Page 12 - HDFC Bank TPP Flipbook

**Under Section 80D –
Medical Insurance premium paid in respect Total Deduction
of under Section 80D
Age Self, spouse & Parents*
dependent children*
Self, spouse, dependent children and 25,000 25,000 50,000
parents are below 60 years
Self, spouse, dependent children are
below 60 years but parents are above 25,000 50,000 75,000
60 years
Self, spouse, dependent children and 50,000 50,000 1,00,000
parents are above 60 years
*(Out of the permissible deduction, payment on account of preventive health check-up shall not exceed r 5,000 in
each case).

Example 1 -
Like Mr. Ram and Mr. Shyam join the movement of smart tax-savers and save tax the right way -
Mr. Ram, age 35 years earns r 12.25 Lakhs as annual salary. He pays r 35,000 towards his Life Insurance
Premium for term plan and pension plan. He also invests in Mutual Funds through SIP, total amounting to
r 40,000, invests r 35,000 in Fixed Deposits for a period of 5 years and r 40,000 in PPF. He has also invested in a
Health Plan - Self (r 25,000) and Parents Senior Citizens (r 50,000).
Sec 80 C & Sec 80 D Benefits
Mr. Ram’s Salary - r 12.25 lakhs

Computation of Tax
A) Taxable Income without any investment = Rs 12.25 lakhs
Tax payable on r 12,25,000
Tax Slab Amount earned Tax Tax Amount

Up to r 2,50,000 2,50,000 Nil Nil
r 2,50,001 to r 5,00,000 2,50,000 5% 12,500
r 5,00,000 to r 10,00,000 5,00,000 20% 1,00,000
Above r10,00,000 2,25,000 30% 67,500
Income Tax (i) 1,80,000
Educational Cess @ 4% on (ii) 7,200

Total Tax Liability [(i)+(ii)] 1,87,200 (A)
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