The announcement of new India tax slabs in the Union Budget 2010-11 came as a big relief to the common man. According to the Finance Minister Pranab Mukherjee, the expansion of tax slabs will not only provide considerable respite to taxpayers but would also trigger savings and their consumption for infrastructure development. He has also declared a reduction of Rs 20,000 for investing in tax saving infrastructure bonds which would be applicable on the current limit of Rs 1 Lakh on tax discounts.
Finance Minister has altered the Income Tax Slabs for all men, women and senior citizens. A number of earning individuals were hoping for a comeback of Standard Deduction, but were left unpleased after the announcement. He expanded the utmost tax slab of 30% to Rs 8 lakh from the previous Rs 5 lakh. However, the exclusion limit of Rs 1.6 lakh has not been altered by him.
Different Tax Slabs in India
Evaluating the New Tax Slabs and comparing it with the statistics of previous year, reveals not enough benefits for low-earning group of upto Rs 3 Lakh as they are entitled for any tax deduction. Comparatively, individuals falling under the category of high-earning group will receive more benefits from latest declarations.
| |
IT Slab (in INR) |
|
| Assesee Type |
From |
To |
Tax to be Charged |
| Male |
0 |
1, 60, 000 |
NIL |
| |
160001 |
500000 |
10% |
| |
500001 |
800000 |
20% |
| |
800001 |
and above |
30% |
| Female |
0 |
190000 |
NIL |
| |
190001 |
500000 |
10% |
| |
500001 |
800000 |
20% |
| |
800001 |
and above |
30% |
| Senior Citizens |
0 |
240000 |
NIL |
| |
240001 |
500000 |
10% |
| |
500001 |
800000 |
20% |
| |
800001 |
and above |
30% |
Impact of New Tax Slabs on Savings for FY 2010-11:
After the declaration of new tax slabs in India it is vital to assess its impact on savings. The chart below evaluates savings under different categories of earning individuals:
| Earnings |
Previous IT Slab |
New IT Slab |
Individual Savings |
| 60,000 |
0 |
0 |
0 |
| 3,00,000 |
14,000 |
14,000 |
0 |
| 4,00,000 |
35,020 |
24,720 |
10,300 |
| 5,00,000 |
55,620 |
35,020 |
20,600 |
| 6,00,000 |
86,520 |
55,620 |
30,900 |
| 7,00,000 |
1,17,420 |
76,220 |
41,200 |
| 8,00,000 |
1,48,320 |
96,820 |
51,500 |
| 9,00,000 |
1,79,220 |
1, 27,720 |
51,500 |
| 10,00,000 |
2,10,120 |
1,58,620 |
51,500 |
Professional Tax Rates in different Indian Cities:
Professional Tax Slabs in Maharashtra
| Earnings |
Tax to be Charged |
| upto Rs. 2500 |
Nil |
| From Rs. 2500 to Rs 3500 |
Rs.60 |
| From Rs. 3500 to Rs 5000 |
Rs.120 |
| From Rs. 5000 to Rs 10000 |
Rs.175 |
| More than Rs.10000 |
Rs 200 |
Professional Tax Slabs in West Bengal
| Earnings |
Tax to be Charged |
| Upto 1,500 |
Nil |
| From Rs. 1501 To Rs 2001 |
Rs. 18 |
| From Rs. 2001 To Rs 3001 |
Rs. 25 |
| From Rs. 3001 To Rs 5001 |
Rs. 30 |
| Rs. 5001 |
Rs. 40 |
| From Rs. 6001 -7001 |
Rs. 45 |
| Rs.7001 |
Rs.50 |
| Rs.8001 |
Rs.90 |
| Rs.9001 |
Rs.110 |
| Rs.15001 |
Rs.130 |
| Rs. 25001 |
Rs.150 |
| Beyond Rs.40001 |
Rs.200 |
Professional Tax Slabs in New Delhi
| Earnings |
Tax to be Charged |
| Upto Rs.1,10,000 |
Nil |
| From Rs.1,10,000 To Rs. 1,45,000 |
Nil |
| From Rs.1,45,000 To Rs. 1,50,000 |
10 % |
| From Rs.1,50,000 To Rs. 1,95,000 |
20 % |
| From Rs.1,95,000 To Rs. 2,50,000 |
20 % |
| More than Rs.2,50,000 |
30 % |
Professional Tax Slabs in Tamil Nadu
| Earnings |
Tax to be Charged |
| Upto Rs.21000 |
Nil |
| From Rs.21001 to Rs.30000 |
Rs.75 |
| From Rs.30001 to Rs.45000 |
Rs.188 |
| From Rs.45001 to Rs.60000 |
Rs.390 |
| From Rs.60001 to Rs.75000 |
Rs.585 |
| More than Rs.75001 |
Rs.810 |
Last Updated on 12 March 2010
