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How exactly does an individual stand to benefit from the new taxation structure? Consider a 30-year-old male assessee with an annual income of Rs 6 lakh. His tax liability under the two cases would be as follows:
Old structure Slabs Taxable Income Tax Rate (%) Tax Liability Up to Rs 1,10,000 p.a. Rs 1,10,000 Nil 0 Rs 1,10,001 – Rs 1,50,000 p.a. Rs 40,000 10 Rs 4,000 Rs 1,50,001 – Rs 2,50,000 p.a. Rs 1,00,000 20 Rs 20,000 Above Rs 2,50,000 p.a. Rs 3,50,000. 30 Rs 1,05,000 Total Rs 6,00,000 Rs 1,29,000 Education cess @ 3% Rs 3,870 Total tax payable Rs 1,32,870 New structure Slabs Taxable Income Tax Rate (%) Tax Liability Up to Rs 1,50,000 p.a. Rs 1,50,000 Nil 0 Rs 1,50,001 – Rs 3,00,000 p.a. Rs 1,50,000 10 Rs 15,000 Rs 3,00,001 – Rs 5,00,000 p.a. Rs 2,00,000 20 Rs 40,000 Above Rs 5,00,000 p.a. Rs 1,00,000. 30 Rs 30,000 Total Rs 6,00,000 Rs 85,000 Education cess @ 3% Rs 2,550 Total tax payable Rs 87,550 As you can see, an individual can save up to Rs. 45,320 p.a. due to raising of the tax slabs. The corresponding saving figures for women and senior citizen assessees would be Rs 44,805 and Rs 39,655, respectively.
Published on May 6, 2010 · Filed under: Income Tax Guides; Tagged as: Income Tax, income tax benefits, Income Tax Guides, Taxation Structure
Benefits of new taxation structure
May 6th, 2010 by rupeetalk.com
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