Dear friend
First I want tell you Standard Deduction on Salary reduced from financial year 05-06. It has also reduced deduction of Section 88. Deduction from 80 ccc to 80 u merge with 80C . Thus an assessee may get deduction u/s 80C 1,00,000 & 40,000 addition on exps over any handicapte of family member.
Second
I want tell you how calculate your tax liabilities ? you should calculat your total Taxable Income after reduce deduction u/s 80C.
After Calculating taxable Income every assessee should pass following process--
In case of Individuals, HUF , AOP, BOP
For Woman age below 60 years
First Exempt Income till 1,35,000
next caulate tax on Income 15,000 @ 10 % till 1,50,000
next on 1,00,000 @ 20 % till 2,50,000 total Income
rest balance Income @ 30 %
If total Income exceed 10,00,000 then calculate Surcharges @ 10 on total tax liabilities + @ 2 % Education Cess on tax liabilities +Surcharges if applicable
In Case of Senior citizen
Exempt till 1,85,000
Next till 65,000 @ 20%
Rest income @ 30%
Calculating surcharges & Education Cess same process as given up.
Leaving in case of Woman & senior Citizen
exempt till 1,00,000
next 50,000 @ 10% till income 1,50,000
next 1,00,000 @ 20% till income 2,50,000
rest income @ 30%
Surcharges & Education cess will calculate seme given up.
In Case of Partner ship firm & Comapny
@ 30% on total Income , here are not allow of section 80C.
+ 10 % Surcharge + 2% Education cess.
In case of Ideduction 80C total 1,00,000 or Actual invested Amount less than 1 lac will deduction u/s 80C.
You may also get Exemptin over Allowance & Perquisities describe in Income Tax Act. Income sources of Income from Salary, Income from House Property, Income from Business & Proffession, Capital gains ,Income from other Sources an assesee may find Exemption describe in Income tax.
Thank you
2007-03-08 23:42:10
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answer #1
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answered by hkg 2
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Now no Standard deductions.
You can save upto 100,000/-.
Calculate tax on next income.
No tax on 1st 1 lakh. 10% upto 1.5 lakh, 20% upto 2.5 lakh. 30% if above 2.5 lakh.
2007-03-08 21:26:54
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answer #2
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answered by Anonymous
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hi frd
thi s very easy first u should calculate u r grosssalary per anm ex.
if u r salary is 500000 then hear is u r calculation
salary 500000
exemptu/s 80c 100000 400000 int on laon 100000 300000 saving 100000 200000tax amt
2007-03-08 21:29:05
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answer #3
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answered by ravi_ahobila 1
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why dont to meet a good accountant or CA for clear info and get doubts cleared ?
2007-03-08 21:29:44
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answer #4
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answered by VUTTU 2
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Stanadard deduction in case of income from salary is not available from AY 2006-07
Standard deduction from income from House property is available under section 24 and the amount of deduction is 30% of NAV
The following are the rules for calculating tax and the advice for investing to get tax benefits i.e tax deduction but not exemptions.
Tax Rate
For individuals resident woman (not being a senior citizen)
Net income range income tax rate
Upto 135000 nil
135000 to 150000 10% of (TI-135000) + 2% education cess
150000 to 250000 1500+20% of (TI-150000) +2% education cess
250000 to 1000000 21500+30% of (TI- 250000) +2% education
cess
above 1000000 246500+30%of (TI-1000000) +10% of income tax Surcharge + 2% of income tax and surcharge
For resident senior citizen (who is of 65 years or more at anytime during the previous year)
upto 185000 nil
185001 to 250000 20% of (TI-185000)+2% edu cess
250001 to 1000000 13000+30% of (TI- 250000)+2% edu cess
above 1000000 238000+30% of (TI- 1000000)+10% sc
+2% edu cess
For any other individual, every HUF/AOP/BOI/Artificial juridical person
upto 100000 nil
100000 to 150000 10%of (TI- 100000)+2% ec
150001 to 250000 5000+20% of (TI-150000)+2% ec
250001 to 1000000 25000+30% of(TI- 250000)+2%ec
above 1000000 250000+30% of (TI-1000000)+10% sc+2%ec
Invest in any of the 18 places given by the IT dept u/s 80C.The maximum deduction will be upto 1 lac.out of 18 these are some of them
1.LIC insurance premium (including payment made by govt employees to the central govt employees' insurance scheme and payment made by a person under children 's defered endowment assurance policy){subject to a maximum of 20% of sum assured}
2.Amount deposited as term deposit for a period of5 years or more accordance with a scheme framed by the govt (applicable from Assessment year 2007-2008)
3.Payment in respect of non-commutableDeffered annuity plan
4.Any amount paid as tuition fee (not including any payment towards development fees/donation/payment of similar nature) whether at the time of admission or otherwise to any university/college/educational institutions in india for full time education
5.Salary deducted by employer (incase of Govt employee)6.contribution to Statutory provident fund and RPF.
7.contribution towards 15yrs PPF
8.contribution towards approved superannuation fund.
9.Subscription to National Savings Certificate VIII issue.
10.contribution for participating in the ULIP of UTI
11.contribution for participating in the ULIP of LIC mutual fund
12.Payment for notified annuity plan of LIC or any other insurer.
13.Subscription towards notified units of Mutual Fund or UTI
14.contribution to notified pension fund set up by Mutual fund or UTI (i.e retirement benefit pension fund of UTI)
15.Any sum paid including accrued interest as subscription to home loan account scheme of the National Housing Bank or contribution to any notified pension fund set uo by the national housing Bank.
16.Any sum paid as subscription to any scheme ofa> public sector company engaged in providing long term finance for purchase/construction of residential house in India.b> housing board constituted in India for the purpose of planning, development or improvement of cities/towns.
17.Any amount towards the cost of purchase/construction of aresidential property (including repayment of loan taken from Govt. bank, cooperative bank,LIC,National Housing Bank,assessee's employer where such an employer is a public company/public sector company/university/co-operativ... society)18.amount invested in approved debentures of, and equity shares in, a public company engaged in infrastructure including power sector or units of amutual fund proceeds of which are utilised for the developing, maaintaining,etc of a new infrastructure facility
2007-03-08 21:27:46
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answer #5
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answered by Anonymous
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