Share |
 

"Rule 3: Take Full Advantage Of Tax Deductions"

 
Various tax deductions are available under the I.T. Law. One should try to avail of the benefit of these deductions for each and every member of the family. The various investment options that offer tax rebates should be reviewed keeping in mind various aspects like the age factor, etc. A check-list should be prepared of the various deductions permissible under the Income Tax Law (See Chapter X). Check whether each and every tax paying family member is claiming these. If special care is taken of this aspect, then it is legally possible to save a lot of income tax.

It is suggested that a chart be prepared of tax, deductions and exemptions for every family member for purposes of overall tax planning of the family. It would be worthwhile if a group tax chart is prepared containing details relating to income tax, tax deductions, net taxable income, tax deducted at source, rebate of tax, and, finally, the net amount of income tax paid in the case of each family member. With the help of this one simple chart, you can achieve substantial tax planning as it will show up those who have not made optimum use of tax deductions.


TAX DEDUCTIONS


Tax payers now enjoy straight deduction in terms of Section 80C in respect of stipulated investments and expenditure to the tune of ` 1.5 Lakh. Moreover, such investment can be made in any single stipulated item, or a combination of the stipulated avenues of investment. Similarly, within the above limit the investment can also be made in Pension Plans in terms of Section 8OCCC. .


TAX RATES

(I) For Individuals (Males and Females both below the age of 60 years), HUFs, AOPs, BOls

For A.Y. 2014-2015

Income Slab

Rates of income tax

(1)

where the total income does not exceed Rs. 2,00,000

Nil;

(2)

where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000  10% of the amount by which the total income exceeds Rs. 2,00,000;

(3)

where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 Rs. 30,000 plus 20%  of the amount by which the total income exceeds Rs. 5,00,000;

(4)

where the total income exceeds Rs. 10,00,000 Ps. 1,30,000 plus 30% of the amount by which the total income exceeds Rs. 10,00,000

 

Important Note : For F. Y. -2013-2014 (A. Y .2014-2015), Tax Rebate of 2000 for individuals having total income upto 5 Lakh. This credit will not be available to HUF, AOP, BOl, etc

For A.Y. 2015-2016

 

Income Slab

Rates of income tax -

(1)

where the total income does not exceed Rs. 2,50,000 Nil;

(2)

where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 10% of the amount by which the total income exceeds Rs. 2,50,000;

(3)

where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 Rs. 25,000 plus 20% of the amount by which income exceeds Rs. 5,00,000;

(4)

where the total income exceeds Rs. 10,00,000 Rs. 1,25,000 plus 30% of the amount by which the total income exceeds Rs. 10,00,000.

 

(II) For Senior Citizens
(individuals who is age of 60 years or more but less than 80 years).
For A.Y. 2014-2015

 

Income Slab

Rates of income tax

(1)

where the total income does not exceed As. 2,50,000 Nil;

(2)

where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 10%  of the amount by which the total income exceeds Rs. 2,50,000.

(3)

where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 Rs. 25,000 pIus 20% of the amount by which the total income exceeds Rs. 5,00,000.

(4)

where the total income exceeds Rs. 10,00,000 As. 1,25,000 pIus 30%  of the amount by which the total income exceeds Rs. 10,00,000.

 

For A.Y. 2015-2016

 

Income Slab

Rates of Income Tax

(1)

where the total income does not exceed Rs. 3,00,000 Nil

(2)

where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 10% of the amount by which the total income exceeds Rs. 3,00,000

(3)

where the total income exceeds Rs. 5,00,000 but does exceed Rs. 10,00,000 Rs. 20,000 pIus 20% of the amount by which the total income exceeds Rs. 5,00,000

(4)

where the total income exceeds Rs. 10,00,000 Rs. 1,20,000 pIus 30%, of the amount by which the total income exceeds As. 10,00,000.
 

(III) For senior citizens (individuals who is age of 80 years or more).

For A.Y. 2014-2015 & A.Y. 2015-2016

Income Slab

Rates of income tax

(1)

where the total income does not exceed Rs. 5,00,000 Nil;

(2)

where the total income exceeds Rs. 5,00,001 but does not exceed Rs. 10,00,000 20% of the amount by which the total income exceeds Rs. 5,00,000;

(3)

where the total income exceeds Rs. 10,00,000 Rs. 1,00,000 plus 30% of the amount by which the total income exceeds Rs. 10,00,000.

Notes:—
(1)      Surcharge— ForA.Y. 2014-2015 &201 5-2016,10% Surcharge on Individual, HUF, AOP, BOl, if total income exceeds ` 1 crore.

(2)      Education Cess — 2% of Income-tax.

(3)      Secondary & Higher Education Cess —1% of Income-tax.

Marginal Relief: In the case of person mentioned above having total income exceeding one crore rupees the total amount payable as income tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees
 
 
 
More Topics ...
Rule-1 : Spread Your Income Among Your Family Members under Income Tax Act.
Rule-2 : Take Full Advantage Of All Tax Exemptions under Income Tax Act.
Rule-3 : Take Full Advantage Of Tax Deductions under Income Tax Act.
Rule-4 : Exempted Incomes under Income Tax Act.
Rule-5 : Don’t Overdo It — Keep Tax Planning Simple under Income Tax Act.
 
 
Get Updated ...
 
