Commonly available deduction and exemptions for F.Y.2016-17, With All in One Income Tax preparation Excel Based Software for Govt and Non-Govt employees for F.Y.2016-17

1     1.  The Basic threshold income that is tax-free – 2.5 Lac                                                                  2. Section 80 C deduction – 1.5 Lac

Section 80 C includes PF, PPF, Insurance premium, ELSS, Pension plan, FDs, and NSCs. In order to get this tax benefit, you need to make an investment in any of the investment avenues mentioned here.

3.                  Section 80 CCD (1B) – 0.5 Lac This additional deduction is announced this year. According to this 0.5, Lac investment in NPS will be tax-free.

4.                  Contribution to NPS by employer Section 80 CCD (2) – 1 Lac In order to get this benefit employer has to register and contribute to NPS. This contribution is restricted to 10% of salary (Basic + DA). The maximum limit is 1 Lac.

Download Automated All in One Income Tax Preparation Excel Based Software for Govt & Non-Govt(Private) Employees for the F.Y.2016-17. [ This Excel based software can prepare at a time your Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure for both of Govt and Non-Govt employees Salary pattern + Automatic H.R.A. Exemption Calculation + Automatic Arrears Relief Calculation with Form 10E from the F.Y.2000-01 to F.Y.2016 + Automatic Form 16 Part A&B and Form 16 Part B in a single Excel based Software for F.Y. 2016-17] 

5.                  Home loan Interest or HRA – 2 Lac U/s 24B AND Rs.1.5 Lakh U/s 80EE, If you have taken the home loan you can take benefit of home loan interest component for tax saving. If you have not taken the home loan you can claim HRA amount for this.

6.                  Tax-Free Medical Allowance – 15,000 Rs/- The tax-free medical allowance is payable to most of the salaried people. In order to avail this benefit, you need to submit actual bills.

7.                  Tax Free Transport Allowance – 19,200 Rs/- P.M. & Rs. 3200/- P.M. for More than 80% of Phy.Disabled Persons. Tax-free transport allowance limit is enhanced this year.

8.                  Medical Insurance – 25,000 Rs/- Medical Insurance premium limit is hiked this year. If you have purchased medical insurance you can avail tax benefit.

9.                  Medical Insurance of parents – 30,000 Rs/- Premium paid for Medical Insurance of parents can be claimed for the tax deduction. This limit was enhanced this year.

10.              LTA – 25,000/- Leave Travel Allowance is given to salaried people every two years. A small amount is taken here for illustration.