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INVESTMENT DECLARATION FORM FOR THE FINANCIAL YEAR 2013 - 14

IMPORTANT

1.Please note that investments /payments made during the year April 2013- March 2014 alone will be considered.

2.Please note that investment in Kisan Vikas Patra (KVP) is not eligible for deduction u/s 80C.

3.Donations to Charitable or Religious Trust: Sec.80 G benefit can be claimed only at the time of filing your Income Tax returns. The employer cannot give the benefit at the time of deducting Salary TDS.

4.Section 80 DDB (Deduction for Medical Treatment): Section 80 DDB benefit can be claimed only at the time of filing your Income Tax returns. The employer cannot give the benefit at the time of deducting Salary TDS.

5.Interest paid on Housing Property Loan: The construction of the house should be completed and the house should be occupied (either by self or let out) within the financial year in order to get the benefit under Sec.24.

6.In case the investment declaration forms are not received by the due date, TDS will be deducted based on the assumption that there is no investment.

Relevant provisions of the Income Tax Act, 1961 with reference to Salary Income

DEDUCTIONS AVAILABLE UNDER INCOME TAX ACT FOR SALARIED EMPLOYEES

1.HRA Exemption u/s 10(13A):

An employee who owns a house in his/her name is not eligible to claim this exemption.

An employee who does not pay rent for his/her accommodation is not eligible to claim HRA exemption. Exemption under this section is allowed for those employees who pay rent for their accommodation. The exemption is restricted to a minimum of:

i.Actual HRA received

ii.Actual Rent paid Less 10% of the salary

iii.50% of the salary if the rented house is situated at Mumbai, Chennai, Kolkata and Delhi and 40% of the salary in any other case.

HRA received, which is in excess of the above limits, is taxable.

Salary for this purpose means, Basic, DA, ADA, FDA, VDA.

Documents required to avail HRA Deduction

•Copy of House Lease Agreement or

•Rent receipts given by Landlord

Proof Of Rent Paid Should Give Details Of:

•Name and address of landlord

•Address of rented premises for which rent paid

•Period for which rent paid & the amount

•or Lease Agreement

Note :

If the Annual Rent paid by the employee exceeds Rs.2,00,000 per annum, it is mandatory for the employee to report the PAN Number of the Landlord.

In case the landlord does not have a PAN Number, a declaration to this effect from the Landlord, along with the Complete Name and Address of the Landlord should be filed by the employee.

2.Interest paid on Housing Loan for self-occupied property u/s 24

•Interest paid on housing loan can be set off against salary income. To avail this benefit, the house should not be vacant throughout the year.

•House property should be in the name of the employee who claims this deduction.

•If the capital for acquisition/construction of house is borrowed before 01-04-1999 the salary income can be set off against interest paid subject to maximum of 30,000 per annum.

•If the capital for acquisition/construction of house is borrowed on or after 01-04-1999 and the construction/purchase is completed before 01/04/2013, the salary income can be set off against interest paid subject to maximum of 1,50,000 p.a.

•If the loan taken for reconstruction or repairs or renewal of existing house, then the maximum deduction can be allowed only to the extent of 30,000 per annum.

3.Interest paid on housing loan for let out property u/s 24

Rent received from let out property should be disclosed as an income. From

the above income following deductions can be claimed.

•Property tax paid during the year for the let out property.

•30% of Net Annual Value (Rental Income less Property tax) can be claimed for repairs and maintenance of the house irrespective of the expenses incurred.

•Interest payable on housing loan for let out property can be claimed as deduction without any upper limit.

Employer has to set off the loss from house property with the salary income while calculating the tax liability of the employee.

Documents required for availing Interest Deduction:

•Statement/Certificate from Financial Institution / Bank for the interest payable on housing loan giving the breakup of interest and principle repayment and the date of loan sanction.

•Dully Signed Declaration Form with details of House Property whether it is self-occupied or let out.

4.Deductions allowed under Section 80 C:

a.Payment of Life Insurance Premiums for Self/Spouse/Children.

b.Contribution to Public Provident Fund for Self/Spouse/Children.

c.Contribution to Unit Trust Of India by Self.

d.Investments in National Savings Certificate only in the name of Self.

e.Interest accrued on National Savings Certificate (Copy of NSC Certificates of the previous years have to be submitted to get rebate on NSC accrued Interest).

f.Principal repayment on Housing Loan and Stamp Duty / Registration Charges paid for the House property during the first year of investment.

g.Contribution (including Voluntary Cont.) to Employee Provident Fund.

h.Investments in National Savings Scheme (NSS).

i.Tax Saving Bonds / Infrastructure Bonds.

j.Investments in Mutual Fund or Equity Linked Saving Scheme / Systematic Investment Plan (SIP).

k.Child Education Expenditure.

l.Tax Saving Fixed Deposits (With Minimum Lock in period of 5 Years).

m.Investment in Post Office Time Deposits (With Minimum Lock in period of 5 Years).

n.14. Senior Citizen Saving Scheme 2004

o.Post Office Time Deposit Account

p.New Pension Scheme (NPS)

Maximum investments under the above investment schemes are restricted to 1,00,000 per year.

Documents required to claim rebate:

•Copy of Proof of Investment made during the current financial year.

5.Investment in Pension Scheme of LIC or any other insurer (eg Jeevan Suraksha of LIC or any other Pension Plan) u/s 80 CCC

Premium paid for pension scheme is allowed as deduction from Total Income.

Documents required:

•Copy of current year premium receipt

6.Investment in pension scheme created by Government of India u/s 80CCD

Note:

The maximum investment limit allowed under the above sections 80C, 80CCC, 80CCD is 1,00,000 per year.

