Income Tax Rate Brackets | Find How Much Income Tax You will Pay in 2011

The budget declared by the finance minister on 27^th February, 2011 brought few changes.

Here is a quick highlight:

The basic tax slab for common tax payer has been increased to Rs 1, 80,000 from previous Rs 1, 60,000 that will benefit all tax payers by an amount Rs 2,060.

The age of senior citizen will be considered from 60 years instead of previous 64 years.

The basic slab for senior citizen has changed to Rs 2, 50,000 from previous Rs 2, 40,000.

A further category of senior citizen who are over 80 years of age, “Very Senior Citizen”, has been introduced.

The basic tax slab for “Very Senior Citizen” will start at Rs 5, 00,000.

Indian Direct Tax system has three tax brackets, 10 %, 20 % and 30 %. Suppose 10 % rate is applicable for income Re 1 to RS 10,000, 20% rate for Rs 10,001 to Rs 20,000 and 30 % rate for above Rs 20000.

Now Mr. A has income of Rs 8,000 per annum, his tax will be Rs. 800 (10 % on Rs 8,000). If his income was Rs 15,000 then for the first Rs.10, 000, @ 10% the tax will be Rs. 1,000 and on the balance Rs 5, 000@ 20 % it will be Rs 1,000 again. Hence tax payable amount will be Rs (1,000 +1,000) or Rs 2,000.

Income Tax Brackets 2011-12 India

Here are the income tax brackets under Indian Income Tax Act, applicable from this year or 2011 -12,that is the year commencing 1^st April, 2011 ending 31^st March 2012,with assessment year 2012-13.

Men Below 60 years with Income	Rate of Tax
Rs Nil to Rs 1.80 Lakh	Nil
Rupees 1.80 Lakh to Rs 5 Lakhs	10 Per cent
Rs 5.0001 Lakhs to Rs 8 Lakhs	20 per cent
Above Rs 8 Lakhs	30percent

Women less than 60 years with Income	Rate of Tax
Rs Nil to Rs 1.90 Lakh	Nil
Rupees 1.90 Lakh to Rs 5 Lakhs	10 Per cent
Rs 5.0001 Lakhs to Rs 8 Lakhs	20 per cent
Above Rs 8 Lakhs	30percent

Senior citizen over 60 yrs but less than 80 yrs
Rs Nil to Rs 2.50 Lakhs	NIL
Rs 2.50001 to Rs 5 .00 Lakhs	10 per cent
Rs 5.00001 to RS 8 Lakhs	20 per cent
Above Rs 8 Lakhs	30 per cent

Very Senior Citizen (Age 80 +)	Rate o Tax
Rs Nil to Rs 2.50 Lakhs	NIL
Rs 2.50001 to Rs 5 .00 Lakhs	NIL
Rs 5.00001 to RS 8 Lakhs	20 per cent
Above Rs 8 Lakhs	30 per cent

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