The most important factor that a common man look forward to in any Union Budget is the Direct Tax benefit that the Finance Minister announces. In the Budget 2010-11, the Finance Minister, didn’t dissappoint the common salaried class in terms of Income Tax benefits.
He quoted Kautilya’s following words :
“Thus, a wise Collector General shall conduct the work of revenue collection…. in a manner that production and consumption should not be injuriously affected…. financial prosperity depends on public prosperity, abundance of harvest and prosperity of commerce among other things.”
Following the essence of these words Mr. Pranab Mukharjee announced Direct Tax Proposals, such as :
Direct Tax Proposals of Union Budget 2010-11
- Broadened the Income Tax Slabs (see the revised tax slabs below).
- Income tax return form, SARAL-II, to be made simple and user friendly for individual salaried taxpayers for the coming assessment year.
- Allowed a deduction of an additional amount of Rs.20,000 for investment in long-term infrastructure bonds as notified by the Central Government. This would be over and above the existing limit of Rs.1 lakh on tax savings.
- Extended the provisions of Section 80D, that allows deduction under the Income-tax Act for contributions to health insurance schemes, to include contributions to the Central Government Health Scheme also as a deduction under the same provision.
Tax Slabs for Financial Year 2010-11
Whether these Direct Tax proposals are good enough for you, check out yourself.
Instructions for using Income Tax Calculator
- Please download the XLS Calculator
- After downloading, open the XLS file
- Enter gross annual figures in respective cells only.
- Please enter values in Yellow colored cells only.
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DISCLAIMER : This calculator is to help you find out your personal indecative total tax liability. It may not cover all scenarios of Income, Exemptions, Deductions, etc. You are advised to consult any qualified chartered accountant or tax consultant to know your actual Tax Liability.