Income Tax Benefits
Tax Saving Chart & Income Tax Benefits
The rates of income tax applicable under the Finance Act, for the financial year 2007-2008 and 2008-2009 in the case of an individual are given below
Previous Rates of Income Tax:
| 1. Where the total income does not exceed Rs. 1,00,000/- | Nil |
| 2. Where the total income exceeds Rs. 1,00,000/- but does not exceed Rs. 1,50,000/-. | 10 per cent of the amount by which the total income exceeds Rs. 1,00,000/-. |
| 3. Where the total income exceeds Rs. 1,50,000/- but does not exceed Rs. 2,50,000/-. |
Rs. 5,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 1,50,000/-. |
| 4. Where the total income exceeds Rs. 2,50,000/- |
Rs. 25,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 2,50,000/-. |
In case of Senior Citizens:
| Where the total income does not exceed Rs. 1,85,000/-. |
Nil |
| 2. Where the total income exceeds Rs. 1,85,000/- but does not exceed Rs. 2,50,000/-. |
20 per cent of the amount by which the total income exceeds Rs. 1,85,000/-. |
| Where the total income exceeds Rs. 2,50,000/-. |
Rs. 13,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 2,50,000/-. |
In case of women employees below 65 years of age:
| 1.Where the total income does not exceed Rs. 1,35,000/-. |
Nil |
| 2. Where the total income exceeds Rs. 1,35,000/- but does not exceed Rs. 1,50,000/-. |
10 per cent of the amount by which the total income exceeds Rs. 1,35,000/-. |
| 3. Where the total income exceeds Rs. 1,50,000/- but does not exceed Rs. 2,50,000/-. |
Rs. 15,00/- plus 20 per cent of the amount by which the total income exceeds Rs. 1,50,000/-. |
| 4. Where the total income exceeds Rs. 2,50,000/- |
Rs. 21,500/- plus 30 per cent of the amount by which the total income exceeds Rs. 2,50,000/-. |
Surcharge on Income Tax:
The amount of Income Tax so computed shall be increased
by a surcharge at the rate of 10% where the taxable income exceeds Rs. 10 lakh
An additional surcharge called the Education Cess is levied
at the rate of 2% on the amount of tax payable inclusive of surcharge.
Qualifying Investment Eligible for Rebate:
Section 80C(1): In computing the total income of an assessee, being an individual or a Hindu Undivided Family, in accordance with and subject to the provisions of this Section, the whole of the amount paid or deposited in the previous year out of his income chargeable to tax being the aggregate of the sums specified in the Section as does not exceed Rs. 1,00,000 shall be deducted from his income.
Tags: Income Tax Benefits, Income Tax on LIC, LIC Tax Benefits, Tax Benefits, Tax Planning, Tax Saving Schemes
Uncategorized | admin February 3, 2010 | 
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