Tuesday, March 30, 2010

New Tax Rates After Budget 2010


Our Finance Minister, Shri Pranab Mukherjee has delcared Budget 2010 on 26th February, 2010. Regarding Income Tax slab , Slab has been changed. Before budget and after budget income tax slabs in detail is given as under :

New Slab after Budget 2010, Financial Year 2010-11, Assessment Year 2011-12
For Individuals or HUF
For Man
Basic exemption will be Rs. 160000
160000 to 500000, tax rate= 10%
500001 to 800000, tax rate= 20%
800001 and above, tax rate =30%
In case Women basic exemption will be Rs. 1,90,000/- and for senior citizen (age greater then 65 years) will be Rs. 2,40,000.00, mean no change.

Old Rates
For Individuals or HUF for Financial Year 2009-2010, Assessment Year 2010-11
For Man
Basic exemption was Rs. 160000
160000 to 300000, tax rate =10%
300001 to 500000, tax rate= 20%
500001 and Above , tax rate =30%
In case Women basic exemption was Rs. 1,90,000/- and for senior citizen (age greater then 65 years) was Rs. 2,40,000.00

Pre Budget 2010, initially, there was surcharge if taxable income was greater than 10 Lakh, But later then it was removed in last budget 2009, In current Budget 2010, No Change regarding Surcharge.

Education Cess and Secondary Higher Education Cess
Earlier it was 2%+1%= 3% in Financial Year 2009-10, No change in Current Budget 2010.

After reviewing above rates it has been found that there is no increase in Basic exemption only slab rates has been increased which is much benefitional to those who are paying much Income Tax.

How to Calculate Income Tax for the Financial Year 2010-11 or Assessment Year 2011-12

New Tax Rates in a glance (Click Here)

For calculatiing income tax , necessary updates has been made in calculator. To calculate the tax (Click Here)

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