Tax Slabs

1) In Case of General Assesses:

Income Bracket Rate
0 to Rs. 1,60,000 0   %
Rs. 1,60,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

2) In Case of Women Assesses:

Income Bracket Rate
0 to Rs. 1,90,000 0   %
Rs. 1,90,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

3) In Case of Senior Citizens:

Income Bracket Rate
0 to Rs. 2,40,000 0   %
Rs. 2,40,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

* On final tax amount, a surcharge of 3 %
**No surcharge above 10 lacs.

Exemptions:

1) 80 C Limit Unchanged (Rs. 1,00,000)(refer to our earlier blog for all options under section 80 C (http://bit.ly/4px5hz)

2) 80 CCF – Additional Rs. 20,000 on investments towards approved Infrastructure bonds

3) 80CCD:

Contribution to NPS and returns on NPS tax free, but withdrawal still taxable

4) 80 D

Mediclaim Premium on the Health of Investment limit
a)     Self Spouse and Children Rs. 15,000
b)    Parent/Parents Rs. 15,000
c)     If Parent/ Parents Senior citizen Rs. 20,000

5) Section 80DD

Deduction under section 80DD

  • Exemption given for Expenditure made for a disabled dependant towards Medical Treatment/Training/Rehabilitation. It also includes the LIC/Insurance premium paid towards maintenance of such dependant.
  • Maximum deduction allowed is Rs. 50,000/- in case of normal disability and Rs. 1 Lakh in case of severe disability.

6) 80DDB

Deduction under section 80DDB

  • Exemption given for expenditure incurred on specified disease or ailments such as cancer/aids.
  • Maximum deduction allowed is Rs. 40,000/-. In case of Senior Citizens, maximum deduction allowed is Rs. 60,000/-

7) Section 80E

Deduction under section 80E

Deduction is allowed for repayment of interest component of Higher Education loan. All education after Class 12 is allowed, either vocational or Fulltime. But should be from a school/institute/university recognized by the government.

8 ) Section 80G

  • Contribution to exempt charities – 25/50/75/100% depending on the charity and as per approval
  • 100% exemption on donation to political parties

 

9) 80U

Deduction under section 80U

  • Deduction upto Rs. 50,000/- is allowed in case of Permanent Disability.
  • In case of Permanent Disability exceeding 80%, maximum deduction allowed is Rs. 75,000/-.

10) Section 24(1)(vi)

  • Housing loan interest.Maximum Investment Limit – Rs. 1,50,000 (for loans taken after 1 April 1999, for loans before that Maximum Investment Limit 30,000).

 

11) Superannuation – Any contribution made by a company to superannuation fund upto Rs. 1,00,000 tax free in the hands of the employee

12) Conveyance/Transport Allowance – Any Conveyance / Transport Allowance given to an employee is tax free upto Rs. 9,600 /- (No Supporting Bills required)

13) Medical Allowance – Any Medical Allowance given to an employee is tax free upto Rs. 15,000 /- (Supporting Bills required)

14) HRA – Any House Rent Allowance given to an employee is tax free upto the minimum value of the following conditions (subject to – when an employee can produce rent paid receipts from landlord for the period and if the employee has not availed of tax exemptions for home loan interest / principal repayment):

a) 50% of Annual Basic (40% of Annual Basic in case of non-metros)

b) Actual HRA received

c) Rent Paid – (10% of Annual Basic)

15) Professional Tax – Any Professional Tax deducted from an employee’s salary can be reduced from the annual salary income to arrive at taxable salary

16) Provident Fund – Provident Fund contributions (under section 80 C and subject to an overall investment limit of Rs. 1,00,000 ) deducted from an employee’s salary are tax exempt.

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