Whether i Need to Pay Income tax

This is the question arise in the mind of every employee, Businessmen have at the end of march. A quick look at the tax structure for the assessment year 2012-2013




I.In case of individual (other than II and III below) and HUF

Income Level	Income Tax Rate
i. Where the total income does not exceed Rs.1,80,000/-	NIL
ii. Where the total income exceeds Rs.1,80,000/- but does not exceed Rs.5,00,000/-	10% of amount by which the total income exceeds Rs. 1,80,000/-
iii. Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-	Rs.25,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.
iv. Where the total income exceeds Rs.8,00,000/-.	Rs. 92,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.

II. In case of individual being a woman resident in India and below the age of 60 years at any time during the previous year:-

Income Level	Income Tax Rate
i. Where the total income does not exceed Rs.1,90,000/-.	NIL
ii. Where total income exceeds Rs.1,90,000/- but does not exceed Rs.5,00,000/-.	10% of the amount by which the total income exceeds Rs.1,90,000/-.
iii. Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.	Rs. 31,000- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.
iv. Where the total income exceeds Rs.8,00,000/-	Rs.91,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.

III. In case of an individual resident who is of the age of 60 years or more at any time during the previous year:-

Income Level	Income Tax Rate
i. Where the total income does not exceed Rs.2,50,000/-.	NIL
ii. 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/-.
iii. Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.	Rs.25,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-
iv. Where the total income exceeds Rs.8,00,000/-	Rs.85,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.

IV. In case of an individual resident who is of the age of 80 years or more at any time during the previous year

Income Level	Income Tax Rate
i.Where the total income does not exceed Rs.2,50,000/-	NIL
ii. Where the total income exceeds Rs.2,50,000/-	NIL
iii. Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/	20% of the amount by which the total income exceeds Rs.5,00,000/-
iv. Where the total income exceeds Rs.8,00,000/-	Rs.60,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-

Education Cess: 3% of the Income-tax.

SALARY INCOME INCLUDES :- PAY, DP, Band pay, Grade pay, DA, OTA, BONUS, CCA, Honorarium, Children Education Allowance Received, Pension, Subsistence Allowance, Government's Contribution in New Pension Scheme, Transport Allowance above Rs.800/- per month.

                            HOW Can I Save!!!!!!!!

Savings/Deductions under Chapter VI-A:

• Section 80C (Amount paid towards life insurance premium, contributions in GPF, CPF, PPF, NPS, NSS etc, tuition fees, payment, Housing Loan principal repayment)

• Section 80CCC (Deduction in respect of contributions to certain pension funds)

• Section 80CCD (Deduction in respect of contributions to pension scheme of Central Government)

Note: Section 80CCE restricts aggregate amount of deduction under section 80C, 80CCC and 80CCD to one lakh rupees). The subscribers in New Pension Scheme (NPS) are allowed to deduct the entire government contribution in NPS without any ceiling. In the last year (financial year 2010-11) Government contribution in NPS was also subjected to Rs. one lakh restriction under Section 80 CCE. This is really a welcome change

• Section 80D (Deduction in respect of Medical Insurance Premium) (Max. Rs. 20,000/- for Senior Citizens & Rs. 15,000/- for others).

• Deductions under Sec. 80D for Health Insurance of parents. (Max. Rs. 20,000/- if parents are Senior Citizen, otherwise Rs. 15,000/-).

• Section 80DD (Deduction in respect of maintenance including medical treatment of dependent who is a person with disability- Maximum amount- Rs. 1 lakh)

• Section 80DDB (Deduction in respect of medical treatment. Maximum amount – Rs.40,000)

• Section 80E (Deduction in respect of interest on loan taken for higher education)

• Section 80G (Deduction in respect of donations to certain funds, charitable institutions, etc.)

• Section 80GG (Deduction in respect of rents paid subject to ceiling if HRA not received)

• Section 80GGA (Deduction in respect of certain donations for scientific research or rural development)

• Section 80GGC (Deduction in respect of contributions given by any person to political parties)

• Section 80U (Deduction in case of a person with disability-An amount of Rs.50,000 and Rs. 1 lakh in the case of self is physically disabled and severely physically disabled respectively)