Tax Update 2013-14

1.       NPS contribution from salary is being taken in Chap VIA directly.

How to use NPS Employee contribution in Webpay: There are two ways viz. enter the amount contributed by employee in Chap VIA like any other section. Second option is to create a payhead and map it with “NPS Salary”. This payhead can be Other type or Deduction type and remember it should be NON TAXABLE. If it is deduction type the amount gets deducted from employees salary and the contribution is taken to Chap VIA under Section 80 C (The amount taken to Chap VIA is only on YTD basis and it is not estimated for remaining months). If there is an amount already in NPS Chap VIA using Chap VIA investment entry forms then the amount deducted in salary would get added to the amount already entered as investment in Chap VIA. 
Sec 80 CCD(2): Enter the value 99999999999 in Section 80 CCD(2) under Chap VIA. The system would calculate the contribution amount to maximum of 10% of basic salary.

2.       Rebate of Rs.2,000: If the net taxable salary is less than 5 lacs then a rebate of Rs.2,000 is given to the employee. A surcharge is an additional levy on the tax that an individual pays..

3.       Surcharge of 10% if the taxable income is 1 crore or more. For example, if the tax on an income of Rs 1 crore is Rs 2830000 and a surcharge of 10 per cent is levied, the total tax liability on the taxpayer would be Rs 3113000 + Ecess of 3%.

4.       Section 80 EE: A new section 80EE inserted by the Finance Minister in the 2013 Union Budget in order to promote affordable housing to the first time home loan buyers only by allowing an additional deduction of Rs 1 Lakh under section 80EE