7. Rajiv Gandhi Equity Saving Scheme (RGESS) u/s 80 CCG

Salient features of this scheme:

•Deduction is available to a resident individual, if his gross total income does not exceed 12 lakhs

•The assesse is a new retail investor

•The investment is locked-in for a period of 3 years

The maximum Investment permissible under the Scheme is Rs. 50,000 and the investor would get a 50% deduction of the amount invested from the taxable income for that year.

The amount of deduction is 50% of amount invested in equity shares. However, the amount of deduction under this section cannot be more than Rs.25000.

8. Mediclaim Insurance u/s 80 D

Medical Insurance premium is exempt up to 15,000/- per year for self, spouse & dependent children. An additional 15,000/- is exempt towards premium for parents (even if they are not dependent). If the parent(s) are above 60 years of age, an extra 5,000/- can be claimed.

Note:

Preventive Health Checkup for self, spouse, dependent children or parents are also allowed to the extent of Rs.5,000/- per year (which is part of overall above limits).

Documents required:

• Current Year Receipt for payment of mediclaim insurance premium.

9.Deduction in respect of maintenance, including medical treatment, of a disabled dependant u/s 80 DD

The amount of deduction is

•50,000 to a person with disability, and

•1,00,000 to a person with severe disability

10.Deduction in respect of person with disability u/s 80U

Deduction is allowed to a person suffering from a permanent physical disability or mental retardation under sec 80U. The amount of deduction is:

•50,000 to a person with disability

•1,00,000 to a person with severe disability.

11.Repayment of Education Loan u/s 80E

The total amount of interest paid for self and dependents towards education loan taken

for higher education extended to all courses pursued after Senior Secondary Examination will be allowed as deduction over a period of 8 years or until the interest is paid by the assesse in full, whichever is earlier.

Documents required to claim deduction:

• Proof for repayment of educational loan for the amount claimed

Introduction of new section 80EE:

Additional deduction of interest on housing loan of up to Rs.100000 to first time home buyers

Section 80EE is proposed to be enacted so as to allow to an individual, a deduction of up to Rs.100000 in respect of loan taken from a financial institution (banking company or housing finance company) of up to Rs.2500000 between 1st April, 2013 and 31st March, 2014 to acquire a residential property valued up to Rs.4000000, provided assesse does not own any residential house property as on the date of sanction of loan.

It is also proposed that if the deduction entire of Rs.100000 as above could not be claimed in FY 2013-14, then the balance can be claimed in FY 2014-15.

It may be noted that the above deduction is over and above the existing entitlement of housing loan interest deduction of Rs.150000. However, while the existing deduction of up to Rs.150000 can be of interest on housing loan taken from anyone, the aforesaid deduction can be allowed only on housing loan taken from financial institution.

The following conditions are to be satisfied to claim deduction under section 80EE:-

•The loan is sanctioned by the financial institution during the period beginning on 1st April, 2013 and ending on 31st March, 2014

•The amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;

•The value of the residential house property does not exceed forty lakh rupees;

•The assessee does not own any residential house property on the date of sanction of the loan.

Introduction of new section 87A:

Rebate of Rs.2000 for individuals having total income up to Rs.500000

(87A) An assessee, being an individual resident in India, whose total income does not exceed Rs.500000, the rebate shall be equal to the amount of income tax payable on the total income for any assessment year or an amount of Rs.2000, whichever is less.

Consequently any individual having income up to Rs.220000 will not be required to pay any tax and every individual having total income above Rs.220000 but not exceeding Rs.500000 shall get a tax relief of Rs.2000.

The following are the amendments made in the Finance Bill, 2013 for Salaried Class Assessees:

The Revised Tax Slabs are:

Rates of Income Tax

Inco me Slab

NIL

Up to 2,00,000

10% of Income over 2,00,000

From 2,00,001 - 5,00,000

30,000 + 20% of Income over 5,00,000 From 5,00,001 - 10,00,000

1,30,000 + 30% of Income over 10,00,000 Above 10,00,000

In the case of Women Assesses, not being senior citizen, the Income Tax Slab is:

 

 

 

 

Income Slab

 

Rates of Income Tax

 

 

 

 

Upto

2,00,000

 

NIL

From

2,00,001

- 5,00,000

10% of Income over 2,00,000

From 5,00,001 - 10,00,000

30000 + 20% of Income over 5,00,000

Above

10,00,000

 

1,30,000 + 30% of Income over 10,00,000

 

 

 

 

In the case of Senior Citizen who is of the age of sixty years or more but less than eighty years, the Income Tax Slab is:

 

 

 

 

 

Income Slab

 

 

Rates of Income Tax

 

 

 

 

 

Upto

2,50,000

 

 

NIL

 

 

 

 

 

From

2,50,001

-

5,00,000

10% of Income over 2,50,000

From

5,00,001 -

10,00,000

25000 + 20% of Income over 5,00,000

 

 

 

 

 

Above

10,00,000

 

 

1,25,000 + 30% of Income over 10,00,000

 

 

 

 

 

In the case of Senior Citizen who is of the age of eighty years or more, the Income Tax Slab is

Income Slab

Rates of Income Tax

Upto 5,00,000

NIL

From 5,00,001 - 10,00,000

20% of Income over 5,00,000

Above 10,00,000

1,00,000 + 30% of Income over 8,00,000

•Surcharge @ 10% on tax payable has been introduced with effective from FY 2013-14, for the total income exceeding Rs.1 crore

•Education Cess @ 3% continues on the Total Tax Due