Friday, June 26, 2009
Expecting an increase upto Rs.1.5 lakhs....!
Expecting an increase upto Rs.1.5 lakhs Income Tax exemptions under Section-80C. one of the most important provisions for investors in the tax laws
What is Income Tax Section-80C?
The government, in order to encourage savings, gives tax breaks to certain financial products as discussed in Section 80C of the Income Tax Act. These investments are often referred to as 80C investments.
In India only Government Employees are paying their Income Tax regularly. The salary and other income of a Government Servant are calculated exactly and the amount for the tax is recovered in the early stages itself at their respective departments. Hence, Government Employees will be delighted to hear if any increase in the individual Income Tax exemption limit.
But there is no indication of an increase in individual Income Tax limit. In contrast, there will be a change in the Income Tax exemption under 80C. Now the limit of savings under 80C is one lakh and the expected limit is Rs. 1.5 lakhs. Even though this doesn’t make a hue difference, it can benefit some employees.
Regarding the Income Tax, an individual can earn upto 1.5 lakhs without tax in a year. After that, 10% is deducted upto Rs.3 lakhs. 20% deducted from Rs.3 lakhs to Rs.5 lakhs and 30% is deducted from Rs.5 lakhs and above. For women, there is not tax upto Rs. 1.8 lakhs and for Senior Citizens, no tax upto Rs.2.25 lakhs.
:
Monday, June 1, 2009
Standard deduction for salaried employees may return…!
Ahead of the annual budget, here’s some cheer for salaried employees and pensioners. The finance ministry is considering bringing back standard deduction of up to Rs 20,000 in individual taxable incomes.
According to revenue department officials, the government may be willing to take a small hit in return for a spike in spending that it hopes will result from a bigger disposable income with the salaried classes.
Till the budget for 2005-06, a standard deduction of Rs 30,000 or 40 per cent of income, whichever was lower, was allowed to salaried employees with an annual income between Rs 75,000 and Rs 5 lakh. For those earning more, the standard deduction was fixed at Rs 20,000.
The standard deduction was meant to compensate salaried people for the fact that self-employed small business persons or entrepreneurs paid tax only on their net income after deducting business expenditure.
Industry has been demanding the re-introduction of standard deduction so that individual taxpayers are able to spend more and stimulate domestic demand. As Indira Gandhi’s finance minister, Pranab Mukherjee had in fact, raised it from Rs 5,000 to Rs 6,000 in the budget for 1983-84.
“There are two ways of looking at reducing personal tax. One option before the government is to do away with surcharges. The other option would be to give relief to individual earnings up to a particular level. In other words, keeping in mind fiscal deficit constraints, the benefit could be extended to only lower income earners.
This would help reduce administrative burden of the department and focus on the big fish,” said Sudhir Kapadia, Partner, Taxation, Ernst & Young. P Chidambaram had as finance minister removed the standard deduction after overhauling tax slabs and raising the exemption limit to Rs 1 lakh. He had introduced three slabs of 10 per cent, 20 per cent and 30 per cent for individuals in the Rs 1 lakh to Rs 1.5 lakh income bracket, Rs 1.5 lakh to Rs 2.5 lakh and over Rs 2.5 lakh respectively.
Source: The Indian Express
"Standard deduction should be restored," the Institute of Chartered Accountants of India (ICAI) said in its pre-Budget memorandum to the government.
Thursday, April 9, 2009
Income Tax for Leave Travel Concession Amount and Encashment Leave Amount
Income Tax for Leave Travel Concession Amount
The LTC that you get is fully exempt from Income Tax, provided it satisfies certain conditions. Here are the conditions.
The amount is actually spent on travel:
You have to actually spend this amount on transportation. The spending cab be for you and your family members, but you have to be one of the travelers.
Here, family means spouse and children (including adopted children and stepchildren). Parents, brothers and sisters are also included if they are dependent on you.
It has to be for transportation:
The amount has to be spent on transportation either Air, Rail or Road.
Any amount spent for lodging and boarding is not considered. Thus, food related expenses and hotel expenses are not exempt from income tax.
