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Friday, February 26, 2010

New Income tax rates announced in the budget

Income up to Rs 1.6 lakh – nil
Income above Rs 1.6 lakh and up to Rs 5 lakh – 10 per cent
Income above Rs 5 lakh and up to Rs 8 lakh – 20 per cent
Income above Rs 8 lakh – 30 per cent.
New tax rates would offer relief to 60 per cent of taxpayers, the finance minister said.
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.

Source : Gconnect Site quoting NDTV

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