12/2/2016

TaxPlanningforFY201617

TaxPlanningGuideforFY201617
FiledunderBUDGET
Filedunder
BUDGET,,BUDGET2016
BUDGET2016,,INCOMETAX
INCOMETAX,,INVESTMENTPLAN
INVESTMENTPLAN,,TAXSAVING
TAXSAVING,,TAXES

20

We are releasing the

the eBook on Tax Planning for FY 2016
17. This is a short 45 slide power point presentation which
17.
gives the details of tax saving sections and investments
availabletoindividualtaxpayers.
ButfirstletslookatthechangesintheIncomeTaxrulesin
Budget2016.

ChangesinIncomeTax
Rules:

TaxPlanningGuideforFY201617

1.Therehasbeen
1.
Therehasbeennochangeintheincometaxslabs
nochangeintheincometaxslabs..
2.For
2.
ForpeoplewithnettaxableincomebelowRs5lakh,the
peoplewithnettaxableincomebelowRs5lakh,thetaxrebatehasbeenincreasedfromRs2,000to
Rs5,000u/s87A..ThiswouldbenefitpeoplewhohavenettaxableincomebetweenRs2.7LakhstoRs5Lakhs.
Rs5,000u/s87A
3.AdditionalexemptionforfirsttimehomebuyeruptoRs.50,000oninterestpaidonhousingloans.This
3.AdditionalexemptionforfirsttimehomebuyeruptoRs.50,000oninterestpaidonhousingloans.This
wouldbeapplicablewherethepropertycostisbelowRs50LakhsandthehomeloanisbelowRs35lakhs.The
loanshouldbesanctionedonorafterApril1,2016.
4.TaxExemptionu/s80GG(forrentexpenseswhodohaveHRAcomponentinsalary)hasbeen
increasedfromRs24,000toRs60,000perannum.Thisisagoodmovetoaligntheexemptionamountwith
increasedfromRs24,000toRs60,000perannum.
todaysrentandkeepthesectionrelevant.
5.For
5.
ForpeoplewithnettaxableincomeaboveRs1crore,thesurchargehasbeenincreasedfrom12%to
15%
6.DividendIncomeinexcessofRs.10lakhperannumtobetaxedat10%
7.40%oflumpsumwithdrawalon NPS
7.40%oflumpsumwithdrawalon
NPSatmaturitywouldbeexemptedfromTax
atmaturitywouldbeexemptedfromTax.Thisrulenowalsoapplies
.Thisrulenowalsoapplies
toEPF.SonowincaseofEPF
toEPF.Sonowincaseof
EPFincometaxwouldbeapplicableon60%ofthecorpusonmaturity
incometaxwouldbeapplicableon60%ofthecorpusonmaturity..
8.PresumptivetaxationschemeintroducedforprofessionalswithreceiptsuptoRs.50lakhs.The
8.Presumptivetaxationschemeintroducedforprofessionals
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12/2/2016

TaxPlanningforFY201617

8.PresumptivetaxationschemeintroducedforprofessionalswithreceiptsuptoRs.50lakhs.The
8.Presumptivetaxationschemeintroducedforprofessionals
presumptiveincomewouldbe50%oftherevenues.
TheeBookcoversthefollowingincometaxsectionsavailableforindividualtaxpayers:
DownloadTaxPlanningeBookforFY201617(AY201718)
DownloadTaxPlanningeBookforFY201617(AY201718)
Download

