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Income Tax slabs,rates and key tax exemption details for A/Y 2015-16


Income Tax Slabs, rates, key tax exemption details for Assessment Year 2015-16 (Financial year 2014-15)

below60

 

  • For Senior CitizenResident Individuals earning Income less than Rs. 5 Lakh in a Year are eligible for income Tax Credit u/s 87A – i.e.10% of taxable income up to a maximum of Rs. 2000/-.]
  • Education Cess : 3% of the total of Income Tax applicable to all tax payers.
  • Surcharge: 10% of the Income Tax, where taxable income is more than Rs. 1 crore.

above60

  • For Super Senior CitizenResident Individuals earning Income less than Rs. 5 Lakh in a Year are eligible for income Tax Credit u/s 87A – i.e.10% of taxable income up to a maximum of Rs. 2000/-.]
  • Education Cess : 3% of the total of Income Tax applicable to all tax payers
  • Surcharge: 10% of the Income Tax, where taxable income is more than Rs. 1 crore.

above80
Surcharge: 10% of the Income Tax, where taxable income is more than Rs. 1 crore.Education Cess : 3% of the total of Income Tax applicable to all tax payers

Key tax deductions/ rebates

  1. Individuals are eligible for tax rebate on their investments u/s 80 (C ) of IT act to the maximum limit  of Rs. 150000.00 in a financial year.
  2. In addition to rebate on repayment of loan amount, the interest portion paid on housing loan offers a deduction up to Rs.150000.00 on taxable income separately under section 24.
  3. First time home buyers (the person who does not already own a house property in his name), who has availed a housing loan of Rs.25lakhs or below on or after 01.04.2013, can claim additional tax deduction of Rs.100000.00 (Rupees one lakh) on interest paid on that loan under section 80EEE subject to condition that the value of residential property should not exceed Rs.40 lakh (Rs.400000.00). If the interest paid is less than Rs.100000.00 (one lakh), in the first year, the unclaimed deduction can be utilized in the subsequent year.
  4. Tax rebate under Medical Insurance for self and children: deduction up to 15000.00 (or 20000.00 in case the insurer or his/her spouse is above 60 years.) and additional deductions of Rs.15000/- on medical insurance of parents (or Rs.20000/- in case parent/s are above 60 years). The amount spent on preventive health check-up (maximum of Rs.5000/-.) is subsumed under this limit.
  5. Disability related tax benefit: A deduction of Rs.50000/- (Rs.1, 00,000/-for sever disability) is allowed for expenses towards medical treatment or even rehabilitation treatment or training of self, dependent spouse, child, parent or sibling who is disabled. The disabled means above 40% of disabilities to a person ( above 80% is considered as severe disability) due to diseases like blindness, low vision, leprosy cured, hearing impairment, loco motor disability, mental retardation, mental illness, Autism, cerebral palsy etc.
  6. Tax rebate on medical treatment expenditure: For treatment of specified diseases like malignant cancer, or AIDS for self and dependents, deduction allowed up to Rs.40000/-(Rs.60000/- if the patient is above 60 years).
  7. An individual can claim income tax deduction on interest paid on education loan availed for self, spouse or his/her children u/s 80 E of I.T. Act.  The guardian appointed by court for a minor student is also eligible for income tax deduction on interest paid on education loan under the same section. One more benefit is that there is no upper limit for claiming deduction either on amount of interest paid or rate of interest paid. The deduction can be claimed up to 8 years or closure of the loan whichever is earlier. If the interest is paid during moratorium period, the time limit of 8 years begins from the date of first repayment of interest on loan.  However the tax benefit is restricted for education loan availed from bank, notified financial or charitable institutions. The education loan availed from employer, family and friends does not come u/s 80E. The deduction under section 80E is also allowed for education loan availed for studies abroad.
  8. Rebate on House rent paid: Salaried persons are exempted from House Rent paid by them to their land lords. The rebate is subject to minimum of the following.
    1. Actual House Rent received from the employer.
    2. Actual House rent paid to the land lord minus 10% of basic salary
    3. 50% of employee’s basic salary if he/she leaves in Metro cities or 40%of basic salary* in non-metro areas.

    *Basic Salary is inclusive of DA (wherever commission received by the employee on the basis of fixed percentage of turnover achieved by the employee that income also to be included in basic salary).The deduction will be available only for the period of occupying the rented house, not for the entire year.  At least two rent receipts to be produced as evidence of rent paid,one rent receipt at the beginning of the financial year and another one receipt at the end of the financial year. The rent paid receipts should duly signed on the revenue stamp by the land lord. People who pay rent less than Rs.3000/-p.m  need not produce rent receipt.

    Total taxable income means under IT act means income from all source viz. Salary, perquisites, income(or loss) on house property, capital gains(or loss) on sale of property or investments, or any other income like interest received on fixed deposits, NSCs etc.

 

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