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Understanding Taxes

Income tax slabs for FY 2009 -2010

Tax slabs for FY 2008-09

Tax slabs for FY 2010-11


Tax slabs for FY 2011-12

Tax slabs for FY 2012-13

Tax slabs for FY 2013-14 

Below are the income tax slab rates for FY 2009-10 (corresponding to Assessment Year 2010-2011):

(a) Male assessees (< 65 years of age):

Income tax slab, online tax filing, ITR

  

(b) Female Assessees (< 65 years of age):

income tax slab for women, IT slabs

  

(c) Senior Citizens (> 65 years of age):

Tax slabs senior citizen 2009-2010

 

Let’s take an example to clearly understand the tax calculation. – Vikky, 30, is a Marketing Manager employed at XYZ with taxable income of Rs. 9,90,000. As per the tax slab, his tax liability (including education cess of 3%) would come to Rs. 2,07,030 for FY 09-10.

 

Instead of paying such high amounts in tax, one can claim various deductions under Chapter VI A and reduce the net taxable amount. This way one can invest as per his/her financial goals and save on taxes too.

  

Let’s continue the same example to see how much amount can be saved in taxes by investing in tax saving instruments under Chapter VIA.

Let’s assume Vikky had bought a mediclaim insurance policy in FY 2009-10 (insurance premium Rs 10,000 p.a). He has also invested in PPF for Rs 40,000, term life insurance policy (insurance premium Rs 25,000; annual), ULIP (premium Rs 26,000; annual), tax saving mutual fund (amount invested in FY 2009-10 is Rs 50,000), pension plan of mutual fund PQR (contribution for FY 2009-10 is Rs 25,000).

  

From the above, you can see that Vikky has invested a total of Rs 1,66,000 in various tax saving products for FY 2009-10 apart from the contribution to mediclaim insurance policy. As per the tax slabs for FY 2009-10, he can claim a maximum of Rs 1 lakh tax deduction with Sec 80C, Sec 80CCC (contribution to pension funds) put together and up to Rs 15,000 p.a. for payment towards medical insurance premium paid towards policy for self. Therefore, under Sec 80C and Sec 80CCC he gets a deduction of Rs 1 lakh and under Sec 80D he gets a deduction of Rs 10,000. Claiming the total tax deduction of Rs 1,10,000, his net taxable income reduces to Rs 8,80,000. Hence, his tax liability is reduced to Rs 1,73,040 – a saving of Rs. 33,990, which can be directed towards other investments/financial commitments.

  

The above is a simple example of saving in taxes through investments in government approved schemes. You can click here to know more about the tax saving options available for FY 2009-10.

  

Note:

1. Surcharge of 10 % on income tax is not applicable from FY 2009-10.

2. Below is the brief list of documents required for filing IT returns -

       

Documents Required for Salaried individuals with/without interest income:

1. Form 16, salary certificate

2. Receipt of investments made

    

Documents Required for House Property Income:

1. Rental income details (rental receipts, bank statements)

2. Municipal tax/property tax payment receipts

3. Interest certificate for loans

  

Income from capital gains:

1. Proof of sale

2. Proof for ‘cost of acquisition’ and ‘cost of improvement’

3. proof of purchase of original asset

    

Income from Business/profession

1. Financial statements

2. Audit report/certificate (if required)

3. In case of salaried class, you may consider availing reimbursements from your employer and take maximum advantage of the same. A person in lower tax slabs can reduce his tax liability with exemptions alone.

 

Click here for the tax calculator

           

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Calculate your taxes for the return to be filed this year as per the existing income tax slabs

Published Mar 22 2010




Comments

Comments

 

JL Chugh said:

Why for income tax return, senior citizen's age is 65 years why, not 60 years

as in all other cases.

May 30, 2010 11:43 PM
 

Ashok Kumar Mehra said:

It is thouroughly unfair to apply so much of Income tax on a retired person with no platform to raise their issues.Either his Sr. Citizen age should be reduced or his retirement age shoud be raised to 65 years. Why govt. ir retiring people at the age of 60yrs. when it can give the status of Sr. Citizen.

July 31, 2010 8:29 AM
 

Ashok Dash said:

It is very useful information.

August 27, 2010 7:42 AM

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