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Finance Minister Pranab Mukherjee on Friday announced revised tax slabs for individual tax payers and also said that the New tax rates would offer relief to 60 per cent of taxpayers but looking at the below comparison between the tax payable last year and the proposed one it seems that the so called Aam Aadmi, the middle class would not be gaining so much as there are absolutely no tax savings for the person earning up to Rs. 3 lakh p.a. and those who are taking away up to Rs. 4 lakh would end up saving only Rs. 10,000.

New tax slabs would benefit greatly to the higher middle class as compared to the Aam Aadmi, though the additional investment of Rs. 20000/- in the infrastructure bonds would provide some relief especially to those who are interested in traditional savings tools.

Introducing Saral-2 form back is a good initiative and would make it more Saral for the tax payers to file their IT returns without hassle as the current ITR are not easy for the taxpayers to prepare & file on their own.

In order to make tax compliance process more efficient two more Centralized Processing Centre are proposed to be set up and also propose to extend Sevottam a pilot project at Pune, Kochi and Chandigarh to four more cities in the year. Sevottam provides a single window system for registration of all applications including those for redressal of grievances as well as paper returns.

Long awaited increase in the limits for turnover over which accounts need to be audited is also enhanced to Rs. 60 lakh for businesses and to Rs. 15 lakh for professionals as compared to the existing limits of Rs. 40 lakh and 10 lakh respectively.

 

Tax Slabs

OLD

NEW

TAX RATE

Upto Rs 1.6 lakh

Upto Rs 1.6 lakh

NIL

Rs 1.6-3 lakh

Rs 1.6 to 5 lakh

10 per cent

Rs 3-5 lakh

Rs 5 to 8 lakh

20 per cent

ABOVE Rs 5 lakh

ABOVE Rs 8 lakh

30 per cent

 

Income

Old Slabs

New Slabs

Your Savings

          160,000

          

    0  

 

0

 

0

          300,000

        

   14,000

          

14,000

 

    0

          400,000

        

   35,020

          

24,720

 

           10,300

          500,000

        

   55,620

          

35,020

          

20,600

          600,000

        

   86,520

          

55,620

 

           30,900

          700,000

          117,420

          

76,220

 

           41,200

          800,000

          148,320

          

96,820

 

           51,500

          900,000

          179,220

          127,720

          

51,500

       1,000,000

          210,120

          158,620

 

           51,500

 

 

 

 

 

 

 

 

 

 

 

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Category Income Tax, Other Articles by - rishabh parakh 



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