Indian Union Budget 2010-11 : New Tax Slabs

by khalid on 01/03/2010 · 2 comments

Finance Minister Pranab Mukherjee has changed the Income Tax Slabs for all categories men, women and senior citizens. Most of the salaried individuals were expecting a return of Standard Deduction, but disappointed. The Finace Minister has increased the highest tax slab of 30% from Rs 5 lakh to Rs 8 lakh. Though the exemption limit of Rs 1.6 lakh has not been touched.

The Finace Minister has also given an additional Rs 20000 investment in infrastructure bonds and therefore the investment limit under section 80C, which was Rs 1 lakh is now increased to Rs 1.2 lakh. Analyzing the New Tax Slabs, it seems that lower salaried group will not get much benefits as upto Rs 3 lakh there will be no change in tax deduction if we compare with last year. Higher salaried group ( upper middle class) will get more benefits from these new Budget rulings.

The Finace Minister has also announced the Saral-2 form which would more easy to individuals file their ITR by their own.

Income Tax Slabs

Old SlabsNew SlabsTax Rate
Upto Rs 1.6 lakhUpto Rs 1.6 lakhNil
Rs 1.6 – 3 lakhRs 1.6 to 5 lakh10%
Rs 3 – 5 lakhRs 5 to 8 lakh 20%
ABOVE Rs 5 lakhABOVE Rs 8 lakh30%

1. Exemption Limit for Women : 1.9 Lacs

2. Exemption Limit for Senior Citizen : 2.4 Lacs

Impact on your savings

Income ( Rs ) Old Slabs ( Rs )New Slabs ( Rs )Your Savings ( Rs )
60000000
30000014000 14000 0
400000350202472010300
500000556203502020600
600000865205562030900
7000001174207622041200
8000001483209682051500
90000017922012772051500
100000021012015862051500

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{ 2 comments… read them below or add one }

Suhasini March 2, 2010

This slab is worst then the last one.Common man’s life is again going for a toss here.

Reply

khalid March 2, 2010

Suhasini

In a way yes you are right, but we also have to think that FM too have some limits and I think he should do more for common man. By analyzing these new slabs one can see clearly that upper middle class is getting more benefits than lower middle class because up to Rs 3 lakh three is no gain in terms of income tax saving. So you can say this budget is not for AAM AADMI and they have to suffer with increased comodity prices.

What do you say ?

khalid

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