New Income Tax Slabs for Financial year 2011-2012

India’s Union Budget for F.Y. 2011-12 was presented on 28 February 2011 by the country's
Finance Minister. Following are the budget proposals, which will be helpful to India
Associates:

1. Income Tax – Rates

 Tax Rates: No change

 Changes in Income Tax Slabs

  Existing Slabs Proposed  

Slabs
Income (Rs.) Rate of Rate of Savings in tax (Rs.)
Income Tax Income Tax
(%) (%)
(Including (Including
Education Education
Cess) Cess)
From To      
0 1,60,000* NIL NIL  
1,60,001 1,80,000 10.30% NIL 2,060#
1,80,001 5,00,000 10.30% 10.30%  
5,00,001 8,00,000 20.60% 20.60%  
exceeding 8,00,000 Above 30.90% 30.90%  

#Total savings in Tax in respect of income exceeding Rs 1,80,000 will be limited to Rs

2,060

* Rs. 1,90,000 for resident woman below the age of sixty years, Rs. 2,50,000 for senior
citizens above the age of 60 years but below the age of 80 years. Rs 5,00,000 for senior
citizens above 80Years

2. Extension of deduction under section 80CCF- Subscription to notified long term

Infrastructure Bonds upto Rs 20,000

Deduction in respect of Investment in notified long term infrastrure bonds upto Rs 20,000 is
presently allowed for the F.Y 2010-11in addition to investment of Rs. 1,00,000 made under
section 80C. It is proposed to extend the deduction for the F.Y. 2011-12 also.