Types of income of Salaried Employees that are exempted from Income Tax
Income Tax Circular 20/2015 dated 02.12.2015 stipulates exemptions for certain income that are totally exempted from income tax and need not be included in Total Income
Income or loss from house property and exemption on housing loan interest
Computation of Income under the head income or loss from house property – Income Tax Department instructions on calculation of annual rental value for the income tax deduction in respect of interest payable on housing loan and Update: 25th September 2017: Income Tax Exemption on Interest Paid on Housing Loan – Capped at Rs. 2 lakh…
Income Tax Deduction at Source from Salaries under Section 192 of Income Tax 1961
Persons in charge of disbursement of salaries are responsible for deducting Income Tax from salaries as per the procedure envisaged in Income Tax Circuar 20/2015
Income Tax 2015-16 – Calculation Method in respect of Salaried Employees
CBDT issued circular No. 20/2015 dated 02.12.2015, which explains income tax calculation method for salaried employees
Income Tax Rates 2015-16 (AY 2016-17)
Income Tax Structure for Salaried Employees for the Year 2015-16- Full exemption from Income Tax is available up to Rs. 2.50 lakh. For the Income in excess of Rs. 2.50 lakh and not exceeding Rs. 5 lakh Employees will have to pay income tax at the rate of 10%. Income Tax exceeding Rs. 5 lakh will be chargeable to Income Tax at the rate of 20%
Changes in APAR format for Assessing Officers of Income Tax
Finance Ministry has announced modified Annual Performance Appraisal Report (APAR) of the Assessing Officers of IT as well as Assistant Commissioners/Deputy Commissioners of Income Tax. In the revised format, the performance of the assessing officers will also be specifically measured for quality of assessment, the pace of disposal, and efforts made towards widening of tax base.
Income Tax deduction in respect of rent paid.
Rent paid subject to ceiling can be deducted under Section 80GG if no HRA is received. Such deduction for rent should be the expenditure incurred by the assessee in excess of ten per cent of his total income towards payment of rent.
PAN mandatory for bank account and many transactions – New Rule
Central Government has made PAN number as mandatory for opening Savings Bank Account including other 20 transactions where the transactions exceed a specified limit. Persons who do not hold PAN are required to fill a form and furnish any one of the specified documents to establish their identity.
Simplification of Income Tax Forms 15G and 15H
Central Board of Direct Taxes, Directorate of Income-tax(Systems) has simplified the Form 15G and 15H. A unique number allotted for the 15G and 15H forms submitted. The format can be downloaded from the site www.incometaxindiaefiling.gov.in. Declaration under 15G and 15H can also be filed online
Income Tax – Rebate on Housing Loan up to Rs.2 lacs allowed
Income Tax Act allows tax payers to deduct up to Rs.2 lakh towards the interest paid on housing loan from the Gross total income. When declaring Annual Rental Value which will be added with Gross total income, there will not be any ceiling as far as deduction of interest paid on the loan availed for buying the house property is concerned.
IT Department Plans More Reforms to make Life less Taxing
This assessment year, I-T returns filings were 15 per cent higher than the previous one. Buoyed by the response, the government is taking further initiatives leveraging technology to make life easier for taxpayers and improving their experience.
Income Tax Department Debuts on Twitter
The Income Tax department has launched its official handle on micro-blogging website Twitter. The handle “incometaxindia_” is aimed to keep taxpayers and other users updated about the activities of the department.