Comment posted on Income tax calculator for 2012-13 and Budget 2012 update by Singh.
Dear Pankaj,
Professional update allowance is now given by the govt. for scientists (CSIR) in three slabs 10, 20 and 30 thousand per year based on the grades. Is it taxable or not? Should we remove from taxable salary before calculation of income tax?
Regards,
Singh
Singh also commented
- Thank you very much.
Regards,
Singh
Dear Pankaj
I have a taken home loan 5 years before and presently the outstanding is ~ 7.5 lac. The annual interst benefit (with respect to tax) is about 80,000/- and principal amount comes to Rs. 14000/-
What i want to know is……. will it make more sense to pay 7.5 lac to bank and clear my loan and pay tax or i continue the home loan at the normal pace and save tax on interest.
Please advise
regards
Arun
@Arun
Say, if you don’t take home loan benefit of 94,000 net income tax payable would increase by Rs 28764 in case you are in 30% income tax slab.
But the same time, you are paying around 80K to bank as interest to save this 28K as income tax.
If you deposit 7.5 lac into fixed deposit/FMP you would earn around 47K after taxes as interest (considering 30% income tax).
So net benefit of not prepaying home loan would be around 47+28=75K. Its still less than 80K, so it would be make sense to prepay loan and live without tension.
This is considering the fact that there won’t be much charges on prepayment of loan.
Thanks Pankaj
venry useful information.
Sir,
When the interest income from FD in a bank is more than Rs 10,000 per year (say Rs 50,000 ) – then – is it in order to add Rs 50,000 in other income to calculate income tax – and then – subtract Rs 10,000 from the total income because interest up to this limit is free from income tax ? Is it possible to take FD as a SB A/C for the purpose of income tax payments. Please clarify.
@Dr S B Kalidhar
Interest from Fixed deposit is totally taxable and no deduction is available on it.
Rs 10,000 deduction is only available for saving bank account interest.
Fixed deposit interest cannot be treated as saving bank account interest.
In the IT Calculator for FY 2012-13, the investment under 80CCF is not getting updated in main sheet and hence error in calculating tax amount.
@R
80CCF deduction has been discontinued from FY 2012-13, so calculator does not take figures for same into account for computation.
Sir,
Please give the details of SCSS (Senior Citizen Saving Scheme) – and – how is it related to 80 C ?
@Dr S B Kalidhar
You can read details about SCSS on this page: http://www.rbi.org.in/scripts/FAQView.aspx?Id=62
You will get 80C deduction for investment in same upto Rs 1 lakh total 80C deduction.
Thanks a lot, Pankaj
Thanks for your nice information
Thank you for the conise information and the tax calcluator.
As per our salary structure exgratia is there. Please tell me where to mention in this calculator.
Thanks
Naredra.N
@Narendra
You can use special allowance column for same.
Dear pankaj
I am paying 2500 rs as mess charges and electricity charges pm which is deducted from my salary account. Is this amount is taxable or I will get any concession.
@Sourabh
If these charges are deducted for food provided in office, then it can be taken as non-taxable like food coupons (Sodexo etc.)
I am not sure about purpose for electricity charges.
Thank You Pankaj,
Really The Sheet is very helpful.
hi , i want to clarify on gift from non relative. is 50000 limit is exemption limit or a ball park figure .any gift received from non relative is taxable above 50000 or total amouti.e if non teltive gives 50001 as gift incash or kind entire 50001 is taxable or the 1 re.
@Rahul
Amount/Gifts received from non-relatives for value above 50,000 limit would be taxable. Only amount exceeding this limit would be taxable and not whole.
Please note that this amount is value of all gifts received in a financial year from all sources.
Say, total gifts received by you was of value Rs 70,000 (40000 from one person and 30000 from other), then taxable amount would be Rs 20,000.
Dear Pankaj,
Professional update allowance is now given by the govt. for scientists (CSIR) in three slabs 10, 20 and 30 thousand per year based on the grades. Is it taxable or not? Should we remove from taxable salary before calculation of income tax?
Regards,
Singh
@Singh
Generally its non-taxable on submission of original bills to employer in private organisations.
For CSIR, it may be non-taxable u/s Section 10(14).
Thank you very much.
Regards,
Singh
please let me know the website for home loan tax savings calculator
@Sudip
The calculator provided on this page has provision for home loan tax saving components too.
Sir,
My query is related to income from rented property.
Myself & my wife stay with my parents.