Also, this exemption is for primary travel between your city of stay and your destination. Other travel expenses like taxi / cab fare, auto fare, etc, can not be claimed as exempt. The travel has to be within India, foreign travel is not considered.
Carry forward of LTC benefits:
What if you can not claim LTC exemption for some reason? No need to worry. The exemption doesn’t lapse, ti can be carried forward to the next block of four years.
The only condition in this case is that the exemption has to be availed in the very first year of this subsequent block.
Thus, in this next block, you can claim a total of three exemptions.
Leave encashment – is it taxable?
The amount received from any leave enchased while you are still in service is added to your income, and is fully taxable. It is taxed as per the income tax slab applicable to you.
Government of India, Ministry of Finance
CENTRAL BOARD OF DIRECT TAXES
Directorate of Income Tax (Human Resource Development)
ICADR Building, Plot No.6, Vasant Kunj Institutional Area Phase-II
New Delhi - 110070. Telefax 26130594, Tel. 26130592
dated 6th March, 2009th F.No. HRD/CM/175/15/2008-09/324
Clarification on grant of Grade Pay of Rs. 5400 in PB-2 on non-functional basis to Income Tax Officersof Income Tax Department
To,
All Chief Commissioners of Income Tax (CCA)
All Director Gererals of Income Tax
Sir / Madam,
I am directed to invite your attention to Government of India, Department of Expenditure resolution No. 1/1/2008-1Cdated 29th August 2008 notifying acceptance of recommendations of 6th Central Pay Commission, wherein it was dicidedto grant Grade Pay of Rs. 5400 in PB-2 on non-functional basis to Group B officers of Income Tax Department (i.e. Income Tax Officers) after 4 years of regular service in the grade pay of Rs.4800 in PB-2. The relevant portion of Section II, part C, FirstSchedule of the notification No. GSR 622(E) dated 29th August is reproduced below:-
2. Clarifications have been sought by many field formations, individual officers as well as employees association (ITGOA) on how the period of 4 yesrs is to be counted for this purpose. i.e. whether the period of 4 years of regular service is to be countedfrom the date of promotion in the grade fo Income Tax Officers or from the date when the pay scale of Income Tax Officers was revised from Rs. 6500 - 10500 (pre-revised) to Rs. 7500 - 12000 (pre-revised), i.e., from 21st April 2004.
Post Present Scale Reivised Pay Scale Corresponding Pay Band and Grade Pay
Pay Band Grade Pay
Income Tax Officers 7500 - 12000 7500 - 12000
8000 - 13500
(after 4 years) PB - 2
PB - 2 4800
5400
3. The issue has been examined in the Board. It is hereby clarified that all Income Tax Officers, who have completed 4 yearsor more of regular service in the grade of Income Tax Officers as on 1st January 2006 would be entitled to the grade pay of Rs. 5400 in PB-2 on non-functional basis on 1st January 2006, irrespective of the fact that pay scale of Income Tax Officersstood revised to Rs. 7500 - 12000 from 21st April 2004. Further, after 1st January 2006, grade pay of Rs. 5400 in PB-2 on non-functional basis would be granted to an Income Tax Officers on completion of 4 years of regular service in the grade of Income Tax Officer.
Yours sincerely,
(Praveen Kishore)
Joint Director of Income Tax (HRD) New Delhi
Monday, February 16, 2009
Key Features of Interim Budget 2009 - 2010
Interim Budget leaves direct taxes unchanged...
Key Features of Interim Budget 2009 - 2010
• The Gross Domestic Product increased by 7.5 per cent, 9.5 per cent, 9.7 per cent and 9 per cent in the first four years from fiscal year 2004 - 05 to 2007 - 08 recording a sustained growth of 9 per cent for three consecutive years for the first time. The growth drivers for the period were agriculture, services, manufcturing along with trade and construction.
• Due to revision in Educational Loan Scheme by the Government number of beneficiaries increased from 3.19 lakh to 14.09 lakh and amount of loan outstanding increased from Rs.4500 crore as on March, 31, 2004 to Rs.24260 crore as on September 30, 2008.
