This post has some common rules and regulations of personal income tax in India. This\u00a0would help you to further understand the intricacies\u00a0of taxes.<\/p>\n
Income Tax Slabs\/Rates for Financial Year 2011 – 12<\/p>\n
1.\u00a0Women assesses<\/strong><\/p>\n 2.\u00a0Senior Citizen (60 – 79 Years)<\/strong><\/p>\n 3. Very Senior Citizen (80 Years and above)<\/strong><\/p>\n 4. All other assesses<\/strong><\/p>\n Least of<\/p>\n Transport allowance is exempt up to Rs.800\/- per month provided the person is in India during the month. For people having permanent physical disability, the exemption is Rs.1,600\/- per month<\/p>\n Vehicle maintenance exemption can be claimed if you use a car for travel to the workplace. In such case, exemption can be claimed for the petrol and vehicle maintenance amounts. The exemption is available to the tune of Rs.1,200\/- per month if the engine capacity is less than 1600cc and Rs.1,600\/- per month if the engine capacity is more than 1600cc. In case the amount includes driver’s salary, there is an additional exemption of Rs.600\/- per month. When this exemption is claimed, transport allowance exemption is not available.<\/strong><\/p>\n Medical bills are exempt for self and dependent family, up to Rs.15,000\/- per annum<\/p>\n LTA is exempt to the tune of ecomony class Train\/ Air \/Recognized public Transport fare for the family to any destination in India, by the shortest route.<\/p>\n LTA can be claimed twice in a block of 4 calendar years. The current block is from 01.01.2010 to 31.12.2013. For claim, it is must to provide originals tickets etc.<\/p>\n u\/s 24 There is an Exemption for interest on housing loan.(for Self occupied Residence). If the loan was taken before Apr 1, 1999 exemption is limited to Rs.30,000\/- per year. If the loan was taken after Apr 1, 1999 exemption is limited to Rs.1,50,000\/- per year if the house is self-occupied; There is no limit if the house is rented out.<\/strong><\/p>\n This exemption is available on accrual basis, which means if interest has accrued, you can claim exemption, irrespective of whether you’ve paid it or not.<\/p>\n If you have rented out your house, enter the total income\/loss from the house (after deducting property tax and standard maintenance expenses).<\/p>\n u\/s 80D Medical Insurance (such as Mediclaim & Critical illness Cover) premium is exempt upto Rs.15,000\/- (for 2011-12) per year. If the premium includes that for a dependent who is above 65 years of age, an extra Rs.5000\/- can be claimed ( for 2011-12 ) per year.<\/p>\n u\/s 80DD Deduction in respect of medical treatment of handicapped dependents is limited to Rs.50,000\/- per year if the disability is less than 80% and Rs.75,000\/- per year if the disability is more than 80%<\/p>\n 80DDB Deduction in respect of medical treatment for specified ailments or diseases for the assesse or dependent can be claimed upto Rs.40,000\/- per year. If the person being treated is a senior citizen, the exemption can go up to Rs.60,000\/-<\/p>\n u\/s 80E Interest repayment on education loan (taken for higher education from a university of self & dependents) is completely tax exempt.<\/p>\n u\/s 80G Donations given for certain charities are tax exempt. Some are exempt to the tune of 50%, whereas others are 100%.<\/p>\n u\/s 80GG If you do not get HRA, but have rented a house, an exemption is available. This will be calculated as minimum of (25% of total income or rent paid – 10% of total income or Rs.24,000\/- per year)<\/p>\n u\/s 80U If you have a permanent physical disability (including blindness), you can take an exemption (subject to maximum of Rs.75,000\/- per year)<\/p>\n u\/s 80C Investments up to 1 lac in PF, VPF, PPF, Insurance Premium, Housing loan principal repayment, NSC, ELSS, etc. are deductible from the total income (there is no limit on individual items, for example 1 lac can be invested in Insurance)<\/p>\n<\/div>\n\n
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HRA Exemption<\/h3>\n<\/div>\n
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Some Exempted Receipts\/allowances are<\/h3>\n
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All incomes are fully taxable except in following cases<\/h3>\n
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Transport Allowance<\/h3>\n
Vehicle maintenance exemption<\/h3>\n
Medical Reimbursement<\/h3>\n
Leave Travelling Allowance – LTA<\/h3>\n
Housing Loan<\/h3>\n
Medical Insurance<\/h3>\n
Handicapped Dependents<\/h3>\n
Medical Treatment<\/h3>\n
Education Loan<\/h3>\n
Donations<\/h3>\n
Rented House Exemption<\/h3>\n
Permanent Physical Disability<\/h3>\n
Investment of 1 Lakh to save income tax<\/h3>\n