TAX COMPUTATION TIPS FOR FINANCIAL YEAR 2013-2014 Particulars TAX COMPUTATION TIPS

A. Income Details BASIC HRA

PSS / INCENTIVE ADV & BALANCE TRANSPORT & CONVEYANCE .ALLOWANCE

PERFORMANCE ALLOWANCE 4 WHEELER ALLOWANCE EDUCATION ALLOWANCE CCA MAIF EXGRATIA / AWARD ANY OTHER ALLOWANCE Total Income : B. Perquisites SOFT-FUR VMR VMIER PETROL DRIVER SAL

100% taxable HRA (on submission of Rent receipts) Least of the following three is exempt from total HRA received during the year 1) Actual HRA received 2) Rent paid minus 10% of basic salary 3) 50% of basic salary for metro cities(I.e. Delhi, Mumbai., Kolkatta and Chennai) or 40% in other cities 100% taxable Rs.800/= PM is exempt, in case employee is not using the Company transport facility. For employees who are getting transport facility, amount recovered from employee is exempted. 100% taxable 100% taxable 100% taxable 100% taxable 100% taxable 100% taxable 100% taxable

100% taxable Exemption only Rs.1800/= per month subject to claim submitted by employee on monthly basis. This is applicable in case the car is owned by Employee Exemption only Rs.900/= per month subject to claim submitted by employee on monthly basis. This is applicable in case the car is owned by Employee

MOTOR CAR PROVIDED BY COMPANY INCLUDING LEASED CAR

Value of perquesites will be Where cubic capacity of engine does not exceed 1.6 litres Where cubic capacity of engine exceeds 1.6 litres CLA PERQ Rs. 1,800 (plus

Rs. 900, if chauffeur is also provided to run the motor car) Rs. 2,400 (plus Rs. 900, if chauffeur is also provided to run the motor car)
15%/ 10%/ 7.5% as the case may be of total income as per Point no.A or CLA availed whichever is lower. In case of self lease I.e in the name of employee or spouse, gross CLA paid during the year will be treated as Rental income by the Company. CLA Advance & Security Deposit will be treated as interest free loan for employees who are not under CLA and perquisite will be charged as per income tax rules. 15%/ 10%/ 7.5% as the case may be of total income as per Point no. or rent paid whichever is lower. Taxable 100% taxable In a block period of 4 years , two LTA's are non taxable to the extent of actual fare on submission of ticket & other related proofs as per LTA Circular. Block Period is 2010 -13 100% taxable 100% taxable Non taxable Amount paid by the company is exempted upto 15K only. However, reimbursement from NIC are fully exempt. Taxable 10% of Hard Furnishing availed till date is taxable except in case of Computers Any Loan given by company more than 20K will be subject to perquisite based on the difference between the interest rate of SBI and Company .

CLA ADV/SEC DEP PERQ.

GUEST HOUSE PERQ CREDIT-CARD HOUSE REPAIR LTA

ELECTRICITY & WATER CHARGES WATCH AND WARD EXPENSES MOBILE TELEPHONE MEDICAL EXPENSES PAID BY COMPANY AWARD IN KIND (Items / Free Travel/ etc) HARD FURNISHING LOAN PERQ.

Total Perquisite : C. OTHER INCOME: Income from previous employer

New joinees during the year have to provide Income Certificate showing TDS deducted from the previous employer alongwith copy of PAN

Loss from House Property

Interest paid or accrued upto Rs.1.50 Lacs on submission of Bank Certificate & Declaration Form alongwith Possession proof & Ownership proof as per circular Upper limit is 30K in case the purpose of loan is for Repairs and Renovation. As per declaration ( No concessional rate allowable for TDS)

Other Income, if any. D. Gross income(A + B + C ) E. Less : Savings Limit u/s 80CCE LIC Pension Plan (u/s 80CCC) NSC Unit Linked Insurance Children Education PF & VPF PPF 5 yrs time deposit in post office/banks Housing Loan Principal TOTAL F. Less: Others Mediclaim (u/s 80D)

) ) ) ) ) ) ) ) ) Maximum limit is Rs.1 Lac and no upper limit in any category of investment. Note : Accrued Interest on NSC's is to be discontinued

RGESS (U/S CCG)

Disablement (u/s 80DD)

Medical Treatment(u/s80DDB) Handicapped(u/s 80U)

Higher Education Loan(u/s80E)

Additional deduction of Rs.1 Lac on home loan Interest (u/s 80EE) 80G-Donations-

Upto 15K for self& family. Additional Rs. 15K in case of dependent parents. Rs. 20K in both cases if the person is a senior citizen The amount of deduction is at 50% of amount invested in equity shares. However, the amount of deduction under this provision cannot exceed Rs. 50,000. Upto 50K on submission of Certificate on Prescribed format from Govt Hospital subject to actual bills. Rs. 100K in cae of severe disability Upto 40K on submission of Certificate on Prescribed format from Govt Hospital subject to actual bills. Only for Self upto 50K on submission of Certificate on Prescribed format from Govt. Hospital. Rs. 75K in case of severe disability Repayment of Interest only for self, spouse, children and a student of whom he is a legal guardian. No upper limit but can be availed for 8 years from the year in which the repayment started. Additonal deduction of Rs.1 Lac for payment of interest on home loan taken. See condition as given in Tax saving guidelines. Donation benefit will not be considered by the Company, if not deducted from the salary of the employee by the company. Deduction is allowed on saving account interest up to Rs.10000/per annum. Rebate of Rs.2000/- or tax payable ( whichever is less) from the income tax payble if income chargable to tax is less than Rs. 5 Lacs.

Setion 80TTA Rebate of Rs. 2000 or tax payable ( whichever is less) from the income tax payble if income chargable to tax is less than Rs. 5 Lacs TOTAL G. LESS: Professional tax deducted. H. TOTAL EXEMPTED AMOUNT (E+F-G) I. Add: Short term Capital Gain

On production of transaction sale and purchase proofs ( No concessional rate allowable for TDS)

TOTAL J. Total Taxable Income (D - H +I ) Gross Tax Less : Tax deducted by Prev. Employer Tax Payable

Surcharge Education Cess on Tax Secondary & higher education cess on Tax Total Tax Payable ( Tax + cess ) YTD tax deducted YTD surcharge deducted YTD Education cess deducted Total tax Deducted ( Tax + Cess ) Balance tax

Upto Rs.2.00 Lac = Nil ; Rs.2.00 Lac to Rs.5.00 Lacs = 10%; Rs.5.00 - Rs.10.00 Lacs = 20% & more than Rs. 10.00 Lacs = 30% 10% on tax if taxable income exceed Rs.1 Crore. 2% on Tax payable. 1% on Tax payable.