New income tax slabs for FY2012

Sun Apr 10, 2011 1:09pm IST

Tax payers line up to submit their income tax returns in New Delhi September 30, 2003. REUTERS/Kamal Kishore/Files

Tax payers line up to submit their income tax returns in New Delhi September 30, 2003.

Credit: Reuters/Kamal Kishore/Files

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Here are the new tax slabs according to your gender and age that might be applicable to you.

FOR MEN

Up to Rs 1,80,000 – NIL ** From Rs 1,80,001 to Rs 5,00,000 - 10% ** From Rs 5,00,001 to Rs 8,00,000 – 20% ** Above Rs 8,00,001 - 30%

FOR WOMEN

Up to Rs 1,90,000 – NIL ** From Rs 1,90,001 to Rs 5,00,000 - 10% ** From Rs 5,00,001 to Rs 8,00,000 – 20% ** Above Rs 8,00,001 - 30%

FOR SENIOR CITIZENS

Up to Rs 2,50,000 – NIL ** From Rs 2,50,001 to Rs 5,00,000 - 10% ** From Rs 5,00,001 to Rs 8,00,000 – 20% ** Above Rs 8,00,001 - 30%

FOR SENIOR CITIZENS (above 80 years)

Up to Rs 5,00,000 – NIL ** From Rs 5,00,001 to Rs 8,00,000 – 20% ** Above Rs 8,00,001 - 30%

To show you an actual example of the scope of savings, let’s look at the hypothetical case of Mr Mukherji, an individual taxpayer. His salary income is Rs 18 lakhs and he takes full benefit of the 80C deduction available to individuals. The illustration below compares Mr Mukherji’s tax liability under the old slabs and new slabs, and demonstrates the savings that he can achieve under the new rules.

Download the illustration here -- r.reuters.com/fes38r

Other Key Changes:

1. For Senior citizens age limit is reduced to 60 years from 65 years

2. Additional deduction of 20,000 rupees for investment in long term infrastructure bonds is extended for 1 more year.

3. If you are a salaried employee, and your salary is upto Rs. 5,00,000/- and you don't have any other source of income and whole of your tax liability is paid in the form of tax deducted at source by the employer then you are not required to file income tax return.

Copyright 2011 iTrust Financial Advisors Private Limited. All rights reserved.

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