The budget is out… The Finance Minister Mr. Pranab Mukherjee proposed the following in current Union Budget. Lot of things are in the package specially for Salaried Class.
Income Tax
Some good news on the Income Tax front! The Finance Minister announced a bumper for individual tax payers. He has changed the tax slabs for men, women and senior citizens. The highest tax slab has now been raised from Rs 5 lakh to Rs 8 lakh.
The FM has also increased the limit of deduction available under section 80C. He has allowed an additional investment of Rs 20,000 for infrastructure bonds taking the total of the limit under section 80C from the current Rs 1 lakh to Rs 1.2 lakh.
Male (Rs) | Female | Rate |
0 - 160000 | 0 - 190000 | 0 |
160001 - 500000 | 190001 - 500000 | 10% |
500001 - 800000 | 500001 - 800000 | 20% |
800001 and above | 800001 and above | 30% |
New tax slabs for…
| Taxable income (Rs) | Tax -before budget | Tax after budget | Savings | |||
| Male | Female | Male | Female | Male | Female | |
| 200000 | 4120 | 1029 | 4120 | 1029 | 0 | 0 |
| 500000 | 55620 | 52529 | 35019 | 31929 | 20601 | 20600 |
| 1000000 | 210120 | 207029 | 158619 | 155529 | 51501 | 51500 |
| 1200000 | 271919 | 268829 | 220419 | 217329 | 51500 | 51500 |
| 1500000 | 364619 | 361529 | 313119 | 310029 | 51500 | 51500 |
| 2000000 | 519119 | 516029 | 467619 | 464529 | 51500 | 51500 |
| 2500000 | 673619 | 670529 | 622119 | 619029 | 51500 | 51500 |
| 4000000 | 1137119 | 1134029 | 1085619 | 1082529 | 51500 | 51500 |
What’s Costlier and what’s cheaper | |
Costlier | Cheaper |
Air conditioners | CFL lamps |
Petrol/Diesel | Mobile phone accessories |
Cars | Solar energy equipment |
Imported Gold/Silver/ Platinum | LED lights |
Cement | Electric cars |
Coal | Microwaves |
Television | Photovoltaic cells |
Tobacco/ Cigarettes | Water filters excluding RO technology |
Set-top boxes | |
Compact disc | |
Other key highlights
Personal Income Tax slabs widened bringing relief to salaried class
Deduction of Rs 20,000 in long term infrastructure bonds.
Contribution under central scheme to be included for Health Insurance exemption
Income Tax department ready with Saral-2 form for salaried tax-payers
2000 Income Tax Returns daily
Contribution of Rs 100 from Govt per year on NPS(New Pension Scheme) opened in the financial year 2010-2011