• 500 ITIs upgraded into centers of excellence. National Skill Development Corporation created in July, 2008 with initial corpus of Rs.1000 crore.
• Scope of the pre-metric scholarship for children of those engaged in unclean occupations expanded and rates of scholarship duubled in 2008-09. Annual ad-hoc grant increased by about 50 per cent as compared to earlier rates.
• Two new schemes - 'Indira Gandhi National Widow Pension Scheme' to provide pension of Rs.200 to widows between age groups of 40-64 years and 'Indira Gandhi National Disability Pension Scheme' to provide pension for severely disabled persons.
• Widows in the age group of 18-40 years to be given priority in admission to ITIs, Women ITIs National/Regional ITIs for women. Government to bear cost of their training and provide stipend of Rs.500 per month.
• Government approved implementation of Guidelines on Corprate Governance in Central Public Sector Enterprises (CPSEs) in June, 2007.
• Recommendations of the Sixth Central Pay Commission approved by the Government has benefited over 45 lakh Central Government employees including Defence Forces and Para-Military forces and over 38 lakh pensioners.
Tuesday, November 11, 2008
INCOME TAX 2008-09
INCOME TAX CALCULATION FOR THIS YEAR 2008-2009:
Taxable Income Slab (Rs.) Rate (%)
Up to 1,50,000 Nil
Up to 1,80,000 (for Women) Nil
Up to 2,25,000 (for RI of 65 years or above) Nil
1,50,001 - 3,00,000 10
3,00,001 - 5,00,000 20
5,00,000 upwards 30*
*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs 1,000,000 Note :Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any. The aggregate amount of deduction under sections 80C, 80CCC and 80CCD shall not exceed Rs. 1,00,000 (Section 80CCE)
House rent paid for own residence: (Section 80GG) That will be entitled to a deduction in respect of house rent paid by an employee in excess of 10 per cent of his total income, subject to a ceiling of 25 Per cent thereof or Rs. 2000 per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. Tax concessions make home loans more attractive: Repayment of the principal amount of a home loan, maximum deduction of Rs.1 lakh (Rs 1,00,000) is allowed per year. The entire amount of interest paid is allowed as deduction of Rs.1.5 lakh (Rs 1,50,000) is allowed.
Below the simple calculation of Annual Payment for those employees
having Basic Pay from Rs.9,840 to Rs.18,000 and
their approximate taxable amount even if they saved Rs one lakh,
additionally not to taken any extra income sources for claculating...
Basic Pay Grade Pay Income P.M.* Income P.Y.* Tax - 1,50,000.* Tax - 2,50,000.*
7440 2400 16222 194669 44669 NIL
7740 2400 16661 199937 49937 NIL
8040 2400 17100 205205 55205 NIL
8340 2400 17539 210473 60473 NIL
8640 2400 17978 215741 65741 NIL
8940 2400 18417 221009 71009 NIL
9240 2400 18856 226277 76277 NIL
9540 2400 19295 231545 81545 NIL
8370 2800 18172 218066 68066 NIL
8710 2800 18670 224035 74035 NIL
9050 2800 19167 230004 80004 NIL
9390 2800 19664 235973 85973 NIL
9730 2800 20162 241942 91942 NIL
10070 2800 20659 247910 97910 NIL
10410 2800 21157 253879 103879 3879
9300 4200 21581 258972 108972 8972
9710 4200 22181 266167 116167 16167
10120 4200 22780 273362 123362 22362
10530 4200 23380 280558 130558 30558
10940 4200 23979 287753 137753 37753
11350 4200 24579 294948 144948 44948
11760 4200 25179 302143 152143 52143
12170 4200 25778 309338 159338 59338
12580 4200 26378 316534 166534 66534
12990 4200 26977 323729 173729 73729
13400 4200 27577 330924 180924 80924
13810 4200 28177 338119 188119 88119
* approximately Monthly Payment = Basic Pay + Grade Pay + D A + H R A + T A Yearly Payment = 12 x Monthly Payment (Additional Income to be added : SPL allowances, Over time allowance, PWS profit, NDA, NSB, Incentive etc.)
