Income Tax
REGIMES
- For the above F/Y there exist 2 types of rate strctures namely Old Regime and New Regime
- Both the structures have different income slabs and different tax rates. Old regime also has different tax structure, as per the age of tax payer. New regime has no agewise difference.
- Tax payer has freedom to choose any regime as per his convenience. However once you choose New tax regime you will have to continue the same in future ie you can not opt old regime again.
- In old tax regime you can avail benefits of all permissible exemtions ( eg standard deduction etc) and deductions ( eg investments u/s 80c, medical insurance prem paid u/s 80d etc etc.)
- For the new regime there are no such deduction or exemption, permissible.
TAX STRUCTURE AS PER - NEW REGIME
| INCOME FROM RS | INCOME TO RS | INCOME TAX RATE |
|---|---|---|
| 250000 | 500000 | 5% |
| 500001 | 750000 | 10% |
| 750001 | 1000000 | 15% |
| 1000001 | 1250000 | 20% |
| 1250001 | 1500000 | 25% |
| 1500001 | ABOVE | 30% |
- Tax rates are applicable irrespective of AGE
- SURCHARGE @4% applicable on Net Tax
TAX STRUCTURE AS PER - OLD REGIME
For the age group purpose your completed yrs of age as on 31 Mar of the f/y is considered
For the age group upto 60 yrs
| INCOME FROM RS | INCOME TO RS | INCOME TAX RATE |
|---|---|---|
| 0 | 250000 | NIL |
| 250001 | 500000 | 5% |
| 500001 | 1000000 | 20% |
| 1000001 | ABOVE | 30% |
Age group 61 yrs to 80 yrs
| INCOME FROM RS | INCOME TO RS | INCOME TAX RATE |
|---|---|---|
| 0 | 300000 | NIL |
| 300001 | 500000 | 5% |
| 500001 | 1000000 | 20% |
| 1000001 | ABOVE | 30% |
Age group 81 yrs & above
| INCOME FROM RS | INCOME TO RS | INCOME TAX RATE |
|---|---|---|
| 0 | 500000 | NIL |
| 500001 | 1000000 | 20% |
| 1000001 | ABOVE | 30% |
SURCHARGE
- Surcharge is applicabale to ALL AGE GROUPS. Rate of Surcharge is 4% to all
- Surcharge is calculated @4% on the Net tax calculated by above rates
How to calculate surchrge
- Choose your AGE TABLE as applicable from above
- Calculate slab wise tax applicable as above
- Add taxes calculated under all slabs
- Total of tax in your NET TAX PAYABLE
- Calculate SURCHARGE @4% on Net Tax
- Gross Tax Payable = Net Tax + Surcharge
CAPITAL GAIN
- CAPITAL GAIN arises when there is sale of shares & mutual funds. It is excess of Sales price over purchase price.
- Capital Gain is of TWO types. Long Term Capital Gain & Short Term Capital Gain
- Long Term Capt Gn arises when share/s and Mutual funds are sold AFTER ONE YEAR OF PURCHASE
- Short Term Capital Gain arises when shares and mutual funds are sold BEFORE ONE YEAR OF PURCHASE
- Tax on BOTH Capt Gns are to be paid invariably, at SPECIAL RATES, EVEN IF YOUR OTHER INCOME IS NOT TAXABLE
- All Short Term Capt Gn is taxed @15%. Long Term Capt Gn is exempted upto Rs 1.00 Lacs & taxed @10% above Rs 1.00 lacs
EXEMPTIONS & DEDUCTIONS
UNDER OLD REGIME
EXEMPTIONS
| SR NO | SECTION | PARTICULARS | MAX AMT RS |
| 1 | 16 | STANDARD DEDUCTIONS | 50000 |
| 2 | 10(10) | GRATUITY | NO LIM |
| 3 | 10(10A) | PENSION COMMUTATION | NO LIM |
| 4 | 10(10A) | LIC PENSION SCHEME COMMUTATION | NO LIM |
| 5 | 10 (12) | PROVIDENT FUND EMPLOYEE | NO LIM |
| 6 | 10 (13) | PROVIDENT FUND SUPERANNUATION | NO LIM |
| 7 | 10(10 AA ) | LEAVE ENCASHMENT - POST RETIRE ( At present only Cent & State Govt retirees have NO LIMIT under leave encashment. All other retirees DO HAVE max limit = 3.00 lacs ) | 300000 |
| 8 | 10(10 D ) | MATURITY PROCEEDS LIC POLICY | NO LIM |
DEUCTIONS
| SR NO | SECTION | PARTICULARS | MAX AMT RS |
| 1 | 80 C | OWN PF CONTB, LIC PREMIA, POSTAL | |
| 80 CCC | INSU, PPF, NSC, NSS, HOUSE LOAN | ||
| 80 CCD | PRINCIPAL REPAY, ELSS, BANK TAX SAVER FUNDS, EPF, VOL PF, 5 YRS POST OFFICE FDR, | ||
| 80C+80CCC+80CCD | 150000 | ||
| 2 | 80CCD(1) | CONTB TO NPS OVER & ABOVE 80C - 150000 | 50000 |
| 3 | 80 D | HEALTH INSURANCE SELF+FAMILY+SR CTZ PARENTS | 50000 |
| 4 | 80DD | DISABILITY SELF OR DEPENDENTS NORMAL DISABILITY | 75000 |
| SEVERE DISABILITY | 125000 | ||
| 5 | 80 DDB | MEDIC. TREATMENT EXP BELOW 60 YRS | 40000 |
| SENIOR CITIZEN | 60000 | ||
| 6 | 80E | INTT EDUCATION LOAN SELF/CHILDREN | NO LIM |
| 7 | 80 EE | INTT HOUSE LOAN ( CONDITIONAL) | 300000 |
| 8 | 80 G | DONATIONS TO ELIGIBLE INSTITUTES ( CONDITIONAL) | 50% / 100% OF PAYMENT |
| 9 | 80 GG | HOUSE RENT PAID | LEAST OF 20% ANNU SAL 24000 ACTUAL PAID |
| 10 | 80 TTA | INTT RECD ON SAVING A/C | 10000 |
| 80TTB | INTT RECD ON TERM DEPOSITS | 50000 | |
| ******** | 80TTA + 80TTB MAX PERMITTED | 50000 |
UNDER NEW REGIME
EXEMPTIONS
| SR NO | SECTION | PARTICULARS | MAX AMT RS |
| 1 | 16 | STANDARD DEDUCTIONS | 50000 |
| 2 | 10(10) | GRATUITY | NO LIM |
| 3 | 10(10A) | PENSION COMMUTATION | NO LIM |
| 4 | 10(10A) | LIC PENSION SCHEME COMMUTATION | NO LIM |
| 5 | 10 (12) | PROVIDENT FUND EMPLOYEE | NO LIM |
| 6 | 10 (13) | PROVIDENT FUND SUPERANNUATION | NO LIM |
| 7 | 10(10 AA ) | LEAVE ENCASHMENT - POST RETIRE | 300000 |
| ( At present only Cent & State Govt | |||
| retirees have NO LIMIT under leave | |||
| encashment. All other retirees DO | |||
| HAVE max limit = 3.00 lacs ) | |||
| 8 | 10(10 D ) | MATURITY PROCEEDS LIC POLICY | NO LIM |
DEUCTIONS
| NIL | NIL | NIL | NIL |