Budget: Tax implication for individual assessee

The interest of the "Aam Aadmi" was taken care of in the Budget 2010-11. The finance minister in order to provide impetus to consumption has proposed a new personal income tax slab, which will result in higher savings and simultaneously higher disposable income at the hands of individuals.

Tax implication for Individual Asessee

Income Slab	Old tax rate	Tax computed	New tax rate	Tax computed	Cumulative benefit
Upto Rs 160000	0%	-	Nil	-	-
Rs 160001-300000	10%	14,000.00	10%	14,000.00	-
Rs 300001-500000	20%	40,000.00	10%	20,000.00	20,000.00
Up to Rs.800000	30%	90,000.00	20%	60,000.00	50,000.00
Above Rs.800000	30%	60,000.00	30%	60,000.00	50,000.00
Total Tax Liability for
Income upto Rs.10lac	20%	204,000.00	15%	154,000.00	50,000.00

Tax implication for Women Asessee

Income Slab	Old tax rate	Tax computed	New tax rate	Tax computed	Cumulative benefit
Upto Rs 190000	0%	-	Nil	-	-
Rs 190001-300000	10%	11,000.00	10%	11,000.00	-
Rs 300001-500000	20%	40,000.00	10%	20,000.00	20,000.00
Up to Rs.800000	30%	90,000.00	20%	60,000.00	50,000.00
Above Rs.800000	30%	60,000.00	30%	60,000.00	50,000.00
Total Tax Liability for
Income upto Rs.10lac	20%	201,000.00	15%	151,000.00	50,000.00

Tax implication for Senior Citizen

Income Slab	Old tax rate	Tax computed	New tax rate	Tax computed	Cumulative benefit
Upto Rs 240000	0%	-	Nil	-	-
Rs 240001-300000	10%	6,000.00	10%	6,000.00	-
Rs 300001-500000	20%	40,000.00	10%	20,000.00	20,000.00
Up to Rs.800000	30%	90,000.00	20%	60,000.00	50,000.00
Above Rs.800000	30%	60,000.00	30%	60,000.00	50,000.00
Total Tax Liability for
Income upto Rs.10lac	20%	196,000.00	15%	151,000.00	50,000.00

This we believe will help boosting consumption and will be beneficiary for Auto's, FMCG, Consumer Durables, Hotels & Hospitality

Source: ICICIdirect.com Research