Housing Loan is only the source to reduce
the taxable amount,
eventhough the interest of housing loan is flucuated.
SECTION – 80C
The single most important provisions for investers.
The governement in order to encourage savings, gives tax deduction
to particualr financial invetments as decided in section 80C of the Income Tax.
These investments are often referred to as 80C investments.One can invest
up to Rs 1 lakh in approved schemes and save taxes up to Rs 30,000.
That is, in all instruments put together and the entire amount of
Rs one lakh will be deducted from your taxable income.
Section Investments Amount Particulars
80C NSC, Notified Bank Deposits, Post Office Time Deposits,EPF, PPF, ELSS, LIC Cannot exceed Rs.1 lakh Payment has to be made before 31 March 2008
80CCC Pension Plans of life insureres Cannot exceed Rs.1 lakh Payment has to be made before 31 March 2008
80D Medical Insurance Policy-Any member of Family (HUF) For Senior Citizens up to 20,000 Others Rs.15,000 Paymet should be made through a Cheque
80DD Medical Treatment for Disability Dependant Rs 50,000 for a person with disability Rs 75,000 for severe disability Medical Certificate should be made
80DDB Medical Treatment for Specified Diseases (Cancer,AIDS,Neurological etc.) Rs.40,000(Age of below 65) Rs.60,000(Age of 65 and above) Certificate in Form No.10-I to be submitted
80E Payment of Interest on Loan for Higher Studies Deduction available on the total interest amount of Education Loan Only for Eight Immedaitely Succeeding assessment years
80G Donations to certain funds and charity 50 or 100 percent deduction on the entire donated amount Nil
80GG Rent paid for Residential purpose Excess of actual rent paid over 10 percent of GTI or 25 percent of GTI or Rs.2,000 per month, whichever is the lowest Should not be getting House Rent Allowance
80U Expenses incurred on self, if disabled Rs 50,000 for a person with disability Rs 75,000 for severe disability Medical Certificate should be made
Friday, June 26, 2009
Expecting an increase upto Rs.1.5 lakhs....!
Expecting an increase upto Rs.1.5 lakhs Income Tax exemptions under Section-80C. one of the most important provisions for investors in the tax laws
What is Income Tax Section-80C?
The government, in order to encourage savings, gives tax breaks to certain financial products as discussed in Section 80C of the Income Tax Act. These investments are often referred to as 80C investments.
In India only Government Employees are paying their Income Tax regularly. The salary and other income of a Government Servant are calculated exactly and the amount for the tax is recovered in the early stages itself at their respective departments. Hence, Government Employees will be delighted to hear if any increase in the individual Income Tax exemption limit.
But there is no indication of an increase in individual Income Tax limit. In contrast, there will be a change in the Income Tax exemption under 80C. Now the limit of savings under 80C is one lakh and the expected limit is Rs. 1.5 lakhs. Even though this doesn’t make a hue difference, it can benefit some employees.
Regarding the Income Tax, an individual can earn upto 1.5 lakhs without tax in a year. After that, 10% is deducted upto Rs.3 lakhs. 20% deducted from Rs.3 lakhs to Rs.5 lakhs and 30% is deducted from Rs.5 lakhs and above. For women, there is not tax upto Rs. 1.8 lakhs and for Senior Citizens, no tax upto Rs.2.25 lakhs.
:
Monday, June 1, 2009
Standard deduction for salaried employees may return…!
Ahead of the annual budget, here’s some cheer for salaried employees and pensioners. The finance ministry is considering bringing back standard deduction of up to Rs 20,000 in individual taxable incomes.
According to revenue department officials, the government may be willing to take a small hit in return for a spike in spending that it hopes will result from a bigger disposable income with the salaried classes.
Till the budget for 2005-06, a standard deduction of Rs 30,000 or 40 per cent of income, whichever was lower, was allowed to salaried employees with an annual income between Rs 75,000 and Rs 5 lakh. For those earning more, the standard deduction was fixed at Rs 20,000.
