INCOME-TAX RATES FOR ASSESSMENT YEAR 2016-2017 (FINANCIAL YEAR 2015-2016)

Surcharge:

In the cases of persons covered under the above categories having a total income exceeding one crore rupees, the income tax as calculated above be increased by a surcharge at the rate of twelve percent of such income- tax.

Education Cess:

An additional surcharge called as ‘Education Cess’ is levied at the rate of 2% on the amount of Income tax and surcharge in all cases shall be levied.

Secondary and Higher : 

An additional surcharge, called the “Secondary and Higher Education Cess on income- tax” at the rate of 1% of income-tax and surcharge (not including the “Education Cess on Income-tax”) in all cases shall be levied.

B] SOME IMPORTANT INCOME TAX BENEFITS AVAILABLE UNDER VARIOUS PLANS OF LIFE INSURANCE ARE HIGHLIGHTED BELOW:

 1) Deduction allowable from Income for payment of Life Insurance Premium (Sec. 80C).

(a) Life Insurance premia paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof under an insurance policy, (other than a contract for a deferred annuity,) issued on or after 1st April 2003 but issued on or before the 31st day of March 2012 shall be eligible for deduction only to the extent of 20% of the actual capital sum assured.

 (b) Life Insurance premia paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof, under an insurance policy, (other than a contract for a deferred annuity,) issued on or after the 1st day of April 2012 shall be eligible for deduction only to the extent of 10% of the actual capital sum assured. Where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person, who is—

(i) a person with disability or a person with severe disabilityas referred to in section 80U, or
(ii) suffering from diseaseor ailmentas specifiedin the rulesmade under section 80DDB, deduction under this section is allowed only to the extent of 15% of the actual capital sum assured.

(c) Contribution to deferred annuity plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual, provided such contract does not contain a provision to exercise an option by the insured to receive a cash payment in lieu of the payment of annuity is eligible for deduction.

(d) Contribution to Annuity Plans – New Jeevan Dhara ,New Jeevan Dhara-I & Jeevan Akshaya – VI

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