Page 53 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE

Every financial year is a previous year as well as an assessment

year.

Heads of income include: salary, income from house property,

profits and gains from business or profession, capital gains and

income from other sources.

Under Section 80C deductions are allowed for investments

made in Employees Provident Fund (EPF), five year bank fixed

deposits, Public Provident Fund(PPF), Senior Citizen Savings

Scheme (SCSS), Equity Linked Saving Schemes (ELSS), life

insurance, Unit Linked Insurance Plans (ULIPs), National Savings

Certificates(NSC), pension plans, home loan principal

repayment, tuition fees paid for children.

Wealth tax is chargeable at the rate of 1% of the amount by

which net wealth exceeds Rs.30,00,000 in terms of provision of

Section 3 of the Wealth Tax Act.