Union Budget 2011-12

Key highlights of Budget 2011, declared by Finance Minister Pranab Mukherjee are on February 28, 2011:

• Salaried person upto an income of Rs. 5 lakh will not have to file income tax returns. This exemption from filing will come into effect from the assessment year 2011-12.

• However, salaried person who has income from other sources like dividend, interest etc. but does not want to file returns, will have to disclose such income to his/her employer for tax deduction

• Male income tax payers exemption limit is raised from Rs. 1.60 lakh to 1.80 lakh per annum. On income between Rs. 1.60 lakh to Rs. 5 lakh will be 10%, 20% on Rs. 5 lakh to Rs. 8 lakh, and 30% on Rs. 8 lakh and above.

• Women income tax payers are not been provided any benefits and their exemption limit is been retained at 1.90 lakh per annum.

• Most benefited section has been senior tax payers as the eligibility of age for senior citizens has been reduced to 60 years from 65 years. And their tax exemption limit has been increased from Rs. 2.40 lakh to Rs. 2.50 lakh.

• The exemption limit of tax for senior citizens above the age of 80 years has been increased to Rs. 5 lakh per annum. They will have to pay 20% tax on income from Rs. 5 lakh to Rs. 8 lakh, and 30% on Rs. 8 lakh and above.

• The Form 16 issued to the salaried persons will be considered as Income Tax Return.

• A new form named “Sugam” will be introduced for small taxpayers.

• The Direct Tax Codes will come into effect from April 2012, which will not have a separate category for women tax payers. It will replace the Income Tax Act, which proposes to form the exemption limit of income to Rs. 2 lakh from present Rs. 1.60 lakh.

• Rs. 20,000 deduction will be available on investment in notified infrastructure bonds in 2011-12.

• Surcharge on domestic companies is to be reduced from 7.5% to 5%.

• Service tax rate has been retained at 10%

• Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) wage rates linked to consumer price index; will rise from existing Rs.100 per day.

• To encourage agricultural sector growth, a subsidy of 3% interest will be given to farmers in 2011-12.

• Anganwadi workers salary has been raised from Rs.1,500 to Rs.3,000.

Take a look at how much you can save in Tax during the Financial Year 2011-12

 

Salary Male
Tax Last Year Proposed Tax Tax Savings
Above 65 years Above 60 years  
300,000 2060 0 2060
400,000 12360 10300 2060
500,000 22660 20600 2060
600,000 32960 30900 2060
800,000 72100 70040 2060
1,000,000 121540 119480 2060
1,200,000 183340 181280 2060
1,500,000 276040 273980 2060
3,000,000 739540 737480 2060
5,000,000 1357540 1355480 2060
       
Salary Female
Last year Proposed Tax Savings
Above 65 years Above 60 years  
400,000 9270 9270 0
500,000 19570 19570 0
600,000 29870 29870 0
800,000 69010 69010 0
1,000,000 118450 118450 0
1,200,000 180250 180250 0
1,500,000 272950 272950 0
3,000,000 736450 736450 0
5,000,000 1354450 1354450 0
       
Salary Sr. Citizen
Last year Proposed Tax Savings
65+ years 60 to 79 years  
400,000 4120 3090 1030
500,000 14420 13390 1030
600,000 24720 23690 1030
800,000 63860 62830 1030
1,000,000 113300 112270 1030
1,200,000 175100 174070 1030
1,500,000 267800 266770 1030
3,000,000 731300 730270 1030
5,000,000 1349300 1348270 1030
       
Salary Very Senior Citizen
Last year Proposed Tax Savings
65+ years 80+ years  
400,000 4120 0 4120
500,000 14420 0 14420
600,000 24720 0 24720
800,000 63860 37080 26780
1,000,000 113300 86520 26780
1,200,000 175100 148320 26780
1,500,000 267800 241020 26780
3,000,000 731300 704520 26780
5,000,000 1349300 1322520 26780
*Rates have been calculated on the basis of Section 80C benefit of Rs 1 lakh and Rs 20,000/- benefit if invested in Infrastructure bonds. However, the actual tax amount may vary depending on the components of ones income.

 

Source: Highlights of Union Budget 2011-2012

 

 

loading...