Tax Tutorials
E-Payment Of Direct Taxes
Filing Of Return Of Income
Interest for Delay in Filing the Return of Income [Section 234 A]
Interest for default in Payment of Advance Tax [Section 234B]
Provisions Of 'Income-Tax Law' Useful For Non-Residents
MAT (Minimum Alternate Tax)
AMT ( Alternative Minimum Tax)
Tax On Long-Term Capital Gains (LTCG)
Tax On Short-Term Capital Gains (STCG)
Exemption[ Section-54] For Capital Gains Arising On Transfer Of Residential House Property
Tax Treatment Of Gifts Received By An Individual Or HUF
Set Off And Carry Forward Of Loss Under The Income-Tax Act
Interest For Delay In Payment of TDS/TCS And For Non-Payment Of Tax Demanded
Tax Deduction/Collection Account Number (TAN)
How to apply for PAN ?
Refund Of Excess Tax Paid By The Taxpayer (Sections - 237 to 245 )
Presumptive Taxation Scheme of Section 44AD
Presumptive Taxation Scheme of Section 44ADA
Presumptive Taxation Scheme of Section 44AE
Deduction in respect of Life Insurance Premium, PPF, NSC, etc. [Section 80C]
Deduction in respect of Medical Insurance Premium [Section 80D]
Tax Deducted at Source (TDS) from Interest, other than Interest on Securities (Section-194A)
Tax Deducted at Source (TDS) from Interest on Securities (Section 193)
Late Filing Fees And Penalty For Failure To Furnish/Delay In Furnishing The TDS/TCS Statements
LIBRARY @ Tax Management
TAX & INVESTMENT GUIDE FOR "NRI"- Non-Resident Indians !
GUIDE & FAQ @ TAX
GRAPHICAL PRESENTATION @ TAX
TIPS & TRICKS @ TAX
MANAGERIAL & FINANCIAL DECISIONS @ TAX
5 GOLDEN RULES OF TAX PLANNING
FAMILY TAX PLANNING
DEDUCTIONS FROM YOUR INCOME
EXEMPTED INCOMES
HUF - FORMATION, MANAGEMENT & TAX PLANNING
COMPUTATION OF GROSS TOAL INCOME
INCOME TAX @ GLANCE
MULTIPLE KNOWLEDGEBASE ON TAX
51 TIPS ON TAX PLANNING
APPEALS UNDER INCOME TAX
ASSESSMENTS
PENALTIES UNDER IT DEPATMENTS
TAX SAVING SCHEMES
TAX READY RECKONER
TAX RATES
PROSECUTIONS UNDER INCOME TAX DEPARTMENT
TAXATION SYSTEM IN INDIA
CHARITABLE & RELIGIOUS TRUST - TAXATION
PRESCRIBED FORMS WITH with Section / Rules
KNOWLEDGE BASE !
New Topics @ Tax KnowledgeBase...
 
 

Most Popular Topics :

Corporate Tax ( Taxation in Companies)
FAQ on TDS on Salaries
FAQ on Taxable Income
FAQ on Filing of Income Tax Return
Graphical Chat Presentation of Provision of Motor Car / Other Vehicles [Rule 3(2)(A)&(B)]
'Appeals' Under Income Tax Act. 1961.
'Assessments' Under Income Tax Act. 1961.
List of Exempted Incomes (Tax-Free) Under Section-10
Income Under the Head ' Business and Professions' [Section 28 to 44]
Income Under the Head ' Capital Gain'
Income Under the Head ' House Property '[Section- 22 - 25 ]
Income Under the Head "Salary"
[Section 15-17]
Income Tax on 'Partnership Firms'
PENALTIES Under Income Tax Act. 1961.
Tax Saving Schemes for Individual -Instant Guide
New Tax Rates For FY 2017-18 & AY 2018-19
"Exempted Incomes" under Income Tax Act.
Charitable & Religious Trust :Formation, Registration, & Taxation
Hindu Undivided Family [HUF] - Formation, Management and Taxation
 

Most Popular Links :

Clubing of Income Deduction U/s 80C
Allowances Us-17(3) Exemption-Salary
Tax Amendment-2015 Taxable Income
Clubing of Income Tax Deductions
HUF Deduction HUF Investment
Gift by HUF HUF Tax Planning Tips
Tax Saving Schemes Tax Planning Tips
Refund of Tax Fringe Benefit Tax-FBT
Return Filing Assessment / Scrutiny
Notice from I.T. Dept. Incomes Types @ TDS
Exemptions-Tax Returns “Summon” U/s 131
'Black Money' @ I.Tax Big Gifts To Be Taxed
'Appeals' under I.Tax Assessment @ I.Tax
Exempted Incomes Capital Gain
Business & Professions House Property
Salaries @ I.Tax Partnership Firm
'Penalty' under I.Tax Act. Tax Ready Reckoner
Charitable Trust Useful Links @ I.Tax
 
Guide & FAQ on Tax Knowledgebase @ Taxation Income Tax @ Glance HUF - Formation, Planning & Taxation
Charitable & Religious TRUST NRI (Tax Planning,Saving,Investemnt) Budget 2017-2018 GST (FAQ, Law, Act. Rules, Schedule, Enrollment)
FAQs - Income Tax India Tax Tutorials    

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may click here to visit the web site of Income Tax Department for resolving their doubts or for clarifications