News Updates

by Gopal Gidwani on August 17, 2012 · 0 comments

in Financial Planning

TruFixed Home Loan from HDFC
On Independence Day, HDFC has introduced TruFixed Home Loan, a fixed rate home loan product. Under this product the interest rate will be fixed for a maximum tenure of 10 years.

Tenure of the loan: Customer can choose a fixed interest rate tenure for 3 to 10 years. Beyond 10 years, after the expiry of the fixed tenure, the loan will become a floating home loan.
Interest rate: Currently the interest rate being offered is 10.75% for loans upto Rs. 10 Lakhs, 11% for loans above Rs. 10 Lakhs and uptp Rs. 75 Lakhs. Over Rs. 75 Lakhs the interest rate is 11.25%.
Pre-payment penalty: For part repayments made out of own funds, there will be no pre-payment penalty

Interest rates payable on Government Small Savings Schemes for the Financial Year 2012-13

Scheme

Interest rate effective from 1st April 2012

Post Office Savings Account

4%

Post Office 1 Year Fixed Deposit

8.2%

Post Office 2 Year Fixed Deposit

8.3%

Post Office 3 Year Fixed Deposit

8.4%

Post Office 5 Year Fixed Deposit

8.5%

Post Office 5 Year Recurring Deposit

8.4%

5 Year Senior Citizen Savings Scheme (SCSS)

9.3%

5 Year Monthly Income Scheme (POMIS)

8.5%

5 Year National Savings Certificate (NSC)

8.6%

10 Year National Savings Certificate (NSC)

8.9%

Public Provident Fund (PPF)

8.8%

Highlights of Budget 2012

  • In a financial year interest upto Rs. 10,000 earned on Savings Bank Account will be tax free.
  • Any life insurance policy bought on or after 1st April 2012 will get income tax benefits only if the annual premium paid is less than 10% of the sum assured. The other way round it means the sum assured has to be more than 10 times the annual premium.
  • The existing life insurance policies bought before 1st April 2012 will continue to get income tax benefits if the annual premium paid is less than 20% of the sum assured or the other way round; the sum assured is more than 5 times the annual premium.
  • The service tax has been increased from 10% to 12%.
  • As per the Income Tax Act the senior citizen age has been reduced from 65 years to 60 years.
  • Taxable income deduction of Rs. 20,000 offered for infrastructure bonds under Section 80CCF has not been mentioned in Budget 2012
  • ‘Preventive Health Check-up’ will classify for deduction of Rs. 5000 under Section 80D of the Income Tax Act. The overall total deduction of Rs. 15,000 still remains the same.

Income Tax Slabs for Assessment Year 2013-14 (FY 2012-13)

Income that has been earned between 1st April 2012 – 31st March 2013, the Income-Tax on that will have to be paid in Assessment Year April 2013-14.

Let us see how the income tax will be calculated for an individual having an annual taxable income of Rs. 11,00,000 after availing all exemptions and deductions.

 

Male and Female below 60 years

Income Slab

Tax Rate

Taxable Income

Tax Payable

Total Tax Payable

Up to Rs. 2,00,000NilNilNilNil
Rs. 2,00,001 – Rs. 5,00,00010%Rs. 3,00,000Rs. 30,000Rs. 30,000
Rs. 5,00,001 – Rs. 10,00,00020%Rs. 5,00,000Rs. 1,00,000Rs. 30,000 + Rs. 1,00,000 = Rs. 1,30,000
Rs. 10,00,001 and Above (In this case Rs. 10,00,001 – Rs. 11,00,000)30%Rs. 1,00,000Rs. 30,000Rs. 30,000 + Rs. 1,00,000 + Rs. 20,000 = Rs. 1,50,000
The education cess is 3% on the tax payable amount

Senior Citizen of 60 years and above but less than 80 years

Income Slab

Tax Rate

Taxable Income

Tax Payable

Total Tax Payable

Up to Rs. 2,50,000NilNilNilNil
Rs. 2,50,001 – Rs. 5,00,00010%Rs. 2,50,000Rs. 25,000Rs. 25,000
Rs. 5,00,001 – Rs. 10,00,00020%Rs. 5,00,000Rs. 1,00,000Rs. 25,000 + Rs. 1,00,000 = Rs. 1,25,000
Rs. 10,00,001 and Above (In this case Rs. 10,00,001 – Rs. 11,00,000)30%Rs. 1,00,000Rs. 30,000Rs. 25,000 + Rs. 1,00,000 + Rs. 30,000 = Rs. 1,55,000
The education cess is 3% on the tax payable amount

Income Tax Slabs for Assessment Year 2012-13 (FY 2011-12)
Income that has been earned between 1st April 2011 – 31st March 2012, the Income-Tax on that will have to be paid in Assessment Year April 2012-13. The last date for the same is 31st July 2012.

Let us see how the income tax will be calculated for an individual having an annual taxable income of Rs. 11,00,000 after availing all exemptions and deductions.

Male below 60 years

Income Slab

Tax Rate

Taxable Income

Tax Payable

Total Tax Payable

Up to Rs. 1,80,000NilNilNilNil
Rs. 1,80,001 – Rs. 5,00,00010%Rs. 3,20,000Rs. 32,000Rs. 32,000
Rs. 5,00,001 – Rs. 8,00,00020%Rs. 3,00,000Rs. 60,000Rs. 32,000 + Rs. 60,000 = Rs. 92,000
Rs. 8,00,001 and Above (In this case Rs. 8,00,001 – Rs. 11,00,000)30%Rs. 3,00,000Rs. 90,000Rs. 32,000 + Rs. 60,000 + Rs. 90,000 = Rs. 1,82,000
The education cess is 3% on the tax payable amount

Female below 60 years

Income Slab

Tax Rate

Taxable Income

Tax Payable

Total Tax Payable

Up to Rs. 1,90,000NilNilNilNil
Rs. 1,90,001 – Rs. 5,00,00010%Rs. 3,10,000Rs. 31,000Rs. 31,000
Rs. 5,00,001 – Rs. 8,00,00020%Rs. 3,00,000Rs. 60,000Rs. 31,000 + Rs. 60,000 = Rs. 91,000
Rs. 8,00,001 and Above (In this case Rs. 8,00,001 – Rs. 11,00,000)30%Rs. 3,00,000Rs. 90,000Rs. 31,000 + Rs. 60,000 + Rs. 90,000 = Rs. 1,81,000
The education cess is 3% on the tax payable amount

Senior Citizen of 60 years and above but less than 80 years

Income Slab

Tax Rate

Taxable Income

Tax Payable

Total Tax Payable

Up to Rs. 2,50,000NilNilNilNil
Rs. 2,50,001 – Rs. 5,00,00010%Rs. 2,50,000Rs. 25,000Rs. 25,000
Rs. 5,00,001 – Rs. 8,00,00020%Rs. 3,00,000Rs. 60,000Rs. 25,000 + Rs. 60,000 = Rs. 85,000
Rs. 8,00,001 and Above (In this case Rs. 8,00,001 – Rs. 11,00,000)30%Rs. 3,00,000Rs. 90,000Rs. 25,000 + Rs. 60,000 + Rs. 90,000 = Rs. 1,75,000
The education cess is 3% on the tax payable amount

 

So now that you know how to calculate your tax payable amount, file your tax returns before the last date i.e. 31st July 2012.

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