When the Interim Budget for India was announced last year on February 28th, 2009, the Finance Minister had stated that the Income Tax slabs in India remained unchanged. However, after the Lok Sabha Elections, a new Budget was presented in July, 2009 by the Finance Minister, Mr. Pranab Mukherjee. According to this budget, the new income tax slabs India were raised by Rs. 10,000 for men and women and by Rs. 15,000 for Senior Citizens.
Here are some more details about the TDS rates in India, with special reference to the tax slab for women and the tax slab for senior citizens.
Income Tax Slab 1 - Zero Tax
Male salaried individuals have to pay zero tax if their net taxable income is Rs.1,60,000 and below. For women the limit is Rs. 1,90,000 while for senior citizens the zero taxation limit is Rs. 2,40,000. According to the income tax dept, only men and women who are 65 years of age and above are considered to be senior citizens. By investing in the most optimum tax saving schemes and using salary allowances, it is possible to bring down both high incomes and tds rates.
Income Tax Slab 2 - Ten Percent Tax
People earning between Rs. 1,60,001 to 3,00,000 fall in this category. Men have to pay 10 percent of the amount greater than Rs. 1,60,000 while women have to pay 10 percent of the amount between Rs. 1,90,001 and Rs. 3,00,000. Senior Citizens pay income tax TDS rates at 10 percent of the amount between 2,40,000 and Rs. 3 lakhs.
Income Tax Slab 3 - Twenty Percent Tax
Indian Citizens earning between Rs. 3,00,001 to 5,00,000 have to pay this income tax rate TDS. In this bracket, salaried men have to pay Rs 14,000 plus 20 percent of the amount between Rs. 3,00,000 and Rs. 5,00,000. The tax slab for women says that women pay Rs. 11,000 + 20 percent of the amount between Rs. 3 - 5 lakhs while senior citizens pay Rs. 6,000 plus 20 percent of the amount between Rs. 3 - 5 lakhs.
Income Tax Slab 4 - Thirty Percent Tax
All TDS India citizens who earn a salary of above Rs. 5,00,000 fall in this category. Men have to pay Rs.54,000 plus 30 percent of the amount greater than Rs. 5,00,000. Women salaried taxpayers have to pay Rs. 51,000 + 30 % of the income more than Rs. 5,00,000 while for senior citizens, the TDS rate is Rs. 46,000 plus 30 percent of the income above Rs.5 lakhs.
Education Cess - In addition to the income tax calculated according to the above income tax TDS rates, a 3% Education Cess will also be charged on the total Income tax paid (not on the total taxable income). If your taxable income exceeds Rs. 10 lacs, a 10% surcharge on the total income tax (not on the total taxable income) is also charged.
These are the current income tax slabs and rates for the financial year April 2009 - March 2010. This year the Annual Budget is expected to be announced a bit earlier than usual on 26th February, because the 27th and 28th are the National Holidays of Eid-e-Milad and Holi.
What with the recession and no increments, it is hoped that the Income Tax Dept and the Finance Minister, Mr. Pranab Mukherjee makes our tax burden lighter by introducing a new system of tds rates, tax slabs, investment and expense deductions that reduces the income tax payable for salaried individuals in India even further.
Some More Articles about Saving Income Tax in India -
- Calculating Taxable Income for Saving Tax
- Best Tax Saving Investments For Deduction
- Your Family As A Tax Saving Strategy
- Filing Late Income Tax Returns