Financial Year 2012-13 [1 April 2012 to 31 March 2013]

Deductions

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

Section

Max Limit Instruments

80C

1,00,000

PPF/PF

Senior Citizen Saving Scheme

NSC – 5 year + Interest of previous NSC

Bank Tax Saving FD – 5 year

ELSS – Mutual Fund

Tuition Fee

Principal Amount – Home Loan

LIC / Life Insurance Premium [Insurance must be 10x Premium]

80TTA

10,000 Interest on Savings (Bank/Post Office) Account

80CCG

25,000 [50% of Max 50,000] Rajiv Gandhi Equity Scheme – First time Equity investor – 3yr lockin and can invest in notified Equity Stocks or MF. Gross income must be 10,00,000 or lessDEMAT Mode compulsory to avail the benefit

80D

15,000 + 15000/20000 Mediclaim Insurance [self, spouse,  children],Max 5000 for Health Check Up but within LimitFor parents 15,000 extra limit, if they are senior citizen then 20,000Max 5000 for Health Check Up but within Limit

80D

20,000 Senior Citizen PeopleMax 5000 for Health Check Up but within Limit

80E

No Limit, Only 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 2013 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

2,00,000

2,00,000

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%

10,00,000

10,00,000

10,00,000

10,00,000

30% + 3% cess

30.9%

Above 10,00,000

Above 10,00,000

Above 10,00,000

Above 10,00,000

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)
Real Estate [20 lacs or 50 lacs] 1%

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

 

Service Tax [Not part of income Tax]

An investor has to bear the service tax when s/he buys Insurance Plan.

But charged on CHARGES taken by the Plan

1st Year Onwards
Term Plan 12% + 3% Cess = 12.36% Check each year
Other than Term Plan
Or
Investment PlansMoney-Back; Single Premium; Endowment Plan; Child Plan etc,
3% + 3% Cess = 3.09% 1.5% + 3% = 1.545%
Unit Linked Plan 12 + 3% Cess = 12.36%Pay service tax only on “various Charges” Check Each year