Basic Guidelines For "Individuals"
(For The Assessment Year 2009-10 Relevant To The Financial Year 2008-09)

I. Tax rates for any other INDIVIDIUAL / HUF / AOP / BOI / ARITIFICIAL JUDICAL person

Total Income Slab	Rate of Income tax	Surcharge	Education Cess on (IT + SC)	Secondary & Higher Education Cess on (IT + SC)
Upto Rs 1,50,000	Nill	Nill	Nill	Nill
Rs 1,50,001 - Rs 3,00,000	10%	Nill	2%	1%
Rs 3,00,001 - Rs 5,00,000	Rs 15,000+20%	Nill	2%	1%
Rs 5,00,001 - Rs 10,00,000	Rs 55,000 + 30%	NIll	2%	1%
Rs 10,00,001 and above	Rs 2,05,000 + 30%	10%	2%	1%

II. Tax rates for resident Women (who is below 65 Years at any time during the previous year)

Total Income Slab	Rate of Income tax	Surcharge	Education Cess on (IT + SC)	Secondary & Higher Education Cess on (IT + SC)
Upto Rs 1,80,000	Nill	Nill	Nill	Nill
Rs 1,80,001 - Rs 3,00,000	10%	Nill	2%	1%
Rs 3,00,001 - Rs 5,00,000	Rs 12,000+20%	Nill	2%	1%
Rs 5,00,001 - Rs 10,00,000	Rs 52,000 + 30%	NIll	2%	1%
Rs 10,00,001 and above	Rs 2,02,000 + 30%	10%	2%	1%

III. Tax rates for resident Senior Citizen (who is 65 Years or more at any time during the previous year)

Total Income Slab	Rate of Income tax	Surcharge	Education Cess on (IT + SC)	Secondary & Higher Education Cess on (IT + SC)
Upto Rs 2,25,000	Nill	Nill	Nill	Nill
Rs 2,25,001 - Rs 3,00,000	10%	Nill	2%	1%
Rs 3,00,001 - Rs 5,00,000	Rs 7,500+20%	Nill	2%	1%
Rs 5,00,001 - Rs 10,00,000	Rs 47,500 + 30%	NIll	2%	1%
Rs 10,00,001 and above	Rs 1,97,500 + 30%	10%	2%	1%

HRA Exemption u/s 10(13A) (Rule 2A)
In cases of persons who are in receipt of HRA, the deduction allowable is the LEAST of the following three clases

I.	Actual HRA recd
II.	Rent paid in excess of 10% of Salary
III.	40% of Salary (for this purpose, Salary includes DA, if terms of employment so provide)

Transport Allowance u/s 10(14(II) (Rule 2BB)
Allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty to the extent of Rs 800/- per month is exempt.

Deduction u/s 16(III)
Professional Tax paid during the year is deductible.

Deduction u/s 80C
Amount deductible under this section is least of the following

I.	Amount invested in the life Insurance Premia, Deferred Annuity, Provident Fund, certain Eqity Shares or Debentures, Tuition Fees, Term Deposit for fixed period of not less than 5 years with a Scheduled Banks, Repayment of housing loan Principle and subscription to notified bonds issued the NABARD
II.	Rs One Lakh.

Deduction u/s 80CCC
In the case of an Individual any amount paid/deposited to keep in force any annuity plan of LIC or any other insurer for receiving pension from the fund, a deduction up to Rs 1 lakh is allowed.

Deduction u/s 80 CCO
In the case of an individual, who employed by the Central Govt on or after the 1-1-2004, any amount paid / deposited in his account under Pension scheme, a deduction up to 10% of his salary is allowed.

Deduction u/s 80 D (Rule 11A)
Any sum by cheque to keep in force an insurance on 'health' of the assesses and his spouse and parents or dependent children in accordance with the scheme framed by the GIC upto Rs. 15,000/- is allowed as deduction. In case the payment is for the assessee or other eligtible family members who are Senior Citizens, the deduction is up to Rs 20,000/-

Deduction u/s 80 DD (Rule 11DD)
The amount of

a.	any expenditure incurred for medical treatment, training and rehabilitation of a handicapped dependent (means in c/o an individual, the spouse, children, parents, brothers and sisters of that indian in case of a HUF, a member of that HUF and should not have claimed any deduction u/s 80U in computing his income) or
b.	paid or deposited under a scheme framed in this behalf by the LIC or UTI and approved by the Board for the maintenance of the handicapped dependent, shall be allowed as a maximun deduction of Rs 50,000/- in case of dependent being a person with severe disability, ie Disability of 80% or more, the deduction admissible is Rs 75,000/-.

