Income Tax Calculations -Taxes Grow Without Rain

We have all heard the phrase “Nothing is Certain As Death And Taxes”. No matter how old you grow you have to pay tax. There is no age limit for taxation. Here in India we also have an Income tax slab for the above 80 Year age group. This clearly shows that life expectancy has increased in India. Why else would they have made an Income tax slab for an age group of 80 Years? Here the major difference between human beings and animals is “Animals Have Instincts We Have Taxes” .I would like to remind all of you that the team of Financial Planners at IndianMoney.com are always there for you to plan your Tax Planning needs in a most effective and efficient manner. You can explore this unique Free Advisory Service just by giving a missed call on 022 6181 6111

Let us consider the case of Mr Manohar an 82 year old gentleman who works as a consultant. He earns INR 15 Lakhs per annum. Mr Manohar has seen the Ups and Downs of life and knows all about taxes. He is very spend thrifty and looks to save as much as he possibly can by using Income Tax Deductions .available to him. The Income Tax Slab shown below is the one that concerns him.

See Also: Types of Taxes in India

Income Tax Slab Rates for Male/Females For Very Senior Citizens Above 80 Years: FY 2012-2013

Here had Mr Manohar not made use of the income tax slabs available to him the calculations shown below would have applied to him
Table 1

These would have been the income tax rates chargeable to Mr Manohar had he not used his tax deductions
Here Mr Manohar invests a sum of INR 100000 towards Senior Citizens Saving Schemes. This is tax deductible under Section 80C.

Senior Citizens Saving Scheme Under Section 80C

Here Mr Manohar avails tax deductions up to a sum of INR 20000 as per Section 80 D

Tax Deductions Under Section 80D

Here Mr Manohar makes a donation of INR 1 Lakh towards National Defence Fund as he feels that he needs to make a contribution to the growth and development of the nation

Tax Deductions Under Section 80G

Table 2

Table 3

I would like to end this article on a note that age, wisdom and experience play a very large part in our tax deductions. There is no age for learning and one should take the effort to do so at any age So no matter how old you are do not neglect to plan out your income tax deductions. Here we have the famous saying “A Rupee Saved Is A Rupee Earned”. You can always look up the website IndianMoney.com for your Tax Planning needs.