Income tax calculator 2015 - 2016

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Income tax calculator 2015 - 2016

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Income tax calculator 2015 - 2016

  1. 1. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com INCOME TAX CALCULATOR 2015 - 2016 By Parvathi.V
  2. 2. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com INCOME TAX ACT, 1961 • Income tax Act came into force on 1st April 1962 • A tax that governments impose on financial income generated by all entities within their jurisdiction. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public.
  3. 3. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Income Tax Payers • General Tax Payers and Women • Senior citizens (Aged 60 years but less than • 80 years) • For Cooperative Society • For Firm • Local Authority • Domestic Company • For Foreign Company • Income Tax Slab And Rate For Businesses For Cooperative Society • Income Tax Slab And Rate For Businesses
  4. 4. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Heads of income • The total income of a person is segregated into five heads:- • Income from salaries • Income from house property • Profits and gains of business or profession • Capital gains and • Income from other sources
  5. 5. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com TAX SLAB - Tax bracket for individuals depending on the Income for the financial year 2015-16 or assessment year 2016-17 • General Tax Payers and Women • • • Senior citizens (Aged 60 years but less than • 80 years) Income Tax Slab (in Rs.) Tax Slab 0 to Rs 2,50,000 No Tax 2,50,001 to 5,00,000 10% 5,00,001 to 10,00, 000 20% Above 10,00,000 30% 0 to Rs 2,50,000 Tax Slab 0 to 3,00,000 No Tax 3,00,001 to 5,00, 000 10% 5,00,001 to 10,00, 000 20% Above 10,00,000 30%
  6. 6. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com TAX SLAB – Cont.. Super Senior Citizens Note: Tax rates are excluding a. Surcharge b. Education Cess c. Secondary and Higher Education Cess. Effective Tax Rate Besides the tax rate, cess is also charged on the tax. The cess is 3%. Because of this cess the effective tax rates translates into 10.3%, 20.6% and 30.9% according to the slabs. Income tax slab (in Rs.) Tax Slab 0 to 5,00,000 No tax 5,00,001 to 10,00,000 20% Above 10,00,000 30%
  7. 7. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Income Tax Slab And Rate For Businesses For Cooperative Society • Cooperative society does not get any exemption. It needs to pay income tax from the first rupee it earns. It has to pay the education cess as well. • However in business class only cooperative society has different tax slabs. All other business class pays uniform tax rate. • Income Slab Tax Rate Taxable income is not more than  Rs. 10,000 10% of total income Taxable income is more than Rs. 10,000 but less than Rs. 20,001 Rs. 1,000 + 20% of income in excess of Rs. 10,000 Taxable income is more than Rs. 20,000  Rs. 3,000 + 20% of the amount by which the income exceeds Rs. 20,000
  8. 8. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Firm A firm has to pay 30% tax on its total income. This rate is uniform irrespective of the earning.Besides this, Education cess is also applicable.The total effective tax rate of a firm is 30.9%. Local Authority Similar to the firm local authority also pays income tax at the rate of 30%.After an addition of education cess the effective tax rates becomes 30.9% Domestic Company In the case of a domestic company, income tax is payable at the rate of 30%.Domestic company gets relaxation in surcharge. If the income exceeds Rs 1 crore surcharge rate is 7%. Earlier it was 5%. If the income exceeds Rs 10 crore, the surcharge rate is 12%. Earlier it was 10%. 3% education cess is also charged on the income tax.
  9. 9. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Foreign company means a company whose control and management are situated wholly outside India. Also, the company has not made the prescribed arrangements for declaration and payment of dividends within India. A foreign company has to pay 40% income tax. 3% educations cess is also charged. Surcharge is 2% if taxable income exceeds Rs 1 crore but not more than Rs 10 crores. Surcharge is 5% if taxable income exceeds 10 crores. Foreign Company
  10. 10. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Tax Exemptions • Deductions under 80CRs. 1,50,000/- • Deductions under 80CCD for contribution to NPSRs. 50,000/- • Interest on house property loan Rs. 2,00,000 under section 24 • Exemption with new transportation allowance of Rs. 1,600 per month for a year Rs. 19,200 • New deductible health insurance premium Rs. 25,000 • Total :Rs. 4,44,200/-
