Claim relief u/s 89(1) and How to upload 10E form through Online, Plus Automated Arrears Relief Calculator U/s 89(1) with Form 10e from F.Y.2000-01 to F.Y.2017-18

Income Tax Department has disallowed relief u/s 89(1) which was claimed by Assessee during his/her filing of Income Tax Return for the Assessment Year 2017-18. Earlier there was no doubt claiming such relief up to A.Y. 2014-15 from Income Tax Department. Simply Assessee claims in ITR form and Income Tax Department allows the same as claimed by Assessee.

But now, w.e.f. Assessment Year 2015-16, It is compulsory to upload online 10E form otherwise claim will be rejected and demand will be raised by I.T. Department.

All  Assessees who had claimed rebate u/s 89(1) in the A.Y. 2017-18 have been informed by Income Tax Department through intimation order under section 143(1) that claim amount of rebate has been rejected and raised demand along with interest for the same.

How to upload the Form 10E through e-Filling Tax Return for the A.Y.2017-18 as given below Step by Step.

1) First Login to your e-Filling Site ( through income tax department of India)filingofincometaxIndiae-filing.gov.in 

2) After login, your Account just follows the below Snapshot for uploading Form 10E:-

Procedure to upload 10E Form

      After reading content it is clear without uploading 10E form, relief under section 89(1) cannot be claimed.  Now the question is that how can we upload 10E Form along with ITR-1 (Sahaj), ITR-2  etc Forms.

      After a time gap, it has been found that 10E form is not ITR forms.   The 10e form is other than ITR form which is available on income tax website after login for e-filingofincometaxIndiae-filing.gov.in as shown the above picture.

Click here to download Arrears Relief Calculator relief u/s 89(1) with Form 10E From the Financial Year 2000-01 to Financial Year 2017-18 ( Updated )

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DEDUCTIONS FROM (CHAPTER VI-A), WITH AUTOMATED ALL IN ONE TDS ON SALARY FOR GOVT AND NON- GOVT EMPLOYEES FOR F.Y.2017-18 AND A.Y.2018-19

Section 80C provides for a deduction of savings in specified modes of Investments from gross total income. It is available only to an Individual or HUF. The Maximum permissible deduction is Rs.1.5 lakh along with deduction u/s 80CCC , 80CCD & 80CCD(1B)

Admissible Deductions:-

1. Premium paid on insurance on the life of the Individual or HUF only to the extent of such premium or other payment made not in excess of 10% (As amended by the Finance Act,2012) of Actual Capital Sum Assured. Explanation to Sec 80C (3A) has been introduced to provide that the Actual Capital Sum Assured in respect of the life insurance policies to be issued on or after 1st April, 2012 shall mean the minimum amount assured under the policy on happening of the event at any time during the term of the policy without taking into account the following:-

· The Value of Premium to be Returned or

· Any Benefit by way of bonus or otherwise to be received over & above the sum actually assured.

2. Sum paid under the contract for deferred on the life of the Assessee or his/her spouse or children.

3. Sum deducted by the government from the salary of an employee for securing a deferred annuity for self, spouse or children.

4. Contribution to any PPF.

5. Contribution by an employee to RPF.

6. Contribution by an employee to an Approved Superannuation Fund.

7. The contribution made to any PPF set up by the Central Government.

8. Subscription to any deposit scheme or contribution to any Pension fund set up by the National Housing Bank.

9. Payment of Tuition fees by an Individual Assessee at the time of admission to any university, college, school or other educational institutions within India for the purpose of full-time education of any two children.

10. Subscription to deposit scheme of Public Sector, engaged in providing housing finance.

11. Subscription to units of Mutual funds notified u/s 10(23D).

12. Sum deposited in Fixed Deposits (FDs) with tenure of five years.

13. Sum deposited in 5 yrs Post Office Time Deposit (POTD) scheme.

Download Automated All in One TDS on Salary for Govt & Non-Govt employees for the F.Y.2017-18 & A.Y.2018-19 as per the latest Income Tax Slab for F.Y.2017-18

The Feature of this Excel Utility are:-

1) Automated prepare Tax Computed Sheet

2) Individual Salary Structure for Govt & Non-Govt employees

3) Automated Arrears Relief Calculation U/s 89(1) with Form 10 E

4) Automated H.R.A.Calculation U/s 10(13A)

5) Automated Form 16 Part A&B 

6) Automated Form 16 Part B

7) Automatically convert the amount into the In-Words

2. DEDUCTION IN RESPECT OF CONTRIBUTION TO CERTAIN PENSION FUNDS (SECTION 80CCC)

Deduction in respect of Payment of premium for annuity plan of LIC or any other Insurer is provided. The Premium must be deposited to keep in force a contract for annuity plan of LIC or any other insurer for receiving a pension from the fund. For this purpose, the Interest or Bonus accrued or credited to the Assessee’s Account shall not be reckoned as Contribution. The Maximum Deduction allowed is Rs.1.5 lakh.

