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TAX RATES FOR INDIVIDUALS OTHER THAN II & III
Upto 1,10,000 - Nil
1,10,000 to 1,50,000 - 10% of the amount exceeding 1,10,000
1,50,000 to 2,50,000 - Rs.4,000 + 20% of the amount exceeding 1,50,000
2,50,000 & above - Rs.24,000 + 30% of the amount exceeding 2,50,000
II TAX RATES FOR RESIDENT WOMAN BELOW 65
YEARS
Upto 1,45,000 - Nil
1,45,000 to 1,50,000 - 10% of the amount exceeding 1,45,000
1,50,000 to 2,50,000 - Rs.500 + 20% of the amount exceeding 1,50,000
2,50,000 & above - Rs.20,500 + 30% of the amount exceeding 2,50,000
III TAX RATES FOR INDIVIDUAL RESIDENTS AGED 65 YRS AND ABOVE
Upto
1,95,000 - Nil
1,95,000 to 2,50,000 - 20% of the amount exceeding 1,95,000
2,50,000 & above - Rs.11,000 + 30% of the amount exceeding 2,50,000
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| EXEMPTIONS/DEDUCTIONS
FROM SALARY
1. VOLUNTARY RETIREMENT – 10(10C)
Amount received or receivable (ie.,in instalments) by an employee
on his voluntary retirement in accordance with any scheme of Voluntary
Retirement is exempt to the extent of Rs.5,00,000, provided the
VRS is in accordance with Rule 2BA of IT Rules.
2.
HOUSE RENT ALLOWANCE EXEMPT U/S.10(13A)
a) Actual HRA received : Rs.xxxx
b) Rent paid in excess of 10% of Salary : Rs.xxxx
c) 50% of Salary in Metro Cities or
40% of Salary in other cities : Rs.xxxx
Least of a), b), c) is exempt.
NOTE : Here Salary means Basic Salary as well as DA if the terms
of employment so provide.
3.
CONVEYANCE ALLOWANCE : Any allowance granted to meet the
expenditure incurred wholly, necessarily and exclusively on conveyance
in performance of the duties of office and so certified by the employer
is exempt u/s.10(14).
4.
TRANSPORT ALLOWANCE : Any allowance granted to an employee
to meet the expenditure for the purpose of commuting between the
place of his residence and the place of his duty to the extent upto
Rs.800/- per month is exempt u/s.10(14).
5.
MEDICAL REIMBURSEMENT : An amount of Rs.15,000 or the actual
amount reimbursed by the employer whichever is less is exempt u/s.17(2).
6.
PROFESSION TAX : Profession Tax levied by the State Government
is allowable as a deduction from Gross Salary provided it has been
paid.
STANDARD
DEDUCTION U/S.16(1) IS NOT ALLOWABLE FOR A.Y.2006-07
DEDUCTIONS
FROM HOUSE PROPERTY
1.
DEDUCTION U/S.23(1) : For let out property, amount paid
by the owner towards taxes levied by any local authority in respect
of the property is deductible from Annual value(taxes pertaining
to any previous years).
2.
DEDUCTION U/S.24(a) : For let out property, deduction of
30% of the Net Annual Value is allowed. No separate deduction for
Repairs, Collection Charges, Insurance Premium, Annual Charge and
Ground Rent.
3.
INTEREST ON BORROWED LOAN(U/S.24(b)):
FOR SELF OCCUPIED PROPERTY
a. If Property is acquired or constructed with loan taken after
01/04/99 and construction is completed within 3 years from the end
of the financial year in which the capital was borrowed –
Rs.1,50,000 or actual interest paid/payable whichever is less is
deductible.
b. If new housing loan is taken for repayment of old loan (old loan
taken after 1/4/99) – Rs.1,50,000 or actual interest paid/payable
whichever is less is allowed as deduction.
c. If Property is acquired or constructed with loan taken before
01/04/99, Rs.30,000 or actual interest paid/payable whichever is
less is allowed as deduction.
d. If loan taken for Repairs, renewal, reconstruction of property,
Rs.30,000 or actual interest paid/payable which ever is less is
allowed as deduction.
FOR LET OUT PROPERTY, actual interest paid/payable can be claimed
as deduction.
ONLY OWNER OF THE HOUSE PROPERTY CAN AVAIL THE ABOVE DEDUCTIONS.
CAPITAL
GAINS:
With
effect from 01/10/2004, Long Term Capital Gains arising on sale
of equity shares or unit of equity oriented fund through recognized
stock exchange is exempt if such transaction is chargeable to Securities
Transaction Tax (u/s.10(38)).
