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Tax Planning |
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Avenues
available for investment U/s 80C
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Maximum amount qualifying for deduction U/S 80C is Rs.100,000/-
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Instrument
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Tenure
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Expected Returns
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Tax Treatment on earnings
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Details
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NSC
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6 Years
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8 - 8.50 %
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Taxable + |
Click
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PPF
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15 Years
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8 %
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Tax-Free
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Click
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ELSS
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3 Years
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> 10 % *
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Tax-Free
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Click
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Insurance Premium []
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Policy Term
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6 – 7 %
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Tax-Free
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Click
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Tax Saving Bank FD
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> =5 Years
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8 - 8.50 %
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Taxable + |
Click
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* ELSS are market linked equity instruments. refer to offer
document before investing
+Income is added to income from other sources & tax
as per slab is applied
[] subject to maximum of 20% of sum assured .Maturity benefits
are tax free. However in cases where premium exceeds 20% of capital sum assured
within a year, benefits paid in excess of premiums paid will be taxable. Death benefits
are tax-free.
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Some
other payments qualifying for deduction.
• Contribution to statutory provident fund/recognized provident fund.
• Contribution towards approved superannuation fund.
• Any sum paid as tuition fees.
• Principal repayment of housing loan.
• Accrued
Interest on NSC
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Tax
Rebate U/s 80D
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Instrument
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Tenure
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Expected Returns
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Tax Treatment on earnings
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* Max Amount |
Details
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Mediclaim Premium
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1 Year
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Not applicable
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Not applicable
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10,000/- Ass. Year 2007-08 |
Link
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Mediclaim Premium
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1 Year
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Not applicable
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Not applicable
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15,000/- Ass. Year 2008-09 |
Link
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* Senior citizen can claim Rs. 5000/- Extra(over abovementioned
premiums)
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Tax rules For Mutual Fund Investors
Equity Schemes for Financial Year 2007-08
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Short Term Capital Gain
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Long Term Capital Gain
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Dividend
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Dividend Distribution Tax
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TDS
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Resident Individual/ HUF
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10 %
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Nil
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Tax Free
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Nil
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Nil
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Partnership Firm/AOP/ BOI
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10 %
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Nil
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Tax Free
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Nil
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Nil
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Domestic Company
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10 %
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Nil
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Tax Free
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Nil
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Nil
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NRIs
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10 %
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Nil
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Tax Free
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Nil
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STCG 10%
LTCG - Nil
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Other Schemes
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Resident Individual/ HUF
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As per slab
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10%
(20% with Indexation)
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Tax Free
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14.025%
(12.5%+10%SC+2%EC)
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Nil
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Partnership Firm/AOP/ BOI
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As per slab
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10%
(20% with Indexation)
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Tax Free
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22.44%
(20%+10%SC+2%EC)
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Nil
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Domestic Company
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30%
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10%
(20% with Indexation)
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Tax Free
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22.44%
(20%+10%SC+2%EC)
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Nil
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NRIs
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As per slab
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10% (20% with Indexation)
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Tax Free
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14.025% (12.5%+10%SC+2%EC)
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STCG-30% LTCG –20%( after providing for indexation)
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Securities
Transaction Tax( STT )
0.25 % of redemption Value.(Applicable to all funds falling within the definition
of Equity fund)
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Tax rules For Mutual Fund Investors
Equity Schemes for Financial Year 2006-07
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Short Term Capital Gain
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Long Term Capital Gain
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Dividend
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Dividend Distribution Tax
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TDS
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Resident Individual/ HUF
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10 %
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Nil
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Tax Free
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Nil
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Nil
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Partnership Firm/AOP/ BOI
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10 %
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Nil
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Tax Free
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Nil
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Nil
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Domestic Company
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10 %
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Nil
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Tax Free
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Nil
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Nil
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NRIs
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10 %
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Nil
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Tax Free
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Nil
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STCG 10%
LTCG - Nil
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Other Schemes
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Resident Individual/ HUF
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As per slab
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10%
(20% with Indexation)
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Tax Free
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14.025%
(12.5%+10%SC+2%EC)
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Nil
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Partnership Firm/AOP/ BOI
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As per slab
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10%
(20% with Indexation)
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Tax Free
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22.44%
(20%+10%SC+2%EC)
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Nil
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Domestic Company
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30%
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10%
(20% with Indexation)
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Tax Free
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22.44%
(20%+10%SC+2%EC)
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Nil
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NRIs
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As per slab
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10% (20% with Indexation)
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Tax Free
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14.025% (12.5%+10%SC+2%EC)
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STCG-30% LTCG –20%( after providing for indexation)
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Accrued Interest table
•
NSC
• KVP
• RD
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Fixed Deposit Interest
Income tax will be deducted at source where interest amount is Rs
5000/- and above in a financial Year.
