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It is a fact that most of us are confused how the tax calculation is done and the impact of the tax revisions. Here we give in simple tables the calculation of taxable amount as per the tax slabs and a comparison of the revised tax rates.
Comparison of Tax Slabs – FY 2009-2010 and FY 2010-2011
|
Rate |
Slab under General Category 2009-2010 |
Slab under General Category 2010-2011 |
Slab for Women 2009-2010 |
Slab for Women 2010-2011 |
Slab for Senior Citizen 2009-2010 |
Slab for Senior Citizen 2010-2011 |
|
10% |
160000 – 300000 |
160000 - 500000 |
190000 – 300000 |
190000 – 500000 |
240000 – 300000 |
240000 - 500000 |
|
20% |
300000 - 500000 |
500000 - 800000 |
300000 - 500000 |
500000 – 800000 |
300000 – 500000 |
500000 - 800000 |
|
30% |
500000 & Above |
800000 & Above |
500000 & Above |
800000 & Above |
500000 & Above |
800000 & Above |
The major changes in the new tax rates are:
• Increase of the basic tax slab from 160000 – 300000 to 160000 – 500000
• Reduction of tax rate for the income group 500000 – 800000 from 30% to 20%
More Detailed Illustration
Above given illustration is an indication of the tax rates but the total tax to be paid is slightly more than the actual. The table below will help you to find out the tax amount to be paid under each category. The tax rates for the financial year 2009-2010 are to be paid by March of the assessment year 2010and the rates of the financial year 2010-2011 is due by March 2011. So, by March 2010, tax are to be paid according to the rates announced last year and in March 2011, rates as be the new rates are applicable.
Attaching the Tax Rates of two assessment years as below:
Income Tax Rates/Slabs for FY 2009-10
|
Men |
|
|
Women |
|
|
Senior Citizens |
|
|
Annual Income |
Tax Payable |
|
Annual Income |
Tax Payable |
|
Annual Income |
Tax Payable |
|
Up to Rs. 1.60 lakh |
Nil |
|
Upto Rs. 1.90 lakh |
Nil |
|
Up to Rs. 2.4 lakh |
Nil |
|
Rs. 1.60 -3.00 lakh |
10% of total income exceeding Rs. 1.60 lakh |
|
Rs. 1.80 - 3.00 lakh |
10% of total income exceeding Rs 1.90 lakh |
|
Rs. 2.25 - 3.00 lakh |
10% of total income exceeding Rs 2.4 lakh |
|
Rs. 3.00 - 5.00 lakh |
Rs. 14,000 +20 of total income exceeding Rs 3 lakh |
|
Rs. 3.00 - 5.00 lakh |
Rs 11,000 +20% of total income exceeding Rs 3 lakh |
|
Rs. 3.00 - 5.00 lakh |
Rs 6,000 +20% of total income exceeding Rs 3 lakh |
|
Rs. Above 5.00 Lakh |
Rs 54,000 +30% of total income exceeding Rs 5 lakh |
|
Rs. Above 5.00 Lakh |
Rs 51,000 +30% of total income exceeding Rs 5 lakh |
|
Rs. Above 5.00 Lakh |
Rs 47,500 +30% of total income exceeding Rs 5 lakh |
* Education cess-3% on tax is applicable
Income Tax Rates/Slab for F Y 2010-11
|
Men |
|
|
Women |
|
|
Senior Citizens |
|
|
Annual Income |
Tax Payable |
|
Annual Income |
Tax Payable |
|
Annual Income |
Tax Payable |
|
Up to Rs. 1.60 lakh |
Nil |
|
Upto Rs. 1.90 lakh |
Nil |
|
Up to Rs. 2.4 lakh |
Nil |
|
Rs. 1.60 - 5.00 lakh |
10% of total income exceeding Rs. 1.60 lakh |
|
Rs. 1.90 - 5.00 lakh |
10% of total income exceeding Rs 1.90 lakh |
|
Rs. 2.4 - 5.00 lakh |
10% of total income exceeding Rs 2.4 lakh |
|
Rs. 5.00 - 8.00 lakh |
Rs. 34,000 +20 of total income exceeding Rs 5 lakh |
|
Rs. 5.00 - 8.00 lakh |
Rs 31,000 +20% of total income exceeding Rs 5 lakh |
|
Rs. 5.00 - 8.00 lakh |
Rs 26,000 +20% of total income exceeding Rs 5 lakh |
|
Rs. Above 8.00 Lakh |
Rs 94,000 +30% of total income exceeding Rs 8 lakh |
|
Rs. Above 8.00 Lakh |
Rs 91,000 +30% of total income exceeding Rs 8 lakh |
|
Rs. Above 8.00 Lakh |
Rs 86,000 +30% of total income exceeding Rs 8 lakh |
• Education cess of 3% on the tax amount continues.