With
effect from 01/10/2004, Short Term Capital Gains arising on sale
of equity shares or unit of equity oriented fund through recognized
stock exchange is subject to tax at the rate of 10% if such transaction
is chargeable to Securities Transaction Tax.
EXEMPTION
U/S.54EC:
The Capital Gain arising out of sale of long term capital asset
can be invested in National Highways Authority of India, Rural Electrification
Corporation Limited, within six months from the date of sale. (Lock-in
period is 3 years)
For Cost Inflation Index, refer website.
STANDARD
DEDUCTION FOR FAMILY PENSION U/S.57(iia): An amount of
Rs.15,000 or 331/3% of family pension whichever is less is allowed
as deduction. If an assessee receives arrears of family pension,
then Relief u/s.89(1) can be claimed by him.
Family Pension received by the widow or children or nominated heirs,
as the case may be, of a member of the armed forces(including para-military
forces) of the union, where the death of such member has occurred
in the course of operation is exempt.
EXEMPTIONS
– OTHER SOURCES
Any
income by way of Dividends from company, Income received in respect
of units from the Unit Trust of India, Income received in respect
of the units of a mutual fund are exempt.
DEDUCTIONS
FROM GROSS TOTAL INCOME (CHAPTER VIA):
| Sl.No |
I.T.
Sec. |
Nature
of Deduction |
Amount
of deduction |
| |
80
CCE
80 C
80 CCC
80 CCD
|
Life Insurance Premia, PF, PPF, NSC, ELSS, Units of Mutual
Fund referred to u/s.10(23D), Tuition Fees(max. 2 Children),
Repayment of Principal of Housing loan, Bank Fixed Deposit
of 5 yrs period, notified Bonds of NABARD etc.
Premium paid towards approved Pension Fund (like LIC’s
Jeevan Suraksha) max. 1 lakh.
Contribution to Central Government Pension Schemes. Upto 10%
of salary with matching contribution from Government.
|
Maximum
overall
Deductions
allowed u/s. 80C,
80CCC & 80CCD
is
Rs. 1,00,000
|
| 2. |
80
D |
(a)
Medical Insurance Premium paid by Cheque for policies taken
from General Insurance Corporation /other approved Insurance
Regulatory and Development Authority.
(b) For Senior Citizens
|
Upto
Rs.15,000
Upto Rs.20,000
|
| 3. |
80
DD |
(a)
Any expenditure for Medical, Nursing & Rehabilitation incurred
on dependant suffering from permanent disability including blindness,
mental retardation, autism, cerebral palsy or multiple disabilities
(b) Deposits under LIC, UTI’s Scheme & other IRDA
approved insurers for the benefit of physically handicapped
dependent
|
Rs.50,000
with an additional Rs.25,000 if the disability is severe exceeding
80% |
| 4. |
80
DDB |
(a)
Actual expenditure incurred on Medical treatment of Self or
dependant or a member of HUF suffering from terminal diseases
like Cancer, AIDS, Renal failure etc.
(b) For Senior Citizens(self or dependent on whom expenditure
on medical treated is taken)
|
Upto
Rs.40,000
Upto Rs.60,000
|
| 5. |
80
E |
Interest
on loan taken from Financial/Charitable Institutions for Self/Spouse/Children
for pursuing Higher Education (for a max. period of 7 yrs) |
Actual
Interest repaid |
| 6. |
80
G |
(a)
Donations made to National Defence Fund, Prime Minister’s
Relief Fund, approved Funds of reputed Educational Institutions,
National Trust for Welfare of persons with Autism, Cerebral
Palsy etc.
(b) Donations made to Jawaharlal Memorial Fund, PM’s Drought
Relief fund, Any approved Charitable Institutin/Trust, Religious
Institutions, a corporation established by the Government for
promoting interest of the members of a Minority Community
|
100%
of Donation
50% of Donation restricted to 10% of Adjusted Gross Total
Income
|
| 7. |
80
GG |
Deduction
in respect of rents paid, provided the assessee is not in receipt
of HRA and no house is owned by self, spouse, minor child or
HUF in the place of work subject to filing of declaration in
Form No.10BA |
25%
of income
or rent paid in excess of 10% of income
or ceiling of Rs.24,000 p.a whichever is less
|
| 8. |
80
U |
Persons
suffering from Permanent Physical Disability as specified in
Rule 11D |
Rs.50,000
(Rs.75,000 in case of severe disability) |
| |
|
|
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FRINGE
BENEFIT TAX (FBT)
Fringe
Benefit Tax is a tax for the Fringe Benefits provided to the Employee
by his Employer as defined u/s.115WB(1) and (2). It means any privilege,
service, facility or amenity, directly or indirectly received by
present & former Employees.