The standard deduction was meant to compensate salaried people for the fact that self-employed small business persons or entrepreneurs paid tax only on their net income after deducting business expenditure.
Industry has been demanding the re-introduction of standard deduction so that individual taxpayers are able to spend more and stimulate domestic demand. As Indira Gandhi’s finance minister, Pranab Mukherjee had in fact, raised it from Rs 5,000 to Rs 6,000 in the budget for 1983-84.
“There are two ways of looking at reducing personal tax. One option before the government is to do away with surcharges. The other option would be to give relief to individual earnings up to a particular level. In other words, keeping in mind fiscal deficit constraints, the benefit could be extended to only lower income earners.
This would help reduce administrative burden of the department and focus on the big fish,” said Sudhir Kapadia, Partner, Taxation, Ernst & Young. P Chidambaram had as finance minister removed the standard deduction after overhauling tax slabs and raising the exemption limit to Rs 1 lakh. He had introduced three slabs of 10 per cent, 20 per cent and 30 per cent for individuals in the Rs 1 lakh to Rs 1.5 lakh income bracket, Rs 1.5 lakh to Rs 2.5 lakh and over Rs 2.5 lakh respectively.
Source: The Indian Express
"Standard deduction should be restored," the Institute of Chartered Accountants of India (ICAI) said in its pre-Budget memorandum to the government.
Thursday, April 9, 2009
Income Tax for Leave Travel Concession Amount and Encashment Leave Amount
Income Tax for Leave Travel Concession Amount
The LTC that you get is fully exempt from Income Tax, provided it satisfies certain conditions. Here are the conditions.
The amount is actually spent on travel:
You have to actually spend this amount on transportation. The spending cab be for you and your family members, but you have to be one of the travelers.
Here, family means spouse and children (including adopted children and stepchildren). Parents, brothers and sisters are also included if they are dependent on you.
It has to be for transportation:
The amount has to be spent on transportation either Air, Rail or Road.
Any amount spent for lodging and boarding is not considered. Thus, food related expenses and hotel expenses are not exempt from income tax.
Also, this exemption is for primary travel between your city of stay and your destination. Other travel expenses like taxi / cab fare, auto fare, etc, can not be claimed as exempt. The travel has to be within India, foreign travel is not considered.
Carry forward of LTC benefits:
What if you can not claim LTC exemption for some reason? No need to worry. The exemption doesn’t lapse, ti can be carried forward to the next block of four years.
The only condition in this case is that the exemption has to be availed in the very first year of this subsequent block.
Thus, in this next block, you can claim a total of three exemptions.
Leave encashment – is it taxable?
The amount received from any leave enchased while you are still in service is added to your income, and is fully taxable. It is taxed as per the income tax slab applicable to you.
Government of India, Ministry of Finance
CENTRAL BOARD OF DIRECT TAXES
Directorate of Income Tax (Human Resource Development)
ICADR Building, Plot No.6, Vasant Kunj Institutional Area Phase-II
New Delhi - 110070. Telefax 26130594, Tel. 26130592
dated 6th March, 2009th F.No. HRD/CM/175/15/2008-09/324
Clarification on grant of Grade Pay of Rs. 5400 in PB-2 on non-functional basis to Income Tax Officersof Income Tax Department
To,
All Chief Commissioners of Income Tax (CCA)
All Director Gererals of Income Tax
Sir / Madam,
I am directed to invite your attention to Government of India, Department of Expenditure resolution No. 1/1/2008-1Cdated 29th August 2008 notifying acceptance of recommendations of 6th Central Pay Commission, wherein it was dicidedto grant Grade Pay of Rs. 5400 in PB-2 on non-functional basis to Group B officers of Income Tax Department (i.e. Income Tax Officers) after 4 years of regular service in the grade pay of Rs.4800 in PB-2. The relevant portion of Section II, part C, FirstSchedule of the notification No. GSR 622(E) dated 29th August is reproduced below:-
2. Clarifications have been sought by many field formations, individual officers as well as employees association (ITGOA) on how the period of 4 yesrs is to be counted for this purpose. i.e. whether the period of 4 years of regular service is to be countedfrom the date of promotion in the grade fo Income Tax Officers or from the date when the pay scale of Income Tax Officers was revised from Rs. 6500 - 10500 (pre-revised) to Rs. 7500 - 12000 (pre-revised), i.e., from 21st April 2004.
