The rules and how Income Tax is calculated has been slightly changed for Indian Citizens by the government, here are the next tax slabs and new rules to calculate your income tax.
New tax Slabs applicable from Assessment Year 2010-2011
For INDIVIDUAL UPTO Rs.1, 60,000 NIL
Rs. 1,60,000 to 5,00,000 10% Rs. 5,00,000 to 8,00,000 20% Rs 8,00,000 & above 30%
FOR WOMEN UPTO Rs 1,90,000 NIL
Rs 1,90,000 to 5,00,000 10% Rs 5,00,000 to 8,00,000 20% Rs 8,00,000 & above 30%
FOR SENIOR CITIZEN Rs 2,40,000 NIL
Rs.2,40,001 to 5,00,000 10% Rs 5,00,000 to 8,00,000 20% Rs 8,00,000 & above 30%
Other Changes in New Income Tax Rules
- Surcharge is not payable by above assesses.
- Additional deduction available for investment made to notified long term Infrastructure bonds up to Rs. 20,000/-, under newly inserted section 80CCF
- Family Health insurance scope widened by Finance Bill2010-2011.Now contribution to Central Government Health Scheme is also eligible. For deduction u/s 80 D.
- Surcharge on domestic companies reduced from 10 % to 7.5%.
- Minimum Alternate Tax (MAT) increased from 15% to 18 % on book profits.
- All business whose turnover exceeding Rs 40, 00,000/-and in profession exceeding Rs 10, 00,000/- were liable to get there accounts audited. Now this turn over limit has been increased for business to Rs. 60, 00,000/- and for professionals Rs.15, 00,000/-.It is also proposed that the penalty leviable u/s 271B for failure to get accounts audited has been increased from Rs. 1, 00,000/- to 1, 50,000/-
- Presumptive tax for small business turnover upto Rs 40,00,000/- need not maintain books of accounts previously now this turnover limit has been enhanced to Rs.60,00,000/-.
- Earlier if TDS has not been deducted or deducted but not paid on any expenditure it would allow them to disallow the expenditure, Now as per the amendment, the TDS,if deducted , any time during the financial year and paid before the due date of return i.e at present up to September the expenditure will be allowed.
- TDs deducted but not remitted to Government will now attract additional interseti.e.from 12% P.A to 18% P.A