Category: Personal Finance

In Case of General Assesses:

Income Bracket Rate
0 to Rs. 1,80,000 0   %
Rs. 1,80,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

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 %

In Case of Senior Citizens (> 60 Years but less than 80 Years):

Income Bracket Rate
0 to Rs. 2,50,000 0   %
Rs. 2,50,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

In Case of Very Senior Citizens (80 Years and above):

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

It’s that time of the year again. Make the right investment decisions to reduce your tax liability. The provisions under Section ‘8O C’ can help you reduce your taxable income upto Rs. 1 Lac and resultantly a lesser tax outflow.

For your benefit we have listed all investments / expenses that qualify under Section 80 C.

Section 80 C

1)       Life Insurance and ULIP Premium

2)       Pension Plan/National Pension System

3)       Tax Exempt Mutual Funds (ELSS)

4)       FD above 5 years in Scheduled banks

5)       Infrastructure Bonds

6)       NSC Purchase

7)       NSC Interest

8)       Post Office SB (Cumulative Time Deposit)

9)       Annuity Plan for LIC

10)   Approved Superannuation Fund

11)   Deferred Annuity

12)   Public Provident Fund – Maximum allowed: Rs. 70,000/-

13)   Recognised Provident Fund

14)   Statutory Provident Fund – the employee contribution that gets deducted from your salary

15)   Housing Loan Principal Repayment

16)   Tuition fees – Only Tuition fees excluding Development Fees, Donations, etc. Maximum allowed: Rs. 24,000/-

17)   Expenditure on Children Education – Upto Rs. 200 per month for upto 2 children

Team eVetan

Finally there is clarity on valuation of perquisites provided by employers to employees, as notified by the Central Board of Direct Taxes on 18 Dec 09 , through introduction of new  norms  called the Income Tax (Thirteenth Amendment Rules) 2009.

The new norms will come into effect with retrospective basis from April 1, 2009. The finance bill presented this year had abolished FBT and perks had become taxable in the hands of the employees. However norms were yet to be introduced on how to value the perquisites.

In the new regime, the value as calculated based on the new norms notified, will be added to the total income of the employee and will be taxed depending on the tax bracket that the employee falls under.

(To view different tax brackets, refer to our blog article dated 21 July 09 (http://www.evetan.com/blog/2009/07/21/budget-2009-10-impact-on-payroll/)

The perquisites that become taxable in the hands of the employees now; include cars, rent free accommodation, services of personal attendant, interests free loans, gift vouchers, employee stock options etc.

For a complete list of taxable perquisites and how to value them, visit: http://www.itatindia.com/datafolder/flash/Flashst19-12-09_1.htm

Team eVetan

IRDA is planning to introduce mediclaim policy portability and is preparing guidelines for general insurance companies for the same.

What does it mean?

If you think your general insurance company is not providing you with satisfactory services with respect to your health insurance policy, you will soon be able to change the company without giving up any benefits.

Essentially when you buy a health insurance policy, you are subjected to medical tests to exclude any existing diseases that you may have. Also you are not allowed any claim during the initial few months. In a scenario where you contract a disease during the policy period, the disease remains covered if you go for the renewal of the policy. However if you wish to change the company, the same disease does not get covered..

With the new guidelines , IRDA hopes to empower the consumers so that they may change the insurance company if services are unsatisfactory without losing any benefits or being subjected to unfair new policy terms.

Our take:

Power to the consumers!Will ensure health insurance companies do not get complacent and are committed to providing the best services to their customers.

– Team eVetan
(For any queries on payroll, salaries, personal finance, personal income tax; write to info@eVetan.com)