Tax Benefits
Income Tax Provisions for the Financial Year ending 31st March 2009 and Tax Benefits from Life Insurance.
(A) Income Tax Rates for FY 2008-09:
I) For any individual other than referred to in Item no II and III below.
| Total Income Range |
Tax Rates |
Surcharge | Education Cess (% of I.T) | Secondary and Higher Education Cess |
| Upto Rs.1,50,000/- | Nil | Nil | Nil | Nil |
|
Rs.1,50,001- Rs. 3,00,000 |
10% of the amount by which the total Income exceeds Rs.1,50,000 | Nil | 2% | 1% |
|
Rs.3,00,001- Rs. 5,00,000 |
Rs.15,000 + 20%of amount by which the total Income exceeds Rs.3,00,000 | Nil | 2% | 1% |
| Above Rs. 5,00,000 | Rs.55,000 + 30% of amount by which the total Income exceeds Rs.5,00,000 | Nil | 2% | 1% |
(II) In case of resident women below 65 years of age.
Total Income Range |
Tax Rates |
Surcharge | Education Cess (% of I.T) | Secondary and Higher Education Cess |
| Upto Rs.1,80,000/- | Nil | Nil | Nil | Nil |
| Rs.1,80,001- Rs. 3,00,000 | 10% of the amount by which the total Income exceeds Rs. Rs.1,80,000 | Nil | 2% | 1% |
| Rs.3,00,001- Rs. 5,00,000 | Rs.12,000 + 20% of amount by which the total Income exceeds Rs.3,00,000 | Nil | 2% | 1% |
| Above Rs. 5,00,000 | Rs.52,000 +30% of amount by which the total Income exceeds Rs.5,00,000 | Nil | 2% | 1% |
(III) In case of Senior citizens (above 65 years of age)
Total Income Range |
Tax Rates |
Surcharge | Education Cess (% of I.T) | Secondary and Higher Education Cess |
| Upto Rs.2,25,000/- | Nil | Nil | Nil | Nil |
| Rs.2,25,001- Rs. 3,00,000 | 10% of the amount by which the total Income exceeds Rs. Rs.2,25,000 | Nil | 2% | 1% |
| Rs.3,00,001- Rs. 5,00,000 | Rs.7,500 +20% of amount by which the total Income exceeds Rs.3,00,000 | Nil | 2% | 1% |
| Above Rs. 5,00,000 | Rs.47,500 +30% of amount by which the total Income exceeds Rs.5,00,000 | Nil | 2% | 1% |
Surcharge on Income-tax :
Will be levied at the rate of 10% where the taxable income exceeds Rs. 10 Lakh.
Education Cess:
Will be levied at the rate of two percent on the amount of Income tax and surcharge (if any).
Secondary and Higher Education Cess :
An additional surcharge, called the "Secondary and Higher Education Cess at the rate of one percent of income-tax and surcharge (not including the " Education Cess on Income-tax") shall be levied in all cases.
(B) Tax Benefits available for various Life Insurance plans.
| INCOME TAX SECTION | GROSS ANNUAL SALARY | HOW MUCH TAX CAN YOU SAVE? | HDFC STANDARD LIFE PLANS |
| Sec. 80C | Across All income Slabs. | Upto Rs. 33,990 saved on investment of Rs. 1,00,000. |
All the life insurance plans. |
| Sec. 80 D* | Across all income slabs. | Upto Rs. 3,399 saved on Investment of Rs. 10,000. |
All the health insurance riders available with the conventional plans. |
| TOTAL SAVINGS POSSIBLE ** |
Rs. 37,389 Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000. |
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| Sec. 10 (10)D | Under Sec. 10(10D), the benefits you receive are completely tax-free, subject to the conditions laid down therein. | ||
* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and Waiver of Premium Benefit. |
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