Tax Slabs in India

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The announcement of new India tax slabs in the Union Budget 2011-12 brought some relief to the common man. According to the then 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 tax exemption on `20,000 for investing in tax saving infrastructure bonds, which would be over and above the current limit of  ` 1 Lakh on tax discounts under section 80 C.


The announcement of new India tax slabs in the Union Budget 2011-12 brought some 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 tax exemption on `20,000 for investing in tax saving infrastructure bonds, which would be over and above the current limit of  ` 1 Lakh on tax discounts under section 80 C.

Finance Minister has also introduced a new Income Tax Slabs for all men, women and senior citizens for the financial year 2011-12. A number of earning individuals were hoping for a comeback of Standard Deduction, but were left unpleased after the announcement. Under the new tax slabs, base slab for tax payers has been increased to ` 1.8 lacs from 1.6 lacs. Also the second slab with 10 % income tax bracket on taxable income up to ` 3 lacs has been increased to ` 5 lacs.

Different Tax Slabs in India

Evaluating the New Income Tax Slabs and comparing it with the statistics of previous year, reveals not enough benefits for low-earning group of upto  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.


 Income Tax Slabs for FY 2011-12

  IT Slab (in INR)  
Assesee Type From To Tax to be Charged
Male 0 1, 80, 000 NIL
  180001 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 250000 NIL
  250001 500000 10%
  500001 800000 20%
  800001 and above 30%


Impact of New Tax Slabs on Savings for FY 2011-12:

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
180,000 2060 0 2,060
3,00,000 14,420 12,360 2,060
4,00,000 24,720 22,660 2,060
5,00,000 35,020 32,960 2,060
6,00,000 55,620 53,560 2,060
7,00,000 76,220 74,160 2,060
8,00,000 96,820 94,760 2,060
9,00,000 127,720 125,660 2,060
10,00,000 158,620 156,560 2,060


Professional Tax

If you are a professional or a working individual of a reputed organization, then you are required to pay professional tax. Professional tax in India is a state-level duty.

What is professional tax?

In India, this tax is imposed by various states. It is imposed on business owners, working individuals, merchants and people carrying out various occupations. The following states impose this levy in India - Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamilnadu, Gujarat, and Madhya Pradesh.

Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is ` 2,400/- and in line with your salary, there are predetermined slabs. It is paid by every member of staff employed in private companies. It is subtracted by the employer each month and sent to the Municipal Corporation. It is compulsory as income tax. You will be eligible for income tax deduction for this payment.

Criteria in various states of India

In Maharashtra, this duty is applicable both on individuals and companies as laid down by the guidelines of the Maharashtra Professional Tax Act of 1975.

Every individual living in Maharashtra, involved in any business, profession, occupation or employment is legally responsible to pay it and has to get a Certificate of Enrolment from the Professional Authority.

As soon as you receive this certificate, you can fulfill your personal tax liability for 5 years by making a one-time payment, which is equivalent to the sum of Professional Tax for 4 years beforehand, getting relief for payment of one year.

In Tamil Nadu, it is imposed by the Municipal Council on businessmen, professionals, and employed individuals.

Every company which conducts business and every individual, who is involved directly in any business, occupation, or employment in the town panchayat on the first day of the half-year for which return has been submitted, needs to pay biannual tax at the rates stipulated.

Professional Tax Slabs in Various States

Andhra Pradesh

Salary Slabs per monthPayable Tax per month
Upto ` 5,000/-Nil
` 5,000/- to ` 6,000/- ` 60/-
` 6,000/- to ` 10,000/- ` 80/-
` 10,000/- to ` 15,000/- ` 100/-
` 15,000/- to ` 20,000/- ` 150/-
` 20,000/- and above ` 200/-


Assam

Salary Slabs per monthPayable Tax per month
Upto ` 3,500/-Nil
` 3,501/- to ` 5,000/- ` 30/-
` 5,001/- to ` 7,000/- ` 75/-
` 7,001/- to ` 9,000/- ` 110/-
` 9,001/- and above ` 208/-


Chhattisgarh

Salary Slabs per monthPayable Tax per month
Upto ` 12,500/-Nil
` 12,501/- to ` 16,667/- ` 150/-
` 16,668/- to ` 20,833/- ` 180/-
` 20,834/- to ` 25,000/- ` 190/-
` 25,001/- & above ` 200/-


