Did you receive any advance
salary or arrears of salary? If yes, you might be worried about the
tax implications of the same. Do I have to pay taxes on the total amount? What
about the tax calculations of the previous year and so on? Taxpayers who have
such questions in their mind, here is all that you need to know.
Thursday, 19 March 2020
Wednesday, 18 March 2020
When it comes to saving taxes, the
Public Provident Fund (PPF) is one product a lot of people turn to
There are two reasons for this: its
tax-free yearly interest and the annual compounding. Since the PPF has a long
tenure of 15 years, the impact of compounding is huge, especially in the later
years.
Sunday, 15 March 2020
The
Income Tax Act
allows deductions from your gross total income, before the levy of tax, if
medical expenditure has been incurred on the treatment of a differently-abled
person. Sections 80DD and 80U of the Income Tax Act deals with the medical expenditure incurred
for this purpose.
However, Though
the working of these two deductions is the same, according to income tax rules,
these cannot be claimed simultaneously. In other words, Section 80DD and Section 80U of the
Income Tax Act allows a deduction for the medical expenses incurred for
differently-abled persons. The amount of deduction is the same for both the
sections. However, Section 80DD can be claimed by the person who has incurred
expenses for the dependent differently-abled person. On the other hand, 80U can
be claimed by the individual if he/she, himself/herself, is differently-abled.
If the individual is claiming deduction under section 80U, then no other person
can claim deduction under section 80DD for the aforesaid person.
Download Automated 100 Employees Income Tax Revised Form 16 Part A&B for F.Y.2019-20 [This Excel Utility can prepare at a time 100 Employees Revised
Form 16 Part A&B ]
Here
is everything you need to know about claiming deductions under both sections
80DD and 80U.
Who can claim the deduction?
For instance, as mentioned above, deduction under section 80DD can be claimed by a resident individual who has incurred expenditure on the training, rehabilitation, medical treatment of a differently-abled or disabled dependent person.
The income tax law defines a dependent person like spouse, children, parents, brother and sisters of the individual who is fully dependent on the individual for the support and maintenance Above all,
The deduction can also be claimed if payment or deposit has been made by an individual under any scheme of Life Insurance Corporation (LIC), or any other the insurer or any other specified scheme or deposit for the maintenance of the dependent. In addition,
The scheme should provide the annuity or lump-sum benefit in the event of the death of the individual for the maintenance of the dependent person suffering from disability
Who can claim the deduction?
For instance, as mentioned above, deduction under section 80DD can be claimed by a resident individual who has incurred expenditure on the training, rehabilitation, medical treatment of a differently-abled or disabled dependent person.
The income tax law defines a dependent person like spouse, children, parents, brother and sisters of the individual who is fully dependent on the individual for the support and maintenance Above all,
The deduction can also be claimed if payment or deposit has been made by an individual under any scheme of Life Insurance Corporation (LIC), or any other the insurer or any other specified scheme or deposit for the maintenance of the dependent. In addition,
The scheme should provide the annuity or lump-sum benefit in the event of the death of the individual for the maintenance of the dependent person suffering from disability
Conditions for claiming
deduction
After that, the deduction under either section 80DD or 80U can be claimed only if the individual himself or dependent is suffering from disability, autism, cerebral palsy or multiple disabilities.
After that, the deduction under either section 80DD or 80U can be claimed only if the individual himself or dependent is suffering from disability, autism, cerebral palsy or multiple disabilities.
Similarly,the percentage of disability should not
be less than 40 per cent in order to be eligible
to claim deduction under these sections. In case you are claiming the deduction
allowed for severe disability, then the disability level should be a minimum 80 per cent.
Download Automated 50 Employees Income Tax Revised Form 16 Part A&B for F.Y. 2019-20
[This Excel Utility can prepare at a time 50 Employees Revised
Form 16 Part A&B ]
To avoid the rejection of the claim for
deduction by the income tax department, one must also satisfy the definition of
disability, autism, cerebral palsy or multiple disabilities as per the act
governing the same.
