[Ho0ligaN]

Noob question:

Can I invest in any mutual fund under 80c and get tax benefits?

[prince_pervez]

Have the tax slabs changed this year for professionals ? If so kindly post them.
It was 1.5 L and 1.8 L tax free for males and females respectively. Any changes ?

[Ho0ligaN]

1.6L and 1.9L I thought? Its not changed this year I think.

[benbsb29]

Originally Posted by Ho0ligaN

Noob question:

Can I invest in any mutual fund under 80c and get tax benefits?

The tax benefit is only applicable to those funds which have a minimum lock-in period of 3 years.

[chennai-indian]

Originally Posted by Ho0ligaN

1.6L and 1.9L I thought? Its not changed this year I think.

Tax slabs have changed in this years budget - please refer to outlookmoney.com and you will get the details.

[chennai-indian]

Originally Posted by benbsb29

The tax benefit is only applicable to those funds which have a minimum lock-in period of 3 years.

Correct - otherwise known specifically as ELSS (Equity Linked Savings Scheme) funds. This may (for any new investment from April 2011) change come April 2011 if the new direct tax code comes into force though

[Ho0ligaN]

Originally Posted by benbsb29

The tax benefit is only applicable to those funds which have a minimum lock-in period of 3 years.

So if I put my money in any MF for 3 years is it ok? Or does it have to be ELSS funds only?

Originally Posted by chennai-indian

Tax slabs have changed in this years budget - please refer to outlookmoney.com and you will get the details.

New Income tax slab proposed in budget 2010-11 and its impact on Male individual, Female Individual, HUF and senior citizen | Tax Guru

What did I miss?

[benbsb29]

Originally Posted by Ho0ligaN

So if I put my money in any MF for 3 years is it ok? Or does it have to be ELSS funds only?

ELSS funds only. All these have the 3 years lock-in period.

[mjothi]

Originally Posted by Ho0ligaN

So if I put my money in any MF for 3 years is it ok? Or does it have to be ELSS funds only?

I think you can also put in Fixed deposit for 5 years are more to get tax benefits.

[vrprabhu]

Originally Posted by prince_pervez

Have the tax slabs changed this year for professionals ? It was 1.5 L and 1.8 L tax free for males and females respectively. Any changes ?

New Tax Slabs for Individuals are as under -

Upto Rs. 1,60,000.00 - Nil

Rs. 1,60,001 to Rs. 5,00,000 - 10%

Rs. 5,00,001 to Rs. 8,00,000 - 20%

Above Rs. 8,00,000 - 30%

For women (below 65) the minimum slab starts at Rs. 1,90,000.00

For Senior Citizen the minimum slab starts at Rs. 2,40,000.00

The benefit this time is the increase in maximum slab rates at each tier.

Education Cess 2% + Higher Education Cess 1% is payable on tax.

Surcharge is payable is case of income above Rs. 10,00,000.00

Originally Posted by chennai-indian

Correct - otherwise known specifically as ELSS (Equity Linked Savings Scheme) funds. This may (for any new investment from April 2011) change come April 2011 if the new direct tax code comes into force though

Rightly said. However, all the ELSS notified under Income Tax Act will continue to enjoy the benefits under Sec. 80C.

Direct Tax Code is move from EEE (exempt at the time of investment, exempt at the time of interest / dividend earned, exempt at the time of withdrawal) to EET (exempt, exempt, taxable) and then to ETT (exempt, taxable, taxable).

So there will a gestation / holiday period for investments already made. The widening of the tax slab is a sure indication that EET is in the offing.

Originally Posted by benbsb29

ELSS funds only. All these have the 3 years lock-in period.

Right. ELSS have a lock in period of three years, during which period the amount cannot be withdrawn. Thereafter, it is upto the investor whether to stay invested or opt out.

Originally Posted by mjothi

I think you can also put in Fixed deposit for 5 years are more to get tax benefits.

Banks have a specified "Bank Term Deposit Scheme" under Sec. 80C of the IT Act. These deposits have a lock in period of five years. Investing in these deposits will be eligible for deduction under Sec. 80C, subject to the overall limit of Rs. 1,00,000/-. Additional Rs. 20,000/- is allowed under Sec. 80C for investment in "Infrastructure Bonds" during the current year.

[nkapoor777]

Originally Posted by vrprabhu

Surcharge is payable is case of income above Rs. 10,00,000.00

No surcharge now for taxable income over 10 lakhs.

[vnabhi]

Originally Posted by nkapoor777

No surcharge now for taxable income over 10 lakhs.

Are you sure about this? I was out of the country for sometime and did not keep abreast of the latest changes.

Further, does anyone know the exemption for conveyance charges---is it Rs 1800 per month or 2400 per month for those who use their own car for driving to office?

[ghodlur]

Originally Posted by vnabhi

Are you sure about this? I was out of the country for sometime and did not keep abreast of the latest changes.

Further, does anyone know the exemption for conveyance charges---is it Rs 1800 per month or 2400 per month for those who use their own car for driving to office?

Damn sure that income above 10L does not attract any surcharge.

AFAIK the max exemption for conveyance is still 9600 pa i.e 800pm. Its a pity that the FM had not addressed this major issue in this years budget. Guess he thinks that transportation is still cheap in India

[WindRide]

Originally Posted by benbsb29

ELSS funds only. All these have the 3 years lock-in period.

If you are taking the SIP route for ELSS investment, each of the SIP installments are locked-in for 3 years. Beware of this.

[vnabhi]

Originally Posted by ghodlur

Damn sure that income above 10L does not attract any surcharge.

AFAIK the max exemption for conveyance is still 9600 pa i.e 800pm. Its a pity that the FM had not addressed this major issue in this years budget. Guess he thinks that transportation is still cheap in India

Thanks---that sure is good news regarding surcharge!! I've been paying that for years now, and this is surely a welcome releif!!

Regarding conveyance, there does seem to be something, as our HR has circulated that persons owning vehicles and driving to work will be exempted from income tax to the extent of 1800 or 2400 per month, depending on whether the vehicle is below 1600 cc or above it.

My question is whether I've narrowly missed the bus for the higher slab of 2400, just becuase my vehilce is 1596 CC, and not 1600 cc. For that matter, there is no vehicle just equal to or just above that limit, the nearest are perhaps the Civic and the Altis that are around 1796 CC.
I wonder what the IT dept had in mind when they drew that line at 1600 CC.
Any clues?