Income Tax Slabs Budget 2010 -11

Good News

• Direct tax slabs: income upto 1.6 lakh = nil,
• 1.6-5 lakh = 10%,
•  5-8 lakh = 20%,
• above 8 lakh = 30%
• Old tax slabs
• income upto 1.6 lakh = nil,
• 1.6 - 3 lakhs = 10 %
• 3-5 lakh = 20 %
• 5 lakh above = 30 %
• 
  If your income more than 8,00,000 you will save around Rs. 50,000 PA ( Monthly  Rs. 4200 )
• 
  Saving
   If your income Upto 5 lakh income - 200000* 10/100 = 20000 PA
  
  Saving
  upto 8 lakh income - 500000* 10/100 = 50000
  
  
  
  Other Budget Highlights
  
  
  Direct Tax Code (DTC) and GST to be implemented w.e.f. April 1, 2011
   
  Disinvestment target for FY10 – INR 250 bn; target for FY11 higher
   
  Status paper in 6 months on public debt
   
  Proceeds from disinvestment to fund capex for social development
   
  More friendly FDI policy – no timeline
   
  Kirit Parikh Committee recommendation to be discussed separately in due course
   
  Fresh banking licenses to new players and NBFCs to be issued
   
  2% interest subvention to export credit extended for 1 year
   
  Farm loan repayment extended by 6 months till June 2010
   
  To provide 2% loan subsidy to agriculture
   
  FY11 capital for PSU banks INR 165 bn
   
  INR 1.73 tn for infra development; Power sector plan allocation doubled
   
  Allocation for power sector increased from 2320 cr, in FY10 to  5130 cr in 2011. Neutral
   
  To hike allotment in Renewable Energy by 61%
   
  Allocation for road sector increased from Rs.17600 Cr to Rs.19894 Cr – an increase of 13%.
   
  National Clean Energy Fund to be established to fund R&D in clean energy. Details on this to follow.
   
  Proposal to set up Coal Regulatory Authority
   
  NREGA allocation ~INR 400 bn in FY11 (same as ~INR 391 bn in FY10)
   
  Most social sector schemes announced so far (eg., urban housing, school education, rural health) got only a moderate increase in allocations (~10%-15%)
  FY13 Fiscal Deficit Pegged at 4.1%
   
  FY12 Fiscal Deficit Pegged at 4.8%
   
  FY11 Fiscal Deficit pegged at 5.5%
   
  FY10 GFD/GDP ratio 6.9% (revised estimate; including off-balance sheet items)
   
  UID project gets INR 19 bn
   
  Road development allocation INR 199 bn
   
  Defence expenditure up to ~INR 160 bn from ~INR 141 bn
   
  Net market borrowing target for FY11: INR 3.45 tn
   
  Income tax slabs modified – more relief for tax payers; infra bonds investments upto INR 20,000 to offer additional tax savings for tax payers
   
  MAT rate increased from 15% to 18%
   
  Tax Exemption of Rs.20,000 for investment in long term bonds – positive for the infra scetor