Income Tax department ready with two-page Saral-2 return forms for individual salaried assesses.

New income tax slabs announced in the new budget for 2010-2011 is as below.
Up to Rs 1.6 lakh - nil
Rs 1.6 lakh to Rs 5 lakh - 10 per cent
Rs 5 lakh to Rs 8 lakh - 20 per cent
Above Rs 8 lakh - 30 per cent.

Additional deduction of Rs 20,000 allowed on long-term infrastructure bonds for income tax payers; this is above Rs one lakh on saving instruments allowed already. Investment linked tax deductions to be allowed to two-star hotels anywhere in the country.

New tax rates would offer relief to 60 per cent of taxpayers, the finance minister said.
To get and idea how much you save, consider salary up to 8Lakh of taxable income. Above 8lakh, taxes before and now are the same.

Total tax with earlier slabs: Rs. 144000
Total tax with current slabs : Rs. 94000
Savings - Rs. 50000  

Hi ,

Under new plan 2010-2011 , how I can save income tax...  I have 19000 PF + 88000 LIC + 15000 Principal repayement on housing loan + 45000 interest on housing loan....

19000
88000
15000
--------
122000  So under section 80/c 100000 is covered.

Now

medical 15000
interest on housing loan 45000
Kishan Bikash Patra 5000
--------------------------------
65000  

My salary is 500000

Please mail me @   dbashubhrojyoti@gmail.com

Thanks in advance....