Guidelines on Income Tax Management&

Reimbursement process

Compiled by

Vijay Zanzrukiya

“All the Best for the next One Hour”

Welcome

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OUR SINCERE THANKS TOSaurabh Garg, Sunil Rao & Anurag

Kedia

For giving us opportunity for this presentation

SPECIAL THANKS TORupesh Jadhav & Urvashi

SuratiFor the arrangements

Rama, Abhishek, Sagar & Prajakta

For providing feedback at Various Stages

AND

To all of you for attending this Presentation

___________________VIJAY ZANZRUKIYAPRESENTS

Income Tax Management Income Tax Rates as per

Slab Income Tax Deductions

Available on Investments made

Deductions based on Salary Structure

Income Tax Slabs

For Men/Women below 60 years/Above 60 Years / Above 80 Years of age

Income Level Tax Rate

Rs. 2,50,000 / 300,000 / 500,000 Nil

Rs. 2,50,001 - Rs. 500,000 10%

Rs. 500,001 - Rs. 10,00,000 20%

Above Rs. 10,00,000 30%

* 3% Education Cess is applicable on Income Tax Amount

Deductions Available on Investments

Sr. No.

Particulars of Investment / Deduction

Investment / Expenditure made in the

name of Document Submitted*

Investment Under Section 80C

1 Public Provident Fund (PPF) Self, Spouse & Children

Photocopy of PPF Challan or PPF passbook

2 Life insurance premium Self, Spouse & Children

Premium Receipt or Statement of premium payments issued by Insurance Company

3 National Saving Certificate (NSC) Self Photo Copy of NSC 4 Interest Accrued on NSC Self Photo Copy of NSC

5 Contribution to Unit Linked Insurance Plan (ULIP)

Self, Spouse & Children

Photo Copy of Statement of Account

6 Equity Linked Savings Scheme (ELSS) Self Photo Copy of Statement of

Account

7 Tax Saving Fixed Deposit of Banks (Tenure 5 yrs ) Self Photo Copy of Fixed Deposit

Receipt

8 Tuition fees Maximum of 2 Children Photocopy of Fee receipt

Contd..

Investment Deductions Contd..

Sr. No.

Particulars of Investment / Deduction

Investment / Expenditure made in the

name of Document Submitted*

Investment Under Section 80C (Contd..)

9Principal repayment of Housing Loan / Stamp duty and /or Registration Charges

Self / Joint

Certificate from the lending institution clearly stating the amount of principal payment made during the fiscal year. Photocopy of the Agreement in case of stamp duty and registration charges are claimed as deduction.

10 Employee Provident Fund Deduction from Salary Self Deducted by Employer

Total Deduction available is Rs. 150,000/-

From Current Financial year, introduced an additional deduction of Rs. 50,000 for contribution to the New Pension

Schemeunder Section 80CCD.

Contd..

Sr. No.

Particulars of Investment / Deduction

Investment / Expenditure made in

the name of Document Submitted*

1 Sec 80D (Medical Insurance Premium)

Self, Spouse, Dependent

Children and Parents

Photo Copy of Premium Payment Receipt

From financial year 2015-16 – Deduction is raised from Rs 15,000 to Rs 25,000. The deduction for senior citizens is raised from Rs 20,000 to Rs 30,000. For uninsured super

senior citizens (more than 80 years old) medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under section 80D. However, total deduction for health

insurance premium and medical expenses for parents shall be limited to Rs 30,000.

Investment Deductions Contd..

Contd..

Sr. No.

Particulars of Investment / Deduction

Investment / Expenditure made in

the name of Document Submitted*

1 Interest on Housing Loan Self / Joint

Certificate from the lending institution clearly stating amount of interest payment during FY

Total Deduction available is Rs. 200,000/-

Contd..

Investment Deductions Contd..