Gujarat

Salary Slabs per monthPayable Tax per month
Upto ` 2,999Nil
` 3,000/- to ` 5,999/- ` 20/-
` 6,000/- to ` 8,999/- ` 80/-
` 9,000/- to ` 11,999/- ` 150/-
Rs 12,000/- and above ` 200/-


Karnataka

Salary Slabs per monthPayable Tax per month
` 3,000/- to ` 5,000/- ` 30/-
` 5,000/- to ` 8,000/- ` 60/-
` 8,000/- to ` 10,000/- ` 100/-
` 10,000/- to ` 15,000/- ` 150/-
` 15,000/- and above ` 200/-


Kerala

Salary Slabs per monthPayable Tax per month
Upto ` 1,999/-Nil
` 2000/- to ` 2999/- ` 20/-
` 3000/- to ` 4,999/- ` 30/-
` 5,000/- to ` 7,499/- ` 50/-
` 7,500/- to ` 9,999 ` 75/-
` 10,000/- to ` 12,499/- ` 100/-
` 12,500/- to ` 16,666/- ` 125/-
` 16,667/- to ` 20,833/- ` 166/-
` 20,834/- and above ` 208/-


Madhya Pradesh

Salary Slabs per monthPayable Tax per month
Upto ` 10,000/-Nil
` 10,001/- to ` 12500/- ` 88/-**
` 12,501/- to ` 15,000/- ` 125/-
` 15,001/- & above ` 208/- ##
** upto Feb. ` 88, March ` 87/- 
## upto Feb ` 208/-, March ` 212/-


Maharashtra

Salary Slabs per monthPayable Tax per month
Upto ` 2,500/-Nil
` 2,500/- to ` 3,500/- ` 60/-
` 3,500/- to ` 5,000/- ` 120/-
` 5,000/- to ` 10,000/- ` 175/-
` 10,000/- and above ` 200/-**
*upto Feb ` 200/- p.m. & Mar ` 300/- p.m.


Meghalaya

Salary Slabs per monthPayable Tax per month
Upto ` 4,166/-Nil
` 4,167/- to ` 6,250/- ` 16.50/-
` 6,251/- to ` 8,333/- ` 25/-
` 8,334/- to ` 12,500/- ` 41.50/-
Rs 12,501./- to ` -16,666 ` 62.50/-
` 16,667/- to ` 20,833/- ` 33/-
` 20,834/- to ` 25,000/- ` 35/-
` 25,001/- and above ` 38/-


Orissa

Salary Slabs per monthPayable Tax per month
Upto ` 5000/-Nil
` 5,001/- to ` 6,000/- ` 30/-
` 6,001/- to ` 8,000/- ` 50/-
` 8,001/-to ` 10,000/- ` 75/-
` 10,001/- to ` 15,000/- ` 100/-
` 15,001/- to ` 20,000/- ` 150/-
` 20,001/- & above ` 200/-


Tamil Nadu

Salary Slabs per monthPayable Tax per month
Upto ` 3,500/-Nil
` 3501/- to ` 5000/- ` 16.50/-
` 5001/- to ` 7500/- ` 39/-
` 7501/- to ` 10000/- ` 85/-
` 10001/- to ` 12500/- ` 126.50/-
` 12501/- & above ` 182.50/-


Tripura

Salary Slabs per monthPayable Tax per month
Upto ` 2500/-Nil
` 2501/- to ` 3500/- ` 55/-
` 3501/- to ` 4500/- ` 85/-
` 4501/- to ` 6500/- ` 100/-
` 6501/- to ` 10000/- ` 140/-
` 10001/- and above ` 180/-


West Bengal

Salary Slabs per monthPayable Tax per month
Upto ` 5,000/-Nil
` 5,001/- to ` 6,000/- ` 40/-
` 6,001/- to ` 7,000/- ` 45/-
` 7,001/- to ` 8,000/- ` 50/-
` 8,001/- to ` 9,000/- ` 90/-
` 9,001/- to ` 15,000/- ` 110/-
` 15,001/- to ` 25,000/- ` 130/-
` 25,001/- to ` 40,000/- ` 150/-
` 40,001/- and above ` 200/-


In New Delhi

IncomeTax to be imposed
Upto ` 1,10,000Nil
From ` 1,10,000 To ` 1,45,000Nil
From ` 1,45,000 To ` 1,50,00010.00%
From ` 1,50,000 To ` 1,95,00020.00%
From ` 1,95,000 To ` 2,50,00020.00%
More than ` 2,50,00030.00%


Last Updated on 19 September 2012

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