indianhits (Mr.) (46 Points)
12 December 2015Hello friends,
I am trying to understand few things from my tax slip but don't have a clue on what things are.
1)My net taxable income stands at Rs.3,36,130. So, I will have to pay Rs.8613 (336130-250000 = 86130 & 10% of 86130 = 8613). Is that correct? but in my slip it shows 'Tax on total income' as Rs. 6613 (not including education cess).
2)If I want to save Tax of Rs. 6613, I must invest the whole Rs.86130 in some tax saving scheme right?
Thank You for your time and answer :-)
jaya krishna
(Chartered Accountant)
(262 Points)
Replied 12 December 2015
Your total income is below 500000 for this reason u can eligible for rebate under section 87a amount of 2000.
yes.u can invest in provident fund or whatever amout paid for tuition fee of ur children eligible excemption under section 80c.
duction under 80d (medical claim eligible upto 15000. 20000 for senior citizens)
S. Shiroor
(Others)
(1207 Points)
Replied 12 December 2015
You get Rs2000 rebate under section 87A if Taxable income is less than 5 lakhs.
You can invest upto 66130 for zero tax liablility. I hope I am correct on this.
Minesh Rawat
(Article)
(199 Points)
Replied 12 December 2015
Z
( )
(2965 Points)
Replied 13 December 2015
@ Jaya Krishna
The limits have been revised by Finance Act 2015
15,000 has been replaced by 25,000
20,000 has been replaced by 30,000
Further provision has also been made for very senior citizen
Extracts from the memorandum
"In view of continuous rise in the cost of medical expenditure, it is proposed to amend section 80D so as to raise the limit of deduction from fifteen thousand rupees to twenty five thousand rupees. It is further proposed to raise the limit of deduction for senior citizens from twenty thousand rupees to thirty thousand rupees."
Further, very senior citizens are often unable to get health insurance coverage and are therefore unable to take tax benefit under section 80D. Accordingly, as a welfare measure towards very senior citizens ,it is also proposed to provide that any payment made on account of medical expenditure in respect of a very senior citizen, if no payment has been made to keep in force an insurance on the health of such person, as does not exceed thirty thousand rupees shall be allowed as deduction under section 80D. The aggregate deduction available to any individual in respect of health insurance premia and the medical expenditure incurred would however be limited to thirty thousand rupees. Similarly aggregate deduction for health insurance premia and medical expenditure incurred in respect of parents would be limited to thirty thousand rupees.
Extracts in respect of very senior citizen.
(c) the whole of the amount paid on account of medical expenditure incurred on the health of the assessee or any member of his family as does not exceed in the aggregate thirty thousand rupees; and
(d) the whole of the amount paid on account of medical expenditure incurred on the health of any parent of the assessee, as does not exceed in the aggregate thirty thousand rupees:
Provided that the amount referred to in clause (c) or clause (d) is paid in respect of a very senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person:
Provided further that the aggregate of the sum specified under clause (a) and clause (c) or the aggregate of the sum specified under clause (b) and clause (d) shall not exceed thirty thousand rupees.
S. Shiroor
(Others)
(1207 Points)
Replied 13 December 2015
@ Indianhits. - since you have calculated ur total income - I presume it must be for previous year. Sorry you cannot make any investment for saving tax. you need to pay full 6613 tax.
All Investment need to be done before 31st March 2015 before the financial year ends.
.
NEHA ARORA
(ARTICAL)
(49 Points)
Replied 14 December 2015
Sir my father's net taxable income after deduction u/s 80c 841622/-.
He is a govt employee.
How can he save income tax on it.
Please suggest
NEHA ARORA
(ARTICAL)
(49 Points)
Replied 14 December 2015
Sir my father's net taxable income after deduction u/s 80c 841622/-.
He is a govt employee.
How can he save income tax on it.
Please suggest
S. Shiroor
(Others)
(1207 Points)
Replied 14 December 2015
@ Neha if all the limits of 80C is exhausted. Only way is to buy a House on loan. Give it on rent and claim Interest which is unlimited. Since u r asking for a period already over -you cannot invest any thing now. All investment needs to be made b4 the financial year ends. If you are talking of last year then 31st march 2015 is dead line for making investment.
If you are talking of FY 15-16 then you have time upto 31 st march 2016. The Salary given by you appears to be tentative.
Ramesh
(Student)
(90 Points)
Replied 14 December 2015
Since the total income is less than 500000, you are eligible for Rebate u/s 87A of 2000.
Then your taxable amount would be
8613-2000=6413
which is as per your slip.
Furthur, for claiming exemption:
You may invest amount of 8613 to any heads under 80C, 80D, 80E, 80DDB OR Any other heads for deduction.
If you invest 8613 ,
your net taxable income will be nil
and Tax payable will also be nil.
NEHA ARORA
(ARTICAL)
(49 Points)
Replied 15 December 2015
NEHA ARORA
(ARTICAL)
(49 Points)
Replied 15 December 2015
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