Post Present Scale Reivised Pay Scale Corresponding Pay Band and Grade Pay
Pay Band Grade Pay
Income Tax Officers 7500 - 12000 7500 - 12000
8000 - 13500
(after 4 years) PB - 2
PB - 2 4800
5400
3. The issue has been examined in the Board. It is hereby clarified that all Income Tax Officers, who have completed 4 yearsor more of regular service in the grade of Income Tax Officers as on 1st January 2006 would be entitled to the grade pay of Rs. 5400 in PB-2 on non-functional basis on 1st January 2006, irrespective of the fact that pay scale of Income Tax Officersstood revised to Rs. 7500 - 12000 from 21st April 2004. Further, after 1st January 2006, grade pay of Rs. 5400 in PB-2 on non-functional basis would be granted to an Income Tax Officers on completion of 4 years of regular service in the grade of Income Tax Officer.
Yours sincerely,
(Praveen Kishore)
Joint Director of Income Tax (HRD) New Delhi
Monday, February 16, 2009
Key Features of Interim Budget 2009 - 2010
Interim Budget leaves direct taxes unchanged...
Key Features of Interim Budget 2009 - 2010
• The Gross Domestic Product increased by 7.5 per cent, 9.5 per cent, 9.7 per cent and 9 per cent in the first four years from fiscal year 2004 - 05 to 2007 - 08 recording a sustained growth of 9 per cent for three consecutive years for the first time. The growth drivers for the period were agriculture, services, manufcturing along with trade and construction.
• Due to revision in Educational Loan Scheme by the Government number of beneficiaries increased from 3.19 lakh to 14.09 lakh and amount of loan outstanding increased from Rs.4500 crore as on March, 31, 2004 to Rs.24260 crore as on September 30, 2008.
• 500 ITIs upgraded into centers of excellence. National Skill Development Corporation created in July, 2008 with initial corpus of Rs.1000 crore.
• Scope of the pre-metric scholarship for children of those engaged in unclean occupations expanded and rates of scholarship duubled in 2008-09. Annual ad-hoc grant increased by about 50 per cent as compared to earlier rates.
• Two new schemes - 'Indira Gandhi National Widow Pension Scheme' to provide pension of Rs.200 to widows between age groups of 40-64 years and 'Indira Gandhi National Disability Pension Scheme' to provide pension for severely disabled persons.
• Widows in the age group of 18-40 years to be given priority in admission to ITIs, Women ITIs National/Regional ITIs for women. Government to bear cost of their training and provide stipend of Rs.500 per month.
• Government approved implementation of Guidelines on Corprate Governance in Central Public Sector Enterprises (CPSEs) in June, 2007.
• Recommendations of the Sixth Central Pay Commission approved by the Government has benefited over 45 lakh Central Government employees including Defence Forces and Para-Military forces and over 38 lakh pensioners.
Tuesday, November 11, 2008
INCOME TAX 2008-09
INCOME TAX CALCULATION FOR THIS YEAR 2008-2009:
Taxable Income Slab (Rs.) Rate (%)
Up to 1,50,000 Nil
Up to 1,80,000 (for Women) Nil
Up to 2,25,000 (for RI of 65 years or above) Nil
1,50,001 - 3,00,000 10
3,00,001 - 5,00,000 20
5,00,000 upwards 30*
*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs 1,000,000 Note :Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any. The aggregate amount of deduction under sections 80C, 80CCC and 80CCD shall not exceed Rs. 1,00,000 (Section 80CCE)
House rent paid for own residence: (Section 80GG) That will be entitled to a deduction in respect of house rent paid by an employee in excess of 10 per cent of his total income, subject to a ceiling of 25 Per cent thereof or Rs. 2000 per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. Tax concessions make home loans more attractive: Repayment of the principal amount of a home loan, maximum deduction of Rs.1 lakh (Rs 1,00,000) is allowed per year. The entire amount of interest paid is allowed as deduction of Rs.1.5 lakh (Rs 1,50,000) is allowed.