3. DEDUCTION IN RESPECT OF CONTRIBUTION TO PENSION SCHEME OF CENTRAL GOVERNMENT (SECTION 80CCD)

Contribution towards NPS by Employee[80CCD(1)]: Taxpayer is an individual and he is employed by the central government (on or after January 1, 2004), or employed by any other person or self-employed. He has in the previous year deposited any amount in his account under NPS. Under this, Employee is to contribute 10% of their salary or more and deduction is available under section 80CCD(1) which is restricted to 10% of the salary and for the person other than employee deduction is restricted to 10% of GTI. For the A.Y 2015-16 amount of deductible under section 80CCD(1) cannot exceed Rs. 1 Lacs.

Contribution towards NPS by Employer [80CCD(2)]: Contribution by the employer to NPS is deductible under section 80CCD(2) in the hands of the concerned employee in the year in which contribution is made. However, no deduction is available in respect of employer’s contribution which is in excess of 10 percent of the salary of the employee.

Contribution towards New NPS [80CCD(1B)]: Additional exemption Rs. 50,000/- Excluding the limit of U/s 80C Max Rs.1.5 Lakh. That means U/s 80C Rs.1.5 Lakh + U/s 80CCD(1B) = 2 Lakh.

4. LIMIT ON DEDUCTION U/S 80C, 80CCC, 80CCD 

The Limit for maximum deduction available u/s 80C, 80CCC, 80CCD (combined together) is Rs.1.5 Lakh only.

5. DEDUCTION IN RESPECT OF MEDICAL INSURANCE PREMIUM (SECTION 80D)

This Section provides for a deduction of Rs. 15000 in respect of premium paid towards a health insurance policy for the Assessee or his family (spouse and dependent children) or any contribution made to the Central Government Health Scheme in aggregate and a further deduction of Rs. 25000 is allowed of premium paid in respect of health insurance policy for parents. An increased deduction of Rs. 30000 shall be allowed in case any of the persons mentioned above are senior citizens (i.e. of age 60 years or above).Further, it is provided that for claiming such deduction u/s 80D the payment must be by any mode other than cash.

Further Deduction of Rs. 5000 shall be allowed in respect of payment made on Account of preventive health check-up of self, spouse, children or parents made during the previous year. This deduction is within the overall limit of Rs. 25000 or Rs.30000, as the case may be. For claiming this deduction payment can be by any mode including cash.

6. DEDUCTION IN RESPECT OF REHABILITATION OF HANDICAPPED DEPENDENT RELATIVE (SECTION 80DD)

It provides for a deduction to an Assessee being an individual or HUF who is a resident of India. Deduction of Rs. 75,000 (Rs. 50,000 up to the assessment year 2015-16) is available in respect of any Amount paid for the medical treatment (including nursing), training and rehabilitation of a dependent, or any amount paid or deposited under a scheme framed in this behalf.

In the case of severe disability (i.e. a person with 80% or more disability), the deduction of Rs. 1,25,000 (Rs. 1,00,000  for the assessment year 2010 -11 to 2015-16 Rs. 75,000 up to the assessment year 2009-10) shall be available.

Dependent means In the case of an Individual the spouse, children, parents, brothers, sisters, of the individual and in the case of HUF, any member who is wholly dependent on the assessee.

7. DEDUCTION IN RESPECT OF MEDICAL TREATMENT (SECTION 80DDB)

The deduction of Rs. 40000 or Amount actually paid whichever is less shall be allowed to an Assessee who is resident in India being an Individual or HUF. The deduction shall be allowed for any amount paid for the medical treatment of such disease or ailment as may be specified in the rules. In case the Amount is paid in respect of a senior citizen (i.e. of age 60 years or above) then the deduction would be Rs.60000 or the Amount actually paid whichever is less.

8. DEDUCTION IN RESPECT OF INTEREST ON LOAN TAKEN FOR HIGHER EDUCATION (SECTION 80E)

This section provides deduction to an Individual in respect of any interest paid on loan taken for the purpose of pursuing his higher education or the for the purpose of higher education [i.e all fields of studies (including vocational studies)pursued after passing the senior secondary examination] of his/her relative i.e. spouse or children of the Individual or the student for whom the Individual is the legal guardian. The loan must have been taken from any financial institution or approved charitable institution. An amount of deduction is amount is paid by the individual during the previous year and such amount is paid out of his income chargeable to income tax.