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Forms
For non deduction of Tax at source
15G
– Citizens below 65 years & having income below taxable Limit
15H
– Senior citizens having income below taxable Limit.
60
– Citizens not having PAN no.
61
– Agricultural Income
Form Centre
(Other Forms)
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Tax Slabs for financial year ending on 31st march.2008 (Individuals)
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Net income range
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Income-tax rates
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Sur-charge
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Education Cess
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Secondary and Higher Education Cess
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Upto Rs. 1,10,000
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Nil
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Nil
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Nil
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Nil |
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Rs.1,10,001 to Rs.1,50,000
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10% of (total income minus Rs.1,00,000)
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Nil
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2% of income-tax.
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1% of income-tax.
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Rs.1,50,001 to Rs.2,50,000
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Rs.4,000 + 20% of (total income minus Rs.1,50,000)
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Nil
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2% of income-tax.
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1% of income-tax.
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Rs.2,50,001 to Rs.10,00,000
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Rs.24,000 + 30% of (total income minus Rs.2,50,000)
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Nil
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2% of income-tax.
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1% of income-tax.
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Above Rs.10,00,000
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Rs.2,49,000 + 30% of (total income minus Rs.10,00,000)
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10% of income-tax.
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2% of income-tax and sur-charge.
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1% of income-tax and sur-charge.
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Tax slabs for Senior
citizens above 65 Years
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Net income range
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Income-tax rates
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Sur-charge
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Education Cess
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Secondary and Higher Education Cess
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Upto Rs. 1,95,000
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Nil
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Nil
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Nil
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Nil |
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Rs.1,95,000 to Rs.2,50,000
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20% of (total income minus Rs.1,95,000)
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Nil
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2% of income-tax.
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1% of income-tax.
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Rs.2,50,000 to Rs.10,00,000
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Rs.11,000 + 30% of (total income minus Rs.2,50,000)
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Nil
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2% of income-tax.
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1% of income-tax.
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Above Rs.10,00,000
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Rs.2,36,500 + 30% of (total income minus Rs.10,00,000)
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10% of income-tax.
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2% of income-tax and sur-charge.
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1% of income-tax and sur-charge. |
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Tax Slabs for financial year ending on 31st march.2007 (Individuals)
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Net income range
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Income-tax rates
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Sur-charge
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Education Cess
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Upto Rs. 1,00,000
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Nil
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Nil
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Nil
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Rs.1,00,000 to Rs.1,50,000
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10% of (total income minus Rs.1,00,000)
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Nil
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2% of income-tax.
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Rs.1,50,000 to Rs.2,50,000
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Rs.5,000 + 20% of (total income minus Rs.1,50,000)
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Nil
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2% of income-tax.
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Rs.2,50,000 to Rs.10,00,000
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Rs.25,000 + 30% of (total income minus Rs.2,50,000)
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Nil
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2% of income-tax.
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Above Rs.10,00,000
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Rs.2,50,000 + 30% of (total income minus Rs.10,00,000)
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10% of income-tax.
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2% of income-tax and sur-charge.
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Tax Slabs For resident Women below 65 years of Age
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Net income range
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Income-tax rates
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Sur-charge
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Education Cess
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Upto Rs. 1,35,000
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Nil
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Nil
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Nil
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Rs.1,35,000 to Rs.1,50,000
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10% of (total income minus Rs.1,35,000)
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Nil
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2% of income-tax.
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Rs.1,50,000 to Rs.2,50,000
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Rs.1,500 + 20% of (total income minus Rs.1,50,000)
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Nil
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2% of income-tax.
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Rs.2,50,000 to Rs.10,00,000
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Rs.21,500 + 30% of (total income minus Rs.2,50,000)
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Nil
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2% of income-tax.
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Above Rs.10,00,000
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Rs.2,46,500 + 30% of (total income minus Rs.10,00,000)
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10% of income-tax.
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2% of income-tax and sur-charge.
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Tax slabs for Senior citizens above 65 Years
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Net income range
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Income-tax rates
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Sur-charge
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Education Cess
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Upto Rs. 1,85,000
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Nil
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Nil
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Nil
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Rs.1,85,000 to Rs.2,50,000
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10% of (total income minus Rs.1,85,000)
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Nil
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2% of income-tax.
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Rs.2,50,000 to Rs.10,00,000
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Rs.13,000 + 30% of (total income minus Rs.2,50,000)
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Nil
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2% of income-tax.
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Above Rs.10,00,000
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Rs.2,38,500 + 30% of (total income minus Rs.10,00,000)
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10% of income-tax.
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2% of income-tax and sur-charge.
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