Income Tax Exemptions


Exemption Section of Income Tax Yearly Limit
Conveyance Allowance 10(14) 19,200
House Rent Allowance(HRA) 10(10A) Refer Notes
Medical Reimbursement 17(2) 15,000
ELSS,NSC,LIC,Home Loan,PF,PPF, Pension 80C, 80CCC, 80CCD 4,48,000
Medical Insurance Premium 80D 35,000
Interest on Housing Loans 24, 80EE 3,00,000
Infrastructure Bonds 80CCF 20,000
RGESS 50% Exempt 80CCG 50,000
Disability 80U 50,000
Interest on Saving Account 80TTA 10,000
Leave Travel Allowance(LTA) 10(5) -
Interest on Education Loan 80E -
Donations 80G -
Deduction in respect of medical treatment 80DDB -
Conveyance Allowance
An amount of 1,600/- exempt per calender month.

House Rent Allowance(HRA)
Least of the below is exempt
1) Actual HRA Received
2) Rent Paid in excess of 10% of Basic Pay
3) 40% of Basic Pay in Non Metro Cities or 50% of Basic Pay in Metro Cities.

Medical Reimbursement
Exemptions of upto 15,000/- can be claimed by submitting the actual bills.

ELSS,NSC,LIC,Home Loan,PF,PPF, Pension
Overall cap of 1,50,000/- is applicable for these exemptions.

Medical Insurance Premium
You can either claim overall Exemption of 30,000/- or 35,000/- based on the age of your parents.
Exemption of 20,000 can be claimed on Medical Insurance of self, spouse and children
Exemption of 15,000 can be claimed on Medical Insurance of parents aged below 60 years or
Exemption of 20,000 can be claimed on Medical Insurance of parents aged above 60 years.

Interest on Housing Loans
Exemption of 2,00,000/- can be claimed irrespective of whether the house is self occupied, vacant or let out, provided the house is constructed within 3 financial years after the loan is taken. If the property is let out, rent is taxable, however 30% of the rent and municipal taxes are Tax exempt. A further exemption of 1,00,000/-(over and above the exemption of 2,00,000/-) can be claimed provided
- Loan is taken in Financial Year 2013-14
- Total value of the loan does not exceed 25 Lakhs
- Total value of the house does not exceed 40 lakhs

Infrastructure Bonds
Exemption of upto 20,000/- can be availed per financial year

RGESS 50% Exempt
50% Exemption of can be claimed for first time investor into this scheme if
-Your gross total income is less that 10,00,000/- and
-You have never traded in Equities or Derivatives via DEMAT account Lockin period is 3 years, however you could exit the scheme after 1 year as the lock in period is flexible after 1 year in the scheme.You only get exemption for the half the mount invested via a DEMAT account, for example if you have invested 50,000/- you can only claim tax exemption for the amount 25,000/-

Disability
Exemption of 50,000/- can be claimed provided you produce the Disability Certificate. Incase of severe disability, exemption of 1,00,000/- can be claimed.

Interest on Savings Account
Exemption of upto 10,000 can be claimed for the interest on saving account in Bank or Post Office.

Leave Travel Allowance(LTA)
Exemption can be claimed for
- 2 journeys in the Block of 4 years
- Should not exceed Economy Class Air Fare or AC 1st Class Rail Fare irrespective of transport mode used
- Actual amount spent on travel to any place in India via shortest route
- Current Block of 4 years is 2010-2014 ends on 31st December 2014

Interest on Education Loan
Exemption can be claimed for interest paid on Education Loan for education in India or Abroad for self,spouse or child. There is no set limit.

Exemption for all the amount(100% Exemption) or half of the amount(50% Exemptions) depending upon the organisation you have made the donation.Duly filled Form 58A can be provided as proof of Donation.

Deduction in respect of Medical Treatment
Exemption can be claimed for amount spent on treatment of specific alignment or diease for self or a dependent.
Tax Slabs for FY 2015-16
Tax Slabs for individuals aged below 60 years of age(Male or Female)
Tax Rate Income Range
Nil Upto 2.5 Lakhs
10% 2.5 - 5 Lakhs
20% 5 - 10 Lakhs
30% Above 10 Lakhs

Tax Slabs for individuals aged 60 years or above(Male or Female)

Tax Rate Income Range
Nil Upto 2.5 Lakhs
10% 2.5 - 5 Lakhs
20% 5 - 10 Lakhs
30% Above 10 Lakhs

Tax Slabs for individuals aged below 60 years of age(Male or Female)

Tax Rate Income Range
Nil Upto 2.5 Lakhs
10% 2.5 - 5 Lakhs
20% 5 - 10 Lakhs
30% Above 10 Lakhs
Other Income Tax Information
Can I claim HRA, Home Loan Prinicipal and Interest on Home Loan at the same time?
Yes, as long you meet the eligibility criteria for each of exemptions. These are calculated independently of each other under different sections of Income Tax.


 
 
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