Tax Benefit on Preventive Health Check-up for Rs. 5.000 -Section 80D

Preventive health check-up is a alien concept for India , in simple words preventive Health check-up is interpreted as Annual health check-up to know risk factors in advance , which is specifically not to cure or diagnose any disease. 

Section 80D was amended w.e.f. April 01, 2013 and a sub limit/deduction of Rs. 5,000 was introduced within overall max deduction of Rs. 15,000 U/S 80D . The deduction of Rs. 5,000 for preventive health check-up can be availed even without opting for Health Insurance U/S 80D .

How to claim tax deduction on Preventive Health-Check done? 

·         Salaried individuals can submit photocopy of the bill to their employer at the time of investment declaration. Non-salaried individuals can keep the original receipt with them in case the ITO demands the same in the future.So if you have incurred any expenses for Health test for -

1.      Self

2.      Spouse

3.      Dependent children

4.      Dependent parents 

·         This deduction can be claimed even amount has been paid in cash .

·         This deduction is included in overall limit of 15000/- of section 80D for health insurance and if you have already used this limit for health insurance then you can not claim deduction for preventive health check up.

If any query then please add in comment section .

Additional Tax rebate of INR 2,000 - Section 87A

Section 87A Introduced in Financial Year 2013-14 , which says

"An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less. "

Eligibilty to avail the Rebate –

1.      The rebate can be availed only by Resident Individuals .(Not available to HUF/AOP/BOI)

2.      The rebate is not available to Non -resident Individuals

3.      This rebate is also available to senior citizen.

4.      The rebate  is available if Total taxable income is up to or less than Rs. 5,00,000 /-

5.      The Total taxable Income here means Income under all heads(Salary,Income from house property,Income from Business and profession, income from capital gain, Income from other sources) minus all deduction u/s 80C to U.

6.      Negative income from House property (like Interest on house loan for self occupied property) is also to be reduced /considered to get total income.

7.      Deduction u/s 80C to 80U like 80C,80D,80DD,80DDB etc also to be deducted to get total income.

8.      In simple words  Five lakh income limit is to be considered on amount on which Income tax is to be calculated.

9.      The maximum amount of rebate  is Tax due subject to maximum Rs 2000/-

10.  Education Cess & Secondary & Higher education cess is to be calculated after allowing the rebate under section 87A on  balance tax due. 

Calculation of Income tax Rebate of Rs. 2,000/- Section 87A

Sr No	Particulars	Amount
1	Salary Income	750000
2	Income From house property Income(loss)	-50000
3	Income from other source	20000
4	Gross Total Income (1-3)	720000
5	Less :Deduction u/s 80C to 80U
	80C	150000
	80CCG	25000
	80DD	15000
	80DDB	40000
	80TTA	10000
	80U	100000
5	Total deductions	340000
6	Total Income (4-5)	380000
7	Income Tax (on 6-250000)	13000
8	less:Rebate u/s 87A Subject to max 2000/-	2000
9	Net Tax (7-8)	11000
10	Add : Cess( 3 % on 9)	330
11	Total Tax (9+10)	11330

If you have any queries , drop your query using comments box below.

Why Advance Tax important to pay- Due Dates

If the Income Tax Liability of any taxpayer (Excluding salaried individuals) is more than Rs. 10,000/- in a financial year , then tax is payable in installments ;

Advance tax has to be paid on the 15th of September, December and March— in installments of 30%, 30% and 40%, respectively—for self employed and businessman. Companies need to pay it on the 15th of June, September, December and March.

