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Taxation (2010-11)

Learn how to calculate your Income Tax

Step I : Gross IncomeCalculate your Annual Income. (Monthly Income * 12)

Step II : DonationsCalculate the total donations you have made towards various institutions in accordance to Income Tax Rules.

Step III : SavingsCalculate your total savings. This may include all the savings and investments mentioned in Income Tax Saving Schemes Sections.

Step IV : Income Tax

Learn how to calculate your Income Tax

Choose the slab according to your income and calculate your Income tax.

Income Tax Slab (in Rs.) Tax

0 to 1,60,000 No Tax

1,60,001 to 3,00,000 10%

3,00,001 to 5,00,000 20%

Above 5,00,000 30%

Income tax slabs 2009-2010 (for Men) in India:

Income Tax Slab (in Rs.) Tax

0 to 1,90,000 No Tax

1,90,001 to 3,00,000 10%

3,00,001 to 5,00,000 20%

Above 5,00,000 30%

Income tax slabs 2009-2010 (for Women) in India

Income tax slabs 2009-2010 (for Senior Citizens) in India:

Income Tax Slab (in Rs.) Tax

0 to 2,40,000 No Tax

2,40,001 to 3,00,000 10%

3,00,001 to 5,00,000 20%

Above 5,00,000 30%

Step VII: Education CessAdd 3 % of your taxable income as the Educational Cess to the new Income Tax amount calculated in step VI.

Learn how to calculate your Income Tax

TAX CALCULATION

Example 1: Mr. Kuldeep is 35 year old and earning 8 lac annually. (Male)

Calculation

Tax on Income up to 1,60,000 Nil

Tax on Income between 1,60,000 - 3,00,000 (@ 10%) 14,000

Tax on Income between 3,00,000 - 5,00,000 (@ 20%) 40,000

Tax on Income between 5,00,000 - 8,00,000 (@30%) 90,000

Total 1,44,000

Educational Cess (@ 3% of Total Tax) 4,320

Net Tax Payable 1,48,320

Learn how to calculate your Income Tax

Tax on Income up to 1,90,000 Nil

Tax on Income between 1,90,000-3,00,000 (@ 10%) 11,000

Tax on Income between 3,00,000-5,00,000 (@ 20%) 40,000

Tax on Income between 5,00,000- 12,00,000 (@30%) 2,10,000

Total 2,61,000

Educational Cess(@ 3% of Total Tax) 7,830

Net Tax Payable 2,68,830

Example 2: Mrs. Harminder Kaur is 32 year old and earning 12 lac annually. (Female)

Calculation

Learn how to calculate your Income Tax

Example 3: Mrs. Rajesh is 67 years old and earning 8 lac annually. (Senior Citizen)

Tax on Income up to 2,40,000 Nil

Tax on Income between 2,40,000-3,00,000 (@ 10%) 6,000

Tax on Income between 3,00,000-5,00,000 (@ 20%) 40,000

Tax on Income between 5,00,000- 8,00,000 (@30%) 90,000

Total 1,36,000

Educational Cess(@ 3% of Total Tax) 4,080

Net Tax Payable 1,40,080

Calculation

Learn how to calculate your Income Tax

For the Assessment Year 2009-10

2009-2010 Taxable income slab (Rs.) Rate (%)

Up to 1,60,000 (for Men)Up to 1,90,000 (for Women)Up to 2,40,000 (for Individual of 65 years and above)

NIL

1,60,001 – 3,00,000 10%

3,00,001 – 5,00,000 20%

5,00,001 upwards 30%

Slab Revision

Agricultural income is exempt from income-tax.

Options Available under Section 80 C

Investment Options Returns (%) Lock In Tax On IncomeMinimum

InvestmentMaximum

Investment

Mutual Fund(ELSS) 15% - 18% 3 YrsTax Free Dividend &

ReturnsRs.500 No Limit

PPF 8% 15 Yrs Tax Free Returns Rs.500 Rs.70000

NSC 8% 6 Yrs Taxable - Interest Rs.100 No Limit

Fixed Deposit 6.25 to 7.5% 5 Yrs Taxable – Interest Rs.200 No Limit

Senior Citizen Saving

Scheme ( Min. age 55 Yrs)

9% 5 Yrs Taxable – Interest Rs.1000 Rs.15 Lacs

Apart from these, insurance premium on life insurance policiesand principal component of housing loan are also eligible for

Section 80 C benefit.

Tax Saving Investments are long term Investment

What is the Advantages of doing Smart InvestmentIn Mutual Fund ELSS?

Take Example of Two Sisters

Karishma & Kareena

Both Invested Rs.70000 Every Year.

Karishma

MF (ELSS)

MarketDriven

Smart Decision Making

Kareena

PPF

8%FIXED

RETURNS

Investment Started from 14th Feb 2002 to 14th Feb 2011

Invested Rs. 7 Lacs in 10 Years

Stock markets swings from 3000 to 21000, Back to 8000 and now around 18200.

Smart Decision Making

Kareena feels proud on his decision of notinvesting in ELSS and choosing PPF.

So you will also agree with Kareena as PPF has givenHim fixed return of 8% over the years.

05

10152025303540

Kareena Karishma

PPF Vs. ELSS

PPF Vs. ELSS

34.52 Lacs

10.87 Lacs

Top 10 ELSS Schemes have delivered 22.67% Average Yearly Returns in 10 Years.

Karishma has made almost 3 times more money thanKareena by investing in MF ELSS schemes rather than PPF

Smart Decision Making

Your earning Tax without ELSS Tax with ELSS You save

250,000 9,270 0 9,270

300,000 14,420 4,120 10,300

400,000 35,020 14,420 20,600

800,000 1,48,320 1,17,420 30,900

1,500,000 3,64,620 3,33,720 30,900

ELSS : Best way of saving taxes.

Based on Tax Slab for FY 09-10

Assuming an investment of Rs. 100,000 in ELSS in this Financial Year for male below 65 year age

Making Money is

‘EASY’

But Managing it is

‘Difficult’

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