Tax rate of current year and how one can save tax in india? -

Tax slab applicable for this financial year i.e. Income received during 1st of April 2008 to 31st March 2010.

Individual & HUF below age of 65 years:

Male

For Income Between 0 to 1,60,000 : NIL

For Income Between 1,60,001 to 3,00,000 : 10%

For Income Between 3,00,001 to 5,00,000 : 20%

For Income above 5,00,001: 30%

Education Cess 3%

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Female

For Income Between 0 to 1,90,000 :                                         NIL

For Income Between 1,90,001 to 3,00,000 :                             10%

For Income Between 3,00,001 to 5,00,000 :                            20%

For Income above 5,00,001:                                                     30%

Education Cess 3%

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Senior Citizen Tax

For Income Between 0 to 2,40,000                                        NIL

For Income Between 2,40,001 to 3,00,000                         10%

For Income Between 3,00,001 to 5,00,000                            20%

For Income above 5,00,001                                                  30%

Education Cess 3%

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One can avail following deductions:

1. HRA i.e house rent allowance
2.Travel allowance of Rs.800/ month i.e. Rs.9600.00 per year
3.Food coupons not more than Rs.800/ months i.e. 9600.00 per year
4.Deduction U/S 80C to the extent of Rs.100000.00 which one can invest in the following scheme

(A) PENSION SCHEME INVESTMENTS
(B) HOUSING LOAN PRINCIPAL REPAYMENT

(D) HOME LOAN ACCOUNT OF NATIONAL HOUSING BANK

(E) LIC – LIFE INSURANCE PREMIUM DIRECTLY PAID BY EMPLOYEE

(F) ULIP 1971-ULIP LINKED INSURANCE PLAN FROM UTI

(G) NSC – NATIONAL SAVING CERTIFICATE

(H) DEPOSIT UNDER POST OFFICE SAVING BANK (CTD) RULES, 1959

(I) NSS – NATIONAL SAVING SCHEME

(J) UTI – RETIREMENT BENEFIT PLAN

(K) INFRASTRUCTURE INVESTMENT – NOTIFIED U/S 10 (23D)

(L) MUTUAL FUNDS – NOTIFIED UNDER CLAUSE 23D OF SECTION 10

(M) ELSS – EQUITY LINK SAVING SCHEME OF MUTUAL FUNDS

(N) TUITION FEES FOR FULL TIME EDUCATION TO INDIAN SCHOOL, UNIVERSITY

(O) Fixed Deposits in Banks (Period as per Income Tax Guidelines)

(P) 5 years term deposit an account under Post Office Term Deposit Rules

(Q) Depsoit in account under the senior citizens savings scheme rule 2004

5.U/S 80D : MEDICLAIM PREMIUM (For Self, Spouse, Dependent Children & Parents) Maximum Limit Rs. 15000/- & Rs. 20000/- in case of premium on the health of Dependents above 65 years old otherwise of Rs.15000/-

6.Medical Bill to the extent of Rs.15000.00

7.U/S 80E INTEREST ON EDUCATION LOAN (for self education) – No Maximum Limit

8.INTEREST PAID ON HOUSING LOAN. No Maximum limit for let out property. Maximum Limit for Self Occupied Property Rs. 30000/- (before 01-04-1999) & Rs. 150000/- (from 01-04-1999) (Submit Certificate received fom Financial Institution/ Banks, Occupation Certificate, Form 12 C Declaration, Income from House. Prop. Computation Statement)