ASSESSMENT YEAR 2001-2002
RELEVANT TO FINANCIAL YEAR 2000-2001
Tax Rates for Individuals:
Upto 50,000 - NIL
50000 to 60,000 - 10% of the amt exceeding 50000
60,000 to 1,50,000 - Rs.1000 + 20% of the amt exceeding 60000
1,50,000 & above - Rs.19000+ 30% of the amt exceeding 150000

Standard Deduction:
a) Rs. 25,000/- or 33 1/3% of Salary whichever is less for Gross Salary Rs.1,00,000 or below.
b) Rs. 20,000/- for Gross Salary above Rs.1,00,000 but not exceeding Rs.5,00,000
c) No Standard Deduction for Gross Salary exceeding Rs.5,00,000.
Surcharge on income-tax:
The surcharge on Income-tax is calculated at the rate of 10% if the total taxable income exceeds Rs.60,000/- but below Rs.1,50,000/- and at the rate of 15% if the taxable income exceeds Rs.1,50,000/- subject to marginial relief.
(Note: Surcharge has been increased to 12% and 17% as per the Gazette order dated 03/02/2001.)

The surcharge is calculated on the net tax.(Tax as reduced by Rebate u/s.88, 88B and 88C)

Also
such surcharge shall be payable even by a non-resident.

HOUSE RENT ALLOWANCE EXEMPT U/S.10(13A):
HRA is exempted subject to the following:
Least of the following is exempted:
a) Actual HRA received: Rs.xxxx
b) Rent paid in excess of 10% of salary: Rs.xxxx
c) 50% of salary in Metro Cities or
40% of salary in other Cities:
Rs.xxxx Rs.xxxx
Taxable HRA: Rs.xxxx
Note : Here Salary means Basic salary as well as DA if the terms of employment so provide.
Conveyance Allowance:
Any allowance granted to meet the expenditure incurred wholly, necessarily and exclusively on conveyance in performance of the duties of office and so certified by the employer is exempt u/s 10(14).
Transport Allowance:
Any allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty to the extent of Rs.800/- per month is exempt u/s.10(14).
Medical Reimbursement:
An amount of Rs.15,000 or the actual amount reimbursed by the employer whichever is less is exempt u/s.17(2)(v).
Deduction u/s.24(1)(i):
For let out property, deduction of 1/4th of the Net Annual Value is allowed for Repairs and Collection Charges.
Deduction u/s.24(1)(vi):
For self occupied property, deduction on account of interest on borrowed capital for individuals is Rs.30,000/- or actual interest whichever is less is allowed at source by the DDO on receipt of an application from the assessee in Form No.12C alongwith the Interest Certificate.

Where the property is acquired or constructed with capital borrowed on or after 1/4/99 and such aquisition or construction is completed before 1/4/2003, a deduction of 1,00,000/- or actual interest paid whichever is less is allowed.
Standard Deduction for family pension u/s.57(iia):
An amount of Rs.15,000/- or 33 1/3% of family pension whichever is less is allowed as deduction.
Exemption u/s.54 EC:
The Capital Gain arising on or after 1/4/2000 out of sale of long term capital asset can be invested in NABARD or National Highways Authority of India within six months from the date of sale. (Lock-in period is 3 years)
Deduction u/s.80 D:
Any sum paid by cheque to keep in force an insurance on health of the assessee or his dependents in accordance with the Scheme framed by the GIC., upto Rs.10,000/- is allowed as a deduction. Where the premium is paid in respect of a Senior Citizen, the permissible deduction will be Rs.15,000/- in relation to the Assessment Year 2000-2001 and subsequent years.
Deduction u/s.80DD:
The amount (a) of expenditure incurred by way of medical treatment, training and rehabilitation of a handicapped dependent or (b) paid or deposited under any scheme framed in this behalf by the LIC or UTI and approved by the Board for the maintenance of the handicapped dependent, shall be allowed as a deduction upto Rs.40,000/- either under (a) or (b) or aggregate of (a) and (b) on the production of a certificate from the Government hospital/ proof of deposit (applicable to Resident Individual or HUF) subject to conditions stipulated in the section.
Deductioin u/s.80 DDB:
If any expenditure is actually incurred for the medical treatment of specified diseases or ailments for the assessee or his dependent then a deduction of Rs.40,000/- is allowable on the production of a certificate in Form No.10-I, issued by any doctor registered with IMA with Post Graduate qualification. In the case of senior citizen the limit of deduction is Rs.60,000/-. The amount of deduction of Rs.40,000 or Rs.60,000 will be reduced by the amount received under an insurance for medical treatment. (Assessment Year 2000-2001 and subsequent years)
Deduction u/s.80 GG:
An assessee not in receipt of HRA incurs any expenditure on Rent, is allowed a deduction of least of the following:
a) Rent paid in excess of 10% of the total income
b) 25% of the total income
c) Rs.2,000 per month
Note: Total Income means Total Income before allowing deduction under this section. The above deduction is allowable only if the assessee or spouse or minor child does not own a house.

To claim such a deduction, the assessee should file a declaration in Form No.10BA.
Deduction u/s.80L:
Applicable to individual and HUF. A deduction of upto Rs.12000/- is available. An additional deduction of Rs.3,000 is available if income includes interest on Government Securities.
Any income by way of :
i) dividends from company referred to in Sec.115-O
ii) income received in respect of units from the Unit Trust of India
iii) income received in respect of the units of a mutual fund are exempt under section 10(33).
Deduction u/s.80 U:
Any assessee suffering from a permanent physical disability (including blindness) or is subject to mental retardation on the production of medical certificate from a Government Hospital before the Assessing Officer for the first assessment year, shall be allowed a deduction of Rs.40,000/-.
Rebate u/s.88:
A rebate of 20% of the amount invested subject to a maximum of Rs.60,000/- is available from the tax payable.

A rebate of 20% on an additional amount of Rs.20,000/- is available when such sum is invested in specified investments.
Rebate u/s. 88B for Senior Citizens:
For a resident individual who has attained the age of 65 years or more,at any time during the previous year is entitled to a deduction of 100% of the income-tax or Rs.15,000/- whichever is less from the tax payable.
Rebate u/s. 88C for women below the age of 65years
A resident woman individual below the age of 65 years is entitled to a deduction of Rs.5,000/- or actual tax payable whichever is less from the tax payable.
Penalty u/s.271F:
If a person as required under section 139(1), fails to furnish such return before the end of the relevant assessment year, shall be liable to pay by way of penalty a sum of Rs.1,000/-.
Interest u/s.234A:
Where the Return of Income for any assessment year u/s.139(1) or 139(4) or in response to a notice u/s.142(1), is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of one and one half percent for every month or part of a month comprised in the period commencing on the date immediately following the due date.
Interest u/s.234B:
Where an assessee who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than 90% of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one and one half percent for every month or part of a month comprised in the period from the 1st day of April next following the financial year.
Interest u/s.234C:
Where an assessee other than a Company, who is liable to pay advance tax under section 208 has failed to pay such tax or,
i) the advance tax paid by the assessee on his current income on or before the 15th day of September is less than 30% of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than 60% of the tax due on the returned income, then, the assessee shall be liable to pay simple interest interest at the rate of one and one half percent per month for a period of three months on the amount of the shortfall from 30% or, as the case may be, 60% of the tax due on the returned income;

ii) the advance tax paid by the assessee on his current income on or before the 15th day of March is less than the tax due on the returned income, then, the assessee shall be liable to pay simple interest at the rate of one and one half percent on the amount of the shortfall from the tax due on the returned income.