Category: income tax

Form 15G / Form 15H : Detailed guide

April 2015 is running and you may be asked by your banker to submit form 15G or Form 15H. You can download this form here. In this article I will explain you – how to fill form 15G or form 15H correctly? and who should submit form 15G or form 15H to bank for non deduction of TDS? Let’s start. Meaning of form 15G / form 15H: Form 15G or form 15H is submitted to requrest income provider for not deducting income for prescribed income. In that form, declaration maker declares that his estimated taxable income for the same...

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TDS rate chart for FY 2015-16 ( AY 2016-17)

TDS compliance is necessary for deductor to avoid high penalties and interest. I have presented here latest TDS rate chart for FY 2015-16 (AY 2016-17) covering amedment in budget 2015. Deduct the TDS as per chart and deposit within due date.       TDS rate chart for fy 2015-16 ( ay 2015-16):   SectionNature of paymentWhen to deduct - minimum payment (Threshold limt)Threshold limit (minimum amount exceeds to deduct TDS)TDS rate 192SalaryWhen net estimated salary exceeds the basic tax free limit as per income tax slabAs per income tax slab 192APayment of accumulated balance of PF, 1952 to employees ( wef - 1/6/15)At the time of payment30,00010% 193Interest on securites*Credit or payment whichever is earlier5,00010% 194DividendBefore making payment to shareholders ( other than dividend u/s 115-0)20% 194Ainterest other than interest on securites#Deduction is required when amount credited or payment whichever is earlier. 5,000, For banks- 10,000 10% 194BWinning from lottery, crossword puzzles, card games, tv game show at the time of payment5,00030% 194BBWinning from horse racesAt the time of payment2,50030% 194C**payment to contractor / subcontractorAt the time of credit or payment whichever is earlier, 30,000 - single payment, 75,000- total annual payment1% when payee is individual/ HUF, 2% when payee is other than Individual/ HUF 194Dinsurance commissionPayment or credit whichever is earlier 20,00010% 194DAPayment under life insurace policy (including bonus)At the time of payment1,00,0002% 194HCommission/ brokeragePayment or credit...

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Income tax slab for FY 2015-16 ( AY- 2016-17)

Financial year 2015-16 is coming. Here, I have presented income tax slab for fy 2015-16 and ay 2016-17 as per budget 2015. I hope this income tax rate chart will be helpful to you. Income tax slab for fy 2015-16 – income tax rates : Income tax slab for individual ( age below 60 years), HUF, AOP, BOI, artificial juridical person ( for male and female) :   Net incomeIncome tax rate Up to Rs. 2,50,000NIl Rs. 2,50,001 to Rs. 5,00,00010%* Rs. 5,00,001 to Rs. 10,00,00020% More than Rs. 10,00,00030% Income tax slab for individual – senior citizen( age 60 years or more but less than 80 years) :   Net incomeIncome tax rate Up to Rs. 3,00,000NIl Rs. 3,00,001 to Rs. 5,00,00010%* Rs. 5,00,001 to Rs. 10,00,00020% More than Rs. 10,00,00030%   Income tax slab for individual – super senior citizen ( Age 80 years or more) :   Net incomeTax rate Up to Rs. 5,00,000Nil Rs. 5,00,001 to Rs. 10,00,00020% more than Rs. 10,00,00030%   * Rebate u/s 87A is available to person having income less than Rs. 5,00,000 during the financial year. The rebate amount is Rs. 2,000. So first calculate the tax and reduce Rs. 2,000 from it.The rebate u/s 87A is available to tax and not to income.   Education cess:¬† Education cess at 3% is appliacable on income tax calculated from the above...

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Income tax deduction 2014-15 (A.Y. 2015-16)

There is change in  limit of income tax deduction 2014-15 (A.Y.2015-16) with introduction of budget 2015. I have prepared chart for it. Through it you can get details of new deduction limit under section 80C, 80D etc. Chart for income tax deduction 2014-15 ( A.Y. 2015-16) Deduction limit changes in budget 2015-16 SectionDeductionBefore budget 2015-16After budget 2015-16Other conditions to avail deduction 80CInvestment in Sukanya Samriddhi Account scheme is eligible for deduction.Interest and withdrawan are exempt.EEE (exempt-exempt-exempt) scheme. The account can be opened on the name of girl child in post office. 80CCDContribution to pension planMaximum limit Rs. 1,50,000Maximum limit...

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Deduction under section 80D: The Ultimate guide

Deduction under section 80D is available for mediclaim insurance paid during the previous year. It is covered under chapter VI of income tax act. Who can use deduction under section 80D? Only individual and HUF can use section 80D deduction.   Whose insurance should be taken to get benefit of deduction of mediclaim insurance? Individual: individual can take medical insurance for himself, spouse, dependent parents or dependent children. HUF : HUF can take medical insurance for any member of HUF. Maximum limit of deduction u/s section 80D: Deduction 80D is available over and above the deduction under section 80C...

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