The new tax slabs

Basic exemption for individual tax payers was increased by Rs 10,000 for general tax payers and women and Rs 15,000 for senior citizens (i.e. 65 years and above) by the finance minister on Monday.

The current income tax exemption limit is Rs 1.5 lakh (Rs 150,000) for men, Rs 1.8 lakh (Rs 180,000) for women and Rs 2.25 lakh (Rs 225,000) for senior citizens.

Finance Minister Pranab Mukherjee removed the surcharge on income above Rs 10 lakh (Rs 1 million) for personal income tax payers. The surcharge was levied at the rate of 10 per cent on income above Rs 10 lakh.

In another relief to the tax payers, the minister raised the deduction for maintenance of medical treatment of dependence from Rs 75,000 to Rs 1 lakh. Higher exemption limit will help the taxpayers in meeting the medical needs of dependents.

Meanwhile, he also proposed to introduce Saral-II form to enable the taxpayers to file their returns without difficulty.

The new tax slabs will stand as follows:

INCOME

TAX RATE

For GENERAL taxpayers

Up to Rs 160,000

Nil

Rs 160,001 to Rs 300,000

10 per cent

Rs 300,001 to Rs 500,000

20 per cent

Rs 500,001 and above

30 per cent

For WOMEN taxpayers

Up to Rs 190,000

Nil

Rs 190,001 to Rs 300,000

10 per cent

Rs 300,001 to Rs 500,000

20 per cent

Rs 500,001 and above

30 per cent

For SENIOR CITIZENS

Up to Rs 240,000

Nil

Rs 240,001 to Rs 300,000

10 per cent

Rs 300,001 to Rs 500,000

20 per cent

Rs 500,001 and above

30 per cent

via: http://business.rediff.com/report/2009/jul/06/budget09-the-new-tax-slabs.htm

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