2007-03-01 18:39:11 · 4 answers · asked by Vijay Soni 2 in Business & Finance ➔ Taxes ➔ India
Your taxable income, (assuming your only saving is LIC and you dont avail any other benefits like HRA/Medicals) would be 39,000.
So your tax would be 3900 (10%)
Thus you would save 1100 for the LIC investment.
(You would also have to pay education cess @ 2% on your total tax liability)
2007-03-04 02:59:32 · answer #1 · answered by Ganesh 2 · 0⤊ 0⤋
QUICK LOOK
* Deduction of up to Rs 1 lakh on investments in specified instruments is available.
* All sectoral caps (except PPF) have been removed.
* The EET, if implemented, could impact small savings.
* ELSS provides the best hedge against inflation, besides tax brakes.
* PPF isn't a strain on the pocket - invest as little as Rs 100 to keep your account alive.
* Life insurance is fine for risk cover, but is no great shakes as an investment option.
Eligibility for Tax Saving through Investment
* Only individuals or HUF were eligible.
* Only those investments, contributions and payments made from the income of the relevant financial year were considered.
* The income should have been taxable in India.
* Monetary limits set for each type of investment, contribution, payments had to be adhered.
For individual and HUF, the entitled deduction is up to Rs. 1 lakh for investments, contributions and payments made towards life insurance, housing loans, PPF, infrastructure bonds, etc. There are no other sub-limits, except for PPF. It is restricted to Rs. 70,000.
Life Insurance
* Maximum Limit - Rs. 1 lakh.
* Premium paid in any year should not exceed 20% of the sum incurred (issued after 1 April 2003).
* The sum paid in excess of 20% will not be allowed for any deductions.
* The tax-free status is limited to direct taxes and not to the service tax payable on insurance maturity.
http://sify.com/finance/insurance/fullstory.php?id=12961396
2007-03-01 19:55:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
well you earn 1,50,000..so ur taxable income would be 1,50000-1,10000 that is 40000 rs.
now you will come in 10% slab.so you will have to pay tax that is 4000 rs
you invest 11000 in lic so you will get a rebate of 10%on that..means 1100 rs.
so you will pay tax 4000-1100=2900 rs.
2007-03-01 18:57:23 · answer #3 · answered by tarun j 2 · 0⤊ 0⤋
You need have to pay any income tax if you have savings through PF, or paying interest on Home Loans you can save upto Rs.80,000 in various forms like lic, medi-claim, pf, nsc, or your childern tution fees , with proper planning and after standard deductions . you income tax payable becomes nil
2007-03-01 19:05:04 · answer #4 · answered by Anonymous · 0⤊ 0⤋