2. The art is not making money , but in
keeping it”
3. FIVE HEADS OF INCOME
INCOME FROM
SALARY
INCOME FROM
HOUSE
PROPERTY
INCOME FROM
BUSINESS AND
PROFESSIONAL
INCOME FROM
CAPITAL GAIN
INCOME FROM
OTHER
SOURCES
5. Up to 1,80,000
1,80,000 to 5,00,000
5,00,000 to 8,00,000
Above 8,00,000
0%
10%
20%
30%
Up to 1,90,000
1,90,000 to 5,00,000
5,00,000 to 8,00,000
Above 8,00,000
0%
10%
20%
30%
New Income tax slab for A.Y 2012-13
(financial year 2011-12)
Men (Below 60) Women (Below 60)
6. 6
Limitation on deduction
• Deductions under this chapter are available from
GTI.
• Total deductions cannot exceed the GTI.
• If AOP or BOI is allowed certain deductions, such
deductions cannot be allowed to the members
out of the share income.
7. Why tax deductions provided
• To provide incentives for the welfare of the
economy.
• Encouraging investments.
• For the social welfare.
• Savings and thrift.
• Infrastructure Development.
8. SAVE YOUR TAX
Rule No 1: Never Loose Your Money on Tax.
Rule No 2: Don’t invest just for saving tax look
for returns.
10. DEDUCTION IN RESPECT OF CERTAIN
PAYMENT
• CONTRIBUTION TO LIFE INSURANCE PREMIUM AND
PROVIDENT FUND – 80C
• CONTRIBUTION TO PENSION FUND -80CCC
• MEDICAL INSURANCE PREMIUM-80D
• MAINTENANCE AND MEDICAL TYREATMENT OF
DEPENDANT WITH DISABILITY -80DD
• REPAYMENT OF LOAN FOR HIGHER EDUCATION -80E
11. 11
Donations [Sec.80G]
• Certain donations - 100% deduction.
• Some other donations - 50% deduction.
• Limit on certain donations - 10% of Gross
Total Income.
• Only monetary donation is eligible for
deduction.
12. 12
Rent [Sec.80GG]
• Non - salaried Individual.
• Rent for own residence paid in excess of
10% of Total Income.
• Limit of deduction :- Rs.2,000/- per month or
25 % of Total Income whichever is lower.
• From AY 1998-99.
13. 13
Donation for scientific research etc.
[Sec. 80GGA]
• Person having no income from business or
profession.
• Deduction : Any amount paid to approved
association, institution, university or college.
• Purpose : Scientific research, social
science, statistical research, rural
development, conservation of natural
resources, afforestation etc.
14. 14
Industrial undertakings etc
[Sec. 80-IA]
• Business of
– industrial undertaking,
– hotel,
– infrastructural facility,
– telecommunication service,
– scientific & industrial research,
– housing projects,
– industrial park,
– production & refining of mineral oil in NER
15. 15
[Sec. 80-IA]
• Deduction :- 25 % to 100 % of profit.
• Period :- 5 to 12 A.Ys.
• Conditions :-
– Not formed by splitting or reconstruction of
existing business,
– Not formed by transferring of old plants &
machineries.
– Not manufacturing an item of 11th
Schedule [Except for SSIU, industry in
backward area etc.]
16. 16
Bifurcation of deduction
between Sec. 80-1A & 80-1B
• The Finance Act, 99 has split the deductions
available u/s 80-1A into two sections.
• Sec. 80-IA :- Infrastructural
facility, telecommunication service, power etc.
• Sec. 80-IB :- Other industrial undertaking, hotel
etc.
• W.E.F. AY 2000-01.
17. 17
Higher education
Repayment of loan [Sec.80E]
• Individual
• Repayment of loan (with interest) taken for
pursuing own higher education
[engg, med, management etc] from financial
institution or approved charitable institution.
• Repayment out of income chargeable to tax
• Limit :- Rs.25,000/- per year.[Rs.40,000/-w.e.f. A
Y 2001-02]
• Maximum for 8 consecutive years.
18. Section 80u
Assesses is himself handicapped.
Eligible for Resident Individual
Amount of Deduction
Normally Rs 50k flat deduction.
Severe Disability – Rs 100K flat deduction
Amount of deduction –
Disability Deduction
< 40% No Deduction
40 to 80% Rs 50K
> 80%- Severe Disability Rs 100k
Furnish a certificate of disability.
19. Property
Saving Today’s money …To Provide For Tomorrow’s Security!
Luxurious car World tourGreat retirement
Great wedding Child’s future
Saving Today’s money …To Provide For Tomorrow’s
Security!
