Budget 2010: 0% tax on income upto Rs. 1.6 Lakh; 10% on income from Rs. 1.6 to 5 Lakh
merisarkar news service
New Delhi, February 26, 2010
Big relief to middle income group
Finance Minister left the threshold limit of Rs. 1.6 lakh tax slab at zero percent. However, in a big relief to the middle class he revised the threshold limit for 10 percent tax slab from Rs. 3 lakh per year to Rs. five lakh per year.
In the revised tax slabs there will be zero per cent tax on income up to Rs 1.6 Lakh.
Individual's annual Income between Rs 1.6 Lakh to Rs 5 Lakh will attract 10 percent tax limit. For income between Rs 5 lakh and 8 lakh, 20 per cent tax rate will be applicable.
For Income above Rs 8 Lakh a rate of 30 percent will be levied.
Experts believe that by revising the slabs for personal income tax the government want to encourage people to file their taxes more transparently and at the same time the new slabs will leave more money into hands of consumers.
Govt. also raised threshold limit for tax saving from Rs. One Lakh to Rs. 1.20 Lakh per year by allowing additional investment of Rs. 20,000 in infrastructure bonds.
