TAX CALCULATIONS AND CONCESSIONS ESTIMATION OF TAX

Income tax slab rate

On the total taxable income (arrived at), Income Tax should be calculated at the following rates for the Financial Year 2002-2003 (Assessment Year 2003-2004)  

Income upto Rs. 50,000             : Nil
Rs. 50,001 to Rs. 60,000           : 10% of the income exceeding Rs.50,000/-
Rs. 60,001 to Rs.1,50,000         : Rs.1000+20% of the income exceeding Rs.60,000/-
Above Rs. 1,50,000                   : Rs.19,000+30% of income exceeding Rs.1,50,000- 

Surcharge:

        NIL on income up to Rs.60000/-
        5 % on income Tax payable in other cases.

TAX REBATE  UNDER SECTION 88: Quantum of Rebate: Individuals 

a.   30% to those whose income does not exceed on lakh rupees subject to (i) income chargeable under head salaries (before giving deduction under section (16) does not exceed Rs. One lakh (ii) income chargeable under the head salaries is not less than 90 per cent of gross total income.

b.   20% to those whose income does not exceed Rs.150000

c.   15% to those whose income exceeds Rs.150000 but does not exceed Rs.5 lakhs

d.   No rebate to those with income of more than Rs.5 lakhs

Investment category  eligible for rebate:- 

i)     An  investment of Rs.30000 in infrastructure / bonds,  UTI etc.

ii)    Rs.70000 in General Investments like Provident Funds, LIC etc.  

ITEMS ELIGIBLE FOR TAX REBATE: 

1.  Contribution to Provident Fund

2.   Investment in National Savings Certificate VIII issue

3.   Investment in Public Provident Fund by an individual under provident fund act 1925.

4.   Any installment or part payment of the amount borrowed for construction/ purchase of residential house property from the Government/ Bank/ LIC/Co-operative Bank/Housing Board/Development Authority etc., subject to a maximum of Rs.20,000.

5.   LIC Premium  Payment on Life Insurance of Individual, the wife or hunsband or any other child of the individual .

6.   Contribution to Unit linked Insurance Plan and LIC modified by Government of India under section 10.

7.   Subscription to any special security notified by the Central Government.

8.   Contribution to approved superannuating fund

9.   Subscription to any deposit scheme of the National Housing Bank as may be notified by the Central Government.

10.  Subscription up to Rs.10000, to any units of Mutual Fund or to any pension fund set up by any Mutual Fund, notified under Clause-23-D of the section 10 of the UTI.

11.  Subscription in any unit linked insurance plan 1971 of the Unit Trust of India.

12.  Subscription to any units of any Mutual fund. 

REBATE UNDER SECTION 88 B AND C: Assesses, who are of 65 years or more of age are eligible for a rebate of 100% of their tax or Rs.15000, which ever is less. 2) for women assesses, who are below the age of 65 years are eligible for rebate of 100% of their tax or 5000 which ever is less.  

  DEDUCTIONS ADMISSIBLE: From taxable income 

The following are the items eligible to be deducted from the total income:

1.      Standard Deduction ( Section 16)