2-Income Tax Rules For The Year 2011-12

INCOME TAX RATES FOR THE FINANCIAL YEAR 2011-2012.
1. TAX SLABS:
FOR MEN FOR WOMEN TAX RATES CESS

Cess is
Upto Rs 180,000 Upto Rs 1,90,000 Nil
applicable
Rs 180,001 to Rs 500,000 Rs 190,001 to Rs 500,000 10% @ 3% on
Rs 500,001 to Rs 800,000 Rs 500,001 to Rs 800,000 20% the total

tax
Rs 800,001 and above Rs 800,001 and above 30% payable
INCOME TAX EXEMPTIONS
2. HOUSE RENT ALLOWANCE EXEMPT U/S 10(13A)
a. HRA received from the company

Whichever is lower will be
b. Rent paid in excess of 10% of the Basic
exempted
c. 40% of Basic
a. The Rental receipts should be from April, 11 (New joiners can submit from the month of
joining) to March, 11.
b. Please submit the rent receipts duly signed. Revenue stamp is required if Receipt
amount (not rent per month) exceed Rs.5000.
c. Copy of the Rental Agreement has to be submitted if the Rent is Rs.15,000 & above per
Month. Rental Receipts are mandatory in all cases.
d. Rental Deed should be executed before commencement of the Month from which Rent is
claimed.
e. Rental Agreement should be on a Stamp Paper. Copy of the Pan Card of the Owner is to
be submitted.
f. Married Women employee cannot claim H.R.A if her Husband is claiming H.R.A
exemption. If her Husband is not claiming H.R.A and she wants to claim H.R.A, then
she had to submit a declaration to this extent. (The Declaration is in Intranet with name
“Declaration from Married Women Employee”).
3. INCOME FROM HOUSE PROPERTY
a. For claiming Interest paid on Housing Loan, following documents are Mandatory:-
& Possession Letter of the House issued by the builder
& Loan Sanction Letter and the Complete Loan Disbursement Letter from the bank
& Certificate from bank for Interest and Principal amount for the Financial Year
2011-2012.
& Proof of ownership of the property i.e., Sale Deed (Please ignore if already
submitted).
b. For Self Occupied Properties Interest paid up to Rs 1.5 Lakhs can be claimed as a
deduction after the house is constructed or bought and occupied.
c. Self occupied can be considered for only one house.
d. PRE EMI INTEREST can be claimed in five equal installments starting from the year
in which the house was occupied.
e. If the total loan is not disbursed, but the EMI payment has started, then only
principal part can be claimed under sec 80 C. (Interest cannot be claimed)
f. Housing loan exemption will be given based on the ownership ratio. ( Applicable if
more than one owner for a house )
g. Those who are claiming the Interest on housing loan (self occupied / let out) should fill
the Forms Income from House Property & Annexure –II and submit the same.
h. If you have other income (Interest on Bank accounts, Dividends, Gifts etc) please fills
the same in the details in Annexure -II.
i. In the case of housing loan taken on a joint account. Declaration providing the
ownership (share holding) has to be provided.
j. Employees cannot claim HRA and Housing Loan Interest benefit if the own
house is in the same city.
4. DEDUCTIONS U/S. 80C (Maximum upto RS.1,00,000)
[Including Employee Contribution of PF deducted from salary]
Name of the Details

Saving
Contribution to Self/ PPF paid in respect of Self, Spouse or Children are
15 Years Public Spouse/
eligible for deduction. Copy of the receipt,
Provident Fund Children
(PPF) Passbook copy has to be submitted.
Life Insurance Self/ Life Insurance premium(s) paid in respect of Self,
Premium Spouse/
Spouse or Children are eligible for deduction.
Children
ULIP Premium Self/ a. Investments paid in respect of Self, Spouse or
Spouse/
Children are eligible for deduction.
Children
b. Statements of the Fund should state that
investment in the respective scheme is eligible for
deduction U/S 80 C.
c. In case investment is done through SIP
(Systematic investment Plan), the statement for
such investment from the Bank or Mutual fund will
be taken as proof (bank statement is not
accepted).
Mutual Funds Self a. Should be claimed if it is taken on self name.
b. Statements of the Fund should state that
investment in the respective scheme is eligible for
deduction U/S 80C.
NSC VII issue Self NSC purchased only in self-name or minor child
is eligible for deduction.
Children Tuition Children(s) Receipt from School for Tuition fees paid. Deduction
Fee payment
is specifically available for tuition fees only and the
receipt submitted should clearly mention the tuition
fees amount. The deduction is available for a
maximum of two children.
Repayment of Self Any repayment of Principal including the Principal
Principal Amount
payment in pre-construction or pre-occupancy
towards Housing
Loan period can be claimed
Stamp Duty, Self Stamp Duty, Registration fee and other expenses for
Registration fee
the purchase of House in the name of the
the Purchase of
House employee.
Fixed Deposits in Self Any Tax Saving Fixed Deposit in Bank for a period of
Bank (Tax saving
5 Years or more (as notified by Central Government)
FD’s)
Pension Scheme Self Pension Policy premiums paid in the name of self
u/s 80CCC
is allowed as deduction
NABARD Bonds Self Purchase of NABARD Bonds is allowed as deduction
Time Deposit Self Amount deposited in Five Year Time Deposit Scheme
Scheme in Post
in post office.
Office
5. DEDUCTIONS U/S. 80CCF:
Long-Term Self Deduction of an additional amount of Rs.20,000/- for