  11. 11. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Deductions under section 80 C Restricted to Rs.1,50,000/- • Provident Fund (PF) & Voluntary Provident Fund (VPF) Current rate of interest is 8.5% per annum (p.a.) and is tax-free. • Public Provident Fund (PPF): Among all the assured returns small saving schemes, Public Provident Fund (PPF) is one of the best. Current rate of interest is 8.70% tax-free (Compounded Yearly) and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 1,50,000. • Home Loan Principal Repayment: • Stamp Duty and Registration Charges for a home • 5-Yr post office time deposit (POTD) scheme rate of Interest 8.5% • 5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years • Senior Citizen Savings Scheme 2004 (SCSS): rate of Interest 9.1%
  12. 12. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Cont.. • Life Insurance Premiums: Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players also comes under section 80c • Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. • Tuition fee
  13. 13. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Contd. • Sukanya Samriddhi Account : Sukanya Samriddhi Account meaning Girl Child Prosperity Scheme is a special deposit scheme launched by Prime Minister Narendra Modi on 22 January 2015 for girl child. The scheme of Sukanya Samriddhi Account came into effect via notification of Ministry of Finance. The notification details are Notification No. G.S.R.863(E) Dated 02.12.2014. Scheme will be governed by ‘Sukanya Samriddhi Account Rules, 2014’. Per girl child only single account is allowed. Parents can open this account for maximum two girl child. In case of twins this facility will be extended to third child birth of a girl child age limite attains the age of 10 years. Minimum deposit amount for this account is 1,000/- and maximum is 1,50,000/- per year₹ ₹ • Money to be deposited for 14 years in this account. • Interest rate for this account is 9.1% per annum, calculated on yearly basis ,Yearly compounded.
  14. 14. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Deduction Under Section 80U of Income Tax Act, 1961 for disabled persons • The Income Tax Act, 1961 provides deduction u/s. 80 in pursuance of which an individual (Indian citizen and foreign national) who is resident of India, and who suffers from not less than 40 per cent of any disability is eligible for deduction to the extent of Rs. 75,000/- and in case of severe disability to the extent of Rs. 125,000/-. • [Low vision, blindness , mental retardation, hearing impairment autism, cerebral palsy and multiple disabilities etc.] • What is the procedure Involved to claim deduction under this section? • The assessee claiming a deduction under this section shall furnish a copy of the certificate issued by the medical authority in the form and manner, as may be prescribed, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed.
  15. 15. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com IT Calculation Name : XXX Status : Individual Assessment year : 2016-17 (F.Y. 31.03.2016) Permanent Account Number : ` ` ` I . Income from Salary : Gross Salary 600,000 Bonus 30,000 Perquisite: Motor car provided by the employer 630,000 Less: Exemptions LTA HRA Exemptions 88,000 Family medical reimbursement restricted to 15,000 conveyance 19,200 Educational allowance 0 122,200 Income from salary 507,800 Less: Professional Tax 2,190 Income from salary 505,610 Gross total income 505,610 COMPUTATION OF TOTAL INCOME FOR INCOME TAX PURPOSE
  16. 16. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com IT Calculation Less : Deductions under Chapter VI-A: Section 80C : -Shouls not excess 1,50,000/- School fees 40,000 Life Insurance Premium 50,000 Contribution to PPF 60,000 Contribution to EPF 0 150,000 Total deductions restricted to 150,000 Section 80D Medical insurance 0 150,000 (Including senior citizen ) Total Income 355,610 Total Income (Rounded Off) 355,610 Tax thereon 10,561 Add: Education cess @ 3% 317 Total tax payable 10,878
  17. 17. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com Conclusion • Many of us start looking for investment avenues only in February or March, just before the Financial Year is getting over. This is a big mistake! One, you would end up investing your money without putting proper thought to it. And secondly, you would end up losing the interest / appreciation for the whole year. Instead, decide where you want to make the investments, and start investing right from the beginning of the financial year – from April. This way, you would not only make informed decisions, but would also earn the interest for the full year from April to March.
  18. 18. CHENNAI 3rd Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com ThankYou

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