Overview of the Tax Slabs
Even though retaining the basic exemption limits; i.e Rs1,60,000 for Men, Rs 1,90,000for Women and Rs 2,40,000 for Senior citizens the tax slabs has been hiked significantly.
| Assessment Slabs | Individual, other than women and senior citizens | Women below the age of 65 years | Senior citizens |
| (1) Where the total income does not exceed Rs 1,60,000/ 1,90,000/ 2,40,000 | Nil | Nil | Nil |
| (2) Where the total income exceeds Rs 1,60,000/1,90,000/ 2,40,000, but does not exceed Rs 10,00,000 | 10 per cent of the amount by which the total income exceeds Rs 1,60,000 | 10 per cent of the amount by which the total income exceeds Rs 1,90,000 | 10 per cent of the amount by which the total income exceeds Rs 2,40,000 |
| (3) Where the total income exceeds Rs 10,00,000 but does not exceed Rs 25,00,000 | Rs 84,000 plus 20 per cent of the amount by which the total income exceeds Rs 10,00,000 | Rs 81,000 plus 20 per cent of the amount by which the total income exceeds Rs 10,00,000 | Rs.76,000 plus 20 per cent of the amount by which the total income exceeds Rs 10,00,000 |
| (4) Where the total income exceeds Rs 25,00,000 | Rs 3,84,000 plus 30 per cent of the amount by which the total income exceeds Rs 25,00,000 | Rs 3,81,000 plus 30 per cent of the amount by which the total income exceeds Rs 25,00,000 | Rs 3,76,000 plus 30 per cent of the amount by which the total income exceeds Rs 25,00,000 |
Also the investment tax exemption limit as of section 80c has been increased from 1 Lakh to 3 Lakh and this section is renamed as Section 66. [Please dont think Govt has assisted us, here comes the axe]. Now as per the new tax code the Salaried people who is availing HRA, MA and other perks will not be tax exempted and will be part of the taxable income. Even the Leave Travel Allowance and Leave Cash Backs will also be considered as taxable income. Again if we concentrate on the 3 Lakh investment oppurtunity to reduce tax, the number of instruments too has been cut off and now the already exempted instruments like ELSS [Equity Link Savings Scheme], ULIP, Deposits with banks, PPF and Housing Loan Prinicipal payment will not be considered for tax exemption under 80c.
Home loan borrowers getting a waiver on interest payments of up to Rs 1.5 lakh would no longer get this benefit, if they are staying in their own house. This is because the gross rent on a self-occupied house is considered to be nil. Therefore, there will be no benefits either on capital or interest payout will be available. However, if the same house or a second house is given on rent, the person will get the tax benefits on interest payout and that too, for unlimited interest payment.
On top of this there is one more axe for salaried employees, introduction of new tax regime, EET - Exempt Exempt Taxation by which all the PF, Superannuation funds, Life Insurance and New Pension schemes will be taxed upon withdrawal. This is a huge imposition for the senior citizens whom by far will be eyeing their future based on Pension schemes
Thus the aim of this Golden Jubilee Plan for Income Tax law(1961 - 2011) is to revoke all tax exemptions and to axe the tax planning that each individual does.
But this new Direct Tax code is under revision only and all the citizens can raise their voice against this one. Everyone has the right to provide their suggestion and feedback, so people please feel free to use your rights and write out you suggetions.
Please provide your feedback in the following link - http://finmin.nic.in/DTCode/query1.asp
Also write out your suggestions here http://finmin.nic.in/DTCode/query.asp
Hail India, Hail all Indians..
Jai Hind...
