Automated All in One TDS on Salary for West Bengal Govt Employees for F.Y.2017-18 , With List of important Income Tax Exemptions for A.Y 2018-19

Budget 2017-18 has been presented in Parliament. The Finance Minister has kept the Personal Income Tax slab rates changed for the Financial Year 2017-18 (Assessment Year 2018-2019). Given below the New Tax Slab for F.Y.2017-18

Income Tax Deductions F.Y 2017-18 As per Budget 2017

Section 80C

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The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80c are as below;

• PPF (Public Provident Fund)
• EPF (Employees’ Provident Fund)
• Five year Bank or Post office Tax saving Deposits
• NSC (National Savings Certificates)
• ELSS Mutual Funds (Equity Linked Saving Schemes)
• Kid’s Tuition Fees
• SCSS (Post office Senior Citizen Savings Scheme)
• Principal repayment of Home Loan
• NPS (National Pension System)
• Life Insurance Premium
• Sukanya Samriddhi Account Deposit Scheme

Section 80CCC

Contribution to annuity plan of LIC (Life Insurance Corporation of India) or any other Life Insurance Company for receiving pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.

Section 80CCD

Employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be upto 10% of the salary (or) Gross Income and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.

To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals and Gross income is applicable for non-salaried. The definition of Salary is only ‘Dearness Allowance.’ If your employer also contributes to Pension Scheme, the whole contribution amount (10% of salary)can be claimed as tax deduction under Section 80CCD (2).

Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17.

The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.

Section 80D

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Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure.

preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).

Section 80DD 

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You can claim up to Rs 75,000 for spending on medical treatments of your dependents(spouse, parents, kids or siblings) who have 40% disability. The tax deduction limit of up to Rs 1.25 lakh in case of severe disability can be availed.

To claim this deduction, you have to submit Form no 10-IA.

Section 80DDB

An individual (less than 60 years of age) can claim upto Rs 40,000 for the treatment of specified critical ailments. This can also be claimed on behalf of the dependents. The tax deduction limit under this section for Senior Citizens is Rs 60,000 and for very Senior Citizens(above 80 years) the limit is Rs 80,000.

To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.

For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:

• Neurological Diseases where the disability level has been certified to be of 40% and above;

(a) Dementia

(b) Dystonia Musculorum Deformans

(c) Motor Neuron Disease

(d) Ataxia

(e) Chorea

(f) Hemiballismus

(g) Aphasia

(h) Parkinson’s Disease

• Malignant Cancers
• Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;
• Chronic Renal failure
• Hematological disorders

• Hemophilia
• Thalassaemia

 Section 24 (B)

The interest component of home loans is allowed as deduction under Section 24B for up to Rs 2 lakh in case of a self-occupied house. If your property is a let-out one then the entire interest amount can be claimed as tax deduction. 

 Section 80EE

This is a new proposal which has been made in Budget 2016-17. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE. The below criteria has to be met for claiming tax deduction under section 80EE.

• The home loan should have been sanctioned in FY 2016-17.
• Loan amount should be less than Rs 35 Lakh.
• The value of the house should not be more than Rs 50 Lakh &
• The home buyer should not have any other existing residential house in his name.

Section 80U

This is similar to Section 80DD. Tax deduction is allowed for the tax assessee who is physically and mentally challenged.

Section 80GG

As per the budget 2016 proposal, the Tax Deduction amount under 80GG has been increased from Rs 24,000 per annum to Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).

The extent of tax deduction will be limited to the least amount of the following;

• Rent paid minus 10 percent the adjusted total income.
• Rs 5,000 per month.
• 25 % of the total income.

Section 80G

Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. But deduction is not allowed for donations made in cash exceeding Rs 10,000. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G.

Section 80E

If you take any loan for higher studies (after completing Senior Secondary Exam), tax deduction can be claimed under Section 80E for interest that you pay towards your Education Loan. This loan should have been taken for higher education for you, your spouse or your children or for a student for whom you are a legal guardian. Principal Repayment on educational loan cannot be claimed as tax deduction.

There is no limit on the amount of interest you can claim as deduction under section 80E. The deduction is available for a maximum of 8 years or till the interest is paid, whichever is earlier.

Section 87A Rebate

Tax rebate under Section 87A has been reduced  from Rs 5,000 to Rs 2,500 for FY 2017-18 (AY 2018-19). Who’s Taxable Income less than 3.5 Lakh, the can get this Tax Rebate.

