Hi All,
Based on the information in this forum and other references. I have drafted a tax structure for my organisation. i have attached a copy of the same. I hope it will be useful.
Pls let me know if there are more provisions and any corrections
regards
Madhuri
From India, Bangalore
Based on the information in this forum and other references. I have drafted a tax structure for my organisation. i have attached a copy of the same. I hope it will be useful.
Pls let me know if there are more provisions and any corrections
regards
Madhuri
From India, Bangalore
Hi Madhuri,
This is a very useful document you have prepared. However, there are a few corrections, which I am noting below :
1. Sec 88 is abolished now. All the tax-saving instruments earlier a part of Sec 88 are now covered under Sec 80 C
2. The max deductible limit under Sec 80C + 80CCC + 80CCD is Rs. 1 lakh.
3. There are no instrument-specific caps on the individual investments in different instruments. Means you can invest the full Rs 1 lakh under 80C in either 1 instrument, or spread it across all the investment options.
4. Briefly, the instruments that are covered under 80C are the same which you have mentioned, minus the individual caps.
5. The benefit under NSCs will include accrued interest, if reinvested, for the 1st 5 years.
6. In the case of money-back insurance policies, or those where bonuses will be paid, the insurance premium amount eligible will be restricted to 20% of the assured amount only excluding the premium to be returned or bonuses to be paid etc.
Keep in mind that whenever you invest for the purpose of tax-planning under Sec 80C, always check carefully whether that particular instrument is approved for the IT deduction. The most widely used word in Sec 80C is 'notified'. Usually, the approval will be printed on the instrument itself, otherwise the issuer will give a declaration to that effect.
Apart from all this, you can get deduction of 10,000 on Mediclaim policy. So the total deduction from gross salary is Rs. 1,10,000/-. Beyond this, there are donations to certain scientific and charitable organisations, again only the 'notified' ones.
The rest of the info in your chart is OK.
Warm regards,
Devjit
From India, Gurgaon
2This is a very useful document you have prepared. However, there are a few corrections, which I am noting below :
1. Sec 88 is abolished now. All the tax-saving instruments earlier a part of Sec 88 are now covered under Sec 80 C
2. The max deductible limit under Sec 80C + 80CCC + 80CCD is Rs. 1 lakh.
3. There are no instrument-specific caps on the individual investments in different instruments. Means you can invest the full Rs 1 lakh under 80C in either 1 instrument, or spread it across all the investment options.
4. Briefly, the instruments that are covered under 80C are the same which you have mentioned, minus the individual caps.
5. The benefit under NSCs will include accrued interest, if reinvested, for the 1st 5 years.
6. In the case of money-back insurance policies, or those where bonuses will be paid, the insurance premium amount eligible will be restricted to 20% of the assured amount only excluding the premium to be returned or bonuses to be paid etc.
Keep in mind that whenever you invest for the purpose of tax-planning under Sec 80C, always check carefully whether that particular instrument is approved for the IT deduction. The most widely used word in Sec 80C is 'notified'. Usually, the approval will be printed on the instrument itself, otherwise the issuer will give a declaration to that effect.
Apart from all this, you can get deduction of 10,000 on Mediclaim policy. So the total deduction from gross salary is Rs. 1,10,000/-. Beyond this, there are donations to certain scientific and charitable organisations, again only the 'notified' ones.
The rest of the info in your chart is OK.
Warm regards,
Devjit
From India, Gurgaon
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Tax structure.xls
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf