INCOME TAX RATESRELEVANT TO FINANCIAL YEAR 2008-2009 ASSESSMENT YEAR 2009-2010 :INCOME TAX RATESRELEVANT TO FINANCIAL YEAR 2008-2009 ASSESSMENT YEAR 2009-2010


Tax Rates - Individuals :Tax Rates - Individuals Up to Rs. 1,50,000/- - Nil Rs. 1,50,000/- to Rs. 3,00,000/- - 10% of the amount exceeding Rs. 1,50,000/- Rs. 3,00,000 to Rs. 5,00,000 - Rs.15,000/- + 20% of the amount exceeding Rs.3,00,000/-. Rs. 5,00,000 & above - Rs.55,000/- + 30% of the amount exceeding Rs.5,00,000/- Surcharge on Income tax is calculated @10% if the total taxable income exceeds Rs.10,00,000/-. Education Cess is calculated at 3% on Income-tax plus Surcharge.


Tax Rates woman below 65 years :Tax Rates woman below 65 years Up to Rs.1,80,000 /- Nil. Rs.1,80,000 to 3,00,000 - 10% of the amount exceeding Rs.1,80,000 /-. Rs. 3,00,000/- to Rs. 5,00,000/ - Rs.12,000 + 20% of the amount exceeding Rs. 3,00,000/-. Rs. 5,00,000 & above - Rs.52,000 + 30% of the amount exceeding Rs.5,00,000 /- Surcharge on Income tax is calculated @10% if the total taxable income exceeds Rs.10,00,000/-. Education Cess is calculated at 3% on Income-tax plus Surcharge.


Tax Rates For Individual Residents Aged 65 Yrs and Above :Tax Rates For Individual Residents Aged 65 Yrs and Above Up to Rs. 2,25,000/- – Nil Rs. 2,25,000/- to Rs. 3,00,000/- 10% of the amount exceeding Rs, 2,25,000/-. Rs.3,00,000/- & Rs. 5,00,000/- - Rs.7,500 + 20% of the amount exceeding Rs. 3,00,000/- Rs. 5,00,000/- & above - Rs.47,500 + 30% of the amount exceeding Rs.5,00,000/- Surcharge on Income tax is calculated @10% if the total taxable income exceeds Rs.10,00,000/-. Education Cess is calculated at 3% on Income-tax plus Surcharge.


Slide 5:DEDUCTIONS FROM GROSS TOTAL INCOME (CHAPTER VIA):


Slide 6:DEDUCTIONS FROM GROSS TOTAL INCOME (CHAPTER VIA): contd.


Other salient features :Other salient features EXEMPTIONS/DEDUCTIONS FROM SALARY1. VOLUNTARY RETIREMENT – 10(10C)Amount received or receivable (i.e. in installments) by an employee on his voluntary retirement in accordance with any scheme of Voluntary Retirement is exempt to the extent of Rs.5,00,000, provided the VRS is in accordance with Rule 2BA of IT Rules. 2. HOUSE RENT ALLOWANCE EXEMPT U/S.10(13A)– Read with Rule 2A of IT Rules 1962 a) Actual HRA received : Rs.xxxx b) Rent paid in excess of 10% of Salary : Rs.xxxx c) 50% of Salary in Metro Cities or40% of Salary in other cities : Rs.xxxx Least of a), b), c) is exempt. NOTE : Here Salary means Basic Salary as well as DA if the terms of employment so provide. 3. CONVEYANCE ALLOWANCE : Any allowance granted to meet the expenditure incurred wholly, necessarily and exclusively on conveyance in performance of the duties of office and so certified by the employer is exempt u/s.10(14). 4. TRANSPORT ALLOWANCE : Any allowance granted to an employee to meet the expenditure for the purpose of commuting between the place of his residence and the place of his duty to the extent up to Rs.800/- per month is exempt u/s.10(14). 5. MEDICAL REIMBURSEMENT : An amount of Rs.15,000 or the actual amount reimbursed by the employer whichever is less is exempt u/s.17(2). 6. PROFESSION TAX : Profession Tax levied by the State Government is allowable as a deduction from Gross Salary provided it has been paid. *STANDARD DEDUCTION U/S.16(1) IS NOT ALLOWABLE FOR A.Y.2008-09*


Slide 8:DEDUCTIONS FROM HOUSE PROPERTY 1. DEDUCTION U/S.23(1) : For let out property, amount paid by the owner towards taxes levied by any local authority in respect of the property is deductible from Annual value(taxes pertaining to any previous years). 2. DEDUCTION U/S.24(a) : For let out property, deduction of 30% of the Net Annual Value is allowed. No separate deduction for Repairs, Collection Charges, Insurance Premium, Annual Charge and Ground Rent. 3. INTEREST ON BORROWED LOAN(U/S.24(b)):FOR SELF OCCUPIED PROPERTYa. If Property is acquired or constructed with loan taken after 01/04/99 and construction is completed within 3 years from the end of the financial year in which the capital was borrowed – Rs.1,50,000 or actual interest paid/payable whichever is less is deductible.b. If new housing loan is taken for repayment of old loan (old loan taken after 1/4/99) – Rs.1,50,000 or actual interest paid/payable whichever is less is allowed as deduction.c. If Property is acquired or constructed with loan taken before 01/04/99, Rs.30,000 or actual interest paid/payable whichever is less is allowed as deduction.d. If loan taken for Repairs, renewal, reconstruction of property, Rs.30,000 or actual interest paid/payable which ever is less is allowed as deduction.FOR LET OUT PROPERTY, actual interest paid/payable can be claimed as deduction.ONLY OWNER OF THE HOUSE PROPERTY CAN AVAIL THE ABOVE DEDUCTIONS. Other salient features (contd.)


Slide 9:CAPITAL GAINS: With effect from 01/10/2004, Long Term Capital Gains arising on sale of equity shares or unit of equity oriented fund through recognized stock exchange is exempt if such transaction is chargeable to Securities Transaction Tax (u/s.10(38)). With effect from 01/10/2004, Short Term Capital Gains arising on sale of equity shares or unit of equity oriented fund through recognized stock exchange is subject to tax at the rate of 10% if such transaction is chargeable to Securities Transaction Tax. EXEMPTION U/S.54EC:The Capital Gain arising out of sale of long term capital asset can be invested in National Highways Authority of India, Rural Electrification Corporation Limited, within six months from the date of sale. (Lock-in period is 3 years)For Cost Inflation Index, refer website. STANDARD DEDUCTION FOR FAMILY PENSION U/S.57(iia): An amount of Rs.15,000 or 331/3% of family pension whichever is less is allowed as deduction. If an assessee receives arrears of family pension, then Relief u/s.89(1) can be claimed by him.Family Pension received by the widow or children or nominated heirs, as the case may be, of a member of the armed forces(including para-military forces) of the union, where the death of such member has occurred in the course of operation is exempt. EXEMPTIONS – OTHER SOURCES Any income by way of Dividends from company, Income received in respect of units from the Unit Trust of India, Income received in respect of the units of a mutual fund are exempt. Other salient features (contd.)


Slide 10:DUE DATES FOR FILING RETURN OF INCOME : All Individuals/HUF/Firms deriving Income from Salary, House Property, Capital Gains, Business or Other Sources and not covered under section 44AB are required to file the Return of Income by 31st July. All Tax Audit Cases covered under section 44AB, Company returns are required to file the Return of Income by 31st October. PERMANENT ACCOUNT NUMBER: Every assessee is required to obtain 10 Alpha numeric Permanent Account Number (PAN) and quote the same in his returns, challans & correspondence. PAN can be obtained by applying in new Form No.49A at the designated Service Centers of UTITSL OR NSDL(Log on to our website). PAN is essential for processing the Return of Income and for giving credit for taxes paid. If a person who is required to quote his Permanent Account Number fails to do so or intimates false number, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs.10,000. To Know Your PAN, visit website. http://www.utitsl.co.in/pan/ http://www.tin-nsdl.com/ For PAN Grievances : UTITSL – e-mail – isw.bangalore@utitsl.co.in NSDL - e-mail – tininfo@nsdl.co.in Things you should know…)


Disclaimer :Disclaimer The details furnished in this presentation is only for information and should not be construed as an exhaustive statement of law. For more information and in case of doubt, reference should always be made to the relevant provisions of Income Tax Act, Rules or Notifications.