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Tax benefits



Tax Benefits  Tax Planning Investment Planner Ready Reckoner



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) 

                Income from salary

Deduction

Not exceeding Rs.150000

33 1/ 3  % subject to a maximum of Rs.30000

Rs.150000 to 3 lakhs

  Rs.25000

Over Rs.3 lakhs but not over 5 lakhs

  Rs.20000

Over 5 lakhs

  NIL

 

1. Profession Tax (Section 16): Amount of profession tax actually paid  
2. Medical Insurance: (Section 80 D) Any premium paid by cheque for medical insurance subject to a maximum of Rs.10000 or Rs.15000 (for senior citizen).  
3. Medical Treatment (80DDB): Rs.40000 or Rs.60000 (senior citizen) expenditure incurred for the medical treatment of such diseases/ailment as may be specified in the rules made in this behalf subject to the maximum prescribed.  
4. Handicapped dependent (Section 80DD): If any expenditure is incurred towards treatment/ maintenance/ rehabilitation of a physically handicapped/ blind/mentally retarded dependent relative, an amount up to Rs.40000  can be deducted from the total income.  
5. Interest on Deposits etc.,( Section 80L): Income by way of interest on NSC VIII issue certificate; Interest on Post Office Time Deposit Accounts; Interest on Post Office Monthly Income Scheme; Interest of notified National Deposit Scheme ;Interest on Government securities; Interest on debentures and bonds of notified certain corporation and Boards.   

  DONATIONS ADMISSIBLE FOR DEDUCTION

Following are the items eligible to be deducted from the total income                 

SL.
NO.

100 %

50 %

1.

Prime Ministerís National Relief fund

Jawaharlal Nehru Memorial Fund

2.

Prime Ministerís Armenia Earthquake Relief fund

Prime Ministerís Drought Relief Fund

3.

Africa (Public Contribution Ė India ) Fund

National Childrenís fund

4.

National Foundation Communal Harmony.

Indira Gandhi Memorial Trust

5.

An University or any Educational Institution of National eminence as may be approved by the prescribed authority in this behalf.

Rajiv Gandhi Foundation  

6.

The Chief ministerís Earthquake relief Fund, Maharashtra.

National Defence Fund

7.

Government or to any such local authority, institution or association as may be approved in this behalf by the Central Government to be utilized for the purpose of promoting family planning.

 

8.

Any Zilla Sakshastha Samiti in any District constituted under Chairmanship of that District.

 

9.

National Blood Transfusion  Council or any State Blood Transfusion Council, having its sole object tp the control supervision regulation or encouragement in India of the services related to operation and requirements of blood banks.

 

10

Any fund set up by a State Government to provide medical relief to the poor. 

 

11.

The Army Central Welfare Fund or the Indian Naval Benevolent fund or the Air Force Central Welfare Fund established by the Armed forces of the Union. 

 

12

The Andhra Pradesh Chief Ministerís Cyclone Relief Fund.

 

13.

The National Illness Assistance fund. 

 

14.

The Chief ministerís Relief Fund or the Lieutenant- Governorís Relief Fund