Plan Your Tax

8/2/2019 Plan Your Tax

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PLAN YOUR TAX

DEDUCTIONS UNDER CHAPTER VI-A OFINCOME TAX ACT, 1961.


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TAX SLAB FOR

A.Y. 2012-2013


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FOR INDIVIDUALS OTHER THAN RESIDENTWOMEN ASSESSEE & RESIDENT SENIORCITIZENS. [ i.e. RESIDENT MALE]

Taxable Income IT EC +SHEC

Income Tax

Upto 1,80,000 Nil Nil Nil

1,80,010 5,00,000 10% 3% = (Taxable Income less 1,80,000)x 10%

5,00,010 8,00,000 20% 3% = 32,000 + (Taxable Income less

5,00,000) x 20%

Above 8,00,000 30% 3% = 92,000 + (Taxable Income less8,00,000) x 30%


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FOR RESIDENT WOMEN ASSESSEE BELOW60 YEARS

Taxable Income IT EC +SHEC

Income Tax

Upto 1,90,000 Nil Nil Nil

1,90,010 5,00,000 10% 3% = (Taxable Income less 1,90,000)x 10%

5,00,010 8,00,000 20% 3% = 31,000 + (Taxable Income less

5,00,000) x 20%

Above 8,00,000 30% 3% = 91,000 + (Taxable Income less8,00,000) x 30%


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HOW DO I PLAN MY

TAXES??DEDUCTIONS AVAILABLE ON YOUR TOTAL INCOME


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DEDUCTION U/S 80 C

LIST OF INVESTMENTS

In the name of Self or Spouse or Children or joint names

Life Insurance Premium (Max. 20% of the Sum Assured)

Public Provident Fund (Max Rs.70,000/- per Account as per PPF Rules)

ULIP Unit Linked Insurance Plan

Mutual Funds (Equity Linked Savings Scheme - ELSS)

In the name of Self or Joint names

PF, Voluntary PF (deducted in Salary Self)

Pension Plan (Self only)

National Savings Certificate NSC [Both Principle & Accrued Int.]

Housing Loan principal

Term Deposit for a fixed period not less than 5 years

Children Tuition Fee (Maximum 2 Children)


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DEDUCTION U/S 80 C

MAXIMUM LIMIT

Rs. 1,00,000/- is the limit. The overall rebate shall not exceed Rs. 1,00,000/

even if the Investments are more than Rs.1,00,000/-.

CONDITIONSa. Investment or contribution should be made in approved investment

schemes.

b. Deductions shall be allowed only on payment basis not on accrual basis.

c. Also deduction is allowed only if payment is made out of your funds in

case of Joint Investments & Investments made in the Name of Spouse or

Children.


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LT INFRA BONDS U/S 80 CCF

- Subscription to Long Term Infrastructure Bonds notified by the CG is available

for deduction under this Section. [L & T; IDCI, etc]

- Maximum amount : Rs. 20,000/-

HIGHLIGHTS OF THE BOND

a. Minimum Tenure of the Bond will be for 10 years.

b. Minimum lock-in period of the Bond is 5 years.

c. After Lock in period:

- Bonds can be sold in secondary market of through buyback.

- Bonds can be used for pledge /lien/hypothecation.


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MEDICLAIM U/S 80 D

AMOUNT OF DEDUCTION - Maximum

CONDITIONS

a. Payment shall be made by any mode of payment other than cash.

b. Least of Aggregate Premium paid or Maximum allowed can be claimed underthis Section.

Particulars General [


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PERSONAL DISABILITY U/S 80 U

AMOUNT OF DEDUCTION

- A fixed deduction of Rs. 75,000/- is allowed from his total income, if the person is suffering

from permanent physical disability and a higher deduction of Rs. 1,00,000/- is allowed if

the person is suffering from severe physical disability [i.e.. disability over 80%].

- Person with disability means a person having a disability of not less than 40%.

WHO WILL CERTIFY 40% OR 80% PHYSICAL DISABILITY ?

- Government physician for permanent physical disability (40% claim)

- Neurologist or Civil Surgeon or Chief Medical Officer in a Government Hospital for severe

physical disability ( 80% claim )


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DEPENDANT DISABILITY SEC. 80 DDa. A fixed deduction of Rs.50,000/- is allowed irrespective of amount paid for :

- Any expenditure incurred for the medical treatment, training and rehabilitation of a

handicapped dependent, or

- Any amount paid or deposited under a scheme framed in this behalf by the LIC or any

other insurer or UTI, approved by the Board in this behalf for maintenance of

handicapped dependent.

b. If the dependant is a person with severe disability [i.e. disability over 80%], deduction

is Rs. 1,00,000/-.

CONDITIONS

- Dependent means the parents, spouse, children, brother or sister of the individual.

- Such dependent should not have claimed any deduction U/s 80U in computing his total

income.


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MEDICAL TREATMENT SEC. 80 DDB

NATURE OF EXPENDITURE:

Expenditure incurred for medical treatment of specified diseases for Self/ Dependant Relative is

eligible for deduction under this section.

SPECIFIED DISEASES: as per Rule 11D.

(a) Neurological Diseases; (b) Cancer; (c) AIDS; (d) Chronic Renal Failure; (e) Heamophilia;

(f) Thalassaemia.

AMOUNT OF DEDUCTION:

(a) General [< 60 Years]: Rs. 40,000/-, (b) Senior Citizen: Rs. 60,000/- or amount actually

paid, whichever is less.

Continued


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MEDICAL TREATMENT SEC. 80 DDB

CONDITIONS:

(a) Deduction shall be reduced by the amount received from the Insurer or reimbursement by

the Employer, against any insurance for the medical treatment.

(b) Certificate is a must and should be obtained from the prescribed specialist in a

Government Hospital.


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INTEREST ON EDUCATION LOANSEC. 80 E

- Amount of interest paid on a loan taken from any financial institution for

pursuing any higher education after senior secondary examination for himself

or for his spouse or children

- This deduction would be allowed subject to a maximum of 8 years or till the full

payment of interest is made, whichever is earlier.

- There is no limit for claiming rebate. Any amount of Interest but not the

principal amount would be allowed as a deduction out of total taxable income.


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INTEREST ON HOUSING LOANELIGIBLE AMOUNT

- A maximum of Rs. 1,50,000/- can be claimed as an exemption, if the property is self

occupied.

- There is no limit for claiming the Interest paid on Housing Loan, if the property is let out

for rent. For this purpose, the employee has to provide Form 12C, which contains the

detailed calculation of Income / (Loss) on House Property as under:

Rental Income xxxx

Less: Property Tax & Water Tax xxxx

Net Annual Value [NAV] xxxx

Less: 30% for Repairs[on NAV] xxxx

Less: Interest on Borrowed Capital xxxx

Income / (Loss) from House Property xxxx


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INTEREST ON HOUSING LOANCONDITIONS

(a) The loan shall be borrowed for the purpose of acquisition, construction, repairs , renewals

or reconstruction of the House Property.

(b) Interest on unpaid interest shall not be allowed as deduction.

(c) Interest on fresh loan taken to repay the existing loan shall be allowed as deduction.

(d) PRIOR PERIOD INTEREST: Prior period interest shall be allowed in 5 equal installmentscommencing from the financial year in which the property was acquired or construction

was completed.

(e) Interest is allowed as deduction in the year of completion of construction or acquiring the

House Property.

(e) The assessee should furnish a certificate from the institution/ person from whom the

amount is borrowed, specifying the Interest.


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THANK YOU

Plan Your Tax

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