When it comes to income tax, nobody is spared including the top officials of the country.
Anybody who is earning an income more than the prescribed limit has to pay income tax as per income tax rules.
However, the following are some incentives available:
- Interest income from savings deposits upto an amount of Rs. 10000.00 is exempt from income tax
- Investments in certain categories namely; public provident fund, national savings certificates, life insurance premia, tax savings bonds are exempt from income tax upto an amount of Rs. 150000.00
- All individuals need not pay income tax for the initial amount of Rs/ 250000.00
- Senior citizens are exempt in payment of tax upto an amount of Rs. 300000.00
- Super senior citizens are exempt in payment of tax upto an amount of Rs. 500000.00
- Repayment of housing loans upto certain limit is exempt from income tax
- Repayment of housing loan interest upto certain limit is exempt from income tax
- Investment in national pension scheme is exempt from tax upto certain amount