The document provides an extensive overview of tax regulations, including tax slabs, exemptions, and deductions available to taxpayers in India. It outlines various categories of income and expenses that can affect taxable income, as well as detailed explanations of deduction sections (like 80C and 80D) for specific investments and expenditures. The document also presents example calculations for two individuals, illustrating how different salaries and expenses impact tax liabilities.

1. Tax Education
Save Taxes

2. Do you have a job
which pays you ?
,?

3. “TAXES”
Is it the most annoying word of 21st century?
Are you aware ?
If you earn,paying Taxes are mandatory!!

4. As a Taxpayer, How do you feel ?
Taxes

5. Is it a burden
that we wish
was not there ?
Taxes

6. How much you have to pay as Tax ?
Annual Taxable Income Rs.
0 – 2,50,000
2,50,001 – 5,00,000
5,00,001 – 10,00,000
Above 10,00,000
Tax Slab
0 %
10 %
20 %
30 %
Taxes

7. Are you aware ?
G overnment allows you to
Save Tax
and grow
Rich!
Taxes

8. “ One who Fails to Plan,
Plans to Fail“
Taxes

9.  Salaries
 Income from House Property
 Profit and Gains from Business or Profession
 Capital Gains
 Other Sources
Income that are Taxable…
Taxes

10.  House Rent Allowance (HRA)
 Transport Allowance
 Professional Tax
 Loss from House property
 Chapter VI A Deductions
Expenses that are Exempted…
Taxes

11. Sec 10 (13A) – HRA Exemptions
•
•
•
•
•
•
Taxes Exemptions

12. ∞ Transport allowance is exempt up-to ₹ 1,600/- per month provided the person is in
India during the month.
∞ For people having permanent physical disability, the exemption is ₹ 3,200/- per month
Sec 10 (14)
Taxes Exemptions

13. Professional Tax exemption
 Entire amount paid as
“Professional Tax”is exempted.
Sec 16 (iii)
Taxes Exemptions

14. There is no limit on Interest Deduction if the house is rented out, but the rent (less 30%
of rent as standard deduction and municipal taxes) needs to be declared as income
during the Financial year.
Interest deduction on House Property
Maximum Interest that can be
claimed as deduction
Rs.30,000
Rs.2,00,000
Period of availing Housing Loan
Prior to 1st April 1999
After 1st April 1999
Taxes Exemptions

15. Sec 80 TTA
Interest from Savings bank account is exempt up to
₹ 10,000/- per year
Sec 17(2)
Medical reimbursement are exempt for self and dependent
family,up-to ₹ 25,000/- per annum
ExemptionsTaxes

16. Sec 87A
Taxable income less than ₹ 5,00,000 (before VI A deductions)
Government allows ₹2,000 deductions of taxes
Taxes Exemptions

17. Maximum deduction
Up-to Rs.1,50,000
Chapter VI A - 80 CTaxes

18.  Home Loan Principal Repayment & Prepayment
 In-case of joint home loan account,both spouses can claim
Home Loan
Under Chapter VI A - 80 CTaxes Expenditure

19.  Parents can claim a deduction for tuition fees for a maximum of two children.
 Tuition fee for Full-Time Education only
 However,payment towards development fees or donations to the institution are
not eligible for exemptions.
 It also can be shared equally between the spouses.
Tuition Fees
Under Chapter VI A - 80 CTaxes Expenditure

20.  To avail tax benefits under Section 80G, donations must be made only to specified
trusts.
 One can donate 10% of Gross Total Income per annum.
 The tax breaks vary according to the trust to which you have donated.
Sec 80G Donations
Under Chapter VI A - 80 CTaxes Expenditure

21. ∞ Life Insurance ∞ Unit Linked Insurance Plans
Under Chapter VI A - 80 CTaxes Insurance

22. Deductions
25,000
25,000
30,000
 Preventive Health Check up charges Rs.5000 can be claimed with in the
overall limit.
 Deduction can be claimed for both Self and Parents.
 For parents above 80 years,not covered by health insurance,deduction of
₹30,000 towards expenditure on medical treatment.
Note :Parents need not be Financially dependent on the Taxpayer to claim this deduction.
Category
Self, Spouse & Children
Parents – Age Below 60 years
Parents – Age Above 60 years
Under Chapter VI A - 80 CTaxes Insurance
Sec 80D Medical Insurance Premium Deduction

