Tax Rates

Income tax rates applicable for the financial year (FY) 2010-11 and assessment
year (AY) 2011-12 are mentioned below:

Income Tax Slab for AY 11-12
New Income Tax Slabs for ay 11-12 for Resident Senior Citizens (FY 2010-11)
S. No.	Income Range	Tax percentage
1	Up to Rs 2,40,000	No tax / exempt
2	2,40,001 to 5,00,000	10%
3	5,00,001 to 8,00,000	20%
4	Above 8,00,000	30%

Income Tax Slabs for ay 11-12 for Resident Women (below 65 years) (FY 2010-11)
S. No.	Income Range	Tax percentage
1	Up to Rs 1,90,000	No tax / exempt
2	1,90,001 to 5,00,000	10%
3	5,00,001 to 8,00,00	20%
4	Above 8,00,000	30%

New Income Tax Slabs for ay 11-12 Others & Men (FY 2010-11)
S. No.	Income Range	Tax percentage
1	Up to Rs 1,60,000	No tax / exempt
2	1,60,001 to 5,00,000	10%
3	5,00,001 to 8,00,000	20%
4	Above 8,00,000	30%

For normal category the simple calculation is as follows

• Taxable Income in 10% slab maximum tax will be Rs 34000
• Taxable Income in 20% slab maximum tax will be Rs 34000 + Rs 60000 total Rs 94000
• Taxable Income in 30% slab minimum tax will be Rs 94000

Education Cess: 2% on the income-tax shall be levied.
Secondary and Higher Education cess: @ 1% on the income tax shall also be levied.

Deductions to be made in Computing Total Income

Part 1

The aggregate of income computed under each head, after giving effect to the provisions for clubbing of income and set off of losses, is known as "Gross Total Income". In computing the total income of an assessee, certain deductions are permissible under sections 80C to 80U from Gross Total Income.

These deductions are however not allowed from the following incomes although these incomes are part of Gross Total Income:

• Long-term capital gains.
• Short-term capital gain covered under section 111A.
• Winnings of lotteries, races, etc.
• Incomes of a Non resident taxable at special rates.

1. Basic rules of deductions [Sections 80A/80AB/80AC]

• Deductions cannot exceed Gross Total Income.
• Deduction not allowed to members if allowed to AOP/BOI.
• Deduction should be claimed by assessee.
• Assessee's duty to place relevant material.
• Deduction to be allowed in respect of net income included in Gross Total Income.
• Benefits of certain deductions not to be allowed in some cases where return is not filed within the specified time limit.

2. Deduction in respect of Life Insurance Premium, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.[Section 80C]

Deduction allowed only to:	(i)An Individual; or (ii)A Hindu Undivided Family.
Amount of Deduction:	Amount invested or Rs. 1, 00,000 whichever is less

3. Deduction in respect of contribution to certain pension funds [Section80CCC]

Persons covered:	An individual assessee
Quantum of deduction:	The whole of the amount paid or deposited or Rs. 1, 00,000, whichever is less.

4. Deduction in respect of contribution to pension scheme of Central Government [Sec 80CCD]

Persons covered:	An individual who is employed by Central Government
Quantum of deduction:	The amount of contribution not exceeding 10% of salary

5. Deduction in respect of Medical Insurance premium [Sec 80D]

Persons covered:	An individual or HUF
Quantum of deduction:	In case of an individual- For himself or his spouse and dependent children - Rs.15,000 For parent or parents (whether dependent or not) - Rs.15,000 In case of a Hindu undivided family- Rs.15,000 Additional deduction of Rs. 5,000 is allowable in case of a senior citizen.

6. Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability [Section 80DD]

Persons covered:	An individual or a HUF who is resident in India
Quantum of deduction:	Rs. 50,000 irrespective of actual expenditure incurred/amount deposited or Rs. 1,00,000 where such dependant is a person with severe disability.

7. Deduction in respect of medical treatment, etc.[Section 80DDB]

Persons covered:	An individual or a HUF who is resident in India
Quantum of deduction:	Amount actually paid or Rs. 40,000 (Rs. 60,000 in case if senior citizen) Whichever is less.
If any amount is received under insurance from the insurer or reimbursed by an employer for the medical treatment of the person, the amount so received shall be reduced from the deduction allowable under this section.

8. Deduction for interest paid on loan taken for pursuing higher education [Section 80E]

Persons covered:	Individual whether resident or not.
Quantum of deduction:	The amount paid during previous year towards interest.

