Friday, February 26, 2010

New Tax Proposal in the Union Budget - Feb, 2010

The Budget has proposed a new tax Slab. Taxes will be slashed again

on income up to Rs 1.6 lakh, Tax would be nil,
above Rs 1.6 lakh upto Rs 5 lakh, Tax would be 10%,
above Rs 5 lakh upto 8 lakh, Tax would be 20% and
above Rs 8 lakh, Tax would be 30%.

Also, over and above the existing Rs 1 lakh deduction on tax savings, an additional deduction of Rs 20% for investment in long-term infrastructure bonds would be allowed.