Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before taking any decision based on the information below.
IN UNIT LINKED INSURANCE PLANS, THE INVESTMENTS RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

New Income Tax Slabs and Rates for Financial Year: 2018-19

Select your Age Group
Income Tax Slab Individuals below the age of 60 years
Up to `2,50,000 Nil
2,50,001 to 5,00,000 5% of total income exceeding 2,50,000
5,00,001 to 10,00,000 12,500 + 20% of total income exceeding 5,00,000
Above 10,00,000 1,12,500 + 30% of total income exceeding 10,00,000
Income Tax Slab Senior Citizens (aged 60 years but less than 80 years)
Up to 2,50,000 Nil
2,50,001 to 3,00,000 Nil
3,00,001 to 5,00,000 5% of total income exceeding 3,00,000
5,00,001 to 10,00,000 15,000 + 20% of total income exceeding 5,00,000
Above 10,00,000 1,15,000 + 30% of total income exceeding 10,00,000
Income Tax Slab Very Senior Citizens (aged 80 years and above)
Up to 2,50,000 Nil
2,50,001 to 3,00,000 Nil
3,00,001 to 5,00,000 Nil
5,00,001 to 10,00,000 20% of total income exceeding 5,00,000
Above 10,00,000 1,00,000 + 30% of total income exceeding 10,00,000

 

  • Above rates does not include Surcharge and Cess.

    • 10% surcharge is applicable on income tax if income exceeds 50 lacs but upto 1 crore
    • 15% surcharge is applicable on income tax if income exceeds 1 crore
    • 4% Health & Education Cess is applicable on the income tax and applicable surcharge.
  • Tax rates and slabs are same for Male and Female as per above table

  • For individuals total income below 3.50 lakhs, tax rebate of upto 25,00 under section 87A is available

 
Now, let’s examine the salary components of Ravi, Ramesh & Rahul to get a clear picture
  Particulars (.) Ravi Ramesh Rahul
  Annual Salary 5,00,000 10,00,000 15,00,000
  Less: Medical & Travel Allowance 40,000 40,000 40,000
  Less : Deduction u/s 80C 80,000 1,50,000 1,50,000
  Less : HRA deduction as per section 10(13A) 92,000 1,00,000 1,50,000
  Gross Taxable Income (GTI) 2,88,000 7,10,000 11,60,000
         
  Tax computation on GTI
  Up to 2,50,000 - - -
  2,50,001 to 5,00,000 1,900 12,500 12,500
  5,00,001-10,00,000 - 42,000 1,00,000
  Above 10,00,001 - - 48,000
A Total tax 1,900 54,500 1,60,500
B Less Rebate u/s 87A(Tax payable as per (A) or 2500, whichever less) 1,900 - -
C 4% Health and education Cess on (A-B) - 2,180 6,420
  Tax Payable (A-B+C) - 56,680 1,66,920

 

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This is only a provisional certificate and this does not communicate acceptance or commencement of risk under proposal submitted by you. This document may be used as a proof for claiming deductions while filing your tax returns subject to provisions of relevant tax sections and acceptance of risk, i.e. on policy issuance by the company. For any confirmation / impact analysis customer is advised to refer the matter to his Tax consultant.

1Tax benefit of ₹ 54,600 (₹ 46,800 u/s 80C & ₹ 7,800 u/s 80D) is calculated at highest tax slab rate of 31.2% (including Cess excluding surcharge) on life insurance premium u/s 80C of ₹ 1,50,000 and health premium u/s 80D of ₹ 25,000. Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

2Tax benefit of ₹ 7,800 is calculated at highest tax slab rate of 31.2% (including Cess excluding surcharge) on health premium u/s 80D of ₹ 25,000. Tax benefits under the policy are subject to conditions under Section 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

^Tax benefits under the policy are subject to conditions under Section 80C, 80D, 80CCC, 80CCE, 80G, 80GG, 80E,10(10D), 10(10A), 10(13A) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

3Tax benefit of ₹ 46,800 is calculated at highest tax slab rate of 31.2% (including Cess excluding surcharge) on life insurance premium u/s 80C of ₹ 1,50,000. Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

Unlike traditional products, Unit Linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. The names of the Company, Product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.

Please note that the tax write-up above is for general understanding and reference. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. Tax benefits/savings are subject to conditions of Section 80C, 80CCC, 80CCE, 10(10A), 10(10D) and other provisions of the Income Tax Act, 1961. Tax laws are subject to amendments from time to time. ICICI Prudential Life Insurance Company Limited expressly disclaims any liability to any person, if tax benefits stated above are denied to the customer

`Source: http://economictimes.indiatimes.com/wealth/tax/latest-income-tax-slabs/articleshow/56201289.cms

ADVT No - W/II/2635/2018-19

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