Dated: 1st July 2010
Tax Slabs
1) In Case of Male Assessee:
Income Bracket Rate
0 to Rs. 1,60,000 0 %
Rs. 1,60,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %
2) In Case of Women Assessee:
Income Bracket Rate
0 to Rs. 1,90,000 0 %
Rs. 1,90,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %
3) In Case of Senior Citizens:
Income Bracket Rate
0 to Rs. 2,40,000 0 %
Rs. 2,40,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %
* On final tax amount, a surcharge of 3 %
**No surcharge above 10 lacs.
Exemptions:
1) 80 C Limit Unchanged (Rs.1,00,000)
2) 80 CCF – Additional Rs. 20,000 on investments towards approved Infrastructure bonds
3) 80CCD:
Contribution to NPS and returns on NPS tax free, but withdrawal still taxable
4) 80 D
Mediclaim Premium on the Health of Investment limit
a) Self Spouse and Children Rs. 15,000
b) Parent/Parents Rs. 15,000
c) If Parent/ Parents Senior citizen Rs. 20,000
5) Section 80DD
Deduction under section 80DD
• Exemption given for Expenditure made for a disabled dependant towards Medical
Treatment/Training/Rehabilitation. It also includes the LIC/Insurance premium paid
towards maintenance of such dependant.
• Maximum deduction allowed is Rs. 50,000/- in case of normal disability and Rs. 1
Lakh in case of severe disability.
6) 80DDB
Deduction under section 80DDB
• Exemption given for expenditure incurred on specified disease or ailments such as
cancer/aids.
• Maximum deduction allowed is Rs. 40,000/-. In case of Senior Citizens, maximum
deduction allowed is Rs. 60,000/-
7) Section 80E
Deduction under section 80E
Deduction is allowed for repayment of interest component of Higher Education loan. All
education after Class 12 is allowed, either vocational or Fulltime. But should be from a
school/institute/university recognized by the government.
8 ) Section 80G
• Contribution to exempt charities – 25/50/75/100% depending on the charity and as
per approval
• 100% exemption on donation to political parties
9) 80U
Deduction under section 80U
• Deduction upto Rs. 50,000/- is allowed in case of Permanent Disability.
• In case of Permanent Disability exceeding 80%, maximum deduction allowed is Rs.
75,000/-.
10) Section 24(1)(vi)
• Housing loan interest. Maximum Investment Limit – Rs. 1,50,000 (for loans taken
after 1 April 1999, for loans before that Maximum Investment Limit 30,000).
11) Superannuation – Any contribution made by a company to superannuation fund upto
Rs. 1,00,000 tax free in the hands of the employee
12) Conveyance/Transport Allowance – Any Conveyance / Transport Allowance given to an
employee is tax free upto Rs. 9,600 /- (No Supporting Bills required)
13) Medical Allowance – Any Medical Allowance given to an employee is tax free upto Rs.
15,000 /- (Supporting Bills required)
14) HRA – Any House Rent Allowance given to an employee is tax free upto the minimum
value of the following conditions (subject to – when an employee can produce rent paid
receipts from landlord for the period and if the employee has not availed of tax exemptions
for home loan interest / principal repayment):
a) 50% of Annual Basic (40% of Annual Basic in case of non-metros)
b) Actual HRA received
c) Rent Paid – (10% of Annual Basic)
15) Professional Tax – Any Professional Tax deducted from an employee’s salary can be
reduced from the annual salary income to arrive at taxable salary
16) Provident Fund – Provident Fund contributions (under section 80 C and subject to an
overall investment limit of Rs. 1,00,000 ) deducted from an employee’s salary are tax
exempt.