8/6/2019 Notes on Income Tax - F.Y. 2011-12

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NOTES ON INCOME TAX FOR THE FY 2011-12 (AY 2012-13)

FOR INFORMATION ONLY:

1 a) Important: Please note TDS once deducted shall be adjusted either by reduction or increase in Income Taxduring the financial year. No refund of tax will be allowed.

b) You are requested to plan your investments carefully much in advance.

Exemption limit for income tax for the FY 2011-12 Rs. 1,80,000/- and for Female Employees it is

Rs.1,90,000 and for the Senior Citizen above 60 years is Rs. 2,50,000.

2. INCOME SLAB AND TAX RATE for the FY 2010-11 is as given below .3.

Current Year (FY 2011-12)

Income (Rs) Rate % SC % Cess %

0 - 1,80,000 # Nil Nil Nil

1,80,001 5,00,000 10 - 3

5,00,001 8,00,000 20 - 3

8,00,001 & Above 30 - 3

(i) Education Cess of 3 % is leviable on the amount of income tax.(ii) # The exemption limit will be Rs. 1,90,000 in case of resident women below the age of 60 years

at any time during the Financial year.(iii) # The exemption limit will be Rs. 2,50,000 in the case of resident individuals of the age of 60

years or more at any time during the financial year.(iv) Surcharge of 10 % is abolished w.e.f F.Y. 2009-10

4 Value of perquisite will be calculated in following cases.

a) In case of residential accommodation provided by the employer on lease, perquisite will be

charged 15% of Salary or actual amount of lease rental paid or payable by employer, whichever islower, as reduced by the rent , if any actually paid by employee and increased by 10% p.a. of thecost of furniture where accommodation is furnished [sec. 17(2)(i) refer rule 3(i)].

b) Car provided by company for official as well as personal use, perquisite will be charged 1800/-p.m., where driver is provided, additional Rs. 900/- p.m. is charged .

c) Superannuation contribution paid by employer over above 1 Lac.

5 Deduction will be available upto a maximum amount of Rs. 1,00,000. The ceiling of Rs. 1,00,000 will beinclusive of contribution to pension fund i.e. Section 80CCC & 80CCD. In additional to above 20,000 ininfra structure bond u/s 80CCF.

5.1 Following amendments have taken place in FY.2007-08 w.e.f. 01st April 2007.

a) Insurance premium under Mediclaim Health Insurance ie. Sec. 80 D , the ceiling cap of Rs 10,000 isrevised to Rs 15,000.

6. L.T.A. i.e. Leave Travel Concession received during the year is exempted from Income Tax subject toSection 10(5) of the Income Tax Act.

LTA is applicable only for travel to any place in India and not abroad.6th block of four years will be from FY. 2009-10 to 2012-13.Please Note: Documentary evidence of travel proof (either by Train, Air & Road) must be given inoriginal for exemption.Further if an employee uses the travel mode Roadways for his journey then for the purpose of exemption1st AC railway fare will be considered from the point of departure to the point of destination by theshortest railway route.

8/6/2019 Notes on Income Tax - F.Y. 2011-12

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7 For claiming HRA exemption u/s 10(13A) for staying in a rented accommodation, the documentaryevidence must be given in original, clearly mentioning the name, address & Pan No. of theOwner/Landlord.

8 The deduction of Interest payable under section 24(b) on Housing Loan is as follows : -Maximum Interest Deduction

i) Housing loan availed before 1st April, 1999 : Rs. 30,000/-ii) Housing loan availed after 1st April 1999 : Rs. 1,50,000/-

If the Housing Loan is in the joint name then such joint holders are requested to fill Form 12C in order toclaim this deduction, failing which no deduction shall be considered. Form 12C is available with HRD.

9 Reimbursement of Medical Amount received during the year for any expenditure actually incurred by theemployee on his medical treatment or treatment of any member of his family is exempted for Income Taxupto Rs. 15,000/- under section 17(2), subject to submission of medical bills and vouchers.

10 Please mention your PAN No. If, it is not available, apply for the same as it becomes mandatory.

11 To obtain PAN No. You must apply to Income Tax authorities by using Form No. 49 A.

12 It is mandatory for taxpayers to File Income Tax Return .

13 For calculating Accrued Interest on NSC refer to the table given :

TABLE FOR NSC VIII ISSUE.

TABLE A TABLE B TABLE C TABLE D TABLE E TABLE F

Purchasedbetween 1-4-89 to 31-12-98[Vide Rule15(1) of theNSC(VIII)Issue Rules,

1989]

Purchasedbetween 1-1-99 to 14-1-00

[Vide Rule15(2) of theNSC(VIII)Issue Rules,

1989]

Purchasedbetween 15-1-00to 28-2-01[VideRule 15(3) of theNSC(VIII) Issue

Rules, 1989]

Purchasedbetween 1-3-01to 28-2-02 [VideRule 15(4) of theNSC(VIII) Issue

Rules, 1989]

Purchasedbetween 1-3-02to 28-2-03 [VideRule 15(4) of theNSC(VIII) Issue

Rules, 1989]

Purchased on orafter 1.3.2003

[Vide Rule 15(4)of the NSC(VIII)

Issue Rules,1989]

Amt. Of Int.accruing on

certificate ofdenomination

Amt. Of Int.accruing on

certificate ofdenomination

Amt. Of Int.accruing on

certificate ofdenomination

Amt. Of Int.accruing on

certificate ofdenomination

Amt. Of Int.accruing on

certificate ofdenomination

Amt. Of Int.accruing on

certificate ofdenomination

The year for whichinterest accrues

FY Rs. 100 Rs. 100 Rs.100 Rs.100 Rs.100 Rs.100

1st completed year 06-07 12.40 11.83 11.30 9.72 9.20 8.16

2nd completed year 05-06 13.90 13.23 12.58 10.67 10.05 8.83

3rd completed year 04-05 15.60 14.80 14.00 11.71 10.97 9.55

4th completed year 03-04 17.50 16.54 15.58 12.85 11.98 10.33

5th completed year 02-03 19.70 18.51 17.35 14.10 13.09 11.17

*6thcompleted year 01-02 22.40 20.69 19.31 15.47 14.29 12.08

* Interest on NSC VIII Issue for 6 th completed year does not qualify for rebate of (deduction from) income-tax, asit is not deemed to have been re-invested on behalf of the holder [Vide Rule 15(1) of NSC (VIII Issue) Rules,1989].

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