Tuesday, November 11, 2008

INCOME TAX 2008-09

INCOME TAX CALCULATION FOR THIS YEAR 2008-2009:
Taxable Income Slab (Rs.)Rate (%)
Up to 1,50,000Nil
Up to 1,80,000 (for Women)Nil
Up to 2,25,000 (for RI of 65 years or above)Nil
1,50,001 - 3,00,00010
3,00,001 - 5,00,00020
5,00,000 upwards30*
*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 PayGrade PayIncome P.M.*Income P.Y.*Tax - 1,50,000.*Tax - 2,50,000.*
744024001622219466944669NIL
774024001666119993749937NIL
804024001710020520555205NIL
834024001753921047360473NIL
864024001797821574165741NIL
894024001841722100971009NIL
924024001885622627776277NIL
954024001929523154581545NIL
837028001817221806668066NIL
871028001867022403574035NIL
905028001916723000480004NIL
939028001966423597385973NIL
973028002016224194291942NIL
1007028002065924791097910NIL
104102800211572538791038793879
93004200215812589721089728972
971042002218126616711616716167
1012042002278027336212336222362
1053042002338028055813055830558
1094042002397928775313775337753
1135042002457929494814494844948
1176042002517930214315214352143
1217042002577830933815933859338
1258042002637831653416653466534
1299042002697732372917372973729
1340042002757733092418092480924
1381042002817733811918811988119
* 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.
SectionInvestmentsAmountParticulars
80CNSC, Notified Bank Deposits, Post Office Time Deposits,EPF, PPF, ELSS, LICCannot exceed Rs.1 lakhPayment has to be made before 31 March 2008
80CCCPension Plans of life insureresCannot exceed Rs.1 lakhPayment has to be made before 31 March 2008
80DMedical Insurance Policy-Any member of Family (HUF)For Senior Citizens up to 20,000 Others Rs.15,000Paymet should be made through a Cheque
80DDMedical Treatment for Disability DependantRs 50,000 for a person with disability Rs 75,000 for severe disabilityMedical Certificate should be made
80DDBMedical 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
80EPayment of Interest on Loan for Higher StudiesDeduction available on the total interest amount of Education LoanOnly for Eight Immedaitely Succeeding assessment years
80GDonations to certain funds and charity50 or 100 percent deduction on the entire donated amountNil
80GGRent paid for Residential purposeExcess of actual rent paid over 10 percent of GTI or 25 percent of GTI or Rs.2,000 per month, whichever is the lowestShould not be getting House Rent Allowance
80UExpenses incurred on self, if disabledRs 50,000 for a person with disability Rs 75,000 for severe disabilityMedical Certificate should be made


  













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