Payment of advance tax: Self employed and businessmen

Due date of installment	Amount payable
On or before 15th September	Not less than 30% of the advance tax liability
On or before 15th December	Not less than 60% of the advance tax liability
On or before 15th March	100% of the advance tax liability

Payment of advance tax: Companies

Due date of installment	Amount payable
On or before 15th June	Not less than 15% of the advance tax liability
On or before 15th September	Not less than 45% of the advance tax liability
On or before 15th December	Not less than 75% of the advance tax liability
On or before 15th March	100% of the advance tax liability

Interest penalty-in case missing deadlines-

If you fail to pay or the amount you’ve paid is less than the mandated 30% of the total liability by the first deadline (15 September), you will need to pay an interest. This is computed @ 1% simple interest per month on the defaulted amount for three months ,The same interest penalty would apply if you fail to pay the second deadline (15 December). Failing to pay the third and last deadline (15 March) would mean paying 1% simple interest on the defaulted amount for every month until the tax is fully paid.as per Section 234B and 234C

1.  Interest  under  section  234C  –  Interest  @  1%  per  month  is  payable  if  the  tax  is  not  paid  as  per  the  aboveschedule i.e. for Deferment in Installments of Advance Tax

2.  Interest  under  section  234B  –  Interest  @  1%  is  payable  if  90%  of  the  tax  is  not  paid  before  the  end  of  thefinancial year i.e. for Default in Payment of Advance Tax.

Treatment in case of excess payment of Advance Tax -

If the amount paid as advance tax is higher than the total tax liability, the assessee will receive the excess amount as a refund. Interest @ 6% per annum will be paid by the Income Tax department to the assessee on the excess amount if the amount is more than 10% of tax liability.

Computation of Advance Tax

Advance Tax is liable to be paid by estimating the current year income and then applicable Tax Slabs in force. The Advance Tax shall be computed as under:-

Income under the 5 Heads of Income                                          ***

(Less) Brought Forward Losses and Allowances                             ***

(=) Gross Total Income                                                                   ***

(Less) Chapter VI­ A Deductions                                                     ***

(=) Estimated Total Income                                                              ***

Income Tax  on Estimated Total Income                     xxx

(Add) Surcharge (if any) on the above Estimated Income  xxx

(=) Total Tax Payable                                                      xxx

(Less) Relief under section 89                                          xxx

(=) Tax Liability                                                               xxx

(Add) 2% Education Cess                                               xxx

(Add) 1% SHEC                                                            xxx

(=) Total Tax Liability                                                      xxx

Less) Relief of tax u/s 90,90A,91                                    xxx

Less) MAT Credit u/s 115JAA                                       xxx

Less) TDS as shown in Form 16/Form 16A 

          and reflected in Form 26AS                                  xxx

(=) Advance Tax Liability                                               xxx

For all taxpayers earning income from any source other than salary, Advance Tax is payable in installments as explained above,

If you have any queries , drop your query using comments box below.

Income Tax Returns for Last Year

Every Assesse Can file their belated return with in one year from the end of the assessment year relevant to previous year, you must be aware that due dates for filing your Income tax returns 31^st July , however if Assesse  fail to file the returns on due date for last two years , you can file belated returns for last 2 years(FY 2012-2013 and  by 31.03.2015 .

Consequences of Belated (late) return Filing :

1.       No revision :Late (belated ) return Can not be revised for any error .

2.      Loose right to carry forward any Loss :If any person file late return ,who has sustained a loss in any previous year under the head following head , can not carried forward losses to next year.

o    “Profits and gains of business or profession” or

o    under the head “Capital gains”

3.      Penalty : As per Section 271F of Income Tax Act If return is filed after end of assessment year (after 31.03.2015 in case of return of FY 2012-13) then assessing officer may impose penalty up to Rs 5000/- , However , this penalty is rarely exercised by Assessing officer , if taxes have been paid .

4.      Interest on Outstanding Tax :Interest Under section 234A @ 1 % per month applicable on Net outstanding Tax due amount .

5.   Delayed Refund : Sometimes the refunds are delayed if you file returns after due date , as department will process the returns first which are received by due date .

How to file belated return after Due date ?

There is no major difference in the process of filing Income Tax return before or after the due date , assesse needs to select the section 130(4) for belated return in ITR form , you can download the ITR form for previous year from https://incometaxindiaefiling.gov.in/

Important Dates for filing Income Tax Returns

Financial Year	Assessment Year	Due Date	Belated Return Date
2012-2013	2013-2014	31-07-2013	31-03-2015
2013-2014	2014-2015	31-07-2014	31-03-2016
2014-2015	2015-2016	31-07-2015	31-03-2017

If you have any queries , drop your query using comments box below .