With the help of below table you can understand what will be your saving from the revised Tax rate.
|
Men |
|
|
|
|
|
|
|
|
|
Taxable Income |
Tax (FY 2009-2010) |
Tax (2010-2011) |
Savings |
|
200000 |
4120 |
4120 |
0 |
|
300000 |
14420 |
14420 |
0 |
|
400000 |
35020 |
24720 |
10300 |
|
500000 |
55620 |
35020 |
20600 |
|
600000 |
86520 |
55620 |
30900 |
|
700000 |
117420 |
76220 |
41200 |
|
800000 |
148320 |
96820 |
51500 |
|
900000 |
179220 |
127720 |
51500 |
|
1000000 |
210120 |
158620 |
51500 |
|
|
|
|
|
|
|
|
|
|
|
Women |
|
|
|
|
|
|
|
|
|
Taxable Income |
Tax (FY 2009-2010) |
Tax (2010-2011) |
Savings |
|
200000 |
1030 |
1030 |
Nil |
|
300000 |
11330 |
11330 |
Nil |
|
400000 |
31930 |
21630 |
10300 |
|
500000 |
52530 |
31930 |
20600 |
|
600000 |
83430 |
52530 |
30900 |
|
700000 |
114330 |
73130 |
41200 |
|
800000 |
145230 |
93730 |
51500 |
|
900000 |
176130 |
124630 |
51500 |
|
1000000 |
207030 |
155530 |
51500 |
|
|
|
|
|
|
|
|
|
|
|
Senior Citizens |
|
|
|
|
|
|
|
|
|
Taxable Income |
Tax (FY 2009-2010) |
Tax (2010-2011) |
Savings |
|
200000 |
Nil |
Nil |
Nil |
|
300000 |
6180 |
6180 |
Nil |
|
400000 |
26780 |
16480 |
10300 |
|
500000 |
47380 |
26780 |
20600 |
|
600000 |
78280 |
47380 |
30900 |
|
700000 |
109180 |
67980 |
41200 |
|
800000 |
140080 |
88580 |
51500 |
|
900000 |
170980 |
119480 |
51500 |
|
1000000 |
201880 |
150380 |
51500 |
|
|
|
|
|
|
|
|
|
|
While announcing the new tax rates Mr. Pranab Mukherjee commented that with the new tax slabs, 60 percents of the taxpayers are benefited. Looking to the new changes in tax rates it can be analyzed that the common man who is earning less then or up to Rs. 3lakh per annum are not benefited from it whereas the upper middle class people who are earning more than Rs. 3lakhs and above are benefited. People with more than Rs.5lakhs per annum can save a considerable amount.
Other changes:
• For the coming Assessment Year (Asessment of the financial year 2010-2011) individuals and salaried tax payers have to fill a two page SARAL-II form to file tax returns.
• In addition to Rs. 1,00,000/- savings in Section 80C now we can save Rs 20,000/- in addition in long-term infrastructure bonds as notified by the Central Government.
• Any citizen in unorganised sector can open NPS account for the financial year (2010-11) with minimum payment 1000 and maximum 12,000. Government will pay Rs,1000 for next 3 years.
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