Individual Tax Payers get substantial relief from 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%
Income above Rs. 5 lakh and upto Rs. 8 lakh	20%
Income above Rs. 8 lakh	30%

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 schemes which are currently allowed as deductions under the Income Tax Act.

Source : Equity Bulls

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