NEW TAX CODE Tax deduction limit on savings to be hiked to Rs 3 lakh



NEW TAX CODE
TAX DEDUCTION LIMIT ON SAVINGS TO BE HIKED
To Rs 3 lakh (Rs 3,00,000).


Proposed Income Tax Rates for Individuals

Up to Rs.1,60,000 Nil
From Rs.1,60,000 to Rs.10,00,000 10 Per cent
(Income exceeds Rs.1,60,000)
From Rs.10,00,000 to 25,00,000 20 Per cent
(Rs.84,000 + Income exceeds Rs.10,00,000)
Above Rs.25,00,000 30 Per cent
(Rs.3,84,000 + Income exceeds Rs.25,00,000)

Proposed Income Tax Rates for Women-below 65 years

Up to Rs.1,90,000 Nil
From Rs.1,90,000 to Rs.10,00,000 10 Per cent
(Income exceeds Rs.1,90,000)
From Rs.10,00,000 to 25,00,000 20 Per cent
(Rs.81,000 + Income exceeds Rs.10,00,000)
Above Rs.25,00,000 30 Per cent
(Rs.3,81,000 + Income exceeds Rs.25,00,000)

Proposed Income Tax Rates for Senior Citizens

Up to Rs.2,40,000 Nil
From Rs.2,40,000 to Rs.10,00,000 10 Per cent
(Income exceeds Rs.2,40,000)
From Rs.10,00,000 to 25,00,000 20 Per cent
(Rs.76,000 + Income exceeds Rs.10,00,000)
Above Rs.25,00,000 30 Per cent
(Rs.3,76,000 + Income exceeds Rs.25,00,000)


More details: DIRECT TAXES CODE BILL, 2009

Comments

Unknown said…
The tax exemption limit should be atleast 500000/- in place of 160000Instant proposal seems to be based on the theory MORE SALARY LESS TAX, LESS SALARY MORE TAX.This is not fair because class I officers & above will pay very less tax as they were paying earlier at 30% and now they will pay at10%.This will sure reduce the tax collection of the Govt. On the other hand, Below grade employees will pay more tax even they are to pay tax for their every day meal.

M K SAHU,NVS,HYDERABAD
June 9, 2010 at 1:44 PM
Anonymous said…
Yes you are right Mr.Uttam Kumar.

I do agree with your points posted in this blog. Based on the gross salary they should fix the tax rate. For the employee who draws less salary should pay less tax and who draw higher salary are capable for paying higher tax.
So Finance Minster should think in this direction before he brings Nex Tax code into implementation.
June 25, 2010 at 9:18 AM
D.V.Ramana said…
I too agree with the statement of Mr.Sahu,Audit Asst.,NVS,RO,Hyderabad.As and when the inflation is rised, the monthly budget of lower grade employees is being shaked. Therefore,the Lower grade employees should be given as maximum tax concessions as possible so as to face the ever growing problem of Inflation.


D.V.RAMANA,O.S,JNV,DIST.NUAPADA(ORISSA)
February 17, 2011 at 5:20 PM
Anonymous said…
I little bit disagree with your comments my Dears. Though I do not disputes in suggession for the increase in the Exemption limit. The government will get lesser Tax by this but Gr-1 Officers in numbers are very limited only. Much loss may not be there but by raising exemption limit huge loss will be there. I think this aspect are kept in view by the FIN MIN.
July 6, 2011 at 5:58 PM
Anonymous said…
The Finance Minister is facilitating only to the salaried government servents of officers level who got more than Rs. 10 lakhs. The new Income-tax slab will only bring down the tax burden of higher officers and not ordinary employees.

Arumugam
July 22, 2011 at 5:46 PM
Anonymous said…
during fifth and sixth pay commission DA for higher rank officer increased 66% to 100% at par with lower cadre staff with the arguement thst A class officer pay 30% tax though lower staff pay less tax i.e.10%
now A class officer will come under 10% tax then what about DA slab. will govt introduce the old DA slab to control inflation as per earleir govts.
pawan gupta
September 6, 2011 at 6:22 PM
Unknown said…
It is totally absurd to tax senior citizens having income less than Rs.10 lakh as senior citizens face a lot of difficulty in maintaining themselves. Since there is no social security mechanism in place and senior citizens have to face age related diseases the expenditure on which is beyond their capacity. So Govt should definitely consider that senior citizens should not be made liable to pay income tax on any income up to Rs.10 lakh.
Another issue is that interest on saving bank exceeding Rs.10,000 should not be included in the income for tax purposes. The reason behind this is that interest on saving account is merely 4% which is always far below the rate of inflation which implies that money kept in saving account has already depreciated due to high rate of inflation.
January 20, 2015 at 3:15 PM
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