Union Budget 2010-11 Gives Relief to Individual Tax Payers

Union Budget 2010-11 Gives Relief to Individual Tax Payers

New Delhi (ABC Live): Union Budget 2010-11 gives a relief to individual tax payers when the government on Friday changed the slabs cutting the rate to 10 percent for income up to Rs 5 lakh, while leaving the threshold limit for tax-free income unchanged at Rs 1.6 lakh.

New Delhi (ABC Live): Union Budget 2010-11 gives  a relief to individual tax payers when  the government on Friday changed the slabs cutting the rate to 10 percent for income up to Rs 5 lakh, while leaving the threshold limit for tax-free income unchanged at Rs 1.6 lakh. 

In the revised tax slab there will be no tax till Rs 1.6 Lakh.

For Income between Rs 1.6 Lakh to Rs 5 Lakh it will attract 10 percent tax limit.

For income between Rs 5 lakh and 8 lakh, 20 perecnt tax rate will be applicable.

For Income above Rs 8 Lakh a rate of 30 percent will be levied.

The tax concessions would put more money in the hands of Consumers.

In a fillip to savings, deduction of additional amount of Rs 20,000 in long term infrastructure bonds over existing limit of one Lakh will also be allowed.

Income Tax Surcharge has been reduced to 7.5 percent on domestic companies.

However the Minimum Alternative Tax MAT has been increased to 18 percent.

In a relief to small businessmen and professionals audit limits have been increased.

While for businessmen it has been hiked to Rs 60 lakh for professionals it has been hiked to Rs 15 lakh.

Presumptive taxation limit for small businessmen has also been hiked to Rs 60 Lakh.

A Simple two page SARAL –II form for individual salaried tax payers for the coming assessment year will be introduced.