• Incentives for Small Savings under Section 80 L:- Deduction under Section 80l (I)is Rs. 15,000 from the Assessment Year 1997-98. Out of this, a sum of Rs. 3,000 is exclusively provided for income from interest on security of the Central/State Government for the Assessment Years 1998-99 to 2000-2001.

• Benefits under Section 115-0:- Dividends which are declared, distributed, paid on or after 1.06.97 are totally exempt from Income Tax.

• Gift Tax:- Gift tax @ 30% is charged in respect of gifts made before 01.10.1998. Gifts made on or after 01.10.1998 shall not be chargeable to tax. Consequently gifts made on or after 01.10.1998 shall be free of Gift Tax.

• Benefits under Section 24(2) of the Income Tax Act:- Interest not exceeding Rs. 30,000 (Rs. 75,000 in certain cases) paid on the funds borrowed for the purpose of acquiring, constructing, reconstructing or repairing self-occupied property which is not let out during any part of the previous year will be allowed as deduction for the Assessment Year 2000-2001.

• For ready reference, year-wise accrual rates of interest in respect of National Savings Certificate VII issue:-
  Int. Accrued for      Interest Accruing on a Certificate         
                                     of Rs. 100 Denomination
                             Up to 31-12-1998       On or after 1.1.1999
       Year I                   Rs. 12.40                     Rs. 11.83
       Year II                  Rs. 13.90                     Rs. 13.23
       Year III                 Rs.15.60                      Rs. 14.80
       Year IV                 Rs.17.50                      Rs. 16.54
       Year V                  Rs. 19.70                     Rs. 18.51
       Year VI                 Rs. 22.40                     Rs. 20.69

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• 80CCC:- Payments to LIC or to any other approved insurer for an approved pension plan Up to Rs 10,000

• 80D:- Premium paid for an approved scheme by GIC (Mediclaim, Bhavishya Arogya) or any other approved insurer Up to Rs 10,000 (for senior citizens up to Rs 15,000)

• 80E:- Repayments of loans taken for higher education Aggregate of principal and interest payments for the year up to a maximum of Rs 40,000

• 80G:- Donations to specified funds and charitable institutions 100 per cent or 50 per cent, depending on the institution. In some cases, there is a cap of 10 per cent of adjusted gross total income

• 80L:- Interest on central/state government securities; bank deposits; debentures and bonds of co-operative societies, notified public companies and PSUs; post office monthly income deposits, time deposits, recurring deposits; co-operative society deposits; NSC VIII issue; NSS 1992; deposits with specified authorities and financial institutions; deposits with state housing boards, housing finance companies. Dividends from shares of co-operative societies.Up to Rs 12,000; additional deduction of up to Rs 3,000 in the case of central/state government securities.

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• 24(a):-Standard deduction 30 per cent of net annual value
       (b):-Interest payable on borrowed capital If the house is self-occupied for the entire year, up to Rs 1.50 lakh if constructed/purchased before 1 April 2003 using a loan taken on or after 1 April 1999; up to Rs 30,000 if either condition is not satisfied. Actual amount payable in any other case.

• 54EC:- LTCG* from the sale of any asset invested in bonds redeemable after 3 years issued by Nabard, NHAI or REC Amount of LTCG invested

• 54ED:- LTCG from the sale of listed securities or mutual fund units reinvested in an issue of equity shares satisfying the following conditions:
  a) The issue is by a public company formed and registered in India
  b) The shares are part of the issue offered for public subscription
  LTCG * Cost of new shares accuired / Entire LTCG

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