Disability is defined as per the Persons
with Disabilities (Equal Opportunities, Protection of Rights and Full
Participation) Act, 1955. As per Persons with Disabilities (Equal
Opportunities, Protection of Rights and Full Participation) Act, 1995,
disability is defined as someone who is suffering from blindness, low vision,
leprosy-cured, hearing impairment, locomotor disability, mental retardation,
mental illness, autism, cerebral palsy and multiple disabilities. A person with a disability.
Similarly, autism, cerebral palsy and
multiple disabilities take their meaning from the National Trust for the welfare of
Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple
Disabilities Act, 1999. Multiple disabilities can be defined as the person
suffering from a combination of two or more disabilities as defined in Person
with Disabilities (Equal Opportunities, Protection of Rights and Full
Participation) Act, 1995.
Download Automated 50 Employees Income Tax Revised Form 16 Part B With Form 12 BA for F.Y. 2019-20 [This Excel Utility can prepare at a time 50 Employees
Revised Form 16 Part B With 12 BA ]
Amount of deduction depends on
disability, not expenses & age
The amount of deduction that can be claimed depends on the percentage of disability. If the individual or dependent has 40 per cent or more disability but less than 80 per cent, then the deduction of Rs75,000 can be claimed in a financial year.
The amount of deduction that can be claimed depends on the percentage of disability. If the individual or dependent has 40 per cent or more disability but less than 80 per cent, then the deduction of Rs75,000 can be claimed in a financial year.
In case of severe disability, i.e., if
the percentage of disability exceeds 80 per cent, then the deduction of Rs 1.25
lakh is allowed.
The amount of deduction depends on the
percentage of disability. The deduction claimed is fixed irrespective of the
actual expenses. Therefore, even if the actual expenses are less than Rs 75,000
or Rs 1.25 lakh as applicable, you can still claim the mentioned amount.
Documents required
To claim this deduction, either under Section 80DD or Section 80U, one is required to provide a certificate of disability. As per the income tax laws to claim the deduction, one is required to obtain a certificate in the prescribed manner as mentioned in Form 10-IA. The certificate must be obtained from the prescribed medical authority.
To claim this deduction, either under Section 80DD or Section 80U, one is required to provide a certificate of disability. As per the income tax laws to claim the deduction, one is required to obtain a certificate in the prescribed manner as mentioned in Form 10-IA. The certificate must be obtained from the prescribed medical authority.
Download Automated One by One Preparation Excel Based Income Tax Revised Form 16 Part A&B for F.Y. 2019-20 [This Excel Utility can prepare One by One Revised
Form 16 Part A&B ]
In conclusion, the medical authority is required to
issue the disability certificate shall be a neurologist having a degree of
Doctor of Medicine in Neurology (in case of children, a Pediatric Neurologist
having an equivalent degree) or a civil surgeon or chief medical officer in a
Government hospital.
Source From Economics Times
Friday, 13 March 2020
Thursday, 12 March 2020
The
Central Board of Direct Taxes (CBDT) have introduced a new Format for Form 16
and Form 24Q, which are referred as salary TDS certificate. From the looks of
the new Forms it can be said that, claims under various sections have been
enhanced and cumulative. Also, new columns and sections have been added
in Form 16. A new column is made for senior citizens and various allowances have
been modified in Form 24Q. These two forms are prepared by your employer and
include details of your salary and investments. They are vital tools for filing
your income tax return (IRT). Now that ITR filing for the assessment year 2019-20
has already begun, it is important that you take note of every section in these
two Forms very seriously. One can reduce their taxes by furnishing these Forms
in their ITR filing. Also TDS can be claimed from the Income Tax
department.
Wednesday, 11 March 2020
NPS has two Tiers – 1 and 2.
NPS Tier 1 is the long haul speculation, which has
limited withdrawals and implied essentially for retirement arranging. On
development, you can pull back limit of 60% of corpus as lump sum and rest must
be utilized for annuity buy.
Tuesday, 10 March 2020
This has been long overdue and I am
happy that an Excel add-in that helps convert numbers to words or text is
finally here. Just install this add-in and you can easily convert numbers to
words in several popular currencies using relevant type of function INWORD.
Subscribe to:
Posts (Atom)
