INCOME TAX - TYPES OF SECTIONS

As per No.402/92/2006-MC (14 of 2011 ) Government of India / Ministry of Finance Department of Revenue Central Board of Direct Taxes --- New Delhi, dated 23 rd june, 2011  PRESS RELEASE 
Individuals having total income up to Rs.5,00,000 for FY 2010-11, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account upto Rs.10,000 are not required to file their income tax return. Such individuals must report their Permanent Account Number (PAN) and the entire income from interest to their employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No 16.

*****    Under 80C if Rs.1,00,000 claimed, the benefit of tax exemption benefit is minimum Rs.10,000 to maximum Rs.30,000. But inorder to decrease the tax payment little more one has to go for other sections. The details of such sections are as follows. 

S.NO	SECTION NO	DETAILS
1	80E	Only interest on loan taken for higher education (above 10th class) of assessee/spouse/children. This benefit is continued only for 8 years from the date of loan sanctioned.
2	80C	Tuition fee for children Maximum of Rs.1,00,000 on the whole (PF, LIC, PPF, APGLI, NSC, TUITION FEE, Housing loan principle repayement, Investment in Infrastructure bonds, Deposits in scheduled banks for less than 5 years) under this section
3	80G	DONATIONS 100 % EXEMPTION WITHOUT LIMITATION ---> National defence fund,PM / CM Relief funds, National foundation for communal harmony, District saksharatha mission, central sports fund, central cultural fund, National technology fund. 50% Exemption on the amount given to registered charitable trusts -- amount paid should be more than Rs.250/- & maximum upto 10% of the salary.
4	80GG	Under this Maximum 25% of annual income or Rs.2,000/- per month can be exempted --- provided 1) Registered house should not exist in the living place on the name of assessee/spouse/children. 2)Should not claim any other exemptions with reference to house. Using this section individual can benefit Tax upto Rs.7,400/-
5	80CCG	RAJIV GANDHI EQUITY SCHEME This section is available from current financial year. This is intended only for the persons who enters newly into stockmarket for investing. Maximum investment is Rs.50,000/- from which one can exempt Rs.25,000/- from annual income. Condition:- Individual annual income should not be more than Rs.10,00,000/- (Ten Lakhs)
6	80D	Maximum Rs.15,000/- for sen. citizens Rs.20,000/- Premium paid to Health Insurance Maximum Rs.15,000/- & for senior citizens Rs.20,000/-. If the policy is taken for parents additional Rs.15,000/- (if they are senior citizens Rs.20,000/-) can be exempted. If there is any medical expenditure for medical check up for assessee/ family members/ parents that can be included maximum amount Rs.5,000/- to the above amount.
7	80DD	PHC members depended on assessee (Parents/ family members/ Brothers / sisters ) can get exemption  for moderate PHC--- Rs.50,000/- for severe PHC--- Rs.1,00,000/- Premiums paid to LIC Jeevan Adaar Policy can be taken into account  under this section.
8	80DDB	Expenditure for Treatement taken to some severe diseases considered for exemption upto Rs.40,000/- (senior citizens Rs.60,000/- ) exempted. Note:- If the expense is reimbursed through heaith insurance this benefit not applicable.
9	80U	If the assessee is PHC with reference to doctor certificate upto moderate --- Rs.50,000/- above moderate --- Rs75,000/- can be exempted.
10	24B	Housing Loan For the loan taken one can get exemption under two sections, Under 80C -- principle paid is exempted & under 24(B) -- interest maximum Rs.1,50,000/- paid on the loan taken exempted. i)If the interest paid is more than Rs.1,50,000/- & wants to get total interest paid  exemption  a)Show that house given to rent & the rent paid shown as income.                              (OR) ii)Show that parents of assessee are living in that house without rent and get exemption
11	54EC	Long Term Capital Gain Tax When Gold/ shares/ plots/ house etc. are sold the profit got can be invested in capital gain tax bonds. The individual can exempt tax upto 20%. These bonds lock in period is 3 years. But the interest got on these bonds during lock in period is taken as income.

*****    భార్యాభర్తలు     ఇరువురు     ఉద్యోగులైన     సందర్భంలో     వారు     విడివిడిగా     ఆదాయం     పన్ను     రిటర్ను     దాఖలు     చేయాలి. వారిరువురు     ఒకే     ఇంటిలో     నివసిస్తూవుంటే     అర్హతవున్న     ఇంటి     అద్దె     అలవెన్సు     ఒకరే     మినహాయించుకోవాలి.
గమనిక     --- A.P. Financial Code Rule 86      ప్రకారం     ఉద్యోగి     చెల్లింపవలసిన     పన్నును     జీతం     బిల్లు     నుండి     డ్రాయింగ్     అధికారే మినహాయించి, సంబంధిత     పద్దుకు     జమచెయ్యాలి.
As per F.No.TDS / Clarification / 1011 Dt. 15-02-2011 of Director  Treasury & Accounts, Hyderabad.

     1) Deduction U/S 80DDB in respect of medical treatment etc. cannot be taken into account by the DDO : it can be claimed by any person only in the return of Income told by him before the Assessing officer by fulfilling all the conditions laid down in that section.

      2) HRA Exemption:

            *** Actual amount of HRA received

            *** Actual rent paid minus 10 % of basic salary

            *** 40% of basic salary ( 50% basic salary incase of places for Bombay, Calcutta, Delhi or Chennai)

            *** HRA granted to an employee who is residing in a house / flat owned by him is not exempt from Income Tax.

            *** The DDO should satisfy himself regarding the fulfillment of conditions by insisting on production of evidence of actual payment of rent before excluding HRA from the total Income.

            *** Salaried employees drawing HRA upto Rs.3000 per month will be exempted from production of rent receipt.

        3) Claims U /S 80 C

                 *** The DDO's are advised to satify themselves about the actual deposits/ subscriptions/ payments made by the employees, by calling for such particulars/ information's as they deem necessary before allowing the deductions claimed.

         4) Arrears ;-

                   After adding these arrears amount to the regular salary received during the year, one can claim the same as deduction U/S 80C, Subject to the regulations mentioned in the Act, since the same is credited to the Provident Fund.

          5)Deduction U/S 80 G towards donations:-

            ***  No deduction should be allowed by the DDO from the Salary income in respect of any donations made for charitable purpose. The Tax relief on such donations as admissible under section 80G will have to be claimd bytheTaxpayer in the return of Income. However in case where employees made donations to the Prime Minister's National Relief Fund, the Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund through their respective employers will be admissible under sections 80G on the basis of certificate issued by the DDO in this behalf.