Guidelines for Tax Declaration

for the Financial year 2014-15

PAYROLL TEAM
 IMPORTANT POINTS

PAN NUMBER IS MANDATORY. Update your PAN number
in HRMX (if not done earlier)

Both Rent (If applicable) and investment declarations need
to be submitted.

Once filled and submitted the declaration form, Please reset
and retrieve for confirmation of updation in system

TAX will be calculated and deducted on monthly salary,
based on declaration till Dec 2014. For Jan to March 2015
Tax will be deducted based on Actual proof.

Actual Proof need to be submitted during Jan. 2015.

Declaration can be changed any number of times

Declaration submitted till 20th of every month will be
considered for that month.

Please check your Tax computation sheet every month and
report any discrepancy immediately

Please note Tax once deducted and remitted to Government
account can not be refunded by Payroll. The associate can
claim only refund from Government Department on filing
their personal return.
Calculation of HRA exemption

If residing in own house - not eligible for exemption

If does not pay rent - not eligible for any HRA exemption.

Rent paid at work location (City /Town) alone is eligible for HRA
exemption.

HRA exemption is Minimum of the following 3 :

 i. Actual HRA received
 ii. Actual rent paid less 10% of the Basic salary .
 iii. 50% of the salary if the rented house is situated at Mumbai,
Chennai, Kolkata or Delhi and 40% of the salary for other location
(Hyderabad & Pune).
Note:
HRA exemption will be calculated on a monthly basis, considering the
Actual HRA paid for the month and the corresponding Rent proof
submitted.
Land Lords’ PAN NUMBER in Rent Receipt is mandtory if the rent
Payment is more than Rs.8300/-p.m (Rs.1,00,000/- p.a)
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Other Exempted allowances

Conveyance exemption:
Conveyance allowance/Transportation allowance paid up to
Rs.800 p.m. is exempted from Tax.

Child education exemption:

Child education allowance paid up to Rs.100 p.m. per child is exempted. (Max
two Children). Exemption is applicable only if you have this component in
your monthly salary.

Hostel expenditure exemption:

Hostel expenditure up to Rs.300 p.m. per child is exempted. (Max two
Children) Exemption is applicable only if you have this component in your
monthly salary.

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Lab Limited, 2006
Income from House Property

Self Occupied House:
Interest Payment on housing loan upto Rs.2,00,000/- can be deducted from
Salary income .The property should be in the name of the employee who
claims this deduction. No HRA exemption is applicable if self occupied
deduction is claimed.

Let out Property:

Rent received from let out property should be disclosed as an income.
From the above income following deductions can be claimed.
1) Property tax paid for the let out property.
2) 30% of Net Annual Value (Rent Income less Property tax)
Claim for repairs and maintenance.
3) Interest paid on housing loan for let out property can be
claimed as deduction without any upper limit.

Negative (or) Positive income can be declared for tax deduction

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Lab Limited, 2006
 Other allowable deductions

Other possible deductions Limits

Limited to Rs.20,000/- (Rs.15,000/- for Mediclaim coverage

of Associate’s family. And Rs.5,000/- preventive health
Medical Insurance (80D) checkup) Additional for coverage of Parents upto
Rs.15,000/- (In case Senior citizens(Parents) Rs.20000 ) is
allowed.

Limited to Rs.50,000/- as fixed deduction for <80%

Maintenance of Handicapped dependents
disability, Higher deduction of Rs.1,00,000/- for severe
under Sec 80 DD
disability >80%

Actual Interest Paid / Payable in this current Financial year

Repayment (Only Interest Portion) of loan
for the Education Loan availed for self , Spouse, children's
taken for Higher Education u/s 80E
Post Matriculations education

Limited to Rs.50,000/- as fixed deduction for <80%

Physical Disability (Self) under sec 80 U disability, Higher deduction of Rs.1,00,000/- for severe
disability >80%

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Lab Limited, 2006
 Investments under Sec 80 C
Maximum of Rs.1,50,000/- including PF & VPF
deduction. Additional Rs.25,000/- (Rajive Gandhi
Scheme – Equity Savings

Life Ins. Premiums for Self/Spouse/ Children

Contribution to PPF for Self/Spouse/Children

Contribution to ULIP(UTI) Schemes

Investments in NSC / NSS

Housing Loan Principal

Stamp Duty & Registration fee

Fixed Deposit in Scheduled banks

Mutual Funds ( Specified under sec 80C)

Payment of Tution fees to Children

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Lab Limited, 2006
 Perquisite value to be added for Benefits?

Interest free or concessional loan provided by employer to employee
above Rs.20,000 excluding Medical Loan.
(Loan Perks charged based on SBI Lending Rate as on 1st Apr)

Rent free accommodation provided by company
(10 to 20 % of taxable salary )

White goods – as applicable

Perks on Car & Fuel
Perks Less than 1600CC More than 1600CC

1. CAR (Own your Car Scheme & Venus)

Car without Driver 1800 2400

Car with Driver 2700 3300
2. FUEL REIMBURSEMNET ONLY

Upto Rs.1800/- Upto Rs.2400/-

© Copyright Polaris SoftwareOnly on Fuel Reimbursement Exempted from Tax Exempted from Tax
Lab Limited, 2006
Income Tax Rate for Fin Year 2014-15

Slab for individuals (All)

Up to Rs.2,50,000 Nil

Rs.2,50,001 – Rs.5,00,000 10 Percent Less a Rebate of

Rs.2000/- allowed under section 87
Rs.5,00,001 – Rs.10,00,000 20 Percent
Rs.10,00,001 and above 30 Percent

*Plus Education Cess @ 3% on Total Tax

© Copyright Polaris Software

Lab Limited, 2006
Payroll team