The document discusses tax slabs and rates for different types of taxpayers in India for the years 2008-2009. It provides income thresholds and tax rates for male and female individuals under age 65 and for senior citizens. Various tax deductions are also summarized, including section 80C for investments up to Rs. 1 lakh, section 80CCC for pension contributions up to Rs. 1 lakh, section 80CCD for certain pension contributions, section 80D for medical insurance, and section 80E for interest on education loans. Common choices for section 80C deductions like insurance premiums, tuition fees, PPF, and home loan principal repayment are also mentioned.

1. Understanding Tax!

2. Tax 2008-2009 – The slabs! Assessee (others) (Male < 65, HUF) – Rs: 1,50,000 Women Assessee ( < 65) – Rs: 1,80,000 Senior Citizen (65 or 65+) – Rs: 2,25,000 0 – 1,50,000 - Nil 1,50,001 – 3,00,000 - 10% (15,000) + 3% E.C 3,00,001 – 5,00,000 - 20% (60,000) + 3% E.C 5,00,001 – above - 30% + 3% E.C 10% Surcharge - above 10,00,000

3. Rates – Ready Reckoner! Rate Others Women < 65 Senior Citizens Up to 1,50,000 - - - 1,50,001 to 1,80,000 10% - - 1,80,001 to 2,25,000 10% 10% - 2,25,001 to 3,00,000 10% 10% 10% 3,00,001 to 5,00,000 20% 20% 20% 5,00,001 & above 30% 30% 30% 10,00,001 & above 10% Surcharge on Tax Education Cess 2% Education Cess on( Tax + SC)

4. Tax, Tax and more tax!! 20% 30% 10% 0 0 1,50,000 15,000 3,00,000 55,000 5,00,000 2,05,000 10,00,000 Tax Liability Income

5. Tax & Planning

6. Relief(s) Available! Section 80 C Section 80 CCC Section 80 CCD Section 80 D Section 80 E

7. 80C - Conditions Apply! Cannot exceed Rs.1,00,000 Sum may be paid or deposited at any time during the year No limits for various items specified u/s. 80C. Therefore, an assessee may opt to invest even in only one item say insurance premium Premium or other payment made on insurance policy not in excess of 20% of actual capital sum assured Tuition Fee for any two children of the assessee Principal repayment on loan borrowed for acquiring commercial property is not eligible Residential property under construction for which principal has been repaid does not qualify for deduction

8. 80C– More Conditions Apply! Repayment of principal on loan borrowed for residential house (whether let-out or self occupied) only is entitled for deduction. Where the loan is availed for any addition, alteration, repair or renovation no deduction can be claimed for principal repayment Repayment of loan borrowed for housing from relatives, friends, non-specified employer / institution are not eligible for deduction. However, any interest paid on such loan borrowed is deductible under section 24, while computing income under the head “House Property” Fixed Deposit in Banks must be for 5 years

9. 80C– Additional Options! Five year time deposit in an account under Post Office Time Deposit Rules, 1981. Deposit in an account under the Senior Citizens Savings Scheme Rules, 2004

10. 80C - Popular Choices! Mutual Funds Insurance ULIP Principal repayment of Housing Loan Tuition fee – paid for children (own, adopted, step) for full time education in India. [ Note: Tuition fee paid for grandchildren is eligible for deduction for the HUF ] Fixed Deposits in Banks (5 years) NSC – National Savings Certificate PF – Provident Fund [SPF, PPF, RPF] 10 year Post Office Savings Bank (CTD) Stamp Duty and Registration Charges

11. 80CCC & 80CCD –Pension-No Tension ! 80CCC-Contribution to pension scheme Rs.1,00,000 (outer limit) Disallowance on cancellation or lapse All withdrawals are taxable on surrender / maturity 80CCD-Contribution to CG pension scheme 10% of Salary (Basic + DA) All withdrawals are taxable on surrender / maturity

12. 80D – Health is wealth (literally)! 80 D – Contribution to Medical Insurance Schemes Rs: 15,000 Self + Spouse + Dependent Children + Dependent Parents Rs: 20,000 for senior citizens Now, an additional deduction of Rs: 15,000 (Rs: 20,000 if parents are senior citizens) is available to an individual for payment of medical insurance premium for parents.

13. 80E – It’s good to study!  80 E – Repayment of Education Loans Only Interest is eligible for deduction No Limit Deduction eligible for initial year and immediately succeeding seven years Deduction eligible for repayment of education loans made for spouse or children

14. What is the Tax liability if Total Income is Rs.300,000 (for Male assessee < 65) Test Yourself! i Rs.15,000 ii Rs.13,330 iii Rs.13,707 iv Rs.15,450

15. Fixed Deposit in Banks must be for ___ years to be eligible for Section 80C? Test Yourself! i 3 ii 5 iii 2 iv No specifications

16. What is the Tax liability if Total Income is Rs.180,000 (for Female assessee < 65) Test Yourself! i Rs.15,000 ii Rs.1,030 iii NIL iv Rs.15,450

17. What is the maximum limit under Section 80E? Test Yourself! i Rs.15,000 ii Rs.5,000 iii Rs.20,000 iv None

18. What is the Tax liability if Total Income is Rs.500,000 (for Male Assessee < 65) Test Yourself! i Rs.56,650 ii Rs.77,250 iii Rs.75,000 iv Rs.50,600

19. Plan Ahead! Have A Non ‘Tax’ing Year!!