List of Income Tax Deductions to avoid wasting revenue for the F.Y. 2018-2019 With Automated 100 employees Form 16 Part A&B for F.Y.2018-19
There square measure many revenue enhancement deductions that a payer will claim to avoid wasting revenue enhancement. Some square measure applicable to salaried staff and a few square measures applicable to business people. several people don’t understand a number of the revenue enhancement saving choices that we are able to claim per annum. If you’re searching for a comprehensive list of revenue enhancement Deductions to avoid wasting revenue enhancement from the year 2018-2019 ahead, this text is for you. this text additionally provides a list of revenue enhancement deductions that be claimed in FY2018 beside the relevant IT section, eligibility and therefore the most limits.
How the financial gain earned square measure classified?
The financial gain earned by a personal, HUF, firm or company is classified into 5 categories:
1) financial gain from remuneration
2) financial gain from house property
3) financial gain from business and profession
4) financial gain from the financial gain
5) alternative financial gain
The aggregation of financial gain from these on top of heads is termed as gross total financial gain. From this gross total financial gain, there square measure bound deductions that are allowed by the law to be subtracted from the gross total financial gain. this text explains of these deductions during a simplified manner.
What square measure revenue enhancement deductions?
There square measure bound deductions that square measure fixed beneath sections 80C to 80U. These deductions square measure claimed by Associate in Nursing assessee to lower his taxable financial gain and find some relief in tax. These deductions square measure ablated from the gross total financial gain.
List of revenue enhancement Deductions to avoid wasting revenue enhancement from F.Y 2018-2019
Here is that the list of all the deductions which can be quite handy for the assessee and can facilitate them with their tax-filing.
1) Section 80C – Tax exemption up to Rs one.5 Lakhs
The maximum exemption which will avail u/s 80C, 80CCC along is Rs. 150,000. It is availed solely by people and HUFs. There square measure bound investments and expenditures which may be claimed in it:
Amount acquired Tuition fees for two youngsters.
Amount contributed towards the provident fund
The amount endowed in NPS, Sukanya Samriddhi Account, Post workplace Deposits, ELSS Mutual Funds.
5 years of adult Saving theme
Principal compensation of equity credit line
5 years Tax saving Bank FDs
Premium paid towards life assurance
Section 80CCC – any quantity paid in any rente of the LIC or the other nondepository financial institution for receiving a pension from a fund.
The aggregate quantity of all on top of investments is claimed to a most of Rs one.5 Lakhs. you’ll scan complete details regarding 80C tax saving investment choices and on the far side here for an additional deduction of 50,000/- under the Income Tax Section 80CCD(1B)
It includes contributions towards Government notified Pension schemes. The contribution is most of 100 per cent of the remuneration (for salaried individuals) and two-hundred of the gross financial gain (for self-employed). the utmost quantity which will be claimed is Rs 50,000. you’ll invest in National Pension theme, that is one among the foremost standard pension schemes.
3) Section 80D – insurance Premium
This deduction is accessible to individual and HUF for the number paid towards insurance premium. the utmost deduction allowed is Rs. 25,000 for the premium acquired self, spousal equivalent or dependent youngsters. One will even claim for the premium paid towards their oldsters additionally. the fogeys of spousal equivalent aren’t enclosed in it. For senior voters, this limit is Rs. 30,000. you ought to perceive the way to claim 80D – insurance Premium from revenue enhancement.
4) Section 80DD – Medical expenses for disabled persons – up to Rs one.25 Lakhs
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5) Section 80DDB – Medical expenses for specific ailments up to Rs forty,000 (up to Rs eighty,000 for Senior Citizens)
This deduction is allowed for the medical treatment of specific ailments. the number of deduction is Rs. 40,000 or actual expenses incurred whichever is lower. just in case of senior voters, it is Rs. 60,000 and for super senior voters, it is Rs. 80,000.
6) Section 80E – Interest on loan taken for educational activity
This deduction pertains to the interest paid towards a loan obtained for the following educational activity. there’s no limit on the number. there’s no deduction for compensation of principal quantity and it’s allowed for max eight years.
7) Section two4B – Loss from Self-Occupied House property / unleash property – Up to Rs 2 Lakhs
You can claim equity credit line interest on self-occupied house property for tax exemption up to Rs two Lakhs. This limit is most of Rs two Lakhs and not per home. unwanted loss (if any) will transfer and set-off in next eight money years.
7) Section 80EE – 1st time home patrons – Rs fifty,000 extra exemption
This section has been recently introduced by the govt. for people who square measure 1st time home patrons and have obtained their equity credit line throughout or when F.Y. 2016-17. the worth of the house ought to be but Rs. 100000 and residential loan ought to be below Rs thirty-five Lakhs. Such home patrons will claim an extra deduction up to Rs. 50,000 on equity credit line interest payments. you’ll scan additional regarding section 24 and Section 80EE wherever you’ll claim tax exemption on home loans here.
8) Section 80G – Donations
Payments created to bound relief funds and licensed charitable establishments square measure claimed beneath this section. Any donations created to registered establishments square measure exempted for five hundredth or 100 per cent limit as per prescribed.
9) Section 80GGC – Donations to political parties
Any donations created to political parties is claimed beneath this section. From the year 2017-18 ahead, it’s been dominated out that donations created on top of Rs. 2,000 can’t be in money mode.
10) Section 80GG – Claim in function of not having own house and don’t receive HRA
This deduction pertains to people who don’t possess a residence of their own and doesn’t receive House Rent Allowance (HRA). it’s in respect of expenditure created towards rent. the utmost quantity claimed beneath this section is Rs. 60,000. The deduction is least type the following-
- a) Rent paid minus 100 per cent of the adjusted total financial gain
- b) Rs 5,000 per month
- c) twenty-fifth of the whole financial gain
11) Section 80QQB – Exemption to say royalty financial gain by authors
It is associated with the financial gain in respect of royalty financial gain of authors.
12) Section 80RRB – Exemption to say royalty of patents
It pertains to the deduction in respect of royalty of patents.
13) Section 80TTA – Deduction for SB Interest up to Rs 10,000
It provides a deduction up to Rs. 10,000 on the mixture to Associate in Nursing assessee (being a personal or HUF) in respect of any financial gain by means of interest on deposits during a saving A/c.
14) Section 80U – Exemption for specific disabilities
This deduction is availed by solely those people WHO square measure full of some incapacity of some reasonably not but four-hundredth. For below 80% Rs. 75000/- and above 80% can relief Rs. 1,25,000/-
15) Rebate beneath section 87A – Rs 2,500
Additional tax edges of Rs 2,500 has been provided to those taxpayers whose internet