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 General Union Budget 2014-15


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 Main Features of Income Tax rates of FY 2014-15


 Main Features of Income Tax rates of FY 2012-13 (Part -1)


 Main Features of Income Tax rates of FY 2012-13 (Part -2)


 Main Features of Income Tax rates of FY 2012-13 (Part -3)


 Main Features of Income Tax rates of FY 2012-13 (Part -4)


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Part -4 : Main Features of Income Tax Rates for financial year 2012-2013 (Assessment year: 2013-14)

Following other components of Income & Expenses have different impact over Income Tax filing for FY 2012-13.

Section 80C, 80CCD and 80CCC deductions- One can claim his investments/payments under section 80C, 80CCC and 80CCD, up to 1 lakh combined limit. Amount can be invested in:
  • Tax saving mutual funds (ELSS) with three years lock-in
  • Five year tax-saver bank Fixed deposits
  • Public provident fund (PPF)
  • Senior citizen savings scheme (SCSS), if your age is more than 60 years
  • Post office tax saving deposit or tax saving bonds
  • Pension scheme/Retirement plans (Secion 80CCC)
  • Life insurance/Unit Linked Insurance Plan (ULIP) premium
  • Employee’s contribution towards Employee provident fund (EPF)
  • National Savings Certificate (NSC) or National Service Scheme (NSS)
  • Employer contribution into New Pension Scheme (NPS) (Section 80CCD)
  • Home loan principal amount payment (only if you have got possession of house)
  • Tuition fees paid for children education


Section 80D : Maximum deduction of up to 15,000 under mediclaim or health insurance offered by life insurers taken for self and family. An additional deduction of up to 15,000 for buying cover for dependent parents. If parents/assessee are senior citizens, they can claim deduction up to Rs 20,000.

Section 80DD : Deduction of 50,000 for maintenance of a disabled dependent. If the disability is severe, the deduction amount will be 100,000.

Section 80E : Tax relief on interest payments on education loan taken for higher studies for self, spouse or child. There is no maximum limit on this deduction.

Section 80G : The eligibility is 50% or 100% of the donation amount subject to overall ceiling of 10% of your gross total income to certain funds and charitable institutions.

Section 24/Home loan interest payment : The maximum limit is of 1.5 lakh on interest payments of a home loan for a self-occupied house. There is no ceiling on the amount of deduction if the house is let out or deemed to be let out. House rent would needs to shown in income in case house is not self-occupied.

Section 80U (Disabled/Handicapped person): Deduction can be claimed if person has a disability. The allowed dedudtion if for Rs 50,000. This deduction goes up to Rs. 75,000 in case disability is severe.

Section 80DDB deduction (Medical treatment expenses): Expenses did for medical treatment for self, spouse, dependent children, parents, brothers and sisters. Maximum deduction can be Rs 40,000 (goes up to 60,000 in case patient is senior citizen). Deduction is only allowed in case of following diseases:
  • Neurological Diseases where the disability level has been certified to be of 40% and above,
    (a) Dementia
    (b) Dystonia Musculorum Deformans
    (c) Motor Neuron Disease
    (d) Ataxia
    (e) Chorea
    (f) Hemiballismus
    (g) Aphasia
    (h) Parkinson’s Disease
  • Malignant Cancers
  • Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
  • Chronic Renal failure
  • Hematological disorders :
    (a) Hemophilia ;
    (b) Thalassaemia.


Professional tax: Professional tax deducted from salary by employer should be removed from taxable salary before computation of income tax.

Employer contribution of EPF/New pension scheme (NPS): Employer contribution does not become part of employee’s income and hence income tax is not payable on this part.

Tax deducted at Source (TDS) deduction: As per income tax rules, all payment which are taxable in nature should be done after deduction of taxes at the source itself. Hence employers compute income tax on salary payment and deduct it every month. This TDS is based on employee’s saving/investment declaration at the start of year. If investments for tax saving is not done, large amount may be deducted in last few months.

In Hand monthly salary: After deduction of all components like TDS, EPF etc in hand monthly salary is computed.

In Hand monthly salary without reimbursements: Some of the employees get reimbursements components separately in a different payment other than salary, So this figure shows in hand salary w/o reimbursement components like medical, telephone, internet bills, driver salary etc.

Total income this year: This figure shows whole year’s income from all sources combined.

Advance tax schedule: As per income tax rules, 30% of income tax should be paid by 15th Sept, 60% by 15th Dec and rest by 31st March. If its not followed one may be charged interest penalty u/s 234C.
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@ All the Income tax slabs details are collected from different information sources. There may be some difference in actual Tax calculation.

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