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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Government may increase Income Tax exemption Limit in budget 2011-12
Due to the high inflation impact, the central government may hike the Income Tax Limit in the coming Budget on February 28 for the Financial Year 2011-2012.
Women: - 1.9 lakh
Senior Citizen - 2.4 lakh.
In the Direct Tax Code Bill which was presented in the Parliament this year, the tax exemption limit is 2 lakhs. But DTC will come in 2012 April only.
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FAQs on DTC
Discussion on Direct Tax Code
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