Sunday, December 23, 2007

If you are planning declaration of Tax savings for year 2007-08 ACT NOW.

Every year we need to declare and provide documents proofs of Tax Savings for the financial year before March. Now it is right time to go for LIC which is Investment , Income Tax saving with Insurance.

Income- tax provisions for the Financial Year ending 31st March, 2007.Tax Slabs. You can refer table to check applicable slab to you and plan your savings accordingly.
Net income rangeIncome-tax ratesSur-chargeEducation Cess
Upto Rs. 1,00,000NilNilNil
Rs.1,00,000 to Rs.1,50,00010% of (total income minus Rs.1,00,000)Nil2% of income-tax.
Rs.1,50,000 to Rs.2,50,000Rs.5,000 + 20% of (total income minus Rs.1,50,000)Nil2% of income-tax.
Rs.2,50,000 to Rs.10,00,000Rs.25,000 + 30% of (total income minus Rs.2,50,000)Nil2% of income-tax.
Above Rs.10,00,000Rs.2,50,000 + 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 LIC 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.
Exemption of Life Insurance Proceeds. Under Sec.10(10D) of 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.

Call me for more info and plan your Tax savings

1 comment:

Anonymous said...

Very useful