Real Info

Maximum amount which is not chargeable under the Income Tax act or Exemption Limit for various person are as under

For very senior citizen (age 80 or more)                :Rs 500000
For resident Senior citizen  (age 60-80)                  :Rs 300000
For others (age less than 60)                                   :Rs 250000
Example : Suppose An Individual (age less than 60 years) having Taxable salary Income of Rs 3,70,000 and claim a deduction of Rs 1,50.000 under Section 80C (Chapter IV) and net Taxable income of 2,20,000 is required to file Income tax return as his income before deduction of chapter VI(80C in this case) is more than  maximum amount which is not chargeable under Income Tax Act i e Rs 2,50,000 for Ay 2016-17.

So if your income before deduction is less than Rs 250000/- for assessment year 2016-17 and your age is less than 60 then no need to file income tax return(subject to other condition applicable for foreign income and bank accounts) .

Further Income from saving bank Interest is eligible for deduction under 80TTA not u/s 80C subject to maximum limit of Rs 10000.

Interest on FD and RD is not eligible for deduction under section 80TTA

Further Bank Fixed deposit Interest /Recurring deposit Interest/saving plus account interest(auto FDR account) is not covered under section 80TTA.

 

Ques-3:I have received salary from two employers and both have deducted the tax as per salary paid by them ,what next I should do?


Please note that Income Tax is to be calculated on your total income after adding Income from both the employers .So you have to recalculate income tax and have to deposit balance tax (if any)

First: Add your income chargeable under the head salary(as explained above chargeable income under head salaries)  from both the employers and Fill in the ITR-1 sr Number -1.(income from salary/pension).

Second :You have to provide TDS details from both the employers at Sch-TDS-1 ( TDS sheet/Tab) also if not already populated by Income tax department.

Further you may use ITR-1 in this case also,However only if you  have income only from Salary/pension /interest /House property from one house.


 

Ques-5 : I am salaried person but my Employer has not allowed HRA benefit while calculating the tax due to non submission of proof by me ,whether I can claim HRA exemption while filing the return .

This the most asked FAQ that my employer has not given me deduction of HRA .

The answer Yes.You can claim deduction /exemption if your employer has not allowed the deduction of house rent allowance.To claim these you have to take calculate the taxable amount of salary after deduction of HRA exemption amount.The instruction in this regard also given in guidelines issued by income tax department.


1. Take Income chargeable under the head salaries  as per form 16 :Rs XXXXX
2: Less : Exemption of HRA as per your calculation( calculate here):Rs XXXXX
3 Net taxable salary : (1-2) =XXXX

Figure calculated as per sr number 3 should be filled at Sr number B-1 of ITR-1.

However Please note that in TDS schedule ,income as per form 16 PART-A is to be shown as it is and should not be reduced by HRA exemption amount calculated  above .

So in such case salary shown in ITR-1 column B-1 should not be equal to  salary shown TDS schedule of ITR-1.

 

Ques-7 : My Bank has deducted Tax @ 10 % , But I am under 20/30% slab , Do I have to pay Balance tax

Yes ,first you have to fill the Interest under Income from Other sources column and have to calculate tax after that.

Further ,you have to pay balance tax if any through challan 280

 

Ques-9: What is IFSC code ?From where I can check this ?

IFSC code is a 11 digit alphanumeric code of your bank branch , you will get it from First page of Your passbook as well as as from cheque book .If not found then you may confirm from your bank branch or Google search is also a option