Finance Minister Mr. Pranab Mukherjee has given a big relief to the middle class salaried segment after his today’s Budget announcement for the next Financial year.
Finance minister has proposed the following Tax slab for the individual tax payer. A comparative picture of present Tax slab & proposed Slab is as follows. ( Incomes and Savings when compared to last income tax slab )
- Rs 3 Lakh or below : No addtional savings
- 4 Lakh : Rs 10,300
- 5 Lakh : Rs 20,600
- 6 Lakh : Rs 30,900
- 7 Lakh : Rs 41,200
- 8 Lakh and above: Rs 51,500
In addition to the above Government would also allow a deduction of upto Rs. 20 K for investment in long term infrastructure bonds. This would be in addition to existing limit of Rs. 1 Lac under Section 80C.
Beside Contribution to health insurance scheme which is currently allowed as a deduction under the Income Tax Act, contribution to Central Govt. health scheme also allowed as a deduction under the same provision. As per Finance minister almost 60% of the total Tax payer will get benefited because of this new Slab. However this is different from Direct Tax Code which might implimented next year and if that happens there is only 10% tax on annual income of 10 Lakhs.