Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Income Tax Rebates

(Querist) 15 February 2008 This query is : Resolved 
What type of rebates are available for 2007-2008 Fin. Year under Income Tax Act?
What is the max. limit U/s 80(d) in I.T.Act for the current fin. year?
SANJAY DIXIT (Querist) 22 February 2008
Will somebody pls tell me about the rebates & their max limits available under Income Tax Act for the current year?
SANJAY DIXIT (Querist) 22 February 2008
Will somebody pls tell me about the rebates & their max limits available under Income Tax Act for the current year?
Prakash Yedhula (Expert) 28 February 2008
Section 80C
Section 80L used to allow deduction of interest earned on, say, a National Savings Certificate or a bank deposit up to a limit of Rs 12,000. But now all these are gone .In their place has come Section 80C -- "u/s 80CCC, & u/s 80CCD", as the Finance Bill puts it. Thus, the new Section 80C of the Income Tax Act proposed in Union Budget gives you a bigger tax break than what the current regime offers.

* Deduction in respect of Life Insurance Premia, Contribution to Provident Fund, etc.
* Rs 1 lakh can be invested under this section without any individual sub-limits except in the case of Rs 10,000 in pension funds.
* Sections 88, 80L, 80CCC and 80CCD is clubbed in.

Schemes eligible for Section 80C benefits

* PPF
* ELSS - Mutual Funds
* NSC
* KVP
* Life Insurance

Note : - Section 80CCC is for deduction in respect of contribution to certain Pension Funds. Section 80L is for deductions in respect to Interest on certain Securities, Dividends, etc

Sections abolished from Union Budget 2005-06

* 88 (Rebate on Life Insurance Premia, Contribution to Provident Fund, etc.)
* 80L (Deductions in respect to Interest on certain Securities, Dividends, etc.)
* Note :-
Rebate of Rs 5,000 for women and Rs 20,000 for senior citizens have been wiped off.

The key features of the new provision

* Exemption available to all taxpayers irrespective of income bracket -earlier Section 88 did not provide benefit to those having income exceeding Rs 500,000.
* No exemption/adjustment for interest income
* All saving modes/options under Section 88 covered and also 80CCC and 80CCD covered.

Following benefits will continue irrespective of changes

* Interest paid on housing loan for self-occupied house property.
* Medical insurance premium.
* Specified expenditure on disabled dependant.
* Expenses for medical treatment for self or dependant or member of an HUF.
* Deduction in respect of interest on loans for pursuing higher studies - Section 80E.
* Deduction to person with disability.

Section 10(33)
Dividends from mutual funds are fully exempt from income tax under Section 10(33). Equity funds (schemes that invest 50 per cent of their funds in equity) are also exempt from dividend tax. This means that unlike companies, they do not have to pay tax at the rate of 10.2 per cent on the dividend that they distribute.

Section 88
Upto 31 March 2005, rebates were available on the tax payable under three sections.

According to the section, 30 per cent or 20 per cent or 15 per cent of the amount invested in certain schemes (schemes referred in Section 80C) was available as a rebate on the tax payable.

* 30 per cent of the amount invested was available as rebate only if the salary income of the individual was less than Rs. 1 lakh and if it constituted 90 per cent or more of the assessee's gross total income.
* 20 per cent of the amount invested was available as rebate if the gross total income of the individual was less than Rs 1.5 lakh and the case did not fall under the above mentioned case.
* If gross total income was more than Rs. 1.5 lakh but less than Rs 5 lakh of the individual, a rebate of 15 per cent of the amount invested was available.
* If gross total income was more than Rs 5 lakh of the individual, then there is no rebate.

Section 88B
Under this section, an individual resident in India and above the age of 65 years was allowed to a maximum rebate of Rs. 20,000 on the tax payable.

Section 88C
Under this section a lady resident in India, aged below 65 years, was allowed a maximum rebate on the tax payable of Rs 5,000.

Section 89 (1)
This is available to an employee when he receives salary in advance or in arrear or when in one financial year, he receives salary of more than 12 months or receives 'profits in lieu of salary' W.e.f. 1.6.89, relief u/s 89(1) can be granted at the ti
SANJAY DIXIT (Querist) 26 April 2008
Thanks Mr Yedul.
a.manoharan (Expert) 09 March 2011
I agree with Mr. Barman


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