Substantial relief to individual tax payers
|
GENERAL BUDGET 2010-11 |
In the General Budget 2010-11 presented by the Finance Minister Shri Pranab Mukherjee in the Lok Sabha today, the income tax slabs for individuals have been revised. The new slabs will be as under:
|
Income upto Rs 1.6 lakh |
Nil |
|
Income above Rs 1.6 lakh and upto Rs. 5 lakh |
10 per cent |
|
Income above Rs. 5 lakh and upto Rs. 8 lakh |
20 per cent |
|
Income above Rs. 8 lakh |
30 per cent |
The existing limit of Rs 1 lakh on tax saving has been raised by an additional amount of Rs. 20,000 for investment in long term infrastructure bonds as notified by the central government. Contributions to the Central Government Health Scheme have also been allowed as deductions within the overall ceiling for tax rebate, besides contributions to health insurance scheme s which are currently allowed as deductions under the Income Tax Act.
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