We have purchased 2 flats in last two years & ownership of flats in on both ( self + wife’s).
Both flats are rented out.
We both are in 20% tax slab.
Now pl let me know what is beneficial to minimize the income tax on rent.
Details of flats are under:
Flat no. 1 :
Interest component : 250,000
Principal : component : 80,000
Rent received = 10,000 pm = 120,000 per year
Property Tax : 10,000 /-
EMI for flat no. 1 paid by me.
Flat No. 2
Interest Component : 180,000 /-
Principal Component : 30,000 /-
Rent on flat no. 2 = 7000 pm = 84000
Property Tax : 2,000 /-
EMI for flat no. 2 paid my wife.
Pl let me know what shall be beneficial to me
Option I :
Flat no. 1 : to be declared as self occupied
Take benefit of 150,000 on self occupied property
&
Flat no. 2 : to be declared as let out
Option : 2
Flat no. 1 & flat no. 2 , both to be declared as rented property.
Pl let me know where i can save maximum tax or any other option suggest by you.
Loan for Flat no. 1 is for 15 yrs – 3rd year is going
Loan for Flat no. 2 is of 20 yrs – 2nd year is going
As off now, we are not planning to shift to any of the flat.
Both the flats are in same area where we stay.
Thanking in anticipation
Regard
Abhijeet.
@Abhijeet
It all depends on how you are accepting rent. If its being accepted in white and shown in income, then it would be better to show houses as rented and claim full interest exemption.
If rent is being taken in cash (like most of the people do) and this income is not shown anywhere, then both houses can be shown as self occupied, one by you and one by your wife.
If house is shown on rent, then notional rent must be added into income.
Dear Pankaj,
During Financial planning during jan-2012, I had not given details about Tax Savings like HRA, Conveyance and LIC insurance policies to my company and same has not been taken into account in my Form-16 and TAX has been deducted. Can I take its benefit while filing ITR and take my tax refund. IF yes, do I need to send photo copies of LIC Premium payments and Original HRA receipts similar to what I submitted to my company for 2010-2011 ITR.
@Abhay
You can claim 80C deduction (LIC insurance) while filing income tax return. There is no provision to claim HRA and conveyance allowance in ITR.
There won’t be any need to attach copies of proofs with ITR.
total income rounds to around 13 lacs. but no breakups in salary for reimbursements on medical bills, telephone & internet, car expenses, driver expenses, food coupons etc. my company is not ready for it either.
taken loan against property as home loan. is this loan applicable for deduction on principle amount and interest?
can HRA and this loan together be applied as the loan is against my property in kerala and i stay rented in bangalore.
medical insurance is given to family by company which does not include in salary.so i think this can also not be included. pls advice.
paying 2500/- monthly donation to a charitable trust for aids patients and their children. is this applicable for deduction?
please advice ways to save tax. thanking you in advance.
@Nisha
You can claim deduction for home loan principal and interest payments along with HRA, as your owned house is not at commutable distance from workplace.
Medical insurance premium is paid by company so you cannot claim deduction for same.
If charitable trust is registered under 80G deduction category (you can see same on receipts), you can also claim deduction for same.
Also, please read answers to similar questions here:
http://www.socialfinance.in/questions/7/tax-saving
http://www.socialfinance.in/questions/45/investment-advise
upto what limit cash purchase (by tax invoice)is allow
@Mukesh
Please elaborate your question. What cash purchase you are asking about?
dear sir
actually my ctc rs.4.54 lac n my take home is following break up basic 12,100.00,hra 4,501.00, conv.allow 2,733.00, med allow 3,755.00,market allow 1,494.00,edu allow 2,376.00, spl. allow 4,012.00, perform allow 3,312.00 and total is 34283 n dedcution is pf 1452 n pt 200 n i want know whats my exact income tax for before my submiison of form 16.
pls infirm me n thanks for advance rgds syed
@Syed
Please download and use income tax calculator to compute income tax.
hi,
I seek ur advise on the following. Supposing my taxable income for the year 2012-13 (after standard deductions and non-taxable limit) is Rs.150000 how can I avail tax benefit on the above amount. Please let me know if premium payment for Rs.15,000 on my LIC policies during the A/Y would suffice tax liability. or I need to invest the whole taxable amount to get the tax relief.
@Benny
You can avail tax deductions under section 80C, 80D etc to save tax.
Deduction for LIC policy payment would be available u/s 80C.