Section 80 TTA

Deduction from gross total income of an individual or HUF, up to a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account with a bank, co-operative society or post office can be claimed under this section. Section 80TTA deduction is not available on interest income from fixed deposits

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Download All in One TDS on Salary for Non-Govt employees for FY 2017-18 With Form 26AS – Verify Before Filing Tax Return AY 2017-18

What is Form 26AS?

Form 26AS (also called the annual statement) gives you the following details for the associated PAN card:

1                    Salary Credited and the corresponding TDS

2                    Interest Credited and corresponding TDS by banks and companies

3                    Advance tax or self-assessment tax paid

4                    TDS deducted in case of selling/buying of property of more than 50 lakhs value

5                    Any high-value transaction done in the year like buying property, shares, mutual funds, etc

6                    Income tax refund paid if any

How to view 26AS?

There are two ways to view your 26AS

1.                 You can do it directly from Income tax Website – incometaxindiaefiling.gov.in

2.                 You can do it through your net banking of authorized banks (with PAN card correctly linked to the account)

How to view information in Form 26AS?

Once the Form is opened, you have the option to select the Assessment year and the format “View as”. Select the relevant Assessment year and the format and click view.

Select ‘HTML” to view it online and “PDF” to download it.

Password for opening downloaded Form 26AS is the date of birth of PAN holder in the ddmmyyyy format as mentioned in PAN Card. So if your date of birth is January 2, 1975, then your password would be 02011975.

Download Automated All in One TDS on Salary for Non-Govt employees For FY 2017-18 & AY 2018-19

Tax Slab Rate for FY 2017-18 as given below:-

Interpreting From 26AS:

The 26AS is divided into 7 broad sections (A to G). Following are the details for each section.

PART A – Details of Tax Deducted at Source.

This section is most common and has details of Tax deducted by your employer or TDS deducted by banks on interest on Fixed Deposits, etc. TDS deducted by each source is shown in a separate table.

PART A1 – Details of Tax Deducted at Source for 15G / 15H

This section shows details of the income where the tax was not deducted as you had submitted form 15G or 15H. The TDS will always show “0” because you have submitted Form 15G/H for not deducting TDS. It helps in tracking the interest you received.

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PART A2 – Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA (For Seller of Property)

PART B – Details of Tax Collected at Source

This is the tax that is collected by the seller from the buyer on sale of certain goods like liquor, timber, minerals, etc. This would be mainly populated by people involved in such trades.

Download: Automatic HRA Calculator

PART C – Details of Tax Paid (other than TDS or TCS)

This part shows any “Advance Tax or Self Assessment Tax” paid during the financial year. The banks generally upload this information after clearing of the cheque.

Part D – Details of Paid Refund

This part shows any refund paid to you by Income tax department in that financial year

Download Automated Arrears Relief Calculator With Form 10 E from FY 2000-01 to FY 2017-18

Part E: Details of AIR Transaction

It shows the details of any high-value transactions such as a purchase of property etc. These high-value transactions are reported to income tax department by banks/ Registrar/ Mutual Funds/ companies etc through Annual Information Return (AIR)

PART F – Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA (For Buyer of Property)

PART G – TDS Defaults (Processing of Statements)

What should be verified from 26AS?

As you can see it’s a long form but is visually easy to understand. The question is what should be verified in this form? The answer is EVERYTHING. Yes, you should verify all the numbers and relevant details present there.

Download Automated All in One TDS on Salary for W.B.Govt employees for FY 2017-18 & AY 2018-19

1                    Check the name, TAN of the deductor from FORM 16 (salary)/16A (banks)

2                    Check the section for each entry 192 is for salary and 194A is for interest income

3                    Check status of booking. It should be ‘F’ which means Final. This means that the TDS amount deposited to income tax authorities match with the TDS statement filed by the deductor. In case it's “U” meaning Unmatched, it means there is some issue either with the TDS statement or the amount deposited. You will need to check with the concerned deductor in this case.

What if entries do not match?

As stated above in case someone has deducted TDS but has not submitted or updated it wrongly to the income tax authorities, you might see wrong or missing entries. In that case, you will need to contact that person/company.

1                    In case your advance tax or self-assessment tax paid does not match, check with your bank.

2                    In case your Form 16 details do not match consult your employer.

3                    In case you find some entries missing consult with the relevant entities.

Why you should check 26AS before filing ITR?

Form 26AS can be compared to your resume while applying for any job. The interviewer knows everything mentioned in your resume – Similarly, income tax authorities know about all the information present in 26AS. And as you would not mess up in an interview by not preparing what’s on your resume, similarly you can mess your income tax returns by not verifying the entries in 26AS.

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