9. DEDUCTION IN RESPECT OF INTEREST ON LOAN TAKEN FOR RESIDENTIAL HOUSE PROPERTY APPLICABLE FORM a.y 2017-18 (SECTION 80EE)

The following conditions should be satisfied in order to claim deduction under section 80EE:-

1. The assessee is an individual. He may be the resident or non-resident.
2. He has taken a loan and loan is taken for acquisition of residential house property. The loan is taken from the bank or a housing finance company and loan has been sanctioned during April 1, 2016, and March 31, 2017.
3. The amount of loan sanctioned for residential house property does not exceed Rs. 35 lakhs and value of residential house property does not exceed Rs. 50 lakhs.
4. Assessee does not own any residential house property on the date of sanction of loan.
5. This deduction is over and above the Rs, 2 lakh limit under section 24 of the income tax act.

If above conditions are satisfied, the assess can claim deduction under section 80EE of the interest payable on the above loan or Rs. 50,000 whichever is less. This deduction is available for the assessment year 2017-18 and subsequent assessment years.

10. DEDUCTION  IN RESPECT OF DONATIONS TO CERTAIN FUNDS, CHARITABLE INSTITUTIONS ETC. (SECTION 80G)

The deduction under section 80G is available to any taxpayer (may be individual, company, firm or any other person, may be resident or non -resident). The various donations specified under this section are eligible for deduction up to either 50% or 100% with or without restrictions. Sub Section 5D has been inserted in section 80G to provide that no deduction shall be allowed in respect of donation of any sum exceeding Rs.10000 unless such sum is paid by any mode other than cash.

11. DEDUCTION IN RESPECT OF RENT PAID (SECTION 80GG)

Admissible deduction:-

The deduction will be least of the following:-

· Actual Rent paid less 10% of the total income before allowing such deduction, or

· 25% of such total income or

· Rs. 5000 per month (Rs. 2000 per month, up to the assessment year 2016-17)

Total income will not include long-term capital gains and any income referred to in sections 115A to 115D.

Conditions to be satisfied:-

· Assessee should not be in receipt of House Rent Allowance.

· The expenditure incurred by him on rent of any furnished or unfurnished accommodation should exceed 10% of his total income arrived at after all deductions under Chapter VI-A except section 80GG.

· The Accommodation should be occupied by the Assessee for the purpose of his own residence.

· The Assessee should not have self-occupied residential premises in any other place.

· Assessee should file a declaration in form 10BA, confirming the details of rent paid.

12. DEDUCTION IN RESPECT OF SAVINGS BANK INTEREST(SECTION 80TTA):- Max limit Rs. 10,000/-

13. TAX REBATE  (SECTION 87A) :- Max Rs. 2500/- who’s taxable income less than 3.5 Lakh.

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Income Tax 2017-18 (Assessment Year 2018-19) – Tax Structure, Exemption and Deductions,With Automated All in One TDS on Salary for F.Y.2017-18

Income Tax 2017-18 (Assessment Year 2018-19) – Income Tax Structure, Exemption and Deductions available to Personal Income Tax Payers

PART I: Income Tax Slab for Individual Tax Payers & HUF (Other than Senior Citizens)

Income Slab                                                                                                          Tax Rate
Income up to Rs 2,50,000*                                                                                                    No tax
Income from Rs 2,50,000 – Rs 5,00,000                                                                                5%
Income from Rs 5,00,000 – 10,00,000                                                                                   20%
Income more than Rs 10,00,000                                                                                             30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)

PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old)(Both Men & Women)

Income Slab                                                                                                                        Tax Rate
Income up to Rs 3,00,000*                                                                                                         No tax
Income from Rs 3,00,000 – Rs 5,00,000                                                                                      5%
Income from Rs 5,00,000 – 10,00,000                                                                                         20%
Income more than Rs 10,00,000                                                                                                   30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-1 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab for Senior Citizens(80 Years Old Or More) (Both Men & Women)

Income Slab	Tax Rate
Income up to Rs 2,50,000*	No tax
Income up to Rs 5,00,000*	No tax
Income from Rs 5,00,000 – 10,00,000	20%
Income more than Rs 10,00,000	30%
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

There is also a tax rebate U/s 87A of up to Rs.2,500 for a taxable income up to Rs. 3.5 lakhs.

