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FAQs PDF
FAQs PDF
GENERAL
Q4: How do we account for the salary from the more than one employer
received during the year?
A : The employee is required to furnish the details of the income under the
head salary due or received from the former employer to the company (present
employer) together with the detail of tax deducted at source in the prescribed
form (Form No.12B). The current employer will deduct the tax after
considering the salary received from the previous employer.
A5: How do we compute the exemption from House Rent Allowance (HRA)?
• Amount equal to 50% of the salary where the assessee is staying in metro
and 40% in case of non metro cities.
• Actual HRA received
• Amount of rent actually paid in excess of 10% of the salary.
SECTION ‘A”
Q 2: Where can I deposit Public Provident Fund and what is the duration of
Public Provident Fund?
A : One can open an account with any Post Office or certain designated
branches of nationalized banks (SBI, PNB etc.). PPF is opened for 15 years,
which can be further renewed for 5 years.
Q 7: Can I make investment in any Fixed Deposit for 5 years to avail this
benefit?
A : No, the investment should be made in Fixed Deposit as per the notified
Scheme. The fact that the investment has been made under the notified
scheme should be mentioned on the Fixed Deposit Receipt.
Q 8: Are investments in fixed deposits for 5 years with any company / PSU
eligible for the deduction?
A : No, investment should be made only with a scheduled bank.
Section 80CCC
Q 16: What is Section 80CCC and how can I get the benefit under this section?
A: Section 80CCC of Income Tax Act deals with the deductions and income in
respect of contributions to certain Pension funds by an individual
assesses Payment of premium for annuity plan of LIC or any other insurer.
Deduction is available up to a maximum of Rs. 1,50,000.
Note: The limit of Section 80CCC will be part of the overall limit prescribed under
Section 80CCE i.e. 80C
Q1: What is the amount eligible for deduction under this section?
A : Mediclaim- for Self, Spouse, Dependent Children up to Rs. 25,000 ( Rs
30,000 in case the coverage is for parents who are senior citizen) in additional
to that the an individual can claim for Rs. 25000 in case of dependent parents
covered under policy. It can be done through different Insurance companies.
The aggregate payment on account of preventive health check-up of self,
Spouse, dependent children, father and mother cannot exceed INR 5000
Section 80DDB
Ø Dementia
Ø Dystonia Musculorum Deformans
Ø Motor Neuron Disease
Ø Ataxia
Ø Chorea
Ø Hemiballismus
Ø Aphasia
Ø Parkinsons Diseases
Ø Malignant Cancers
Ø Full Blown Acquired Immune-Deficiency Syndrome (AIDS)
Ø Chronic Renal Failure
Ø Hematological disorders – Hemophilia & Thalassemia.
Q 14: What are the pre conditions for getting this deduction?
A : The assesse should furnish a certificate in the prescribed Form from a
neurologist, an oncologist, an urologist, a hematologist, an immunologist or
such other specialist, as may be prescribed, working in a Government hospital.
Q 22: What are the pre conditions for getting this deduction?
A : The person is required to furnish a certificate from prescribed medical
authority under prescribed Form.
Q 23: When I can get the benefit of NPS Scheme?
A : Under this scheme, subscribers invest in a fund chosen by them and at the time of
retirement they get a lump sum amount depending on the performance of that fund. The
returns from NPS are not guaranteed; they are market-linked. NPS was introduced in
2004 for the new government employees but from 2009, it was extended to all on a
voluntary basis.
A : The employer is allowed, under Section 192 (2B) of Income Tax Act, to
make adjustment of the loss under the head .Income from House Property”.
When any house property has been acquired, constructed, repaired,
reconstructed with borrowed capital amount of any interest payable on such
borrowed capital is allowed as a deduction for computation of Income/Loss
under the head Income from House Property.