INCOME TAX
IMPORTANT SECTIONS
Rates of Income Tax : For Male & Female individuals
& HUF:
Upto Rs.2,50,000/- :: Nil
Rs.2,50,001/- to Rs.5,00,000/- -5%
Rs.5,00,001/- to Rs.10,00,000/- - 20%
Rs.10,00,001/- and above - 30%
4% Health & Education cess
For Senior Citizens - Age above 60 years
Upto Rs.3,00,000/- - Nil
Rs.3,00,001/- to Rs.5,00,000/- - 5%
Rs.5,00,001/- to Rs.10,00,000/- - 20%
Rs.10,00,001/- and above -30%
Senior citizen age 80 years & above: Up to
Rs.5,00,000/-Income Tax-NIL
¯ Rebate up to Rs.2500 to
resident individuals with taxable income up to Rs.500000 (U/S 87A)
Deduction U/S 16 (ia):
Standard Deduction of Rs.40000/- or amount of salary,
whichever is less shall be allowed. (ii) Entertainment Allowance as per rules
and (iii) Tax on Employment - 100% (Professional Tax).
Deduction U/S 24(2):
100% deduction (Housing loan interest) subject to a
maximum limit of Rs.30,000/- being interest paid on an amount of Housing Loan
for Self Occupied House Property. If self-occupied
House Property has been acquired or constructed with capital
borrowed on or after 01.04.1999 and the acquisition or construction of the said
house property is completed within five years from the end of the Financial
Year in which the capital was borrowed. Maximum limit of Rs.2.00 laces shall
be applicable.
Deduction U/S 80 (D): (Medi-claim premium)
(1) In case of an Individual assesse:
(a) For Medical insurance prem. Or preventive health
check-up of Self, Spouse and dependent children. Maximum Rs.25000/-
(Rs.50000/-, if Any insured person is a senior citizen)
(b) For insurance on health of any parent or parents -
Maximum Rs.25000/-
(Rs.50,000/- if any insured person is a Senior Citizen).
(2)In case of an H.U.F., the maximum deduction is
Rs.25000/- (Rs.50000/- if any insured person is a Senior Citizen), Scheme of
GIC or any other insurer approved by IRDA,or under the scheme of Central
Govt.Health Scheme.(CGHS), or State Govt. schemes as may be, notified by the
Central Govt.
Deduction U/S 80(DD):
For medical treatment including deposits made
for maintenance of handicapped dependent. LIC’s Jeevan Adhar Table
No.114 or other Insurance Company or any scheme of UTI - Maximum limit
Rs.50,000/-. (Rs.1,00,000/- in case of severe disability).
Deduction U/S 80-E:
Deduction in respect of interest on Loan taken for Higher
Education : An Individual assesse - loan taken from approved Financial
Institution for full time study. The deduction will be allowed for a maximum
period of -8- years or till the interest is fully paid whichever is earlier.
Deduction shall be allowed without any limit.
Deduction U/S 80G:
For Donations, deduction available is :
(A) National Defence Fund (Prime Minister/Chief Minister’s
Relief Fund etc.-100% of qualifying donation and
(B) Other Specified Charitable Trust - 50% of qualifying
donation (Qualifying donation should not exceed 10% of assessable income).
Deduction from Gross Total Income:
U/S 80 C: Specified Savings:
a. Life Insurance Premium paid to
approved Insurance Companies.
b. Premium paid for a notified
deferred annuity Plan of LIC (i.e.Jeevan Dhara, Jeevan Akshay).
c. Contribution made to GPF, PPF,
Recognised PF, approved Superannuation Fund.
d. ULIP of Unit Trust of India.
e. ULIPof LIC Mutual Fund
notified U/S 10(23-D) (Dhanraksha 1989 Plan).
f. Post office PLI and NSC.
g. Repayment of HBA Principal
Amount.
h. Deposit made in Home Loan
Scheme A/c.in National Housing Bank.
i. Any sum paid as Tuition fee,
whether at the time of admission or thereafter to any University, College,
School or other educational institution (not private tuition class) situated
within India for the purpose of full time education of any two children of such
individual (It excludes any payment towards any development fees or donation or
payment of similar nature).
j. Subscription to Equity Shares
or Debentures forming part of any eligible issue of Capital approved by the
Board (issue of Public Company or any Public Financial Institution).
k. Any sum deposited in a
notified scheme of term deposit for a Fixed period of not less than -05- years
with a Scheduled Bank i.e. SBI,
BOB, or/and Post
Office. Deduction U/S 80 CCC (Pension Scheme Premium): Maximum Rs.1,00,000/-
for New Jeevan Suraksha Pension Scheme of LIC or any such scheme of any other
insurer approved by I.R.D.A.