23.  Term deposits in a scheduled bank with a minimum period of five years gives you a
fixed and assured return (around 8.75 % ),with tax advantage.
 Term deposits are a one-time investment and there is no commitment to pay in the
future.
 The entire interest income from such deposits are taxable.
Under Chapter VI A - 80 CTaxes Investment
Bank Deposit

24.  This is a forced saving for employees and helps them save for retirement.
 Every month,12 % of basic salary is deducted and put into a kitty
maintained either by the government or your company's trust.
Under Chapter VI A - 80 CTaxes Investment
Employee Provident Fund

25.  This is a self-directed investment option. It is essentially a 15-year investment that
gives a tax-free return of 8.70 % as of now.
 Investments of Rs 500-150,000 qualify for a tax deduction under Section 80C.
 The rate is subject to change.
Under Chapter VI A - 80 CTaxes Investment
Public Provident Fund

26. ∞ This government-backed security is available at post offices and gives an
interest rate of 8.40%,compounded half-yearly as of now.
∞ The interest is Tax Exempted but for the interest in the 5th year of deposit.
∞ NSC is good for Low Tax slab individuals
Under Chapter VI A - 80 CTaxes Investment
National Saving Certificate

27. ∞ The Government has launched a new deposit scheme,which can be opened by
the natural (biological) or legal guardian of the girl child aged below 10 years.
∞ The Interest earned shall be added in the income of the guardian and a
deduction of Rs.1,500 shall be available.
∞ Premature withdrawal up to 50% is allowed for the purpose of higher education
and marriage only when the account holder girl child attains the age of 18 years.
Under Chapter VI A - 80 CTaxes Investment
Sukanya Samriddhi for Minor Girl Child

28.  ELSS is a diversified equity fund having 80% of the investment in
equity.
 ELSS is an optimal way to save tax and enjoy benefits of long term
equity investment ( greater return )
 Has a lock in period of 3 years
Under Chapter VI A - 80 CTaxes Investment
Equity Linked Saving Scheme

29. How much you can save with Chapter VI A
Under Sec 80D
Under Sec 80C
Under Sec 80G - One can donate 10% of Gross Total Income per annum
Below 2,50,000
N A
2,50,001 – 5,00,000
15,450
5,00,001 – 10,00,000
30,900
Above 10,00,000
46,350
2,50,001 – 5,00,000
3090 *
5,00,001 – 10,00,000
6180 *
Above 10,00,000
9,270 *
* - One can save more if parent is above 65 yrs old

30. Tenure
10/15/20/25 Yrs
Till 58 Yrs
5 Yrs
15 Yrs
Till 58 Yrs
5 Yrs
5 -30 Yrs
21 yrs **
Till 58 Yrs
Till 58 Yrs
3 Yrs
80C Investment Avenue - Comparison
* Market Linked
** from Date of opening ac / girl completes 21 yrs & gets married
Returns
0 - 5 %
4 -6 %
8.40 %
8.70 %
8.75 %
8.75 %
8-10 %
9.1 %
10-12 %
10 -12 %
15 - 18 %
Investments
Life Insurance – Traditional
Pension Plan - Insurance Co.,
National Savings Certificate
Public Provident Fund
Employee Provident Fund
Bank 5 year FD
Unit Linked Insurance Plan
Sukanya Samriddhi
National Pension Scheme
Pension Fund ( Mutual )
Equity Linked Savings Schemes
*
*
*
*
Under Chapter VI A - 80 CTaxes

31. Dividend is tax free Nil Capital gain tax
Under Chapter VI A - 80 CTaxes
ELSS Scheme – Double Benefit

32.  51 ELSS schemes are available for investment
 Top performing ELSS scheme has more than returned 30% annualized
basis for 3 year period
 Most of the schemes have offered returns of 20% and above on
annualized basis for 3 year period
Under Chapter VI A - 80 CTaxes
ELSS Returns

33. Fund G – NSC results with interest return of 8.6% – 9%

34. Mr Dingle is working in a reputed Software company in Chennai for the past 5
years and his salary details are as given below.
Income
Salary
Basic
HRA
Education Allowance
Conveyance
Medical Reimbursement
Other Allowance
Total
Annual Bonus
Amount
Value
14,000
5,600
200
1,600
1,250
25,000
47,650
27,989
Annual Earnings
in ₹
1,68,000
67,200
2,400
19,200
15,000
3,00,000
5,62,200
27,989
₹ 5,99,789
Back to CalculationBack to Expenses Back to Taxation
Taxes Calculation

