one percent of income-tax including the surcharge if any, but not including the Education Cess on income tax as in preceeding paragraph.

In Short:

Category	Ordinary Citizens Below  the Age of 60	Senior Citizens Between the Age of 60-80	Super Senior Citizens Above the  Age of 80
1	Upto Rs. 2,50,000 - Nil	Upto Rs. 3,00,000 - Nil	Upto Rs. 5,00,000-Nil
2	2,50,000 To 5,00,000 - 10%	3,00,000 To 5,00,000 - 10%
3	5,00,000 To 10,00,000 - 20%	5,00,000 To 10,00,000 - 20%	5 ,00,000 To 10,00,000 -20%
4	Above 10,00,000 - 30%	Above 10,00,000 - 30%	Above 10,00,000    30%

Tax Saving Sections

INVESTMENT& PROVISIONS

Section 24: Interest payable on Housing Loan & Home Improvement LoanDeduction Up to Rs 2 Lakh for Home Loan and Rs. 30,000 for Home Improvement Loan.

Section 80C : GIS Subscriptions, State Life Insurance  Premiums, Tution Fees, HousingLoan Principal Repayment etc. Provident Fund (EPF/ VPF) Public Provident Fund (PPF), Sukanya Samriddhi Account, National Saving Certificate (NSC), Senior Citizen’s Saving Scheme (SCSS) Tax Saving Fixed Deposits (for 5 Years) Life Insurance Premium Pension Plans from Mutual Funds Pension Plans from Insurance Companies New Pension Scheme (NPS) Tax Saving Mutual Funds (ELSS) Central Govt. Employees Pension Scheme Expenditures Principal Payment on Home Loan Stamp duty and registration cost of the House Tuition Fee for 2 Children etc.

Sukanya Samriddhi Account (SSA)

Sukanya Samriddhi Account is a new scheme by Government to promote all round development of Girl Child.

Can only be opened for Girl child below 10 years of age (max for 2 girl child by a parent) - Deposit to the account to be made for 14 years and account matures at 21 years from date of opening - Maximum Investment Allowed: Rs 1.5 Lakh per Year per account - Minimum Investment of Rs 1,000 required every year to keep the account active - Interest Rates paid are market linked & is reset every quarter. The present interest rate is 8.6% (Q1 – FY 17)

Public Provident Fund (PPF)

It has mandatory locking of 15 Years and can be extended further 5 years at a time. Maximum Investment Allowed: Rs 1.5 Lakh per Year (Budget 2014 increased this limit). Minimum Investment of Rs 500 required every year to keep the account active Interest Rates paid on PPF are market linked onward hence would vary every quarter The interest rate was 8.1% for Q1 (FY 2016-17)

PPF can be opened at Post Offices, 24 Nationalized Banks and one Private Banks. This include Andhra bank, Allahabad Bank, Canara Bank, Corporation Bank,Indian Bank, State Bank of Travancore, Bank of India, Central Bank of India, Dena Bank, IDBI Bank, Syndicate Bank, Bank of Baroda, Indian Overseas Bank, Punjab National Bank, Union Bank of India, State Bank of Hyderabad, State Bank of India, ICICI Bank Ltd., State Bank of Mysore, State Bank of Patiala, Vijaya Bank, Bank of Maharashtra, State Bank of Bikaner and Jaipur, United Bank of India and UCO Bank.

NSC (National Saving Certificate) Tax Saving FD from Banks / Post Offices

It is available for 5 years (NSC VIII). 10 Year NSC has been discontinued from 2016.The interest is market linked and changes every quarter.There is no maximum limit for investment in NSC but the deduction is only till maximum of Rs 1.5 Lakh u/s 80C. You can buy NSC in denominations of Rs 100, 500, 1000, 5000 and 10000.

