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I N C O M E
T A X
SLABS AND DEDUCTIONS
Source: http://www.incometaxindia.gov.in/ Updated : 18 March 2012
Indian Income tax slabs :
For Assessment Year 2012-13 / Financial Year 2011-12
Tax filing from 31 March 2012 till 31 July 2012 Men aged 60 years or less : Slab ( ) less than 1,80,000 1,80,001 to 5,00,000 5,00,000 to 8,00,000 Greater than 8,00,000 Women aged 60 years or less: Slab ( ) less than 1,90,000 1,90,000 to 5,00,000 5,00,000 to 8,00,000 Greater than 8,00,000 Tax ( ) Nil (TI – 1,90,000) * 10% 31,000 + (TI – 5,00,000) * 20% 91,000 + (TI – 8,00,000) * 30% Tax ( ) Nil (TI – 1,80,000) * 10% 32,000 + (TI – 5,00,000) * 20% 92,000 + (TI – 8,00,000) * 30%
Senior Citizens (Individuals aged 60 -80 years): Slab ( ) less than 2,50,000 2,50,000 to 5,00,000 5,00,000 to 8,00,000 Greater than 8,00,000 Tax ( ) Nil (TI – 2,50,000) * 10% 25,000 + (TI – 5,00,000) * 20% 85,000 + (TI – 8,00,000) * 30%
Very Senior Citizens (Individuals aged above 80 years): Slab ( ) less than 500,000 5,00,000 to 8,00,000 Greater than 8,00,000 Tax ( ) Nil (TI – 5,00,000) * 20% 60,000 + (TI – 8,00,000) * 30%
Note: The introduction of Infrastructure Bonds last year which can save you additional Rs 20,000 exemption other than sec 80C. Note – TI : Total Income
Indian Income tax deductions:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Section 80C Section 80CCC Section 80CCD Section 80D Section 80DD Section 80DDB Section 80E Section 80G Section 80GG Section 80GGA Section 80GGC Section 80U Section 80RRB
Section (80C +80CCC+80CCD): The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD (combined together) is 1,00,000/- (( ) one lac only).
Section 80C :
Premium paid on a Life Insurance policy for self or spouse or child. Amount paid under contract for deferred annuity. Sum paid under contract for deferred annuity. Amount deducted from salary of Govt. Servant for securing deferred annuity for self-spouse or child Payment limited to 20% of salary. Contribution made under Employee’s Provident Fund Scheme. (EPF) Amount paid towards PPF for self/spouse, any child. Contribution to a Recognized Provident Fund. Sum deposited in Post Office Savings Bank Account(10 year/15 years). Subscription to any notified securities/notified deposits scheme. e.g. NSS Amount invested in any notified savings certificate, Unit Linked Savings certificates. e.g. NSC VIII issue. Investments in Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanrakhsa 1989 Contribution to notified deposit scheme/Pension fund set up by the National Housing Scheme. Payments made in installments or part payment for purchasing or constructing a house property. But if this house property is transferred or sold before the expiry of 5 years from the end of the financial year of possession of property, aggregate amount of deduction allowed will be taxable in that year. Investments in annuity Plan of LIC(e.g. Jeevan Dhara) or Units of UTI/notified Mutual Fund(u/s 10(23D). If deduction for such investments is availed under section 80CCC then rebate u/s 80C is not allowed. Investment in deposit scheme of a public sector, company engaged in providing housing finance. Amount invested in Equity / debentures of any approved eligible issue of capital made by a public company or public financial institutions. Tution fees paid to any Indian school,college, university or other educational institutions at the time of admission or otherwise for the purpose of fulltime education Deduction under this will be considered uptill 2 children only.
Deduction under this section is allowed against payment of premium for annuity plan of LIC or any other insurer. The premium must be deposited inorder to avoid lapse of contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.
(limit upto 10% of Salary) Contribution upto 10% of the salary made towards pension account by a central government servant is considered as deduction under this section. If any amount is received from the pension account in future then the same will be considered as income for the year and will be taxable
Section 80D :
(Limit Individuals- 15,000 , senior citizens - 20,000) (Deduction in respect of Medical Insurance Premium)
The maximum limit of deduction under this section is 20,000/- for senior citizens and upto 15,000/ for others. Insurance scheme should be framed by the General Insurance Corporation of India & approved by the Central Govt. and approved by the insurance Regulatory & Development authority. The premium should be paid for health insurance of the individual or his family members
(Limit 1,00,000) (Deduction in respect of maintenance including medical treatment of dependent who is a person with disability) Incase if the handicapped dependent suffers from severe disability a deduction of 100000/- shall be available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist. Note: A person with “severe disability means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the “Persons with disabilities (Equal opportunities, protection of rights and full participation)” Act.
(Limit 60,000) (Deduction in respect of medical treatment etc on self or dependent) Deduction up to 40,000/- is available for expenditure incurred by resident individual on himself or dependent relative for medical treatment of specified disease.Please refer Rule 11DD in which the diseases have been specified.To avail deduction under this section, certificate in form 10 I should be furnished from any Registered Doctor.
Section 80E :
(no limit) (Deduction in respect of interest on loan taken for higher education) Under this section deduction is allowed only for the interest on loan taken for higher education of self/relative This Section have no limits.
Section 80G :
(Deduction in respect of donations to certain funds, charitable institutions, etc) The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G.
Section 80GG :
(limit 24,000) (Deduction in respect of rents paid) Deduction available is the least of: o Rent paid less 10% of total income o 2000/- per month o 25% of total income, provided Further to this assesee or spouse or minor child should not own residential property in the same city, he should not have self occupied residential premises in any other city and should not be receiving HRA.
Section 80GGA :
(Deduction in respect of certain donations for scientific research or rural development)
Section 80GGC :
(Deduction in respect of contributions given by any person to political parties)
Section 80U :
(Deduction in respect of Employee suffering from Physical Disability) Deduction of 50,000/- to an individual who suffers from a physical disability(including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of 75,000/- shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.
Section 80 RRB:
Deduction in respect of any Income by way of Royalty of a Patent) Deduction of up to 3 lacs or the income received whichever is less is allowed under this section on any income received by way of royalty in respect of a patent registered on or after 01.04.2003 under the Patents Act 1970. The assessee must be an individual resident is India who is a patentee. The assessee must furnish a certificate is the prescribed form duly signed by the prescribed authority.
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