Tax Guidelines: -

Union Budget earlier this year introduced a new personal tax regime(New tax slab with old tax slab has
been given below) by giving an option to either be in old tax regime as last year and opt for new tax
regime.

Few points to be kept in mind while doing Investment declaration: -

 Employees need to opt/select either of the Tax Regime “Existing(Old) and New Regime”
 You can only opt once for either of the regime during the financial year but if you want to
change your income to be taxed in other tax regime then you have to do it while filling your
income tax return.
 If you do not choose or mention explicitly about which tax regime want to go with, you will be
taxed in old tax regime.
 If you choose new tax regime you have will not be able to avail deduction or exemption
available u/s 80C to 80CCD House rent paid exemption etc.
 NPS under section 80CCD(1B) Will still be available in new tax regime.
 Interest on house loan u/s 24 can be claimed if such house is let out.
Tax Guidelines: -

Tax Slab For any resident (who is below 60 years on the last day of the previous year, i.e., born
on or before April 1,1960)
 
Income Tax Slab Old Tax Rate (Old Income Tax Slab Tax Rate (New Regime)
Regime (in Rs.) Regime) New Regime (in
Rs.)
0 to 2,50,000 No Tax 0 to 2,50,000 No Tax
2,50,001 to 5% 2,50,001 to 5%
5,00,000 5,00,000
5,00,001 to 20% 5,00,001 to 10%
10,00,000 7,50,000
Above 10,00,000 30% 7,50,001 15%
to 10,00,000
    10,00,001 20%
to 12,50,000
    12,50,001 25%
to 15,00,000
    Above 15,00,000 30%
 
and
 
For a resident Senior Citizen (who is 60 years or more at any time during the previous year but
not more than 80 years on the last day of the previous year, i.e., born during 1 April, 1940 and
31 March, 1960)
 
Income Tax Slab (in Rs.) Tax
Rate
0 to 3,00,000 No
Tax
3,00,001 to 5,00,000 5%
5,00,001 to 10,00,000 20%
Above 10,00,000 30%
 
For a resident Super Senior Citizen (who is 80 years or more at any time during the previous
year i.e., born before 1 April, 1940)
0 to 5,00,000 No
Tax
5,00,001 to 10,00,000 20%
Above 10,00,000 30%
Tax Guidelines: -

 
Health and Education cess of 4% is levied on tax.
 
1)    Tax credit of Rs 12,500 for persons with Taxable income in the first Bracket of less than 5.0
lac u/s 87a
2)    Surcharge 50 L to 1 cr = 10%
1 cr to 2 cr = 15%
2 cr to 5 cr = 25%
Above 5 cr = 37%

House Rent Allowance:

Taxability: Subject to submission of Rental Agreement, Monthly Rent Receipts and PAN of the
landlord in case the rent paid is more than Rs. 8,333 per month or Rs. 100,000 per year.
 
For HRA Calculation, least of the following is tax exempt
- Actual HRA Received
- Actual Rent paid less 10% of Basic salary
- 50% or  40% of Basic salary based on city of residence (Metro/Non Metro)

Investment / Items eligible for Deductions under 80 C 

(Maximum eligible amount is Rs. 1,50,000)
 
 Deduction with regards to LIC premium shall be available only to the extent of 10 per
cent of the actual capital sum assured. ‘

 Contribution made by employees towards recognised PF + VPF. No. proof required for
the same. This will be taken from the salary details.

 Contribution made towards the Public Provident Fund. Photocopy of Stamped challan or
PPF passbook is required to give the benefit of the same.

 Subscription of any security specified by the Government. Photocopy of the same has
been required. Receipts/Statement is required for giving the benefit of the same.

 Sum paid as subscription to NSC VI and VII issues. Photocopies of the NSC are required
for the same.
 Interest accrued is treated as amount reinvested. However, the Interest income on NSC
is taxable. Photocopy of all the certificates for which interest is being claimed required
to be submitted.
Tax Guidelines: -

 Contribution towards Unit Linked Insurance Plan of UTI of self, spouse and children.
Receipts/Statement is required for giving the benefit of the same.

 Contribution to notified Equity Linked Saving Schemes of a Mutual Fund/ UTI (Lock in
period is 3 years). Receipts/Statement is required for giving the benefit of the same.

 Sum deposited in a 10-year/ 15-year account under the Post Office Savings Bank (CTD)
Rules, 1959. Receipts/Statement is required for giving the benefit of the same.

 Housing Principal, registration/Stamp duty .Provisional certificate from the financial

Institution/Bank required. For stamp duty & Registration, Photocopy of sale deed and
Stamp Duty paid receipt is required for the same.

 Subscription of deposit scheme of National Housing Bank

 Subscription of any deposit scheme of Public Sector Company engaged in providing

housing finance for construction or purchase of houses.

 Tuition fees for full time education of dependent children (Maximum 2 child) of the
assessee (Any Recognised Institute)

 Fixed Deposit: The Fixed Deposit made for 5 or more years are eligible for deduction
under 80C. The copy of the Fixed Deposit Receipts with remarks stating “Rebate u/s
80C” need to be submitted.

 Contribution to a Pension Fund. Receipts/Statement is required for giving the benefit of

the same.

 5 years Term deposit with a scheduled bank. Photocopy of the receipt/certificate issued
by the scheduled bank.

 Post Office Time Deposit Account

 Principle repayment of Housing Loan – Copy of the annual certificate from the bank
needs to be submitted.