Infrastructure
investment in long-term infrastructure bonds only
Bonds
as notified by the Central Government.
(This would be over and above the existing limit

of Rs.1 Lakh on tax savings u/s 80C.)
Note: Proofs of other dependent are not allowed.
6. U/s.80 D - Mediclaim Policy
a. Mediclaim Policy premium paid for self, spouse & Children is allowed as
deduction to the extent of Rs.15000 p.a.
b. Mediclaim Policy premium paid for parents is allowed as deduction to the extent
of Rs.15000 p.a. in excess to the above.
c. Where any member is a senior citizen who is atleast 65 years of age then
Mediclaim paid to the extent of Rs.20000 p.a. is allowed as deduction.
7. U/s. 80 DD - Maintenance including medical treatment of a handicapped

Dependent who is a person with disability
The Employees should claim the same from the Income tax Department while filling their
Income Tax Return.
8. U/s.80 DDB - Deduction in respect of Medical Treatment.
The Employees should claim the same from the Income tax Department while filling their
Income Tax Return.
9. U/s.80 E - Education Loan
Deduction is allowed for the repayment of Education Loan taken after the A.Y. 1995-96 from
financial Institution for pursing higher education. The deduction is available for the
education loans taken in the name of self, spouse or children from the A.Y. 2008-09. The
deduction is available only person starts repaying the loan. The deduction is available for a
max of 8 years or till the principal amount of such loan together with interest is liquidated,
whichever is earlier.
10. U/s. 80 G – Donations
Only following donations will be allowed in the Form 16.
The donations to the following institutions are allowed to the extent of 50% of the
contribution, or 10% of Gross Total income.
a. Jawaharlal Nehru Memorial Fund.

b. The Prime Minister's Drought Relief Fund
c. The National Children's Fund
d. The Indira Gandhi Memorial Trust
e. The Rajiv Gandhi Foundation.
Donations to the following institutions are allowed to the extent of 100%.
a. National Defence Fund or the Prime Minister's National Relief Fund.

b. The Prime Minister's Armenia Earthquake Relief Fund.
c. The Africa (Public Contributions - India) Fund.
d. The National Foundation for Communal Harmony.
e. Chief Minister's Earthquake Relief Fund - Maharashtra.
f. National Blood Transfusion Council.
g. State Blood Transfusion Council. 34
h. Army Central Welfare Fund.
i. Indian Naval Benevolent Fund.
j. Air Force Central Welfare Fund.
k. The Andhra Pradesh Chief Minister's Cyclone Relief Fund - 1996.
l. The National Illness Assistance Fund.
m. The Chief Minister's Relief Fund or Lieutenant Governor's Relief Fund in respect
of any State or Union Territory as the case may be, subject to certain
conditions.
n. The University or Educational Institution of national eminence approved by the
Prescribed Authority.
o. The National Sports Fund to be set up by Central Government.
p. The National Cultural Fund set up by the Central Government.
q. The Fund for Technology Development and Application set by the Central Govt.
r. The National Trust for Welfare of persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple disabilities.
11. Previous Income Details
Employees joining in between a financial year are required to submit their

previous employee salary details i.e. Pay slip / form 16. (Details of the income
under the head “Salaries” due or received and tax deducted at source from the previous
employer). This document should be duly certified by his former employer.
In case, this certificate cannot be provided, you are required to fill the attached form 12B
giving the declaration of income drawn from previous employer in financial year 2011-2012.
In the absence of above statement, appropriate tax will be deducted based on your
previous salary details given to HR department.
Note: Above income tax exemption & tax rates are subject to approval of
Finance Bill 2011.

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INCOME TAX RATES FOR THE FINANCIAL YEAR 2011-2012.

FOR MEN FOR WOMEN TAX RATES CESS

Rs 500,001 to Rs 800,000 Rs 500,001 to Rs 800,000 20% the total

INCOME TAX EXEMPTIONS

2. HOUSE RENT ALLOWANCE EXEMPT U/S 10(13A)

a. HRA received from the company

& Possession Letter of the House issued by the builder

c. Self occupied can be considered for only one house.

Name of the Details

5. DEDUCTIONS U/S. 80CCF:

Long-Term Self Deduction of an additional amount of Rs.20,000/- for

(This would be over and above the existing limit

6. U/s.80 D - Mediclaim Policy

7. U/s. 80 DD - Maintenance including medical treatment of a handicapped

8. U/s.80 DDB - Deduction in respect of Medical Treatment.

10. U/s. 80 G – Donations

Only following donations will be allowed in the Form 16.

a. Jawaharlal Nehru Memorial Fund.

Donations to the following institutions are allowed to the extent of 100%.

a. National Defence Fund or the Prime Minister's National Relief Fund.

11. Previous Income Details

Employees joining in between a financial year are required to submit their

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