35. His expenses are as given below,
Description
House Rent
Life Insurance
Health Insurance Family
Health Insurance Parents
Tax Saving Mutual Fund
Amount
Value in ₹
7,000 / Month
25,000 / Year
25,000 / Year
30,000 / Year
2,000 / Month
What is the amount Mr Dingle has to pay for FY 2015 – 2016 as Tax?
Back to Calculation Back to TaxationBack to Salary
Taxes Calculation

36. Mr Dingle FY 15-16
Total Salary ₹ 5,99,789
HRA actually received 67,200
Rent Paid in excess of 10 % 67,200
50 % of salary 84,000
(which ever is less) 67,200
Professional Tax 1,200
Conveyance Allowance 19,200
Gross Total Income (A-B-C-D) 497,189
Interest Payment on House Loan -
67,200
Deductions under Chapter VI-A
Provident Fund 20,160
House Loan Principal -
PPF -
ELSS Mutual Funds 24,000
LIC Premium / PPF 25,000
Mediclaim Premium - Self 17,000
Back to Salary Back to Expenses Back to Taxation
Mediclaim Premium – Parents Sr 30,000
80C
69,160
80D
All the # are in ₹
Taxable Income 497,189
CalculationTaxes

37. Taxation:
0 – 2,50,000 0
2,50,001 – 5,00,000 13,103
5,00,001 – 10,00,000 0
> 10,00,001 0
₹ 11,436
Actual Tax 13,103
0 %
10 %
20 %
30 %
Applicable 87A rebate 2,000
Nett Tax Payable
Back to CalculationBack to Salary Back to Expenses
All the # are in ₹
Tax Payable 11,103
Educational Cess 3 % 333
Taxable Income 3,73,029
Mr Dingle FY 15-16CalculationTaxes

38. Mrs Jingle is working in a reputed Health Care company in Chennai for the past 10
years and her salary details are as given below.
Income
Salary
Basic
HRA
Education Allowance
Conveyance
Medical Reimbursement
Other Allowance
Total
Annual Bonus
Amount
Value
30,000
12,000
200
1,600
1,250
42,000
86,250
72,000
Annual Earnings
in ₹
3,60,000
1,44,000
2,400
19,200
15,000
5,04,000
1,044,600
72,000
₹ 1,116,600
Back to CalculationBack to Expenses Back to Taxation
CalculationTaxes

39. Her expenses are as given below,
Description
Housing Loan
Health Insurance Self & Family
Tax Saving Mutual Fund
Amount
Value in ₹
21,250 / Month
25,000 / Year
2,500 / Month
What is the amount Mrs Jingle has to pay for FY 2015 – 2016 as Tax?
Back to Calculation Back to TaxationBack to Salary
CalculationTaxes

40. Total Salary ₹ 11,07,000
HRA actually received 1,44,000
Rent Paid in excess of 10 % -
50 % of salary 1,80,000
(which ever is less) -
Professional Tax 2,400
Conveyance Allowance 19,200
Gross Total Income (A-B-C-D) 10,80,000
Interest Payment on House Loan 1,78,500
Back to Expenses Back to TaxationBack to Salary
Net Taxable Income 9,01,500
Provident Fund 43,200
House Loan Principal 76,500
PPF -
ELSS Mutual Funds 30,000
LIC Premium / PPF -
Mediclaim Premium - Family 25,000
80C
1,50,000
80D
All the # are in ₹
Gift Earned -
Total Saving Under 80C 1,59,700
Eligible Deduction
CalculationTaxes Mrs Jingle FY 15-16
Deductions under Chapter VI-A

41. Taxation:
0 – 2,50,000 0
2,50,001 – 5,00,000 25,000
5,00,001 – 10,00,000 47,150
> 10,00,001 0
₹ 74,315
Actual Tax 72,150
0 %
10 %
20 %
30 %
Applicable 87A rebate 0
Nett Tax Payable
Back to CalculationBack to Salary Back to Expenses
All the # are in ₹
Tax Payable 72,150
Educational Cess 3 % 2,165
Taxable Income 7,21,500
CalculationTaxes Mrs Jingle FY 15-16

42. +91 44 4265 3003 contact@purplepond.in www.purplepond.in
PurplePond Investment Advisory (P) Ltd,
Suite: 603, 6th Floor, Challamall, # 11/11A, Sir Theyagaraya Road, T.Nagar, Chennai - 600017
Thank You ...