Implementation and TrainingIndian Income Tax: Salary Related Information
Financial Year April 2009 - March 2010
(Assessment Year 2010-11)
Contents
- Income Tax Rates
- Income Tax Exemptions
- Deductions from Total Income (Section 80C)
- Deductions from Total Income (Other Sections)
Income Tax Rates
| Income Slab | Tax Rate |
| Rs. 0 to Rs.160,000 (Male) / Rs. 0 to Rs 190,000 (Female) | NIL |
| Rs. 160,001 to Rs. 300,000 (Male) / Rs. 190,001 to Rs. 300,000 (Female) | 10% |
| Rs. 300,010 to Rs. 500,000 | 20% |
| Rs. 500,010 and above | 30% |
- No surcharge (which, till last year, was 10% if income exceeded Rs 1,000,000).
- Education Cess of 3% is levied on the tax liability for all taxpayers.
Income Tax Exemptions
| Exemption | Amount | Proof to be given to company |
| House Rent Allowance (Sec 10(13A) | Least of the following 1. HRA Received 2. Rent paid less 10% of Salary 3. 50% of Salary if residential house is in Mumbai, Chennai, Delhi and Calcutta, 40% of Salary if residential house is in any other city. |
Proof of rent paid: 1. Receipts of rent paid 2. Lease agreement with your landlord. (On stamp paper) |
| Conveyance Allowance | Rs.800 per month | No proof is required |
| Reimbursement for Medical Treatment | Max. Rs. 15,000 per annum for reimbursement of expenses on medical treatment (expense incurred during the current financial year April to March). | Medical expenses bills / receipts. |
| Leave Travel Concession | Actual amount spent in connection with proceeding on leave to any place in India. Exemption is available only for 2 journeys in a block of 4 years from 1-1-2006 to 31-12-2010. (Section 10(5) of the Income Tax Act). | Names of persons traveled, Travel ticket. |
Deductions from Income for Calculating Tax Payable U/S 80C
(Maximum Amount of Deduction: Rs.100,000 Under This Section)
| Sr. No. | Type | Proof to be submitted to Company before 15 February |
| 1. | P.P.F. | Stamped Pay-in-slip or photocopy of PPF Passbook showing the relevant Deposits. |
| 2. | LIC Premium paid for self/spouse/children. | Receipt from authorized Insurance Company. (Premium should be restricted to 20% of sum assured. |
| 3. | Unit Linked Insurance Plans | Receipt of Premium paid |
| 4. | Housing Loan Principal amount Repayment | Photocopy of Certificate from the lending institution |
| 5. | Children Education | Receipt of Tuition Fees paid to the approved Educational institution for the children |
| 6. | NSC | Photocopies of NSC Certificates |
| 7. | Infrastructure Bonds / Shares of Public Co. / Units of mutual funds (ELSS). | Copy of allotment advice / Photocopy of Certificate (if in physical form) |
| 8. | Premium for Annuity Plan paid to LIC / Insurance Company | Receipt from the Insurance Company (for Self / Spouse / Child) |
Deductions from Total Income (Other Sections)
| Sr. No. | Particulars | Section | Amount (Rs.) | Proof to be submitted to the company |
| 1. | Mediclaim (payment by Cheque only) | 80 D | 15,000 | Paid Receipt of Premium (for Self / Spouse / child / Parents) |
| 2. | Interest paid on Educational Loan taken for self, spouse or any child | 80 E | Actual interest paid | Certificate from Bank or Financial Institution |
| 3. | Interest on House Property Loan | 24(b) | Rs.150,000 (in case of loan borrowed after 1-4-99 and property acquired within 3 years from the end of the financial year in which amount was borrowed) / Rs 30,000 (in other cases) | 1. House Property Ownership Proof 2.Certificate of Interest Paid, issued by the Institution or Bank. 3. Completion Certificate of Builder / Corporation |
| 4. | In respect of person with Disability | 80U | Rs. 50,000/- & Rs. 75,000/-(in case of severe disability) | Certificate from specified medical authority in the prescribed Form. |
Note: The above information is provided for general information. This is not a tax advice or recommendation for tax planning. If you need any further information, please contact us