| Fringe
Benefits |
Base
Value of FBT |
Tour
& Travel |
5 |
Entertainment |
20 |
| Provision
of Hospitality |
20 |
Conference |
20 |
Sales
Promotion including publicity |
20 |
Employee
Welfare |
20 |
Conveyance |
20 |
Use
of Hotel, Boarding & Lodging |
20 |
Repairs,
running, maintenance & depreciation on motor cars |
20 |
Repairs,
running, maintenance & depreciation on Aircraft |
20 |
Use
of Telephone |
20 |
Maintenance
of Guest House |
20 |
Festival
Celebrations |
50 |
Use
of Health Clubs |
50 |
Use
of any other Club facility |
50 |
Gifts |
50 |
Scholarships |
50 |
Free
or concessional tickets for private journey |
100 |
Contribution
by Employer to Approved Superannuation Fund |
100 |
Employee
Stock Option |
|
Fringe
Benefit Tax(FBT) is calculated @ 30%(+SC+EC) on the percentage value
of Fringe Benefits.
TAX
ON FRINGE BENEFITS:The tax on fringe benefits provided
by their employer to their employee as defined u/s.115WB(1) and
(2) is payable by the EMPLOYER.
PENALTY U/S.271F: If a person who is required to
furnish a return of income as required under section 139(1) or by
the proviso to sub-section, fails to furnish such return before
the end of the relevant assessment year, shall be liable to pay
by way of penalty a sum of Rs.5,000.
INTEREST
U/S.234A: Where the return of Income of any assessment
year u/s.139(1) or 139(4) or in response to a notice u/s.142(1),
is furnished after the due date as specified in sub-section 1 of
section 139, or is not furnished, the assessee shall be liable to
pay simple interest at the rate of one percent for every month or
part of a month comprised in the period commencing on the date immediately
following the due date.
INTEREST
U/S.234B: Where an assessee who is liable to pay advance
tax under section 208 has failed to pay such tax or, where the advance
tax paid by such assessee under the provisions of section 210 is
less than 90% of the assessed tax, the assessee shall be liable
to pay simple interest at the rate of one percent for every month
or part of a month comprised in the period from the 1st day of April
following the financial year.
INTEREST
U/S.234C: Where an assessee other than a Company, who is
liable to pay advance tax under section 208 has failed to pay such
tax or,
1) The advance tax paid by the assessee on his current income on
or before the 15th day of September is less than 30% of the tax
due on the returned income or the amount of such advance tax paid
on or before the 15th day of December is less than 60% of the tax
due on the returned income, then, the assessee shall be liable to
pay simple interest at the rate of one percent per month for a period
of three months on the amount of the shortfall from 30% or, as the
case may be, 60% of the tax due on the returned income.
2) The advance tax paid by the assessee on his current income on
or before the 15th day of March is less than the tax due on the
returned income, then, the assessee shall be liable to pay simple
interest at the rate of one percent on the amount of the shortfall
from the tax due on the returned income.
DUE
DATES FOR FILING RETURN OF INCOME : All Individuals/HUF/Firms
deriving Income from Salary, House Property, Capital Gains, Business
or Other Sources and not covered under section 44AB are required
to file the Return of Income by 31st July. All Tax Audit Cases covered
under section 44AB, Company returns are required to file the Return
of Income by 31st October.
PERMANENT
ACCOUNT NUMBER: Every assessee is required to obtain 10
Alpha numeric Permanent Account Number (PAN) and quote the same
in his returns, challans & correspondence. PAN can be obtained
by applying in new Form No.49A at the designated Service Centres
of UTITSL OR NSDL(Log on to our website). PAN is essential for processing
the Return of Income and for giving credit for taxes paid. If a
person who is required to quote his Permanent Account Number fails
to do so or intimates false number, the Assessing Officer may direct
that such person shall pay, by way of penalty, a sum of Rs.10,000.
To Know Your PAN, visit our website.
For PAN Grievances : UTITSL – e-mail – isw.bangalore@utitsl.co.in
NSDL - e-mail – tininfo@nsdl.co.in
TAX
PAYMENTS : Advance tax payments and Self-assessment tax
payments have to be made in Challan No.280. Please obtain counterfoil
of challan containing Challan Identification Number (CIN) from the
Bank and enclose copy of the same with the return and quote CIN
in the return.
This
brochure should not be construed as an exhaustive statement of law.
In case of doubt, reference should always be made to the relevant
provisions of Income Tax Act, Rules or Notifications.
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