Deductions available under Chapter VI A (Section 80)

Section	Deduction on	FY 2017-18
Section 80C	Investment in PPF Employee’s share of PF contribution NSCs Life Insurance Premium payment Children’s Tuition Fee Principal Repayment of home loan Investment in Sukanya Samridhi Account ULIPS ELSS Sum paid to purchase deferred annuity Five year deposit scheme Senior Citizens savings scheme Subscription to notified securities/notified deposits scheme Contribution to notified Pension Fund set up by Mutual Fund or UTI. Subscription to Home Loan Account Scheme of the National Housing Bank Subscription to deposit scheme of a public sector or company engaged in providing housing finance Contribution to notified annuity Plan of LIC Subscription to equity shares/ debentures of an approved eligible issue Subscription to notified bonds of NABARD	Rs. 1,50,000
80CC	For amount deposited in annuity plan of LIC or any other insurer for pension from a fund referred to in Section 10(23AAB).	–
80CCD(1)	Employee’s contribution to NPS account (maximum up to Rs 1,50,000)	–
80CCD(2)	Employer’s contribution to NPS account	Maximum up to 10% of salary
80CCD(1B)	Additional contribution to NPS	Rs. 50,000
80TTA	Interest Income from Savings account	Maximum up to 10,000
80GG	For rent paid when HRA is not received from employer	Least of rent paid minus 10% of total income Rs. 5000/- per month 25% of total income
80E	Interest on education loan	Interest paid for a period of 8 years
80EE	Interest on home loan for first time home owners	Rs 50,000
80D	Medical Insurance – Self, spouse, children Medical Insurance – Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old	Rs. 25,000 Rs. 30,000
80DD	Medical treatment for handicapped dependant or payment to specified scheme for maintenance of handicapped dependant Disability is 40% or more but less than 80% Disability is 80% or more	·           Rs. 75,000 Rs. 1,25,000
80DDB	Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD For less than 60 years old For more than 60 years old For more than 80 years old	Lower of Rs 40,000 or the amount actually paid Lower of Rs 60,000 or the amount actually paid Lower of Rs 80,000 or the amount actually paid
80U	Self suffering from disability: Individual suffering from a physical disability (including blindness) or mental retardation. Individual suffering from severe disability	·           Rs. 75,000 Rs. 1,25,000

Income or loss on House Property – Section 24 of Income Tax Act 2017 (Income Tax Exemption on interest paid on Housing Loan)

Consequent upon enactment of Finance Act 2017, the maximum limit of interest paid house property has been capped at Rs.2 lakh, whether or not the house is self occupied or rented out. Earlier if the house property is Rented out, there was no maximum limit in deducting interest paid on housing loan from the income of the tax payer.

 List of Exempted Income under Section 10 of Income Tax Act (Subject to certain conditions

1. Agriculture Income [Section 10(1)]
2. Perquisites and Allowances paid by Government to its Employees serving outside India [Section 10(7)]
3. Gratuity [Section 10(10)]
4. Commuted value of pension received [Section 10(I0A)]
5. Amount received as leave encasement on retirement [Section 10(10AA)]
6. Retrenchment compensation paid to workmen [Section 10(10B)]
7. Retirement Compensation from a Public Sector Company or any other Company [Section 10 (10C)]
8. Income by way of tax on perks [Section 10(10CC)]
9. Any sum received under a life insurance policy [Section 10(10D)]
10. Payment from Statutory Provident Fund [Section 10(11)]
11. Payment from Recognised Fund [Section 10(12)]
12. Payment from Superannuation Fund [Section 10(13)]
13. House Rent Allowance [Section 10(13A) Read with Rule 2A]
14. Scholarship [Section 10(16)]
15. Pension received by certain winners of gallantry awards [Section 10(18)]
16. Family pension received by family members of armed forces including para military forces [Section 10(19)]

Download Automated All in One TDS on Salary for Govt & Non-Govt employees for F.Y.2017-18 with new Tax Slab

 Feature of this Excel Utility :-

1) Automatic Calculation Income Tax as per new Tax Slab for F.Y.2017-18

2) Automated H.R.A. Calculation U/s 89(1) with Form 10E

3) Automated Arrears Relief Calculator with Form 10E up to F.Y.2017-18

4) Individual Salary Structure for both of Govt & Non-Govt employees Salary Pattern

5) Automated Individual Salary Sheet

6) Automated Form 16 Part A&B for F.Y.2017-18

7) Automated Form 16 Part B for F.Y.2017-18

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