The new slabs for Income Tax in India were proposed in the Union Budget 2010 by Finance Minister, Pranab Mukherjee. Given the new tax slabs that are expected to be in force from the FY 2010-11 or Assessment Year 2011-12 we have prepared an Income Tax Calculator for financial year 2010-11 for your convenience.
Broadly speaking, the tax slabs exempt all income below INR 1,60,000 whereas the income between INR 1,60,000 and INR 5,00,000 is proposed to be taxed at the rate of 10%. The next income tax slab lies between INR 5,00,000 and INR 8,00,000 for which the rate of taxation is 20%. Finally, all income above INR 8,00,000 would be taxed at the rate of 30%.
Also, the minimum turnover limit for small businesses for mandatory audit has been raised to INR 60,00,000. Similarly, in case of individuals, professional receipts exceeding INR 15,00,000 would be subjected to compulsory audit for filing of Income Tax Return.
Using the income tax calculator 2010-11 attached with this post you can see that for most of the individuals having income levels above INR 3,00,000 there is a steady reduction in the overall income tax liability. This is a clear step to reduce the overall tax burden from the shoulders of Indian Middle class which typically has income between 3,00,000 to 10,00,000 rupees per-annum – and especially so for the salaried people.
Please find the income tax calculator 2010-11 attached. This calculator caters to Assessment Year 2011-12 ( AY 2011-12).
Income Tax Calculator for Financial Year 2010-2011 (97.5 KiB, 145,554 hits)
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i had purchased a house 6 years back on loan much away from my city of job and availed exemption both on house loan and HRA and showed notional rent income for the free house. 3 years back, i again purchased a house but didnot avail any exemption against this. Now, my loan payments for the previous purchase house is over on 31/3/2011. Can i now avail loan exemption on this second house,alongwith HRA .