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 |
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