IncomeTax in India for 2008-09.

Income Tax Provisions for the Financial Year ending 31st March 2009 and Tax Benefits from Life Insurance.
(A) Income Tax Rates for FY 2008-09:


I) For any individual other than referred to in Item no II and III below.

Total Income Range	Tax Rates	Surcharge	Education Cess (% of I.T)	Secondary and Higher Education Cess
Upto Rs.1,50,000/-	Nil	Nil	Nil	Nil
Rs.1,50,001- Rs. 3,00,000	10% of the amount by which the total Income exceeds Rs.1,50,000	Nil	2%	1%
Rs.3,00,001- Rs. 5,00,000	Rs.15,000 + 20%of amount by which the total Income exceeds Rs.3,00,000	Nil	2%	1%
Above Rs. 5,00,000	Rs.55,000 + 30% of amount by which the total Income exceeds Rs.5,00,000	Nil	2%	1%

(II) In case of resident women below 65 years of age.

Total Income Range	Tax Rates	Surcharge	Education Cess (% of I.T)	Secondary and Higher Education Cess
Upto Rs.1,80,000/-	Nil	Nil	Nil	Nil
Rs.1,80,001- Rs. 3,00,000	10% of the amount by which the total Income exceeds Rs. Rs.1,80,000	Nil	2%	1%
Rs.3,00,001- Rs. 5,00,000	Rs.12,000 + 20% of amount by which the total Income exceeds Rs.3,00,000	Nil	2%	1%
Above  Rs. 5,00,000	Rs.52,000 +30% of amount by which the total Income exceeds Rs.5,00,000	Nil	2%	1%

(III) In case of Senior citizens (above 65 years of age) 

Total Income Range	Tax Rates	Surcharge	Education Cess (% of I.T)	Secondary and Higher Education Cess
Upto Rs.2,25,000/-	Nil	Nil	Nil	Nil
Rs.2,25,001- Rs. 3,00,000	10% of the amount by which the total Income exceeds Rs. Rs.2,25,000	Nil	2%	1%
Rs.3,00,001- Rs. 5,00,000	Rs.7,500 +20% of amount by which the total Income exceeds Rs.3,00,000	Nil	2%	1%
Above  Rs. 5,00,000	Rs.47,500 +30% of amount by which the total Income exceeds Rs.5,00,000	Nil	2%

Which is the Best Life Insurer?And Why?

When we look for the safety of our hard earned money, we deposit it in a bank than to keep it in our home.Nowadays there are growing number of bankruptcy,so everyone of us go for nationalized banks to avoid getting troubles later.What we got is the security of our money?

The same way when a person insures himself or his family,his money and the purpose of the insurance contract is required to be secured.Here in India we have got only one Public Life Insurance company none other than, LIC OF INDIA. As i mentioned from the very beginning, this is the most secured insurer with high yield plans and also the most successful Insurer in India and hold a reputable position in the world.

The Life Insurance Corporation of India was founded in 1956.It is the largest life insurance company in India and also the country's largest investor.It is fully owned by Government of India and also funds close to 24.6% of the Indian Government's expenses.It has assets estimated of 5 Trillion rupees.

Be a part of LIC as a policyholder and enjoy the yield!!!

Insurance - Facts, Importance and Needs

There are several concerns over taking an insurance, let's see why insurance is necessary for every individual.

A) Early Death

Everyone of us know that our life is unpredictable in terms of mortality and flow of income.We have adopted to a life style in which all our dependents and beloved ones would be sharing the happiness and the benefits of our present earnings.But,when all of a sudden the earning member of that family has died and left liabilities to the beloved ones...Wouldn't that be a painful situation?

B) Advancements in Health Care

The mortality rate has declined rapidly even though the fact remains that the number of people who die at an early age is on the increase. This is mainly due to the advancement in healthcare and the awareness on medical facilities. This results in an increased spending at an old age. This increased spending is also due to increase in the costs of living apart from paying expensive medical bills. Unless they invest in Life insurance or other forms of insurance like health insurance it becomes next only to impossible to meet the financial demands especially during the old days.

C) Increase in the Cost of Living and Spending Power

The purchasing power of the consumers and the standard of living has experienced a steep rise over the years. The increase in National Income and gross domestic product are partly responsible for this. Individuals incur many unexpected expenses due to the growing needs. Insurance comes in handy to meet such an unexpected expense. It also makes sure that an individual is able to meticulously plan his finances.

Insurance option is more or less an interest free loan. An individual can cancel his insurance policy and obtain a huge amount if it is imperative in meeting an urgent expenses and he does not have alternative sources for finance. Life insurance companies therefore do the needful to consumers.

D) Tax Concessions

Income tax concessions are available to individuals and corporate houses who adopt insurance policies. Many have been making investments in Insurance with the sole aim of enjoying tax benefits. This naturally increases spending power. Since the investments increases the economic activities in the country automatically increases.

E) Best Option for Salaried Youth

Insurance is widely considered as one of the best savings scheme. Students who earn while studying and those who take up full time employment after their studies see insurance as a profitable scheme to regulate their savings. Apart from tax concessions life insurance entails individuals to enjoy more benefits as they have special and attractive schemes for this segment.