Sk. Md. Asif Ali

Sk. Md. Asif AliFinance Act 2014 has introduced various changes in Income Tax Act,1961 and some of those related to deduction and exemptions available to Salaried Individual taxpayers, which includes  Amendments in Section80C, Section 80CCD, Section 80CCE and in Section 24 related to Interest deduction.   Here I have compiled attached  in Excel file Comprehensive list of Deductions , Tax free Allowances and Perquisites   highlighting important Amendments for Salaried Individual applicable for Assessment Year 2015-16 / Financial year 2014-15 :-

Brief introduction

Section 80C

The limit of Investment under Section 80C is increased from 1 lacs rupees to 1.50 lacs. Following is the wording of the amendments

“In section 80C of the Income-tax Act, in sub-section (1), for the words “one lakh rupees”, the words “one hundred and fifty thousand rupees” shall be substituted”

Section 80CCD

Tax Benefits extended to Private Sector Employees. The date of joining condition for the service on or after 1.1.2004 not applicable to the employees in private sector for the purposes of deduction under

the said section. The limit under this section has been fixed at Rs. 1 Lakh.

Following is the wording of the amendments

In section 80CCD of the Income-tax Act, in subsection (1)–– (i) for the words, figures and letters “Where an assessee, being an individual employed by the Central Government or any other employer on or after the 1st day of January, 2004”, the words, figures and letters “Where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004 or, being an individual employed by any other employer” shall be substituted;

(ii) after sub-section (1), the following sub-section shall be inserted, namely:–

“(1A) The amount of deduction under sub-section (1) shall not exceed one hundred thousand rupees.”.”

Section 80CCE

Consequently limit of deduction under section 80C, 80CCC & 80CCD is increased to Rs. 1.50 lacs. Following is the wording of the amendments

“In section 80CCE of the Income-tax Act, for the words “one lakh rupees”, the words “one hundred and fifty thousand rupees” shall be substituted”

For Individual availing Home loan will be benefited more by increased in limit of Deduction of Interest increased to Rs. 2 lacs instead of Rs. 1.5 lacs earlier

2nd Proviso to Section 24

Following is the wording of amendments

“Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within three years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed one lakh fifty thousand rupees two lakh rupees.”

Download list of Deductions, Tax free Allowances and Perquisites for Salaried Individual Taxpayer

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0 responses to “Deductions/Allowances/Perquisites applicable for Salaried Individual for FY 2014-15”

  1. Arindam Bhattacharya says:

    In which Clause I can obtain home repairing loan & how much ?

  2. Anil says:

    Dear sir,

    I had taken a loan for a flat. the loan sanction date was Apr 2010. I got the possession of the flat in May 2014.
    To take the loan interest benefits, when I entered the loan details to my office automated system, I was shocked to find out that I will not be able to take the full benefit of interest repayment since the possession date is more than 3 years from the loan sanction date.

    What do i do ?

    Thanks
    Anil

  3. V NARASIMHAN says:

    Sir,
    I am a senior citizen 71 yers with pension and interest income. (a)I pay Rs.1.20lakjhs as rent per annum by cheque. I am not getting exemption under Sec 80GG. (b) I spend amounts for medical treatment for myself and wife. My employer does not provide all medicines. I buy for both of us and also for dental treatment, eye test, annual health check up etc. How can I claim relief for the amount spent? (c) I have to travel within the city for consultations, hospital visits etc. How can I claim conveyance allowance?
    Please guide me as to how I can get relief for the above by mail to my id
    Thanks a lot in advance
    v narasimhan
    28122014
    vnhan@rediffmail.com

    • Sk Md Asif Ali says:

      Dear Narasimhan Sir,

      Please find your answer here

      1) Section 80GG exemption will be available based on fulfillment of certain condition. Pls check if you are satisfying. Pls refer https://taxguru.in/income-tax/section-80gg-deductions-rent-paid.html for detials

      2) In respect of Medical. You can go for two thing

      a) Medical Reimbursement provided by employer (on the basis of Supporting) is exempted upto Rs. 15000. Above the limit is taxable u/s 17(2) as perquisite

      b) Section 80D : Non Cash Payment made for Medical Insurance premium is exempted upto Rs. 15000/- (Self, Spouse and Dependent Children ) and another 15000/- for Parents (whether dependent or not)
      (Each Exemption amount of Rs. 15000/- will increase to Rs. 20000/- if they are Senior Citizen. I.e maximum (20000 + 20000) = 40000)

      (Deduction of Rs. 5000 for Preventive Health check up which can be paid in Cash- This is included in above deduction u/s 80D i.e 15000 or 20000 deduction.)

      3) Conveyance allowance is exempt upto Rs. 800 per month without any supporting or claim, etc.

      Hope it clarifies

      Regards
      Sk Md Asif Ali

    • V NARASIMHAN says:

      Sir,
      Thanks for your reply. I amnot finding the excel sheet. All that you have indicated are for salaried persons. May be my understanding of the subject is bad. Please let meknow the exemptions SPECIFICALLY available fo r Pensioners. You will be doing a great service to the living PENSIONERS by furnishing the excel sheet. You are aware that our need for medicines, check up and transportation is more than real food expenses as our capacity to eat is automatically reduced.
      Thanks in advance for all the assistance
      sincerely,
      v narasimhan
      29122014

  4. Sk Md Asif ali says:

    It is still there, You have to undergo lock-in period of 3 years and It is comes under maximum limit of Ded u/s 80C.

    In ELSS MF, major portion of Investment is on Equity.

    Regards
    Asif

  5. bpdsi says:

    Sir,

    I learnt that sometime back the benefit of tax deduction under section 80c for investment under ELSS MF schemes was withdrawn.About the latest position I am not very clear.I shall be thankful if you pl. enlighten me.
    Thanking you.

    BPDSI

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