2.46MB

1.Section80C/80CCC/80CCD
These 3 are the most popular sections for tax saving and have lot of options to save tax.
tax. The maximum
exemption combining all the above sections is Rs 1.5 lakhs.
lakhs. 80CCC deals with the pension products while
80CCDincludesCentralGovernmentEmployeePensionScheme.
Youcanchoosefromthefollowingfortaxsavinginvestments:
1.Employee/VoluntaryProvidentFund(EPF/VPF)
Employee/VoluntaryProvidentFund(EPF/VPF)
2.PPF(PublicProvidentfund)
PPF(PublicProvidentfund)
3.SukanyaSamriddhiAccount
SukanyaSamriddhiAccount
4.NationalSavingCertificate(NSC)
NationalSavingCertificate(NSC)
5.SeniorCitizensSavingScheme(SCSS)
SeniorCitizensSavingScheme(SCSS)
6.5years
5yearsTaxSavingFixedDeposit
TaxSavingFixedDepositinbanks/postoffices
7.LifeInsurance
LifeInsurancePremium
8.PensionPlansfromLifeInsuranceorMutualFunds
PensionPlansfromLifeInsuranceorMutualFunds
9.NPS(NewPensionScheme)
NPS(NewPensionScheme)
10.EquityLinkedSavingScheme
EquityLinkedSavingScheme(ELSSpopularlyknownasTaxSavingMutualFunds)
11.CentralGovernmentEmployeePensionScheme
CentralGovernmentEmployeePensionScheme
12.PrincipalPaymenton
PrincipalPaymentonHomeLoan
13.StampDutyandregistrationoftheHouse
StampDutyandregistrationoftheHouse
14.TuitionFeefor2children
TuitionFeefor2children

2.Section80CCD(1B)InvestmentinNPS
Budget 2015 has allowed additional exemption of Rs 50,000 for investment in NPS. We have done a
a complete
analysis andconcludedthatitwouldbebeneficialforyoutodiscardthisbenefitandinvestaftertaxmoneyina
analysis
goodequitymutualfund.
DownloadTaxPlanningeBookforFY201617(AY201718)
DownloadTaxPlanningeBookforFY201617(AY201718)
Download

http://apnaplan.com/taxplanningfy2017/

2.46MB

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TaxPlanningforFY201617

3. Payment of interest on Home Loan (Section

24/80EE)
TheinterestpaiduptoRs2lakhsonhomeloanforselfoccupiedhomeisexemptedu/s24.Thereisnolimitfor
homegivenonrent.
Budget2016hasprovidedadditionalexemptionuptoRs50,000forpaymentofhomeloaninterestforfirsttime
homebuyers.ToavailthisbenefitthevalueofhomeshouldnotexceedRs50lakhsandloanshouldnotbemore
thanRs35lakhs.

4. Payment of Interest on
on Education Loan
Loan (Section
80E)
Thetotalinterestpaidoneducationloancanbeclaimedastaxexemption.Thereisnoupperlimitforthesame.

5.InvestmentinRGESS
5.Investmentin
RGESS(Section80CCG)
Deduction Up to Rs 25,000 (50% of amount invested) is allowed if you make investment in preapproved stocks
andmutualfundsinRajivGandhiEquitySavingsScheme(RGESS).Thisisavailabletofirsttimeequityinvestors
subjecttocertainconditions.

6. Medical insurance for Self and Parents (Section

80D)
Youcanget taxdeductionuptoRs60,000bypayingmedicalinsurance
Youcanget
taxdeductionuptoRs60,000bypayingmedicalinsurance premiumforself,yourdependentsand
yourparents.ThereisalsosublimitofRs5,000forpreventivemedicalcheckup.
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TaxPlanningforFY201617

7.TreatmentofSeriousdisease(Section80DDB)
YoucanclaimdeductionuptoRs80,000fortreatmentofcertaindiseaseslikeAIDS,renalfailure,etcforselfor
dependents

8.PhysicallyDisabledTaxpayer(Section80U)
PhysicallyDisabledTaxpayercangettaxexemptionuptoRs1.25lakhsu/s80U

9.PhysicallyDisabledDependent(Section80DD)
You can claim deduction up to Rs 1.25 lakhs for maintenance and medical treatment of Physically Disabled
dependent

10.DonationstoCharitableInstitutions(Section80G)
DeductionuptoRs40,000isallowedforDonationtocertaincharitablefunds,charitableinstitutions,etc.

11. Donations to Charitable Institutions (Section

80GGA)
DeductionuptoRs1lakhisallowedfordonationsforscientificresearchorruraldevelopment

12. Donations to Charitable Institutions (Section

80GGC)
DeductionuptoRs60,000isallowedfordonationstopoliticalparties

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