Income Tax Rates for financial year 2010-2011

By Vivek Sharma on December 8, 2010 • ( 1 Comment )

As per budget changes for income tax rate slabs are as per below.

Apart from current one lakh investment limit in Sec 80CCC, additional Rs 20,000 can be invested in long term infrastructure bonds under Sec 80 CCF.

Detailed rebate available under various sections :

Options available under section 80CCC : Maximum limit 100000/-

1. Children Tuition Fees: Maximum allowed for two children.

2. Principal repayment of Home loan : Maximum limit 1 Lakh

3. EPF

4. Life insurance premiums

5. Bank Deposits : Notified term deposits in a scheduled bank for a minimum period of 5 years. However the entire interest income from any such deposits would be taxable.

6. PPF : Max limit 70000/-

7. NSC :However the interest earned thru it is taxable

8. ELSS MFs

9. Pension Plans : Annuity will be taxable

Options available under section 80D :

1. Any Mediclaim policy / Critical Care policy / or premium paid against Critical illness riders in Life insurance policy.

2. The maximum deduction for self, spouse and children is Rs 15000/-

3. Additional deduction upto Rs 15000/- for parents

4. Higher amount of Rs 20000/- in case parents are age 65 or above.

Other benefits :

1. Section 24 : Interest paid on home loans , In case the house is self occupied . Max limit Rs 1.50 Lacs

2. In case of interest paid on second home loan there is no upper limit. But the second home has to be given on rent and should not be a vacant property. The Rent will be treated as your income.

3. Section 80 E :interest paid on Education loan.

4. Section 80DD: Expenses on medical treatment of disabled dependent : Upto Rs 50000/-

5. Section 80DDB : Expense on treatment of specified diseases like cancer, AIDS, neurological ailments : Upto Rs 40000/- (below age 65 ) Upto Rs 60000/- ( above age 65)

6. Section 80G : Donations to certain funds, charitable intuitions