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

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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

(C) PPF – PUBLIC PROVIDENT FUND

(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)

 
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