Medical Insurance u/s 80D

Tax Guidelines: -

 Premium Paid on Medical policy of self, spouse, children is exempt up to Rs.25,000 and
an additional benefit of Rs.25,000 in case of dependent parents below 60 years and Rs
50,000 in case of dependent parents above 60 years (Senior Citizen) above exemption
limit is inclusive of Health checkup exp of Rs. 5000/-
 Thus, the total maximum deduction that can be claimed under section 80D is as follows

Medical Insurance Premium paid in

respect of

Total Deduction
Description Self, Spouse &
Parents (whether under Sec. 80D
Dependent
dependent or not)
Children

No-one has attained the age of 60

Rs. 25,000 Rs. 25,000 Rs. 50,000
years

Assessee and his family is less than

60 years & parents are above 60 Rs. 25,000 Rs. 50,000 Rs. 75,000
years of age

Assessee and his parents have

attained the age of 60 years and Rs. 50,000 Rs. 50,000 Rs. 100,000
above
Tax Guidelines: -

Medical treatment of handicapped dependent with disability u/s 80DD

 
 Expenditure incurred on medical treatment and maintenance of spouse, children,
parents, brothers and sisters of the individual is deductible up to a fixed amount of Rs.
75,000. For person with severe disability over specified 80 % the limit is Rs.
125,000.Please submit the photocopy of certificate issued by the competent medical
authority in a Government Hospital with the form 10i and detail of amount spent on
treatment or training.

Medical treatment of dependent u/s 80DDB 

 Expenditure incurred on medical treatment (specified disease or ailment as prescribed

by the board) of self, spouse, children, parents, brothers and sisters is deductible up to
Rs. 40,000 and for senior citizen the limit is Rs. 100,000. Please submit the photocopy of
certificate issued by the competent medical authority.

Person with Disability u/s 80U

 An individual suffering from not less than 40% of disability can claim fixed deduction of
Rs. 75,000.Rs. 125,000 for persons with severe disability of over 80%. A certificate from
specified medical authority has to be given to claim the benefit, certificate from a
government hospital.

Interest on Education Loan u/s 80E

 Interest on a loan taken by the assessee for self, spouse or children’s full time Graduate/
Post Graduate education is exempted. Benefit is available for a period of seven years
after the first year of payment of Interest. Loan should be taken from any financial
institution / approved charitable institutions. To claim the deduction u/s 80E, employee
will be required to provide a certificate from the lender for payment of interest paid by
him and a copy of course being pursued / completed.  only interest part will be eligible
for deduction and no deduction is available for principal repayment.

Interest on Savings Account (Newly Introduced) - 80TTB

Tax Guidelines: -

 Section 80TTB the Interest income earned on FD and Recurring Deposit (Bank and Post
office Schemes) will be exempt till Rs.50,000(Current Limit is Rs.10000). This deduction
can be claimed under new section 80TTB. However, no deduction under existing 80TTA
can be claimed ( The current limit for FY 2017-18 u/s 80TTA is Rs.10000).

It is also proposed to provide that where the income referred to in this section is derived
from any deposit in a savings account held by, or on behalf of, a firm, an association of
persons or a body of individuals, no deduction shall be allowed under this section in
respect of such income in computing the total income of any partner of the firm or any
member of the association or any individual of the body.
Currently, If interest income on Bank/Postoffice deposits is more then Rs.10000, TDS is
deducted u/s 194A. Budget 2018-19 has proposed to raise the thresold for deduction of
tex at source on interest Income for senior citizen from Rs.10,000 to Rs.50,000.

E.g. Total Interest is Rs. 50000/- then

60000- 50000 = 10000 will be taxable

Proof Required: copy of bank statement for the FY 2018-19 where interest credited
amount clearly mention on the statement

Note: The remaining amount will be considered as an income also under the head
“Other Income” and also you can claim the same at the time of self-assessment.
 
The copy of the bank statement and the interest certificate from the bank need to be submitted
 
Tax benefit on Housing Loan
 Interest on housing loan paid for self-occupied property will be considered as deduction
from taxable income subject to below mentioned limits.Deduction Limits: Rs 2,00,000/-
 Benefit of interest on loan taken to construct /purchase of house can only be given in
case where the possession/construction of the house property is completed. Employee
has to submit the Form 12C along with Possession Proof and Loan Repayment
Certificate. Further the employee who is claiming the benefit for HRA rebate for having
the rented property in the same city, cannot be given both the benefits except where
his/ herself property is located at a place other than the place where he is supposed to
perform his/ her duty.

 Also any interest paid in pre-construction or pre-acquisition period, will be allowed as

deduction in five equal instalments and first such instalment is deductible in the year in
which construction of the house is completed or possession of house is taken.
Tax Guidelines: -

 A new section 80EEA inserted by the Finance Minister in union Budget 2019-20 in order
to promote affordable housing to the first time home loan buyers only by allowing an
additional deduction of Rs 1.5 Lac under section 80EEA

 under section 80EEA is over and above the deduction available under section 24(b) in
respect of interest payable on loan borrowed for acquisition of a residential house
property.
 Note: – In respect of self-occupied House Property, interest deduction under section
24(b) is restricted to ₹ 200000/-. In case of let out or deemed to be let out property,
even though there is no limit under section 24(b), section 71(3A) restricts the amount of
loss from house property to be set-off against any other head of income to ₹ 200000/-
Accordingly, if interest payable in respect of acquisition of eligible house property is
more than ₹ 200000/- the excess can be claimed as deduction under section 80EEA,
subject to fulfillment of conditions.Conditions to be fulfilled: –
 Stamp duty value of house should not exceed Rs 45 Lakhs
 Individual claiming benefit should not possess another residential property on the date
of sanction of the loan
 Loan should be sanctioned by the financial institution during FY 2019-20