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a. Tax rates
- Tax rate for Individuals for Assessment year 2009-10 is as follows:
Income Range
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General (non-senior and non-women)
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Women
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Senior Citizens
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Upto Rs. 150,000
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Nil
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Nil
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Nil
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Rs. 150,001 to Rs. 180,000
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10%
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Nil
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Nil
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Rs. 180,001 to Rs. 225,000
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10%
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10%
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Nil
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Rs. 225,001 to Rs. 300,000
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10%
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10%
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10%
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Rs. 300,000 to Rs. 500,000
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20%
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20%
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20%
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Above Rs. 500,000
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30%
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30%
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30%
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- No change in Surcharge and Education Cess which remain at 10% (where the total income is more than Rs. 10 lakhs) and Education Cess @ 3%
b. Increase in limits for deduction under Section 80D
- At present premia paid under the policies on the health of the self, spouse, dependent children and dependent parents eligible for a deduction upto Rs.15,000/- per annum. For senior citizens, the limit is Rs.20,000/-
- The following amendments have been proposed under Section 80D:
- A deduction of Rs.15,000/- only for self, spouse and dependent children
- Additional deduction of Rs. 15,000 for parent or parents
- The condition of dependency of parent has been removed. In other words, even if the parent is independent, the individual can pay the premia and claim the deduction. This would help, for example, a wife to pay premia on a policy taken on the health of her father or mother who is independent
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