9. Deduction in respect of donations to certain funds, charitable institutions, etc[Section80G]

Persons covered:	All assesses
Quantum of deduction:	(i)100% or 50% of eligible donations, without applying qualifying limit in certain cases (ii)100% or 50% of eligible donations, after applying qualifying limit of 10% of adjusted GTI.>

10. Deductions in respect of rent paid [Sec GG]

Persons covered:	Individual only
Quantum of deduction:	Maximum Rs.2000 p.m

11. Deduction in respect of certain donations for scientific research or rural development [Section 80GGA]

The deduction is available to a non-business assessee for payments made to the following institutions:

(i)To an approved scientific research association, university, college or institution for scientific research; (ii)To an approved university, college or institution for research in social science or statistical research; (iii)To notified rural development fund or to the notified National Urban Poverty Eradication Fund. (iv)To a public sector company or a local authority, or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme.

Quantum of deduction:

100% of the sum paid to the above institutions.

12. Deduction in respect of contributions given by companies to political parties [Section 80GGB]

Any sum contributed by an Indian company in the previous year to any political party or electoral trust shall be allowed as deduction while computing its total income.

13. Deduction in respect of contribution given by any person to political parties [Section 80GGC]

Persons Covered:	Any assessee other than local authority and every artificial juridical person wholly or partly funded by the Government
Quantum of deduction:	Amount so contributed.

14. Deduction in respect of profits and gains from business of collecting and processing of bio degradable waste [Section 80JJA]

Persons Covered:	All assesses
Quantum of deduction:	100% of the profit for five years

15. Deduction in respect of royalty income, etc., of authors of certain books other than text books[Section 80QQB]

Persons Covered:	Resident Individual who is an author or co-author of a book
Quantum of deduction:	100% of royalty or Rs. 3, 00,000, whichever is less

16. Deduction in respect of royalty on patents [Section 80RRB]

Persons Covered:	Resident Individual who is a patentee or co-patentee
Quantum of deduction:	100% of such royalty income or Rs. 3,00,000, whichever is less.

17. Deduction in case of a person with disability [Section 80U]

Persons Covered:	Resident Individual who is a person with disability
Quantum of deduction:	Rs. 50,000 in case of a person with disability. Rs. 1,00,000 in case of a person with severe disability.

Part 2

18. Deduction for undertakings or enterprises engaged in infrastructure development, etc.[Section 80 IA]

Persons Covered:	Industrial undertaking or enterprises engaged in infrastructure development, etc.
Quantum of deduction:	30% to 100% of profits.

19. Deduction for an undertaking or an enterprise engaged in development of SEZ [Section 80 IAB]

Persons Covered:	The deduction is available to an assessee, being a Developer, and engaged in the business of developing a SEZ, notified under the Special Economic Zones Act, 2005.
Quantum of deduction:	The deduction shall be allowed of an amount equal to 100% of the profits and gains derived from such business for 10 consecutive assessment years, out of 15 years beginning from the year in which a SEZ has been notified by the Central Government.

20. Deduction for certain industrial undertakings other than infrastructure development undertakings [Section 80-IB]

Persons Covered:	All assessee engaged in the business of industrial undertaking / hotels/ ships/ infrastructure development / scientific and industrial research and development.
Quantum of deduction:	25% to 100% for prescribed no. of years

21. Special provisions for certain undertakings or enterprises in certain special category States[Section 80-IC

Where any assessee, in the States of Himachal Pradesh and Uttaranchal, is engaged in the business of manufacturing or producing	Any product other than specified under Schedule XIII - in any notified specified area Any product  specified in Schedule XIV - in any other area A deduction shall be allowed provided certain conditions are satisfied.
Quantum of deduction:	The deduction shall be 100% of such profits and gains for 5 A. Y. commencing with the initial assessment year and thereafter, 25% (or 30% where the assessee is a company) of the profits and gains.

22. Deduction in respect of profits and gains from business of hotels & convention centres in specified area [Section 80-ID]

Persons Covered:	All assesses deriving income from the business of hotels and convention centres in specified area
Quantum of deduction:	100% of the profit and gains derived from such business for 5 consecutive assessment years beginning from the initial assessment year.

23. Special provisions in respect of certain undertakings in North Eastern States [Section 80 – IE]

Persons Covered:	All assesses derived income from eligible undertaking in any north eastern states.
Quantum of deduction:	100% of the profits and gains derived from such business for 10 consecutive assessment years commencing with the initial assessment year.