Deduction u/s 80 TTA

Deduction u/s 80 TTA available up to Rs. 10,000 or actual interest received. Deduction can be

claimed on filing of income tax return

Sr. No.

Particulars of Investment / Deduction

Investment / Expenditure made in the

name of Limit

1

Sec 80CCG (Investment made under Rajiv Gandhi Equity Saving Scheme in listed units of Equity Oriented Fund/Equity Shares)(Applicable to new retail investor whose GTI does not exceed 12 lacs)

SelfDeduction of 50% of amount invested in such equity shares (or units),maximum upto Rs.

25,000

2Sec 80DD (Maintenance including Medical treatment of dependant person with disability)

Spouse, Children,

Parents, Brother, and Sister of the

individual.

Fixed amount - Rs. 50,000 (Rs.1,00,000 for Severe

disability)

3Sec 80DDB (Medical treatment for specified diseases or ailments)

Self or Spouse, Dependent Children, Parents,

Brothers and Sisters.

Upto Rs.40,000 (Rs.60,000 for Senior Citizen)

4 Sec 80E (Repayment of Loan taken for higher education)

Self, Spouse & Children Actual Interest paid

5 Sec 80U (For person with a disability) Self

Fixed amount - Rs. 50,000 (Rs.1,00,000 for Severe

disability)An additional rebate u/s 87A of Rs. 2000 on Income Tax available if the next taxable income is below 5 Lakhs

Investment Deductions Contd..

Deductions based on Salary Structure

Salary Head Applicable TaxabilityBasic + DA All Taxable

FullyHRA All Taxable

PartlyChildren Education Allowance (New) All Exempted*Conveyance Allowance All ExemptedMedical Expenses Reimbursement All Exempted**LTA Reimbursement All Exempted**Other Allowance All Taxable

FullyFBP As per Designation Exempted**Other Earning As per Designation Taxable

FullyIncentives As per Designation Taxable

Fully

* Exempted to those who have children studying

* *Exempted on Submission of Documents

INTERVAL

Reimbursements

Reimbursement Follow uniform format across all brands (CMYK/Jazz/Nu

Ayurveda) Follow admin policies in case of reimbursement, Telephone,

Conveyance, Food Allowance. Proper documents to be arranged with document no. in

statement and on documents. Payment made to third party to be supported with voucher and

documents. All payment vouchers should have receiver’s signature.

No cash payment to be made above Rs. 5000, if required, Revenue stamp to be affixed on payment voucher. The same to be supported with proof of identity and mobile number of receiver.

Follow Reimbursement Schedule All Reimbursement Statement should be printed and given to

your respective heads. The respective department heads should verify the statement and supportings are in order and should then submit the same to the accounts for further processing. Accordingly discrepancies, if any should be discussed with department heads only, instead of each and every individual employee.

Reimbursement SchedulePARTICULARS DEADLINES

Getting the Reimbursement Statement in Excel from all staff

3rd of Every month

Obtaining the approvals from Seniors 8th of Every Month

Passing the reimbursement journals in Tally 8th of Every month

Receiving supporting documents for reimbursement by Accounts

12th of Every month

Verification of Documents and queries resolved, if any

15th of Every month

Preparing Reimbursement Processing documents 18th of Every month

Processing Reimbursement in Bank 21st of Every month

Payroll Schedule

Payroll SchedulePARTICULARS DEADLINES

Providing Attendance Details to HR 1st of Every monthPreparing & Providing Office Boys'/Housekeeping Salary details to accounts

2nd of Each Month

Preparing Payroll by HR based on Attendance 3rd of Every month

Providing Incentive Details to HR 4th of Every monthSending the Compete Payroll with Incentive to Accounts 5th of Every monthVerification of Payroll by Accounts and Calculation of TDS 6th of Every month

Preparing Payroll Documents by accounts 7th of every month

Processing Payroll to staff accounts 8-10th of Every months

“Thanks for your valuable time

and mainly for your Patience ” JAI HIND