Deduction U/S 80CCC (Pension Scheme Premium):
Maximum Rs.1,50,000/- for new Jivan Suraksha Pension
Scheme of LIC or any such scheme of any other Insurer approved by IRDA.
Section -80 CCD:
Contribution to Pension Scheme Fund by an individual
employed by the Central Govt.on or after 01.01.2004. (Maximum 10% of salary).
MOST IMPORTANT:
Limit of Deduction - U/S 80CCE w.e.f. Assessment year
2006-07 and onwards, provides that the aggregate amount of deductions allowable
U/S 80-C, 80-CCC and 80-CCD(1) shall not, in any case, exceed Rs.1,50,000/- .
Section 80 CCD (1B):
Amount paid or deposited by the assesse to his account in
a notified pension scheme (i.e. New Pension Scheme) subject to a maximum of
Rs.50,000/- shall be allowed as a deduction. (This benefit shall be
available over and above the limit of Rs.1,50,000/- as mentioned U/S 80CCE)
Section 80CCG
Deduction in respect of investment in Equity Saving
Scheme
Listed equity shares or listed units of an equity
oriented mutual fund
For example: RGESS 2012 (Rajiv Gandhi Equity Saving
Scheme).
Amount of deduction: 50 % of the amount invested in such
equity shares.
Maximum deduction: Rs.25000/-
The deduction is allowable for 3 years beginning with the
year in which the first purchase is made.
Gross Total Income of the assesse shall not exceed Rs.12
lakhs. (Rs.10 lakhs for A.Y.2013-2014)
Section 80 TTA - Deduction in respect of Interest on Savings account
deposit. (Saving accounts of banks, co-operative banks and post office are
allowed) Fixed deposit and recurring deposit interest is not allowed as
deduction under this section. Maximum amount allowable: Rs.10000/-
to any individual or H.U.F,
Section 80 TTB - Deduction of interest shall be allowed up to Rs.50,000/-
to senior citizens.
16 U/S 10(34) - Any income received by way of
dividends from domestic company
referred to the Section 115-O shall be exempted.
IMPORTANT NOTES:
- Total
death claim amount received by an individual is non-taxable (full amount
tax-free). Total Maturity claim of policies issued before 01.04.2003 shall
be non-taxable. (except annuity income which is taxable as per rules) U/S
10(10D).
- Maturity
claim amount of Policies issued on or after 01.04.2003 up to 31.03.2012
and premium payable under such Policy for any of the years during the term
of policy exceeds 20% of actual capital sum assured shall be
taxable.
- Maturity
claim amount of Policies issued on or after 01.04.2012 and premium payable
under such Policy for any of the years during the term of policy exceeds
10% of actual capital sum assured shall be taxable.
- Policy
amount received U/S 80 DD shall be taxable. Amount received under a
Key man insurance
Policy shall be taxable.
U/S 80-C (Special Provision)
- Premium of policies issued on or after 01.04.2003
exceeding 20% of Capital sum assured, then such excess (means an amount of
premium above the 20% of Capital sum assured) shall not be allowed for the
purpose of deduction u/s 80-C.
- Premium of policies issued on or after 01.04.2012
exceeding 10% of Capital sum assured, then such excess (means an amount of
premium above the 10% of Capital sum assured) shall not be allowed for the
purpose of deduction u/s 80-C.
- In case of physically handicapped life assured
policies issued on or after 01.04.2013, premium of the policies exceeding
15% of capital sum assured , then such excess (means an amount of premium
above the 15% of Capital sum assured) shall not be allowed for the purpose
of deduction u/s 80-C.
