Income tax slab for financial year 2007-2008 assessment year 20008-2009 and tax saving investments?

Question

Income tax slab for financial year 2007-2008 assessment year 20008-2009 and tax saving investments?

Answer 1

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Tax rate is as follows

For individuals resident woman {not being a senior citizen (who is of 65 years or more at anytime during the previous year)}

Net income range income tax rate

Upto 145000 nil

145000 to 150000 10% of (TI-145000) + 3% education cess

150000 to 250000 500+20% of (TI-150000) +3% education cess

250000 to 1000000 20500+30% of (TI- 250000) +3% education

cess

above 1000000 245500+30%of (TI-1000000) +10% of income tax Surcharge + 3% of income tax and surcharge

For resident senior citizen (who is of 65 years or more at anytime during the previous year)

upto 195000 nil

195001 to 250000 20% of (TI-195000)+3% edu cess

250001 to 1000000 11000+30% of (TI- 250000)+3% edu cess

above 1000000 236000+30% of (TI- 1000000)+10% sc

+3% edu cess

For any other individual, every HUF/AOP/BOI/Artificial juridical person

upto 110000 nil

110000 to 150000 10%of (TI - 110000)+3% ec

150001 to 250000 4000+20% of (TI-150000)+3% ec

250001 to 1000000 24000+30% of(TI- 250000)+3%ec

above 1000000 249000+30% of (TI-1000000)+10% sc+3%ec

* ec Education Cess

* sc Surcharge

* TI Toal Income

Following are the different items where you can invest to get a maximum deduction of 1 lac u/s 80 C

1.LIC insurance premium (including payment made by govt employees to the central govt employees' insurance scheme and payment made by a person under children 's defered endowment assurance policy){subject to a maximum of 20% of sum assured}

2.Amount deposited as term deposit for a period of5 years or more accordance with a scheme framed by the govt (applicable from Assessment year 2007-2008)

3.Payment in respect of non-commutableDeffered annuity plan

4.Any amount paid as tuition fee (not including any payment towards development fees/donation/payment of similar nature) whether at the time of admission or otherwise to any university/college/educational institutions in india for full time education

5.Salary deducted by employer (incase of Govt employee)

6.contribution to Statutory provident fund and RPF.

7.contribution towards 15yrs PPF

8.contribution towards approved superannuation fund.

9.Subscription to National Savings Certificate VIII issue.

10.contribution for participating in the ULIP of UTI

11.contribution for participating in the ULIP of LIC mutual fund

12.Payment for notified annuity plan of LIC or any other insurer.

13.Subscription towards notified units of Mutual Fund or UTI

14.contribution to notified pension fund set up by Mutual fund or UTI (i.e retirement benefit pension fund of UTI)

15.Any sum paid including accrued interest as subscription to home loan account scheme of the National Housing Bank or contribution to any notified pension fund set uo by the national housing Bank.

16.Any sum paid as subscription to any scheme ofa> public sector company engaged in providing long term finance for purchase/construction of residential house in India.b> housing board constituted in India for the purpose of planning, development or improvement of cities/towns.

17.Any amount towards the cost of purchase/construction of aresidential property (including repayment of loan taken from Govt. bank, cooperative bank,LIC,National Housing Bank,assessee's employer where such an employer is a public company/public sector company/university/co-operativ... society)

18.amount invested in approved debentures of, and equity shares in, a public company engaged in infrastructure including power sector or units of amutual fund proceeds of which are utilised for the developing, maaintaining,etc of a new infrastructure facility

Source(s): Tax Guru

Answer 2

Income tax is exempeted till first rs. 110000 after wards taxable.

Best Tax saving investments with good returns are Mutual funds.

For further details of tax slabs see the Income tax website.

Source(s): www.incometaxindia.gov.in

Answer 3

Taxable income slab (Rs.) Rate (%)

1,10,000

1,45,000 (for women)

1,85,000 (for senior citizens) NIL

1,10,001 - 1,50,000 10%

1,50,001 - 2,50,000 20%

2,50,001 upwards 30%

10,00,000 upwards 30%*

* A surcharge of 10% on income tax is levied where taxable income exceeds Rs. 1 million which makes it effective 33% including surcharge

1.Children's Bonus Bonds

2.UK life assurance endowment policies

3.Enterprise Investment Schemes

4.Enterprise Zones

5.Gilt's (UK Government Stocks and Bonds)

6.Individual Savings Accounts (ISAs)

7.Investment bonds

8.Various national savings accounts

9.Pension Schemes

10.Venture capital trusts

11.Bank/building society accounts

today there are many mutual funds schems are also for earning money and saving our taxes

Answer 4

Individuals-other than senior citizens and ladies

Up to 110000- No Tax

110001 to 150000-10%

150001to250000-20%

250001and above-30%

Ladies other than Senior Citizens

Up to 145000-No Tax

145001 to 150000-10%

150001to250000-20%

250001and above-30%

Senior Citizens

Up to 195000-No tax

195001to250000-20%

250001and above-30%

Investment u/s 80C eligible for deduction from income-Rs.100000

Source(s): Income Tax Act

Answer 5

There is a change at the base. No tax up to Rs.1,10,000/- , just an increase of Rs.10,000/- for all categories viz. female and senior citizen etc. For details after June please contact Income Tax Department site for full details.

Answer 6

The IT limit is increased as nil from Rs 100000 to 110000 and all other tax limits are same as that of previous year. However as for as AY 20008 is concerned, even finance minister can't answer about your question.