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Let us go through time tested tax and investment strategies for FY 2015-16 to achieve our desired results.

1. Investments for Hindu Undivided Family tax file in your kitty
2. Deposits in savings bank account
3. Plan for investments for your minor children  
5. Zero coupon bonds  
6. Tax free bonds
7. Postal instruments   
8. Continue investment in Public Provident Fund     
9. Mutual Fund investments for the family
10. Time to think on investments in NPS
11. New life insurance policies  
12. Rajiv Gandhi Equity Savings Scheme  
13.  Investment in gold & silver  
14. Chill down and relax for next 100 days


Here are seven smart tips to help you save more and reduce taxes.

1. Salary Restructuring
2. Utilizing Section 80C
Section 80C offers a maximum deduction of up to Rs. 1,00,000. Utilize this section to the fullest by investing in any of the available investment options. A few of the options are as follows:

  •    Public Provident Fund
  •    Life Insurance Premium
  •    National Savings Certificate
  •    Equity Linked Savings Scheme
  •    5 year fixed deposits with banks and post office
  •    Tuition fees paid for children's education, up to a maximum of 2 children

3. Options beyond 80C
If you have exhausted your limit of Rs. 1,00,000 under section 80C, here are a few more options:

  • Section 80D - Deduction of Rs. 25,000 for medical insurance of self, spouse and dependent children and Rs. 30,000 for medical insurance of parents above 65 years
  • Section 80G- Donations to specified funds or charitable institutions.

4. House Rent Allowance
5. Tax Saving from Home Loans
6. Leave Travel Allowance
7. Tax on Bonus


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Slab* for Financial Year 2015-16 (Assessment Year 16-17)

For Men Below 60 Years Of Age

Income Tax SlabIncome Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 - Rs. 500,000 10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

For Women Below 60 Years Of Age

Income Tax SlabIncome Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 - Rs. 500,000 10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

For Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax SlabIncome Tax Rate
Income upto Rs. 3,00,000 Nil
Income between Rs. 3,00,001 - Rs. 500,000 10% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

For Senior Citizens (Age 80 years or more)

Income Tax SlabIncome Tax Rate
Income upto Rs. 5,00,000 Nil
Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Hindu Undivided Families (HUF)

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000 Nil
Rs.2,50,000 to Rs.5,00,000 10% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,000 20% Income exceeding Rs. 5,00,000
Over Rs.10,00,000 30% Income exceeding Rs. 10,00,000

Legal Entities Registered as Associations of Persons

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000 Nil
Rs.2,50,000 to Rs.5,00,000 10% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,000 20% Income exceeding Rs. 5,00,000
Over Rs.10,00,000 30% Income exceeding Rs. 10,00,000

Legal Entities Registered as Bodies of Individuals

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000 Nil
Rs.2,50,000 to Rs.5,00,000 10% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,000 20% Income exceeding Rs. 5,00,000
Over Rs.10,00,000 30% Income exceeding Rs. 10,00,000

Partnership Firms- Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%

Local Authorities-Local Authorities are to be taxed at the rate of 30%.

Domestic Companies-Domestic Companies are to be taxed at the rate of 30%

Co-operative Societies

Income Tax SlabIncome Tax Slab Rate
Up to Rs.10,000 10% Income
Rs.10,000 to Rs 20,000 20% Income exceeding Rs. 10,000
Over Rs. 20,000 30% Income exceeding Rs. 20,000

Also, Surcharge:

 a. 2% of the income tax amount (If income is greater than Rs.1,00,00,000/-)

 b. 5% of the income tax amount. Subject to marginal relief (If income is greater than Rs.10,00,00,000/-)

Education Cess: 2% extra (charged on the amount of income tax + surcharge being paid)

Secondary and Higher Education Cess: 1% extra (charged on the amount of income tax + surcharge being paid)

Income Tax Deductions and Exemptions

Income Tax Section

Gross Annual Salary

How Much Tax Can You Save?

