Where the total income does not exceed Rs. NIL Where the total income exceeds Rs. Where the total income exceeds Rs. The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge at the rate of ten percent of such income-tax in case of a person having a total income exceeding one crore rupees.
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The deduction for senior citizens is raised from Rs 20, to Rs 30, For uninsured super senior citizens more than 80 years old medical expenditure incurred up to Rs 30, shall be allowed as a deduction under section 80D. However, total deduction for health insurance premium and medical expenses for parents shall be limited to Rs 30, However, there are a few conditions: You can not claim tax benefit on health insurance premium paid for your in-laws; Proof of payment of premium has to be furnished, in order to avail the tax benefit The health insurance premium must be paid from taxable income of that year only if you want to claim a deduction.
Thus, if one has paid the premium from ones savings or from gifts of money received, then one is not eligible for tax benefits under this section. However, you have to remember that the premium paid by any mode of other than cash is eligible.
Note prior to 1st April , premium payment was required to be paid only by cheque. Thus, now all payment modes except cash payment are accepted 3 Deductions Under Section 80 E : Under this section, deduction is available for payment of interest on a loan taken for higher education from any financial institution or an approved charitable institution. The loan should be taken for either pursuing a full-time graduate or post-graduate course in engineering, medicine or management, or a post-graduate course in applied science or pure science.
Loan should have been taken for the purpose of pursuing higher studies of Individual , Spouse, Children of Individual or of the student of whom individual is legal Guardian. The amount of interest paid is eligible for deduction and moreover there is no cap on the amount to be deducted. You can deduct the entire interest amount from your taxable income. However there is no benefit available on the repayment of principal amount of the loan.
The tax benefits on education loan are only valid once you start the repayment and moreover they are only available up to eight years. For instance if your loan tenure exceeds eight years, you cannot claim for deductions beyond eight years.
However, the interest component of home loans is allowed as deduction under Section 24 B for up to Rs2 lakh in case of a self-occupied house.
In case the house is in the joint name of your spouse and you joint loan , each one can avail of Rs2 lakh interest component deduction.
This limit is only for self-occupied house. If you have property which is rented out, you can deduct the full interest paid on the home loan. The rent on the property does become part of your income. If the rent is lesser than the loan interest, it will lower your overall tax liability. You were to get the tax benefit only in the year in which you have invested in these instruments.
Dividend is also tax free in the hands of investors in case of debt-oriented Mutual Fund schemes. However, the Asset Management Company is liable to deduct The gifts are no longer taxable in the hands of donor or donee.
However, w. September 1, , any gift received by an individual or HUF will be included in taxable income, if the amount of tax exceeds Rs. Similarly, if shares or other financial securities such as mutual funds are sold within one year of purchase, the profit earned is treated as Short Term Capital Gain. Short term capital gain is included in the gross taxable income and normal tax rates are applicable.
The Income Tax laws provides for taxes on long-term capital gains at 20 per cent for individuals and foreign firms and 30 per cent for domestic companies. Such bonds are redeemable after three years. Thus investing in these bonds will effectively mean that your money is locked in for three years.
If you want to buy a new property one or two years after transferring the original asset, you will have to either wait or look for alternative funds. After the lock-in period or on the maturity of the bonds, the investor is free to put in his money in any kind of asset.
However, the interest on the bond is taxable. The proceeds of the sale of the capital asset can be parked in the fixed deposit scheme under the Capgains Plus plan at an interest rate marginally higher than what bonds under Section 54 EC would fetch.
The interest earned will be taxed at prevailing rates. However, unlike the bonds under 54 EC, the depositor cannot put the money in a different kind of asset. The plan stipulates that re-investment should be made on the specified asset only.
Income Tax slab rate for FY 2014-15 & AY 2015-16
Income Tax Slabs & Rates - AY 2015-16
Income Tax Slab & Rate for FY 2020-21 (AY 2021-22) FY 19 - 20 (AY 20-21)