Tax benefits

Income-tax provisions for the Financial Year ending 31st March, 2007.
Tax Slabs.


I) For any individual other than the individual referred to in item II and III below

Net income range	Income-tax rates	Sur-charge	Education Cess
Upto Rs. 1,00,000	Nil	Nil	Nil
Rs.1,00,000 to Rs.1,50,000	10% of (total income minus Rs.1,00,000)	Nil	2% of income-tax.
Rs.1,50,000 to Rs.2,50,000	Rs.5,000 + 20% of (total income minus Rs.1,50,000)	Nil	2% of income-tax.
Rs.2,50,000 to Rs.10,00,000	Rs.25,000 + 30% of (total income minus Rs.2,50,000)	Nil	2% of income-tax.
Above Rs.10,00,000	Rs.2,50,000 + 30% of (total income minus Rs.10,00,000)	10% of income-tax.	2% of income-tax and sur-charge.

(II) In case of resident women below 65 years of age

Net income range	Income-tax rates	Sur-charge	Education Cess
Upto Rs. 1,35,000	Nil	Nil	Nil
Rs.1,35,000 to Rs.1,50,000	10% of (total income minus Rs.1,35,000)	Nil	2% of income-tax.
Rs.1,50,000 to Rs.2,50,000	Rs.1500 + 20% of (total income minus Rs.1,50,000)	Nil	2% of income-tax.
Rs.2,50,000 to Rs.10,00,000	Rs.21,500 + 30% of (total income minus Rs.2,50,000)	Nil	2% of income-tax.
Above Rs.10,00,000	Rs.2,46,500 + 30% of (total income minus Rs.10,00,000)	10% of income-tax.	2% of income-tax and sur-charge.

(III) In case of Senior citizens above 65 years of age

Net income range	Income-tax rates	Sur-charge	Education Cess
Upto Rs. 1,85,000	Nil	Nil	Nil
Rs.1,85,000 to Rs.2,50,000	20% of (total income minus Rs.1,85,000)	Nil	2% of income-tax.
Rs.2,50,000 to Rs.10,00,000	Rs.13,000 + 30% of (total income minus Rs.2,50,000)	Nil	2% of income-tax.
Above Rs.10,00,000	Rs.2,38,000 + 30% of (total income minus Rs.10,00,000)	10% of income-tax.	2% of income-tax and sur-charge.

Deductions from gross income on Life Insurance premium paid.

Under Sec.80C of the Income Tax Act.
Premiums paid upto maximum of Rs.1,00,000 subject to maximum of 20% of Capital sum Assured under Traditional & Unit linked Plans.

Under Sec.80CCC of the Income Tax Act.
Premiums paid upto maximum of Rs. 1,00,000 under pension plans.

However, u/s.80 CCE, the aggregate amount of deduction under section 80C, section 80CCC, and section 80CCD shall not, in any case exceed one lakh rupees.

Under Sec.80DD of the Income Tax Act.
Premiums paid under plans exclusively for physically handicapped persons upto Rs.50,000/-In case of severe disability as certified & issued by the medical authority upto Rs. 75,000/-

Exemption of Life Insurance Proceeds.
Under Sec.10(10D) of the Income Tax Act.

• Maturity benefits are tax free. However in cases where premium exceeds 20% of capital sum assured within a year, benefits paid in excess of premiums paid will be taxable.
• Death benefits are tax-free.