1.
Government has not proposed any
changes in tax slabs for the salaried class this year. So the effective tax
rates will be same as last year, as follows;
|
Effective Income Tax slab for individuals |
Rate/s of Income Tax |
|
Income up to Rs. 2.5 Lacs |
0% |
|
Income from Rs. 2.5 Lakh to 5 Lakh |
5% |
|
Income from Rs. 5 Lakh to 10 Lakh
|
20% |
|
Income from Rs. 10 Lakh and above |
30% |
2.
Standard deduction of Rs. 40,000 for
salaried employees in lieu of transport and medical deductions earlier,
deduction benefit of around Rs. 10,000 net.
3.
Long term capital gains tax has been
introduced for gains exceeding Rs. 1 lakh @ 10%and without indexation, on equity
shares as well as equity oriented mutual funds.
4.
Health and education cess has been
increased to 4%instead of 3% earlier.
5.
For senior citizens, exemption of
interest income on bank deposits raised to Rs. 50,000 instead of Rs. 10,000
earlier.
6.
Deduction for senior citizens under
health insurance premium has been raised to Rs. 50,000, earlier this was Rs.
30.000.
7.
In case of senior citizens with
critical illnesses the deduction will be Rs. 1 lakh.
8.
Companies with turnover of up to Rs.
250 crore to be taxed at 25 per cent, earlier this rate was applicable only for
Companies with turnover uptoRs. 50 crore.
9.
Government to contribute 12 per cent
of EPF for new employees in all sectors.
10.
Electronic Income Tax assessment will
be rolled out across the country, so now onwards professionals, taxpayers and
assessment officers may be at different locations and taxpayers can engage
professionals from different locations also.
The author can also be reached at
cabrijesh@yahoo.co.in
CAclubindia