Tax Saving FD from Banks / Post Offices

Has minimum tenure of 5 Years. Some banks offer 0.25% to 0.75% additional interest for Senior Citizens and their employees Normal Interest rates are 7% -7.5% for general public and 7.5% - 8% for Senior Citizens.These are like normal Fixed Deposit with banks but is termed Tax Saving Fixed Deposits.

Senior Citizens Savings Scheme

Senior Citizens Savings Scheme is for senior citizens who are 60 years or above on the date of opening of the account. Also people with 55 years of age who have retired by VRS can open Senior Citizens Savings Scheme after 3 months of retirement. Minimum Investment: Rs 1,000 while Maximum Investment: Rs 1500000/-.The joint account can be opened only with your spouse.There is no age limit applicable for the joint account holder.The interest is paid out quarterly. The interest is 8.6% w.e.f April 1, 2016. No partial withdrawal is permitted before 5 years.The account may be extended for a further period of 3 Years.

Equity Linked Saving Scheme

Equity Linked Saving Scheme is popularly known as Tax Saving Mutual Fund. The minimum investment is Rs 500. There is no limit for maximum investment but the maximum deduction you get 150000/- only.

Tuition Fee

The maximum deduction available is Rs 150000/-.The deduction is available for full time courses only. The deduction is not available for tuition fee to coaching classes or private tuition. The educational institute should be located in India, though it may be affiliated to any foreign university. The expenses on tuition fees for maximum of two children is only. It does not include :- Development Fee, Transport charges, hostel fees, Mess charges, library fees, Late fee, Stationary Charges, Magazine Fees, etc- ONLY FOR TUITION FEE! This deduction is not available for tuition fees for self or spouse.

Stamp Duty & Registration Fees

This benefit is available on purchase on new residential unit only. Stamp duty and registration charges up to Rs 150000/- can be claimed. The payment should have been made in the same financial year. The deduction cannot be carried forward to next year. The house should be in the name of assessee claiming deduction.The payment for stamp duty should have been made from his own funds.

Home Loan- Principal

Deduction u/s 80C up to Rs 150000/- is allowed on the principal repayment of the housing loan if the house is self occupied or kept vacant. The house should be registered in the name of assessee. (He should be one of the owners, in case of joint ownership). The loan should be taken from Banks from  employers concerned.Loans taken from friends/ relatives is not eligible.

Section 80CCC : Various Pension Schemes  from Insurance Companies.Please note that the  assured return of these type  of investment is only  1-2% per annum.

Section 80CCD: Central Government Pension Schemes including NPS.

National Pension Scheme (NPS)

It has two types of Accounts  Tier 1 and Tier 2. Tier 2 account is optional and only contribution to Tier 1 account is eligible for Tax Deduction u/s 80CCD. Tier- 1 account requires a minimum investment of Rs 6,000 annually and Rs 500 per transaction. Salaried employees can claim deduction up to 10% of your salary, which comprises basic + DA, while for self employed can claim upto 10% of gross total income

Note:-Maximum Rs. 150000/- Deduction for Income Tax combining these 3 Sections

Section 80CCD(1B): Additional exemption of Rs 50,000 for investment in NPS

HEALTH AND MEDICAL TREATMENT

Section 80D: Medical Insurance for Family and Parents Deduction Up to Rs 60,000/-You can claim maximum deduction of Rs 25,000 in case you are below 60 years of age and Rs 30,000 above 60 years of age.An additional deduction of Rs 25,000 can be claimed for buying health insurance for your parents (Rs 30,000 in case of either parents being senior citizens) This deduction can be claimed irrespective of parents being dependent on you or not This is for Self, Spouse, Children and Parents and not available for buying health insurance for in-laws!

Section 80DD: Maintenance & medical treatment of disabled dependent Deduction up to Rs. 125000/-You can claim up to Rs 75,000 or actual expenditure incurred, whichever is lesser. (The limit is Rs 125000/- for severe conditions) Dependent can be parents, spouse, children or siblings. (The dependent should not have claimed any deduction for self) The Persons with Disability Act-1995 defines that the persons with 40% disablity or more is a Differently abled person. A severe disability condition is 80% or more of the disabilities Individuals should produce a  disability certificate issued by a Medical Board constituted by the State or Central Government to claim this deduction.

