The new income tax rates/slabs in India have been announced by Finance Minister Pranab Mukherjee for the finance year 2010-11. There is huge sigh of relief for the common man by broadening the income tax slab compared to previous years.
Below are the income tax rates applicable for the financial year 2010-11 (Assessment year 2011-12):
Income Tax Rates For Male Below 65 Years
Less than 1,60,000 Nil
1,60,000-5,00,000 TI – 1,60,000) * 10%
5,00,000-8,00,000 34,000 + (TI – 5,00,000) * 20%
8,00,000 & above 94,000 + (TI – 8,00,000) * 30%
Income Tax Rates For Women Below 65 Years
Less than 1,90,000 Nil
1,60,000-5,00,000 (TI – 1,90,000) * 10%
5,00,000-8,00,000 31,000 + (TI – 5,00,000) * 20%
8,00,000 & above 91,000 + (TI – 8,00,000) * 30%
Income Tax Rates For Senior Citizens below 65 Years
Less than 2,40,000 Nil
2,40,000-5,00,000 (TI – 2,40,000) * 10%
5,00,000-8,00,000 26,000 + (TI – 5,00,000) * 20%
8,00,000 & above 86,000 + (TI – 8,00,000) * 30%
Here are the amendments that have been made to the taxation system for the FY 2010-11:
- There will be only two pages in the IT Filing form for individuals
- There will be an exemption of Rs. 20,000 for investments in bonds in addition to the exemption of Rs. 1,00,000 in certain savings instruments
- There will be tax exemption for contribution to the Central Government Health Scheme
- New fields such as PAO/DDO code, PAO/DDO registration no., state name and name of the utility used for return preparation.
Related Stuff on Money!