Rs. 1000 + 20%o f the income exceeding
Over Rs. 1,50,000
Rs.19,000+30%o f the income exceeding
Surcharge: If Total Income>Rs.850000,
Surcharge @10% on the tax payable.
Education Cess: @2% on the tax payable (including surcharge).
REBATES FOR SENIOR CITIZENS AND
For resident senior citizens (above 65 yrs.), an amount of Rs
20,000 is deductible from tax liability u/s 88B.
Rules for ‘Senior Citizens’ are same for ‘Men’ and ‘Women’. Any
person who turns 65 years on any day prior to or on 31 March 2005
will be treated as senior citizen.
In case of women below 65 yrs., an exclusive
rebate of Rs 5000 is allowed u/s 88C.
Gross Annual Salary
Up to Rs. 5,00,000
Rs. 30,000 or 40% of annual salary which
ever is less
Above Rs 5,00,000
SOME PERMISSIBLE DEDUCTIONS
» 80 CCC(1)- Upto Rs. 10000
in respect of contribution to Pension Plan of any Life Insurance
Co. » 80 D- In respect of
Medical Insurance Premium paid by cheque up to Rs. 10000 (Rs.
15000 if the premium is paid for a senior citizen) » 80 L-
to Rs. 12000 in respect of interest on Bank Deposits, Bank S/B A/c,
PO MIS, NSC, NSS 92, Time Deposit, RD, FD with Housing Finance Cos,
Bonds by Financial Institutions. (b) Up to Rs. 3000 in respect of interest on state/ central
TAX REBATE U/S 88
Tax rebate is allowed on maximum investment of up
to Rs. 1,00,000 in one or more of the followings : - » Infrastructure Bonds
(Rs. 30,000 exclusively reserved) » PPF/GPF/EPF » Life Insurance premiums
» ULIP » NSCs » ELSS Schemes (maximum
up to Rs 10,000) » Retirement Benefit
Plan (UTI)/Pension Plan from FTMF » Repayment of Housing
Loan upto Rs. 20,000. » Tuition Fees of any
two children up to maximum Rs.12000 per chid.
AMOUT OF REBATE U/S 88
» In case of an individual
or HUF having gross salary up to Rs. 100000 and net salary being
90% of his gross Total Income- 30% of the qualifying amount. » If Gross Total Income
(before allowing deductions under chapter VI-A) is up to Rs. 1,50,000
– 20% of the qualifying amount. » If Gross Total Income
(before allowing deductions under chapter VI-A) is between Rs.
1,50,001 to Rs. 5,00,000 – 20% of the qualifying amount. » If Gross Total Income
is above Rs. 5,00,000- Nil
Short Term-Gains on transfer of capital assets held by the assessee
for not more than 36 months (12 months in case of shares held
in a company or any other security listed in a recognised stock
exchange in India, or units of Mutual funds
Long Term-Gains on transfer of capital assets held by the assessee
for more than 36 months (12 months in case of shares held in a
company or any other listed security or units of Mutual Funds.
RATES OF CAPITAL GAIN TAX
Short Term Capital Gain » Short Term Capital
Gain is included in Gross Total Income and normal rates of tax
will apply which are applicable to the assessee.
» In case of ST Capital
Gain from sale of equity shares or units of equity oriented mutual
fund schemes, the ST Capital Gains are taxed at a flat rate of
10% irrespective of the tax slab applicable to the assesse, provided
securities transaction tax is paid on such sale.
Long Term Capital Gain » On sale of listed
shares or units of equity oriented mutual funds schemes-LTCG is
exempt from tax, provided STT has been paid on such sale
sale of other financial assets-listed securities (bonds/ debt) or
units of debt oriented MF schemes-20% of the capital gain after
allowing indexation benefit or @ 10% flat without indexation benefit,
whichever is less.
» On sale of other capital
assets-@ 20% flat after allowing indexation benefit. HOW TO SAVE CAPITAL GAIN TAX
Any Long Term captial gain shall be exempt from tax if it is
invested in bonds issued by NHB, REC, NABARD, NHAI or SIDBI within
6 months from the date of transfer.
Tax on LT capital gain on sale
of a residential house can be saved by buying another residential
house within a period of one year before or two years after the
date of transfer of original house, or by constructing a new residential
house within three years of sale.
HOW TO SAVE Rs. 21420 BY INVESTING
Rs. 120000 ?
U/s 88 @ 15%
Education Cess Saved
Total Tax Saved (Rs)
*For an individual in 30% tax slab.
For more information on how to save tax please write to firstname.lastname@example.orgOr Contact your nearest Bajaj Capital Investment centre