Comment posted on Income tax calculator for 2012-13 and Budget 2012 update by S K Jain.
My father (66 yrs) is a Govt. Pensioner and a Civil Engg Consultant in a Pvt Co..
He gets his (1) Pension + (2) Consultancy Fee + (3) Bank Interest on FD & Saving Bank A/c totaling around 7.5 Lacs.
TDS amounting 55k. Invested >1 lac u/s 80C.
Kindly let me know that : (1) Are the exemption clauses same for Pension & Consultancy as salary ? (2) How much amount of Interest is exempted?
Thanking You
S K Jain
S K Jain also commented
- Thanks for your prompt & useful reply. I actually was reading your other solutions & forgotten about mine. You explained each & every aspect of every query.
Once again Thanks for giving me additional information about ITR Form No. otherwise I would have treated Consultancy fee as same as salary (here Pension) & filed ITR-I.
Once again a very big THANKS.
I took voluntary retirement wef 1st Sept 2011in Govt of India. I deposited retirement benefits such as PF, Gratuity, commutation of pension, etc in Fixed Deposits. Form 16 sent by my employer is from April 2011 to August 2011 and TDS details are also mentioned. Pension issuing Bank given me a certificate for the pension and interest paid to me. Now please let me know whether I should club both salary and pension and interest for calculation of income tax for 2011-12. The jurisdiction has also been changed from New Delhi to Mysore (karnataka). Where should I submit my return? Thanks
@Gopinath
You need to put salary+pension and interest income separate in income tax return form.
Interest income would be put into income from other sources section. Whereas pension and salary would go under income from salaries section.
There is no issue in case of jurisdiction change. You can submit return online without worrying about jurisdiction.
Thank u sir
How much amount will be deducted from uniform allowances ( Assesment year 2012-2013)
@Lelin
Employer may create a salary structure to include uniform allowance and books/magazine allowance.
As such there is no limit specified by IT department, but it should be within good limits and provided on actual reimbursements only.
Rs 1000 may be good amount for uniform allowance and same for books/magazines. A very high limit may raise questions in IT department mind.
Dear Sir,
I want to know on book & magazine allowance in Salary Structure.
(1) How much is the books & magazine allowance allowed according to Statutory.
(2) Does it have any tax Exemptions.
(3) If yes how it should be calculated for an employer
Hi Sir,
I have 2 form 16s. One from the first company(01/apr/2011 to 10/June/2011) and second from the current company. My previous employer in the form 16 gave values pertaining to Gratuity and Leave encashment. I was in service for > 5 yrs(~ 6.5) in the first company. How do i calculate relief under Section 89. Kindly advise.
@Harneet
Gratuity and leave encashment would be non taxable under allowed limits. So you should reduce taxable income declared in form-16 by that figure (if deduction for same not already provided) and file returns.
Thanks Pankaj,
My first employer paid me Gratuity worth 67022 and Leave Encashment worth 15203. In the deductions column, the employer already mentioned full amount against Leave encashment, but only 40482 against Gratuity. My point is that the employer has already reduced some part(15203+40482) from the taxable salary, so in the Tax retun excel sheet under ‘Relief Under Section 89′ should I mention any value or not. I would be obliged if you could resolve my query.
Thanks,
Harneet
@Harneet
You should deduct remaining non-taxable amount taxable income and file returns.
Section 89 is not applicable for Gratuity amount, but to arrears.
Is there tax exmemption for monthly maintenance charges that we pay to our apartment owners association?
@Kvk
There is no tax exemption for maintenance charges paid to RWA/Builder.
SIR I WANT TO KNOW HOW TO CALCULATE TAX ON SALE OF LAND AND HOUSE ?
@Indar
If sale is after three years, then following method can be used for gains and income tax computation:
Purchase Year = A, Purchase Cost = P, Cost Inflation Index (CII) for purchase year = X
Sale Year = B, Selling price = Q, CII for sale year = Y
Indexed Purchase price = P x (Y/X) = R
Long term capital gain = Q – R = S
Income tax on capital gain = S x 20%
Very use full info, tnx u
Forgive me for pestering but would that mean that I deduct another amount of Rs 26540 ie. (15203+67022)-(15203+40482) from my Taxable Income even though my first employer did not deduct that in the Form 16. Is that correct sir?
@Harneet
Yes, you should do same as mentioned by you.
My father (66 yrs) is a Govt. Pensioner and a Civil Engg Consultant in a Pvt Co..
He gets his (1) Pension + (2) Consultancy Fee + (3) Bank Interest on FD & Saving Bank A/c totaling around 7.5 Lacs.
TDS amounting 55k. Invested >1 lac u/s 80C.
Kindly let me know that : (1) Are the exemption clauses same for Pension & Consultancy as salary ? (2) How much amount of Interest is exempted?
Thanking You
S K Jain
@S K Jain
Consultancy fees would come under income from business/profession.
He would need to file income tax return with form ITR-4.
Pension would be treated as income from salaries.
Bank interest would go into income from other sources.
Exemption clauses like 80C, 80D, 80CCF etc work on total taxable income which may include any type of income (salaries/business/pension/bank interest).
No amount of saving bank account/fixed deposit interest is exempted from tax in FY 2011-12. From 2012-13, saving bank account interest would be exempted upto Rs 10,000.
Thanks for your prompt & useful reply. I actually was reading your other solutions & forgotten about mine. You explained each & every aspect of every query.
Once again Thanks for giving me additional information about ITR Form No. otherwise I would have treated Consultancy fee as same as salary (here Pension) & filed ITR-I.
Once again a very big THANKS.
