Sunday, February 28, 2010

Deduction u/s 80C increased from 1 Lakh to 1.20 Lakh

Friends,

In the Budget 2010-11, limit under section 80C has been increased from One Lakh (Rs. 1,00,000.00) to One Lakh Twenty Thousand (Rs. 1,20,000.00). It is also clarified that the increased Rs. 20,000.00 can not be invested in PPF , LIC , GPF etc. It can only be invested in Long Term Infrastructure Bond as notified by the Central Government.

Overall Limit increased under some particular investment .

2. Minimum Alternate Tax has also been increased from 15 per cent to 18 per cent of Book Profits.

3. Central Government Health Scheme will also be eligible for deduction under income tax act inspite of only contrbution to health insurance schemes.

4. Audit Limit of Accounts u/s 44AB has also been increased from 40 Lakh to 60 Lakh for businessman and Rs. 10 Lakh to 15 Lakh for Professional.

5. Central Excise duty on all non-petroleum products enhanced from 8 % to 10%.

Click here to know latest income tax slab rate.

Click here to know difference between current income tax or after budget income tax on your income.

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