Pay No Tax on Aggregate Income of Rs. 4,65,000 (Tax Planning for Individual Assessees)

Friends,

(TDS Rate Chart)

If an assessee (Male below the age of 65 years) having salary/business or professional income or income from other sources upto Rs. 4,65,000 for the Assessment Year 2011-12 and living in a House/Flat self occupied with borrowed funds will be required to pay NO TAX. The calculations of tax is as under :-
(Last Ten Years Income Tax Slab Rates)

(TDS Rate Chart)
                                                                                                          Rs.
Net Income from Salary/Business/Profession/Other Sources        :- 4,65,000/-

Income from House Property                                    NIL
(Fully Self Occupied)

Less:- Interest paid on funds borrowed
      for acquireing the property                             1,50,000        (-)  1,50,000/-      
                                                                           ------------    ---------------
Gross Total Income                                                                  :- 3,15,000/-

Less:- Deduction u/s 80C/80CCC/80CCD
       (PF, APF,GIS, LIC, PPF etc.)                     1,00,000
      
       Deduction u/s 80CCF
       (Infrastructure Bonds)                                     20,000 

       Deduction u/s 80D
       (for Medical Insurance Self)                            15,000

       (for Medical Insurance in respect
        of Parents assumed both are above
        65 years)                                                      20,000        (-)     :- 1,55,000/-
                                                                            ---------             --------------

Taxable Income                                                                             :- 1,60,000/-

Tax Payable                                                                                             NIL

Similarly in case of Senior Citizens Pay no Tax on aggregate income of Rs. 5,30,000/-

In case of an assessee (Male/Female 65 years or above) having salary/business or professional income or income from other sources upto Rs. 5,30,000 for the Assessment Year 2011-12 and living in a House/Flat self occupied with borrowed funds will be required to pay NO TAX. The calculations of tax is as under :-

(Last Ten Years Income Tax Slab Rates)
(TDS Rate Chart)                                                                                                       Rs.
Net Income from Salary/Business/Profession/Other Sources      :- 5,30,000/-

Income from House Property                                        NIL
(Fully Self Occupied)

Less:- Interest paid on funds borrowed
      for acquireing the property                                  1,50,000  (-)  1,50,000/-      
                                                                               -----------  ---------------
Gross Total Income                                                                   :- 3,80,000/-

Less:- Deduction u/s 80C/80CCC/80CCD
       (PF, APF,GIS, LIC, PPF etc.)                         1,00,000
      
       Deduction u/s 80CCF
       (Infrastructure Bonds)                                          20,000 

       Deduction u/s 80D
       (for Medical Insurance Self                                  20,000    :- 1,40,000/-
        Spouse or dependent children)  
                                                                                 ---------     ------------
 Taxable Income                                                                      :- 2,40,000/-

 Tax Payable                                                                                    NIL
     

AND In case of WOMEN Assessees Pay no Tax on aggregate income of Rs. 4,95,000/-

If an assessee (Female below the age of 65 years) having salary/business or professional income or income from other sources upto Rs. 4,95,000 for the Assessment Year 2011-12 and living in a House/Flat self occupied with borrowed funds will be required to pay NO TAX. The calculations of tax is as under :-

(Last Ten Years Income Tax Slab Rates)
(TDS Rate Chart)                                                                                                      Rs.
Net Income from Salary/Business/Profession/Other Sources    :- 4,95,000/-

Income from House Property                                  NIL
(Fully Self Occupied)

Less:- Interest paid on funds borrowed
      for acquireing the property                             1,50,000   (-)  1,50,000/-      
                                                                          ------------    ---------------
Gross Total Income                                                             :- 3,45,000/-

Less:- Deduction u/s 80C/80CCC/80CCD
       (PF, APF,GIS, LIC, PPF etc.)                   1,00,000
      
       Deduction u/s 80CCF
       (Infrastructure Bonds)                                    20,000 

       Deduction u/s 80D
       (for Medical Insurance Self)                          15,000

       (for Medical Insurance in respect
        of Parents assumed both are above
        65 years)                                                     20,000     (-)     :- 1,55,000/-
                                                                           ---------          --------------

Taxable Income                                                                        :- 1,90,000/-

Tax Payable                                                                                     NIL

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(Last Ten Years Income Tax Slab Rates)

(TDS Rate Chart)