Income slabs changed to please common taxpayers - A comparison for quick glance

By Sachin Jain, CA

NEW DELHI, FEB 26, 2010: WHILE announcing the implementation of Direct Taxes Code (DTC) from April 1, 2011, in his Budget Speech, the Finance Minister, Mr Pranab Mukherjee, has clearly indicated that in the run-up to the implementation of the DTC which had called for 10% tax rate upto Rs 10 lakh personal income, he jacked up the personal income slabs much to the disbelief of common taxpayers. How will these changes work can be seen from this table given below:

For Men
Income Slab Rate
Existing Tax Rate
Existing Tax Amount
Post Budget Tax Rate
Revised Tax
Net Benefit
0-160000 Nil 0 Nil 0 0
160000 - 300000 10 14000 10 14000 0
300000 - 500000 20 40000 10 20000 20000
500000- 800000 30 90000 20 60000 30000
800000 - above 30   30    

Note:

1. The person having Income up to Rs. 5,00,000/- get benefit of Rs. 20,000/-

2. The person having Income up to Rs. 8,00,000/- get benefit of Rs. 50,000/-


For Women
Income Slab Rate Existing Tax Rate Existing Tax Amount Post Budget Tax Rate Revised Tax Net Benefit
           
0-190000 Nil 0 Nil 0 0
190000 - 300000 10 11000 10 11000 0
300000 - 500000 20 40000 10 20000 20000
500000- 800000 30 90000 20 60000 30000
800000 - above 30   30    

Note:

1. Female having Income up to Rs. 5,00,000/- get benefit of Rs. 20,000/-

2. Female having Income up to Rs. 8,00,000/- get benefit of Rs. 50,000/-

 

For Senior Citizen (Men/Women)
Income Slab Rate Existing Tax Rate Existing Tax Amount Post Budget Tax Rate Revised Tax Net Benefit
           
 0-240000 Nil 0 Nil 0 0
240000 - 300000 10 6000 10 6000 0
300000 - 500000 20 40000 10 20000 20000
500000- 800000 30 90000 20 60000 30000
800000 - above 30   30    

Note:

1. The Senior Citizen having Income up to Rs. 5,00,000/- get benefit of Rs. 20,000/-

2. The Senior Citizen having Income up to Rs. 8,00,000/- get benefit of Rs. 50,000/-