Income Tax Slab for the F.Y. 2010 to 2011

Up to 1,60,0001                                                                NIL

Up to 1,90,000 (for women)                                              NIL

Up to 2,40,000                                                                  NIL

(for resident individual of 65 years and above)

1,60,0001 to 5,00,000                                                      10

5,00,001 to 8,00,000                                                        20

8,000,001 and above                                                       30

For individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of individuals (BOI):

Note:

1. In addition to the above income tax calculated, a 3% education cess will be charged on the total Income tax paid and not on the total taxable income.

2. This time, there is No surcharge of 10% on individuals earning above 10 lakh.

Calculation 1: Let us take a case where an individual’s income is Rs.3,10,000.

• According to the Income Tax Slab, the first 1,50,000 is not taxable.
• The next Rs.1,50,000 is taxable @10%.
• 10% of Rs.1,50,000 is Rs.15,000.
• The remaining Rs.10,000 i.e. 3,10,000 - (1,50,000+1,50,000) = Rs.10,000 is taxable at 20% which is Rs.2,000.
• Therefore, the net Income Tax Payable is Rs.15,000 + Rs.2,000 i.e. Rs.17,000.

Calculation 2: Let us take a case where an individual is women and whose taxable income is Rs.3,40,000.

• According to the Income Tax Slab, the first 1,80,000 is not taxable.
• The next Rs.1,20,000 is taxable at 10%.
• 10% of Rs.1,20,000 is Rs.12,000.
• The remaining Rs.40,000 i.e. 3,40,000 - (1,80,000+1,20,000) = Rs.40,000 is taxable at 20% which is Rs.8,000.
• Therefore, the net Income Tax Payable is Rs.12,000 + Rs.8,000 i.e. Rs.20,000.

Calculation 3: Let us take a case where an individual’s income is Rs.3,10,000.

• According to the Income Tax Slab, the first 1,50,000 is not taxable.
• The next Rs.1,50,000 is taxable at 10% but he can get 1 Lakh exempted under 80C then the remaining 50,000 is taxed at 10% which is Rs.5,000.
• The remaining Rs.10,000 i.e. 3,10,000 - (1,50,000+1,00,000+50,000) =Rs.10,000 is taxable at 20% which is Rs.2,000.
• Therefore, the net Income Tax Payable is Rs.5,000 + Rs.2,000 i.e. Rs.7,000.

As per the provisions of Income Tax Act, 1961, filing of Income Tax return is a legal obligation of every Individual whose income is more than the maximum limit of non-taxable income for the financial year i.e. from 01 April to March 31 of the following year. In case of salaried class, the information about the income in the particular financial year should be supported with the form 16 (Certificate for TDS i.e. Tax Deducted at Source), which is issued by his employer at the end of every financial year.

Income Tax Department of India has already launched Internet facility for filing Income Tax Returns online.

It is very important to file income tax return before the last date of return filing or you have to pay interest on tax due to the government.

It’s imporant to note that every tax payer will have an unique number called PAN.

So, what is PAN?

Permanent Account Number, in short called us PAN is a 10 digit number which is used by Income Tax Department to identify a tax payer. Through this number income tax department can get information about the person.