Financial Year 2011-12 [1 April 2011 to 31 March 2012]

Deductions

The Govt has given some incentive (deduction) to reduce TAXABLE income. They are

Section

Max Limit Instruments

80C

1,00,000 PPF/PF/EPF/VPF/ = LIC/ULIP = ELSS/NSC/SCSS = 5yr Tax-Saving-FDs = Tuition Fees = Principal Home Loan

80CCF

20,000 Infrastructure Bonds

80D

15,000 + 15000/20000 Mediclaim Insurance [self, spouse,  children], For parents 15,000 extra limit, if they are senior citizen then 20,000

80D

20,000 Senior Citizen People

80E

No Limit, Interest paid allow Education Loan

10(13A)

Least (HRA; Rent- 10% salary; 50/40% Salary) Lived in Rented House – Salaried Person
80GG Least (Rent – 10% total income; 25% total income; 2000 per month) Rent Paid

24(B)

1,50,000 Interest on Home Loan

80G

10% gross total Income 50%/100% of donation

80DD

50,000 / 1,00,000 Maintenance of Dependant with Disability

80DDB

40,000 / 60,000 Medical Treatment of Dependant

Some allowances are also eligible for deduction. Better to check with HR/salary dept of the Company. For example Medicines Bills, LTA, Transport Allowance (800 per month), Education allowance (100 per month per children – Max 2 children) etc…

It is complicated, I know. Hoping that next year all such Complication will Vanish due to New Direct Tax Code (DTC). Feb 2012 budget DTC most probably going to be introduce – wait for the Changes.

Tax Rate – FY12 – April 2011 – Mar 2012 (Assessment Year 2012-13)

Income up-to …

Male

Female

Senior Citizen

Age >=60

Super Senior Citizen

Age >=80

Basic Exemption

1,80,000

1,90,000

2,50,000

5,00,000

10%+3% cess

10.3%

 5,00,000

5,00,000

5,00,000

5,00,000

20% + 3% cess

20.6%

8,00,000

8,00,000

8,00,000

8,00,000

30% + 3% cess

30.9%

Above 8,00,000

Above 8,00,000

Above 8,00,000

Above 8,00,000

Note: Along with Basic Exemption limit, one can utilize above available tax deductions also.

Dividend Distribution TAX

  Individual/HUF
Mutual Fund
    Equity Oriented NIL
    Debt Oriented 12.5% + 5% Surcharge + 3% cess = 13.519%
    Money Market/Liquid 25% + 5% Surcharge + 3% cess = 27.038%
Company/Stock 15% + 5% Surcharge + 3% cess = 16.2225%

Capital Gain Tax

  Short Term Long Term
Mutual Fund (1 yr or less) (more than 1 yr)
    Equity Oriented 15% + 3% = 15.45% 0%
    Debt Oriented Ordinary Income – Tax Rate 10% or 20% with indexation
    Money Market/Liquid Ordinary Income – Tax Rate 10% or 20% with indexation
    Gold ETF Ordinary Income – Tax Rate 10% or 20% with indexation
Direct Equity 15% + 3% = 15.45% 0%
F&O 15% + 3% = 15.45% 0%
 
Physical Assets (3 yr or less) (more than 3 yr)
    Gold Ordinary Income – Tax Rate 20% with indexation
    Real Estate Ordinary Income – Tax Rate 20% with indexation

TDS Rate

  Individual/HUF
Bank FD – (10,000 branch level) 10% – (15H/G to stop the same)
Company FD – (5,000) 10% -(15H/G to stop the same)
Physical Infrastructure Bond – (2,500) 10% – (15H/G to stop the same)
Bonds/debenture – Listed No
Mutual Fund
     Equity Oriented No
     Other Scheme No
SCSS 10% – (15H to stop the same)

Note: If PAN number is not furnished then 20% TDS will be deducted.