Section 80DDB: Treatment of certain Disease / Ailment- Deduction Up to Rs 80,000/- Cost incurred for treatment of certain disease for self and dependents can claim deduction Dependent can be parents, spouse, children or siblings. (They should be wholly dependent on you) Diseases include: AIDS , Chronic Renal failure, Hemophilia, Malignant Cancers , Neurological Diseases ,Parkinson’s Disease, Thalassaemia, etc. A certificate from Specialist Doctor from Government Hospital should be produced.If  the expenses have been reimbursed this deduction cannot be claimed (But if partial reimbursement is made, the balance amount can only be claimed)

                               

LOANS

Section 80E: Interest payable on Education Loan- Whole Amount can be deducted.The entire nterest paid on education loan in a financial year is eligible for deduction.There is no deduction on principal paid for the Education Loan.The loan should be taken for pursuing full time courses only.The loan has to be taken from approved financial institution only.The loan should be for education of self, spouse or children only not for in -laws.

Section 80EE: Additional deduction up to Rs 50,000 for Interest Payable on Home Loan (For First time home buyers only)

DONATIONS

Section 80G: Donation to certain charitable funds, charitable institutions, etc Deduction Up to Rs 40,000/-*

Section 80GGA:  Donations for scientific research or rural development Deduction Up toRs 100000/-*

Section 80GGC: Donation to political parties -Deduction Up to Rs 60,000/-*

*Conditions apply.

Section 80GG: For Paying Rent in case of no HRA- Deduction Up to Rs 24,000/-

Section 80CCG: Rajiv Gandhi Equity Savings Scheme (RGESS)- Deduction Up to Rs 25,000/- (50% of the amount invested) Rajiv Gandhi Equity Savings Scheme is a Tax Saving Scheme to encourage first time investors in stock market.Tax deduction on 50% of the amount invested The maximum amount eligible for investment in a year for RGESS is Rs 50,000.You can invest for three consecutive years.The returns are dependent on stock market and it is Tax Free.

Section 80U:     Physically Disabled Assesse can claim deduction in case he suffers from certain disabilities or diseases.

The deduction is Rs 75,000 in case of normal disability (40% or more disability).

The deduction is Rs 125000/-for severe disability (80% or more disability).
Section 80TTA: Interest received in Saving Bank Account- Deduction Up to Rs 10,000/-

*********************************************************************************

Since the income and expenditure are different from person to person, It is a herculean task to devise a single formula for developing a software for catering all the needs of every tax payers. Still it can be made for meeting the common needs, taking into the consideration of the identical parameters. Against this backdrop is, this software, The Anticipatory Income Tax Calculator 2017-18, is devised. Before using this software you are hereby advised to go through the forgoing lines, so that you should have an idea on various Sections of the Income Tax Act, pertaining to the Income Tax assessment.
Then You can 
Click Here to Download The Income Tax Calculator!!

--------------------------------------------------------------------------------------------------------------------------

Desclaimer: You are advised to calculate your income tax asper the provisions of the Income Tax Act and all other rules relevant, manually, apart from relying to this software. The software available in this blog is intended only for providing a help to the individual in calculating his/ her income tax. The same cannot be treated as foolproof or final word in this regard. It may also be kept in mind that this software cannot be used if your proposed income is coming under the purview of “Surcharge”. Therefore, the developer of this software never take the responsibility for any mistakes in calculations, errors omissions etc. whatsoever, inadvertently crept in this software. Hence you are hereby advised to verify the correctness of the figures calculated using this software, manually. By downloading and using this software you are agreeing to use this software at your own risk, completely absolving the developer of this software. In short, you are using this software at your own risk and responsibility alone.