Deduction u/s 80 DDB
if any expenditure is actually incurred for the medical treatment of specified diseases or ailments for the assessee or his dependent (as in Section 80DD), then a deduction of actual amount paid in the previous year or Rs 40000/- which is less. is allowable on the production of a certificate in Form No 10 I, issued by any Govt Doctor registered with Post Graduate Qualification. Deduction of Rs 60,000/- if the dependent is a senior citizen. The deduction shall be reduced by the amount received, if any, under insurance from an insurer for the medical treatment. Expenditure must be actually incurred by the resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in rule 11DD ie Neurological Disease (disability level 40 % and above) Malignant Cancers Full blown Acquried Immune Deficiency syndrome (AIDS); Chronic renal failure; Hematological Disorders. A certificate in form No 104 is to be furnished by the assessee from any registered doctor ie Govt Civil Surgeon.

Deduction u/s 80E
In the case of an individual any amount paid by way of interest on loan for the purpose of his higher education or of spouse any child is allowed as deduction.

Deduction u/s 80G
Deduction in r/o donations to certain funds, charitable institutions etc., Donations made in excess of Rs 250/- are eligible for deduction @ 50% of aggregate of donations (subject to a ceiling of 10% of Gross Total Income) made during the year. In respect of donations made to National Defence fund, PM National Relief Fund, PM Drought relief fund etc. the donation is eligible @ 100% of such donations.

Deduction u/s 80U (Rule 11A)
Any resident assessee suffering from a permanent physical disability (including blindness) or is subject to mental retardation, on the production of medical certificate from Government Hospital before the Assessing Officer for the first assessment year, shall be allowed a deduction of Rs 50,000/- and in case of a person with severe disability, the deduction is Rs 75,000/-.

Deduction u/s 24 (a)
For let out property deduction of 30%of the Net Annual value is allowed for repairs and collection charges.

Deduction u/s 24 (b)
In the case of Let out property, deduction will be allowed towards payment of any amount of interest paid / payable on moneyborrowed. In case of Self Occupied Property, deduction on account of interest on borrowed capital for individual is Rs 30,000/- or actual interest whichever is less is allowed on production of the Interest certificate. Property acquired or constructed with capital borrowed on or after 1-4-1999 and the acquision or construction is completed within three (3) years from the end of the financial year in which the capital was borrowed, interest upto Rs 1,50,000/- will be allowed. Interest on House Building advance taken by the Central Govt Servants under the HBA rules can be allowed as deduction under section 24(1) (vi).

TDS
Under Sec 192(2B) w e f 1-8-98, employer is allowed to take in to account the loss incurred by an employee from house property. while deducting tax from Salary if particulars of loss under the said head are furnished in the prescribed form No 12C.

Cost of Inflation Index

Fin Year	Index	Fin Year	Index	Fin Year	Index
1981-82	100	1990-91	182	1999-2000	389
1982-83	109	1991-92	199	2000-01	406
1983-84	116	1992-93	223	2001-02	426
1984-85	125	1993-94	244	2002-03	447
1985-86	133	1994-95	259	2003-04	463
1986-87	140	1995-96	281	2004-05	480
1987-88	150	1996-97	305	2005-06	497
1988-89	161	1997-98	331	2006-07	519
1989-90	172	1998-99	351	2007-08	551
				2008-09	582

Penalty u/s 271F: Failure to furnish a return of income as required u/s 139 before the end of the relevant assessment year, shall entail the assessee liable for a penalty of Rs 5000/-

Note: Please refer Income tax Act 1961 and Income tax Rules, 1964 for exhaustive Information / clarification.
Courtesy: Public Relations Office Incometax Towers, AC Guards, Hyderabad