Below the simple calculation of Annual Payment for those employees
having Basic Pay from Rs.9,840 to Rs.18,000 and
their approximate taxable amount even if they saved Rs one lakh,
additionally not to taken any extra income sources for claculating...
Basic Pay Grade Pay Income P.M.* Income P.Y.* Tax - 1,50,000.* Tax - 2,50,000.*
7440 2400 16222 194669 44669 NIL
7740 2400 16661 199937 49937 NIL
8040 2400 17100 205205 55205 NIL
8340 2400 17539 210473 60473 NIL
8640 2400 17978 215741 65741 NIL
8940 2400 18417 221009 71009 NIL
9240 2400 18856 226277 76277 NIL
9540 2400 19295 231545 81545 NIL
8370 2800 18172 218066 68066 NIL
8710 2800 18670 224035 74035 NIL
9050 2800 19167 230004 80004 NIL
9390 2800 19664 235973 85973 NIL
9730 2800 20162 241942 91942 NIL
10070 2800 20659 247910 97910 NIL
10410 2800 21157 253879 103879 3879
9300 4200 21581 258972 108972 8972
9710 4200 22181 266167 116167 16167
10120 4200 22780 273362 123362 22362
10530 4200 23380 280558 130558 30558
10940 4200 23979 287753 137753 37753
11350 4200 24579 294948 144948 44948
11760 4200 25179 302143 152143 52143
12170 4200 25778 309338 159338 59338
12580 4200 26378 316534 166534 66534
12990 4200 26977 323729 173729 73729
13400 4200 27577 330924 180924 80924
13810 4200 28177 338119 188119 88119
* approximately Monthly Payment = Basic Pay + Grade Pay + D A + H R A + T A Yearly Payment = 12 x Monthly Payment (Additional Income to be added : SPL allowances, Over time allowance, PWS profit, NDA, NSB, Incentive etc.)
Housing Loan is only the source to reduce
the taxable amount,
eventhough the interest of housing loan is flucuated.
SECTION – 80C
The single most important provisions for investers.
The governement in order to encourage savings, gives tax deduction
to particualr financial invetments as decided in section 80C of the Income Tax.
These investments are often referred to as 80C investments.One can invest
up to Rs 1 lakh in approved schemes and save taxes up to Rs 30,000.
That is, in all instruments put together and the entire amount of
Rs one lakh will be deducted from your taxable income.
Section Investments Amount Particulars
80C NSC, Notified Bank Deposits, Post Office Time Deposits,EPF, PPF, ELSS, LIC Cannot exceed Rs.1 lakh Payment has to be made before 31 March 2008
80CCC Pension Plans of life insureres Cannot exceed Rs.1 lakh Payment has to be made before 31 March 2008
80D Medical Insurance Policy-Any member of Family (HUF) For Senior Citizens up to 20,000 Others Rs.15,000 Paymet should be made through a Cheque
80DD Medical Treatment for Disability Dependant Rs 50,000 for a person with disability Rs 75,000 for severe disability Medical Certificate should be made
80DDB Medical Treatment for Specified Diseases (Cancer,AIDS,Neurological etc.) Rs.40,000(Age of below 65) Rs.60,000(Age of 65 and above) Certificate in Form No.10-I to be submitted
80E Payment of Interest on Loan for Higher Studies Deduction available on the total interest amount of Education Loan Only for Eight Immedaitely Succeeding assessment years
80G Donations to certain funds and charity 50 or 100 percent deduction on the entire donated amount Nil
80GG Rent paid for Residential purpose Excess of actual rent paid over 10 percent of GTI or 25 percent of GTI or Rs.2,000 per month, whichever is the lowest Should not be getting House Rent Allowance
80U Expenses incurred on self, if disabled Rs 50,000 for a person with disability Rs 75,000 for severe disability Medical Certificate should be made
Circular 8/2023
6 months ago
