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The rates of Income Tax applicable under the Finance Act,1999 for the financial year 1999-2000 in case of an individual are as follows.

Income-tax exemption on Maturity or Death Claims proceeds Section 10(10D)

Under the provisions of Sub-section 10D of Section 10 of Income-tax Act,1961, any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy other than any sum received under Sub-section (3) of Section 80 DD (i.e. amount to be refunded under Jeevan Adhar Insurance Plan in case the handicapped dependent predeceases the individual) or under a Keyman Insurance Policy.

1. Jeevan Suraksha Plan (u/s. 80 CCC)
rom his taxable income in the above annuity plan for receiving pension (from a fund set up by the Corporation) is allowed. The deduction will be restricted to Rs.10.000/-.

2.Jeevan Adhar Plan (Sec. 80 DD).

As per Section 80DD, an amount not exceeding Rs. 40,000/- deposited with Life Insurance Corporation of India under Jeevan Adhar Plan for the maintenance of handicapped dependent is eligible for deduction from the total income.

Rebate in respect of contributton of P.F., Insurance Premia etc.

According to Section 88, the amount of income tax payable on the total taxable income is to be reduced by 20% (25% in case of author, playwright etc.) of the aggregate amount paid towards the following subject to the maximum of *Rs.70,000/- in case of an individual and HUF and in case of authors, playwright etc. the maximum limit is *Rs.70,000/-. Therefore, the maximum amount of rebate in income tax payable will be Rs.14,000/- or Rs.17,500/- as the case may be .

* Provided investment in a public sector company engaged in infrastructure including power sector is Rs.10,000/- or more, otherwise Rs 60,000/-.

Rebate of Income-Tax under Section 88 :

-Premiums paid to effect or to keep in force an insurance policy on the life of the assessee or on the life of the wife or husband or any child (whether minor or major) of the assessed irrespective of the status of the child.

-Premiums paid to effect or to keep in force a contract for a deferred annuity on the life of the assessee or on the life of the wife or husband or any child (whether minor or major) of the assessee provided that such a contract does not contain a provision for the exercise, by the ssured, of an option to receive a cash payment in lieu of the payment of the annuity.

-Contribution to any Provident Fund to which the Provident Fund Act, 1925, applies or to any Provident Fund set up by the Central Government.

-If the assessee is an employee participating in a recognised provident fund, his own contribution to such fund in the previous year.

-If the assessee is an employee participating in an approved superannuation fund, his contribution to such fund in the previous year.

-Any sums deposited in a ten year account or a fifteen year account under the Post Office Savings Bank (Cumulative Time Deposits) Rules,1959, as amended from time to time.
-As a contribution for participation by the individual in the Unit Linked Insurance Plan,1971 of the UnitTrust of India.

-Any sums paid in the previous year by the assessee as subscription to 6 years National Savings Certificates (Vl & Vlil issues).

-Interest accrued on N.S.C. Vl & Vlil issues.

-Any payment made by the tax payer towards the cost of purchase or construction of a new residential property will qualify for deduction upto a maximum of Rs.10,000/- subject to certain conditions.

-Deposits with National Housing Bank.

-Contribution for participation in the Unit Linked Insurance Plan of the LIC Mutual Fund Dhanraksha Plan).

-Payment towards Jeevan Dhara, Jeevan Akshay Schemes of LIC.

-Contribution to pension fund set up by UTI (Retirement Benefit Unit Scheme) and Kothari Pioneer Mutual Fund (Kothari Pioneer Pension Plan).

-Subscription not exceeding Rs.10,000/- to any units of any mutual fund or UTI, notified under clause (23D) of Section 10 of the Income Tax Act,1961.

-Subscription to equity shares or debentures forming part of any eligible issue of Capital approved by CBDT, by a public company. The maximum tax rebate of Rs.14,000/- is available only when the assessee invests in such shares or debentures.

-Subscription to equity shares and debentures of a Public Company for the purpose of providing telecommunication services.

Insurance on Joint Lives :

Premiums paid under an insurance policy effected jointly on the lives of a husband and wife or in the case of a Hindu Undivided Family, jointly on the lives of two or more members of the family are eligible for the prescribed deduction under Section 88. However, such relief is not available on premiums paid on policies singly or jointly on the lives of other relatives.

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