INCOME TAX

IINCOME TAX 2018-19

NCOME TAX

Income Tax Act 1961

Section 192 – “Salaries”

TAN – Tax deduction and collection Account Number

PAN – Permanent Account Number

TDS – Tax Deduction at Source

DUTIES OF DDO
Collect anticipatory income/tax statements for the relevant years.

Divide the anticipatory tax into 12 installments and deduct from salary bills from March onwards.

Make final assessment of IT during February.

Issue TDS certificate – Part A & B.

File TDS returns quarterly through NSDL.

DUTIES OF TAX PAYER

Prepare anticipatory income/tax statement and submit to DDO.

File individual return (ITR)

TAX RATE
A Normal Rate

Up to 2,50,000          : Nil

2,50,001 to 5,00,000 : 5 % of the amount by which income exceeds Rs. 2,50,000

5,00,001 to 10,00,000 : 12500 + 20 % of the amount by which income exceeds Rs. 5,00,000

10,00,001 and above : 1,12500 + 30 % of the amount by which income exceeds 10,00,000

B Senior Citizens (60 Yrs & above)

 Up to 3,00,000          : Nil

3,00,001 to 5,00,000 : 5 % of the amount by which income exceeds Rs. 3,00,000

5,00,001 to 10,00,000 : 10,000 + 20 % of the amount by which income exceeds Rs. 5,00,000

10,00,001 and above : 1,10,000 + 30 % of the amount by which income exceeds 10,00,000 

C Very Senior Citizens
(80 Yrs & above)

 Up to 5,00,000           : Nil

5,00,001 to 10,00,000 : 20 % of the amount by which income exceeds Rs. 5,00,000

 10,00,001 and above : 1,00,000 + 30 % of the amount by which income exceeds 10,00,000

•ADDITION TO TAX

No surcharge upto 50 LAKHS.
Edl Cess 2 %
Higher edl cess 1 %
Total 3 % Cess.

•Special Tax Rebate 
2500 for those whose taxable income does not exceed 3.5 Lakhs.sec(87A)2017-18
 5000 for those whose taxable income does not exceed 5 Lakhs.sec(87A)2016-17

•Rs 2000-(2015-16

Gross Salary Income includes

—Pay

—DA

—HRA

—CCA

—Spl Allowance

—Fetival Allowance

—SLS

—Arrear Pay

—Arrear DA

Does not include

—TA

—LTC

—DCRG

—Pension Commutation

—Uniform Allowance

—Conveyance  Allowance

Deductions
A. HRA (Secion 10)
B. Professional Tax
    Section 16 (iii)
    Entertainment Allowance
    Section 16 (ii)

           Gross Salary Income-      (HRA+PT+EA)= Net Salary   Income

Gross Total Income

-Deduct HBA interest
Loan on/after 01.04.1999 Rs.2,00,000
Loans before 01.04.1999 Rs.30,000
Another 50000 is exempt towards interest payment for housing loan u/s 80EE. applicable only the loan taken during the financial year. Loan amount up to 35 lakhs. Property value up to 5o lakhs

Deductions as per   Chapter VI A
80 C
PF Contribution, LIC,SLI, FBS, GIS
HBA Principal
Time Deposit in Post Office/Scheduled banks,sukanya samrudhi,
Tuition Fees (2 children)
Stamp duty, Regn Fees
Other notified funds

80 CCC
Pension Schemes of LIC/other insurance plans
80 CCD(1)
NPS   - Not exeeding 10 % of Pay +DA

80 C + 80 CCC + 80 CCD(1) is limited to Rs. 1,50,000

80 CCD(1B)
NPS  - Amount exeeding 1.5 laks (maximum Rs.50,000)
80CCD(2)
NPS  - Govt contribution  (limited to 10 % of Pay+DA)

80 CCG
Notified Scheme under this section – half of the contributed amount – maximum 25,000 – 3 years’ deposite – for those having less income than 12,00,000

80 D
Health Insurance Scheme
Maximum 25,000
For Snr Citizens – 30,000
Payment by other than cash

80 DD
Treatment for disabled dependants
40-79 % : 75,000
80 % and above : 1,25,000

80 DDB
Treatment of notified diseases
Neurological diseases, Cancer, Aids, Renal failure, Thalassemia, Haemophilia
Maximum 40,000 (Snr Ctzn 60,000)

80 U
For disabled employees
40-79 % : 75,000
80 % and above : 1,25,000
  80 E

Interest on higher education loan – no limit

80 G
Donation to charitable institutions
100 % (TDS) and 50 % (non TDS)

80 GGC
Donation to political parties (non TDS)

80 TTA
Interest on SB account (max 10,000

Taxable Income (Total Income)

Gross Total Income – Chap VI A
deduction = Taxable Income

No rounding of Income and Tax

Section 89(1)
Relief for arrears

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