Proposed New IT Slab in Budget 2011-12
Proposed New IT Slab in Budget 2011-12
Financial Minister Mr. Pranab Mukharjee will present the budget for the financial year 2011-12 on 28th of this month. It is expected that there will be change in income tax slab for the F.Y 2011-12.
Income Tax slab for the Year 2010-11
Tax Rates for individuals other than resident women & senior citizens for the year 2010-11
| NET INCOME | INCOME TAX RATES | EDUCATION CESS |
| Upto Rs 1,60,000 | NIL | NIL |
| Rs 1,60,000 to 5,00,000 | 10% of annual income exceeds 1,60,000 | 3% of Income Tax |
| Rs 5,00,001 to 8,00,000 | Rs 34,000 plus 20% of the amount exceeds Rs 5,00,000 | 3% of Income Tax |
| Above 8,00,000 | Rs 94,000 plus 30% of the amount exceeds 8,00,000 | 3% of Income Tax |
Tax Rates for resident women
| NET INCOME | INCOME TAX RATES | EDUCATION CESS |
| Upto Rs 1,90,000 | NIL | NIL |
| Rs 1,90,000 to 5,00,000 | 10% of annual income exceeds 1,90,000 | 3% of Income Tax |
| Rs 5,00,001 to 8,00,000 | Rs 31,000 plus 20% of the amount exceeds Rs 5,00,000 | 3% of Income Tax |
| Above 8,00,000 | Rs 91,000 plus 30% of the amount exceeds 8,00,000 | 3% of Income Tax |
Tax Rates for senior citizens
| NET INCOME | INCOME TAX RATES | EDUCATION CESS |
| Upto Rs 2,40,000 | NIL | NIL |
| Rs 2,40,000 to 5,000,00 | 10% of annual income exceeds 2,40,000 | 3% of Income Tax |
| Rs 5,00,001 to 8,00,000 | Rs 26,000 plus 20% of the amount exceeds Rs 5,00,000 | 3% of Income Tax |
| Above 8,00,000 | Rs 86,000 plus 30% of the amount exceeds 8,00,000 | 3% of Income Tax |
It is expected that at least 20,000 Rs increase will be there in income tax rates for each category.
ie for individuals other than resident women and senior citizen the income tax slab may be increased to Rs 1,80,000 instead of Rs 1,60,000.
For Resident women Income tax slab may be increased to 2,10,000.
For Senior citizen income tax slab may be increased to 2,60,000.
This is only an assumption and the clear picture will come on Monday only.
Earlier Finace chairman Yashwant Sinha suggested that theincome tax exemption limit should be increased to 2 Lakhs.
“ Standing Committee on Finance Chairman Yashwant Sinha has suggested raising the income tax exemption limit from Rs. 1.6 lakh to Rs. 2 lakh in the Budget to provide relief from high inflation. "He (the Finance Minister) should introduce some of the provision which are part of the DTC (direct tax code), like raising exemption limit," Sinha said
.
Inflation continues to be a concern for the common man as well as the government. Food inflation had touched 18.32 per cent in December, 2010, before moderating to over 11 per cent this month. The overall inflation continues to be above eight per cent as against the comfort level of 5-6 per cent.
Currently, income up to Rs. 1.6 lakh per annum is exempt from tax for individuals. For women and senior citizens, the limit is 1.9 lakh and 2.4 lakh, respectively. However, under the DTC Bill, which was introduced in Parliament last year, the I-T exemption limit is proposed at 2 lakh. ”
(As quoted from NDTV Profit)
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R/sir,
Iwould like to suggest some revision in excemption limit of Transport allowance under I.Tax Act.
1.Excemption limit of transportation allowance shoulde be increased from the present ceiling Rs. 800/-per month due toimplementation of sixth pay commission - increased in Transport allowance.
2. All government employees should be excempt from submitting of Income tax return due the following reasons :-
a. Most of the government employees getting their salary from bank.
b. TDS is deducted by the concerned department /organisation .
c. Department already submitted the returns of TDS recovery to the Income Tax department .
d. Lot of time/man power will be save by the Income Tax department and that manpower can be utilised for scrutiny of returns of business man / company etc.
2. AS officer under PB-4 getting high pay as compare to others pay band viz. PB-1,PB-2 & PB-3 government empolyee so their should be two slab for DA .
1. The goverment employee shall be submit his details of earning from all the sources to his office, he/she is working under with copies of all relevant documents.
2. The emloyee will be solely resposible for all the information given to the office. The office shall be bound to verify all those documents from the sources....from where the incubment had procured them.
3.This will comfirm the integrity in all the manners at multi level.
4. A compiled statement of TDS shall be got submitted by the finance department of the top most headquarters office of the government departments. The topmost HQ office have to compile the supporting statements fron their field offices and shall be kept in record.
5. Then the government employee shall not be required to fill any income tax return.
6. This all process will decentralize the workload of documentation by income tax deparment. On the other hand, due to decrease in workload of documentation, IT deptt. will get enough time and efficient mode of checking/inspecting in the field i.e. they can use their manpower to catch hold the misleadings and frauds in the field.
In order to develop the habit/encourage of saving we should give
a.Some excemption in Income tax on Interest received on Bank F.D. etc.
b. to increase the limit in investing money in Infra structure bond from Rs.20,000 to 1 lakhs . so that the money received by this way can be utilized for the development project.