Can you please confirm if I can deduct Leave encashment amount from “Income from Salary” taking into consideration employer mentioned Leave Encashment in FORM 16 as taxable. Also Should I deduct same amount in TDS tab from “Income chargeable under the head Salaries”
Thanks
@Sameer
Please put the exact details of form 16 in the TDS sheet, whereas deduct the leave encashment amount from income from salaries field.
I am waiting to transfer my PF account from ex-employer trust to my current employer more than a year. Meantime in my last FY’s 26AS I have noticed there was tax paid as TDS for the PF interest by my ex-employer. As i have not claimed the interest, can I get it reimbursed while filling returns this year?
@Selva
Yes, you should claim the TDS back as you did not withdraw EPF but it was a transfer case.
I have two questions on filling e-returns. I am Govt servt with salary, bank interest as only my income.
1) I sold my house in Oct 2011, with loss as per long-term capital gain. I understand losses need not be mentioned in tax-return. while I am using ITR-2, the losses are carried forward to next year? Can I claim this loss in next year return?
2) I am unable to mention exclusively selling of my house. Is ITR-2 the correct form?
@Paramesha
1. Losses from capital assets like house should be declared in ITR and they can be set off against other long term gains. If you unable to set off against any long term gains this year, you can carry forward them to next years.
2. ITR-2 is correct form for declaring long term gain/losses.
Dear Friends, i need declaration form of the FY 2012-2013. kindly provide and help me.
@K Hemalatha
Please ask your employer for same.
My employer did not show medical expenses deduction of 15000/- in my form 16 for fy 2011-12 like last year as I did not furnish declaration. now they say that returns have already been sent to IT deptt. We were paid about 40000/- as medical expenses for whole year.The acs guy says to show in IT return.My question is
1. Can this medical expense be shown during filling IT return ay 12-13when not shown inform 16.Is the acs guy advsing correctly
2. What is maxm amount that can be deducted & under which section.
regards
@Vicky
If you are asking for medical reimbursement component (max deduction Rs 15000 per year), it should have been done with employer. ITR form does not have section to claim same. Only way now would be to reduce taxable income by that 15K amount and file income tax return. In case income tax department has query on why taxable income has been reduced, you will have to prove why reimbursement was not taken with employer.
Deduction for these expense may also be applicable u/s 80DD or 80DDB. But check below conditions if they are applicable:
Section 80DD : Deduction of 50,000 for maintenance of a disabled dependent. If the disability is severe, the deduction amount will be 100,000.
Section 80DDB: Expenses done for medical treatment for self, spouse, dependent children, parents, brothers and sisters. Maximum deduction can be Rs 40,000 (goes up to 60,000 in case patient is senior citizen). Deduction is only allowed in case of following diseases:
Neurological Diseases where the disability level has been certified to be of 40% and above,
(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinson’s Disease
Malignant Cancers
Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
Chronic Renal failure
Hematological disorders :
(a) Hemophilia ;
(b) Thalassaemia.
I am a private sector employee. I have opened NPS account for myself and have contributed some amount. Am I eligible to get tax benefit for the same and under which section? also, Me and my employer contribute towards my PF. I have got tax benefit for PF, can I get PF and NPS both?
@Ankit
You can get tax benefit for both PF and NPS.
Deduction for your own contribution to NPS would be available u/s 80 CCD (Employees/Self Employed Contribution).
Thank you Pankaj. This site is really awesome for financial queries, have been following for quite a while. Cheers!
Hi Pankaj,
In past I always submitted my IT-return directly at IT office.
But this time I am out of India from last 6 month, and my current
status is NRI (may change when I am back in India again in same
financial year). Since I was RI for AY 2012-2013 (FY 2011-2012) so I believe NRI
rules doesn’t apply on me, and I can submit return online and send signed acknowledgment to IT-CPC electronic city office B’lore. In website it is strictly mentioned to send through normal post or speed post.
There are two option for me
1. Send it directly through International post.
2. Send it to my family in India through international post and ask them to
send it through speed post.
Please suggest which of the above two option is correct
@Ashish
I am not sure if International post would be accepted by IT department.
Better option is to send to family/friend in India, who can then send to IT department address through simple/speed post/
Can HRA be claimed without a rent reciept? Is there any limit on the max amount (eg. 33000-above this , one needs to show receipt)
I have changed my city of residence so it is bit difficult to get the rent reciept now…Any workaround?
Second, the telephne bill(broadband internet connection which is treated same as telephn bill by d company) comes by the name of my husband (husband as the payer). Can I show the same bill to get tax exemption or shuld I get the payer name changed?
@Diti
HRA deduction is provided by employer and you need to provide them either rent receipts or registered rent agreement. If the house rent paid is upto Rs. 3000 per month, then rent receipt/agreement copy is not mandatory.
Telephone/internet bill reimbursement is also done by employer and you need to have connection in your name to claim tax-free reimbursements from employer.
My income became taxable for the financial year 2007-2008. As per form 16, I had to get refund of Rs.10,000.
I had filed for the ITR but did not get any return.
As I was unaware of these processes, I did not follow up on this.
Please let me know if I can get the refund now. I do have all the documents of this year.
Thanks!
Must say that your site is truly a success!
A very good information source. Helped me at a number of places, while filing the tax.
Thanks again. Great work indeed.
@Diti
First you check form-26AS for all assessment years starting from 2009-20 to check if refund has been issued or not.
In case return was filed offline (in income tax office), its difficult to track processing online. In that case you will have to visit same income tax office to enquire about same. If they do not help, you can file RTI application to know status of refund.
Thanks for the information Pankaj!
i need that how to calculate 44AD