Standard Life Plans

Sec. 80C

Across all income slabs

Upto Rs. 46,350/- saved on investment of Rs. 1,50,000/-

All our Life Insurance Plans

Sec. 80CCC

Across all income slabs

Upto Rs. 30,900/- saved on Investment of Rs.1,00,000/-

All our Pension Plans

Sec. 80 D*

Across all income slabs

Upto Rs. 10,815/- saved on investment of Rs.35,000/-

(Inclusive of Rs. 20,000/- towards health insurance of parents who are senior citizens)

Total Savings
Possible **

                            Rs. 57,165/-

 

  • Rs. 46,350/- under Sec. 80C and Sec. 80CCC and
  • Rs. 10,815/- under Sec. 80D
  • Above figures calculated for an individual with gross annual income exceeding Rs. 10,00,000/-

Sec. 10 (10)D

Under Sec. 10(10D), the benefits received by you are completely tax-free, subject to conditions specified there in

  • Applicable to premiums paid for all Health Insurance Plans, Critical Illness Benefit, Accelerated Sum Assured and Waiver of Premium Benefit.
    ** These calculations are illustrative and based on our understanding of current tax legislations.
  • The above-mentioned tax benefits are subject to changes in the tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.

* Calculations are based on highest tax benefits.

Note: These tax calculations are based on present tax legislations, which are
subject to change The aggregate deductions from income under Sections 80C, 80CCC and 80CCD (applicable in case of central government employees only) should not exceed Rs 1 lakh


Income Tax Slabs for Assessment Year 2019-2020

As per the Union Budget of 2018, below are the various slabs according to which income tax is assessed in various categories of income tax assessees.

  • Resident Individuals & Non-Resident Indians
  • Senior Citizens (60 to 80 years)
  • Senior Citizens (above 80 years)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q- Are income tax slabs same for all individuals?

Yes. Income tax slab rates are the same for all individuals within a specific segment such as those aged less than 60 years, senior citizens (60 years to less than 80 years) and super senior citizens (80 years and above) all feature the same income tax slab rates. This holds true irrespective of whether these individuals are salaried, self-employed, unemployed or freelancers.

Q- Are there separate slab rates for men and women?

Not anymore. But earlier there indeed were separate slabs for men and women in India. For example for FY 2010-11, the basic exemption limit for men aged up to 65 years was Rs. 1.6 lakh annually while women aged up to 65 years of age had a higher basic exemption limit of Rs. 1.9 lakh. This is no longer the case as for FY 2018-19.

Q – To whom do the current income tax slab rates apply?

Every individual whether a resident or non-resident no matter what his/her age whether salaried, self-employed or unemployed is covered by the applicable income tax slab rate and minimum exemption limit. Additionally, applicable slab rates also cover various non-individuals such as HUF (Hindu Undivided Family), AOPs (Association of Persons), BOIs (Body of Individuals), firms, LLPs (Limited Liability Partnerships), companies, local authority and other artificial judicial persons are also covered by the income tax slab rates.


Slab Rates on Dividend

Dividend income received by individuals is taxed based on the source of dividend income i.e. the type of entity declaring the dividend income.

  • If aggregate dividend income received during the year is less than Rs. 10 lakh then Tax Rate is    Nil for Individuals/HUFs under Income Tax Section    Section 10(34)
  • If aggregate dividend income received during the year is more than Rs. 10 lakh  Tax Rate is    10% for Individuals/HUFs under Income Tax    Section 115BBDA
Tax Slabs For NRI

For the Financial Year of 2018-19, the tax slabs and rates are as follows:
Up to Rs. 2,50,000  NIL
Rs. 2,50,000 to Rs 5,00,000    5%
Rs. 5,00,000 to Rs. 10,00,000    20%
Above Rs. 10,00,000    30%
*Health and Education Cess – 4%

Income Tax Slab For Doctors
The income tax slab rate are same for all the salaried persons residing in India. Income tax slab rate for doctors are as follows :

Up to ₹ 2,50,000    NIL
₹ 2,50,000 to ₹ 5,00,000    5%
₹ 5,00,000 to ₹ 10,00,000    20%
Over ₹ 10,00,000    30%
Plus Surcharge:

  •     10% of tax where total income exceeds Rs. 50 lakh
  •     15% of tax where total income exceeds Rs. 1 crore
  •     Health & Education cess: 4% of tax plus surcharge

Income Tax slab for Pensioners

Below mentioned is the income tax slab rate for the pensioners:
Income up to Rs 3,00,000*   NIL
Income from Rs 3,00,000 – Rs 5,00,000    5% + Health and Education Cess  4% of Income Tax
Income from Rs 5,00,000 – 10,00,000    20% Health and Education Cess  4% of Income Tax
Income more than Rs 10,00,000    30% + Health and Education Cess  4% of Income Tax

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
*Income tax exemption limit for FY 2019-20 is up to Rs. 3,00,000