If someone's gross salary exceeds ten lakhs will he be still eligible for Rs 1 lakh deduction under 80 C ? If the person is eligible for 1 lakh dedeuction from gross, suppose his income falls below Rs 10 lakh will he be charged 10% surcharge on income tax and 2% cess ? Please give your valuable opinion.
2007-02-06 01:01:48 · 8 answers · asked by JOSE 1 in Business & Finance ➔ Taxes ➔ India
Let his income is one lakh or ten lakhs or 10 crores, 80C is available. If the income falls below 10 lakhs then there will not be 10% S.c. 10% SC is only applicable if the income exceeds 10 lakhs. But you have to pay 2% cess on tax in all cases.
For your information and simple tax calculation, I am giving you a link for tax calculator. This calculator is from Income Tax department website and it is official.
http://www.taxmann.com/taxmanndit/xtras/taxcalc.aspx
2007-02-06 01:19:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
yes even above 10 lakhs you can claim the 1 lakh deduction
for the year 2006-07 A surcharge of 10 percent is levied if net income of an individual exceeds Rs.10 Lacs.
Education cess, is charged at 2% of the total tax payable is payable by all tax payers.
2007-02-06 18:01:31 · answer #2 · answered by getonlinehelp 1 · 1⤊ 0⤋
Yes,it is irrespective of the income.
Section 88 i.e. Tax rebate to assessees in respect of insurance premium, PF contribution, PPF, NSC, etc. deleted. A new Section 80C introduced which allows a deduction from income of up to Rs 1,00,000 in respect of insurance premium, PF contributions and other schemes which were hitherto under Section 88.
For further details:
http://www.hindu.com/biz/2006/08/07/stories/2006080700871600.htm
2007-02-06 01:11:14 · answer #3 · answered by arup s 6 · 0⤊ 0⤋
My friend you are getting confused with the basic exemption limit and the deductions allowed u/s 80C. The basic exemption limit is 1.6 lakh and in addition of this you can claim deduction u/s 80C of Rs. 1 Lakh. there is no link between these two. So your income will not be taxable upto 1.60+1.00 lakh . for any other query mail me...!!
2016-03-29 07:36:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋
yes
And if net income goes above 10 lakhs, you have to pay some wealth tax as well.
2007-02-06 02:08:40 · answer #5 · answered by Oye chak de phatte!! 5 · 0⤊ 0⤋
Yes.
2007-02-07 15:11:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes.
2007-02-06 03:05:16 · answer #7 · answered by Ganesh J 2 · 0⤊ 0⤋
If you can translate this into dollars and cents, please? as this is the currency that is used by the folks that participate at Y!A, in the US. Thanx
2007-02-06 01:06:16 · answer #8 · answered by Anonymous · 0⤊ 1⤋