Indian Budget 2010-11 Highlights

by khalid on 26/02/2010 · 0 comments

Finance Minster Pranab Mukerjee has presented Indian Union Budget today and stock market took it positively. Income Tax slabs have been revised as follows :-

1. No tax for income upto 1.6 lakh.
2. For income between 1.6 lakh – 5 lakh tax liability 10%. (old slab was Rs 1.6 to 3 lakh)
3. For income between 5 lakh – 8 lakh 20%. (old slab was Rs 3-5 lakh)
4. For income above 8 lakh 30% (old slab was Rs 5 lakh +)
5. Additional investment of 20K in infra bonds over and above Rs 1 lakh in 80C.

Infrastructure Bonds are Back as shown in point number 5 above. Rs.20K has been introduced as the additional limit for investment in Infrastructure Bonds. Infrastructure Bonds are thus making a comeback after 5 years as a savings option for tax savers. This will also reduce the tax burden for a few who are interested in traditional savings tools. This Rs.20K will be over and above the current limit of Rs.1 Lakh in various tax saving schemes under section 80C.

New Pension Scheme Push : Our Finance Minister has proposed to give Rs.1000/- as a starting incentive to all Accounts of NPS opening in the next 3 years. This is a welcome measure, as the NPS is as of now the key Contributory Social Security Scheme in India.

So Overall its an Individual Friendly Budget.

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