In case of individual (other than II and III below) and HUF
|Income Level||Income Tax Rate|
|i.||Where the total income does not exceed Rs.1,60,000/-.||NIL|
|ii.||Where the total income exceeds Rs.1,60,000/- but does not exceed Rs.5,00,000/-.||10% of amount by which the total income exceeds Rs. 1,60,000/-|
|iii.||Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.||Rs. 34,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.|
|iv.||Where the total income exceeds Rs.8,00,000/-.||Rs. 94,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.|
II. In case of individual being a woman resident in India and below the age of 65 years at any time during the previous year:-
|Income Level||Income Tax Rate|
|i.||Where the total income does not exceed Rs.1,90,000/-.||NIL|
|ii.||Where total income exceeds Rs.1,90,000/- but does not exceed Rs.5,00,000/-.||10% of the amount by which the total income exceeds Rs.1,90,000/-.|
|iii.||Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.||Rs. 31,000- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.|
|iv.||Where the total income exceeds Rs.8,00,000/-||Rs.91,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.|
III. In case of an individual resident who is of the age of 65 years or more at any time during the previous year:-
|Income Level||Income Tax Rate|
|i.||Where the total income does not exceed Rs.2,40,000/-.||NIL|
|ii.||Where the total income exceeds Rs.2,40,000/- but does not exceed Rs.5,00,000/-||10% of the amount by which the total income exceeds Rs.2,40,000/-.|
|iii.||Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-||Rs.26,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.|
|iv.||Where the total income exceeds Rs.8,00,000/-||Rs.86,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.|
Education Cess: 3% of the Income-tax.
- SALARY INCOME INCLUDES :- PAY, DP, Band pay, Grade pay, DA, OTA, BONUS, CCA, Honorarium, Children Education Allowance Received, Pension, Subsistence Allowance, Government's Contribution in New Pension Scheme, Transport Allowance above Rs.800/- per month.
- House Rent Allowance to the extent not exempted under Section 10 (13A) of Income Tax Act.
- Agricultural Income. Click here for more details
Exemption under Section 10 (13A) in respect of HRA – Calculation Method:
Least of the following amount is to be treated as exempt from Income Tax.
- Actual House Rent Allowance Received, or
- Rent paid in excess of 10% of Pay in Pay band and Grade Pay or
- 50% of Pay in Pay band and Grade Pay if the employee is in Chennai/Mumbai/Kolkatta/Delhi and 40% of Pay in Pay Band and Grade Pay for the employees is in other places.
- If the employees resides in his/her own house or in a house for which he/she does not pay any rent, no HRA exemption is available.
TAX-INCENTIVE FOR SAVINGS – MAXIMUM LIMIT Rs. 1,00,000/-(Sec 80 CCE)
- Life Insurance Premium (limited 20% of the sum assured)
- Subscriptions to the GPF/CPF
- Subscriptions to the Mutual Fund
- Contribution toward CGEGIS
- Investments in NSC VIII & Accrued Interest on NSC deemed to be re-invested;
- Fixed Deposits for more than 5 years in SBI/Scheduled Banks/Post Office Five Year Time Deposit Scheme
- Repayment of HBA principal -Government /Bank/LIC/Housing Board/Co-operative Bank
- Tuition Fee paid limited to two children
- Subscriptions to equity shares/debentures forming part of any” eligible issue of Capital”—like Infrastructure Bonds (Sec 80 C)
- Contribution to any PENSION FUND, ULIP
- Contribution both by the individual and Government made to New Pension scheme (Sec 80 CCD)
Apart from this 1 lakh, amount up to Rs.20,000/- invested in Infrastructre Bond approved by Government is exempted. (Sec 80 CCF)
CHAPTER VI DEDUCTIONS
- Medical Insurance Premium: Maximum Rs.15,000/- and Rs.20,000 (for Senior Citizen) (Sec 80 D). Also Meducal Insurance Premium up to Rs.15,000 paid for Parents is also allowed to be deducted from the income. Click here for more details
- Handicapped Dependents- Maximum Rs.50,000/- (Disability) or Rs.75000/- ( Severe Disability) -Sec 80 DD- This claim required certficate under Section 139 of the Income Tax Act. Click here for more details
- Medical Treatment Expenses: Maximum Rs.40,000/- (Sec 80 DDB) Click here for more details
- Higher Education Loan repayment (Sec 80 E)- No limit- Click here for more details
- Approved Donation – Section 80G. Click here for more details
- Deduction under Section 80 U – An amount of Rs.50,000 and Rs.1 lakh in the case of self is physically disabled and severely physically disabled respectively. Click here for more details
- Deduction under Section 80 GG – Rent paid subject to ceiling as deduction under Section 80 GG if HRA not received. Click here for more details
- Deduction under Section 80 GGC – Donation paid to Political Parties. Click here for more details
- Deduction under Section 80 GGA – Donation paid to Scientific and Research and Rural development. Click here for more details
Income or Loss on House Property:
Interest paid on Loan obtained for constructing house property can not be deducted as such. It should be treated as loss on house property and income if any such as rent recived from the house property should be treated as an income from House property.
PAN is mandatory for filing income tax return with Income tax department and to implement the same Income tax department has come out with additional income tax liability to the assesses who did not provide their PAN in their income tax returns. The Extract of CBDT PR No. 402/92/2006-MC (04/2010) dated 20/01/2010, is as follows.
A new provision relating to tax deduction at source (TDS) under the Income Tax Ac 1961 will become applicable with effect from 1st April 2010. Tax at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account Number (PAN) of the deductee is not available. All deductors are liable to deduct tax at the higher rate in all transactions not having PAN of the deductees on or after 1st April 2010. In order that there is no dispute regarding quoting / non-quoting of PAN or accuracy thereof, the law requires all deductees and dedutors to quote PAN of deductees in all correspondences, bills, vouchers and other documents sent to each other. All deductors are, therefore, advised to intimate their deductees to obtain and furnish their PAN so as to avoid TDS at a higher rate.
As you know Incorporating all these aspects, GConnect has launched Online Income tax Tool to calculate your Exact Income tax liability. If you want to save your income and deduction details you can use the tool that comes with save option. It just require an additional step of getting user name and password. Still if you want to use instant calculator that does not require user name and password, use the no login version of GConnect Online income tax tool 2010-11 (Assessment year 2011-12)