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.

Saving on Tax - from the year 08-09

Soo, the good news is out!

the reduction in Tax is much better than everybody expected...
Not only the Standard deduction is increased, the slabs are also reshuffled for good..

I have an excel for you, for you to calculate yourself how much is in your kitty thanks to Mr. Finance Minister!!

Click here to download the file...

Note that the value to enter is the Taxable Income and not the Annual Income..
(Taxable income = Annual Income - Deductions like HRA, Medical, LTA, LIC....)