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Now, save up to Rs 50,000 in taxes
March 6
For men under 65
|
|
Tax liability (Rs) |
|
Taxable income (Rs) |
2007-08 |
2008-09 (Projected) |
|
2,00,000 |
14,420 |
5,150 |
|
4,00,000 |
71,070 |
36,050 |
|
6,00,000 |
1,32,870 |
87,550 |
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8,00,000 |
1,94,670 |
1,49,350 |
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10,00,000 |
2,56,470 |
2,11,150 |
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12,00,000 |
3,50,097 |
3,00,245 |
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14,00,000 |
4,18,077 |
3,68,225 |
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16,00,000 |
4,86,057 |
4,36,205 |
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18,00,000 |
5,54,037 |
5,04,185 |
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20,00,000 |
6,22,017 |
5,72,165 |
Tax liability includes surcharge and education cess
Santa Claus has made an early appearance this year. Towards the end of his 2-hour Budget Speech on leap year day, Finance Minister P Chidambaram dipped into his bag and handed out the goodies that are most relevant to us -- lower taxes. This was despite the high outlays towards the social sector and the big write-off on farmers' loans.
There is a tax bonanza for almost all tax payers across the board. The minimum tax saving next financial year will be Rs 4,000 per taxpayer. For all those with an income of Rs 5 lakh (Rs 500,000), the savings in taxes works out to be about Rs 44,000. Even before making any fresh investments in the new financial year -- a near return of tax-free 8.8 per cent is what they earn.
There are two ways in which you will benefit. One, the threshold level of income tax has gone up. This means that a greater part of your income comes under the zero tax status. Earlier, this basic exemption limit for under 65-year-old males was Rs 1.1 lakh (Rs 110,000), now this has been raised to Rs 1.5 lakh (Rs 150,000). This means that the first Rs 1.5 lakh of your income attracts no tax. For women taxpayers (who are not senior citizens), the exemption limit was Rs 1.45 lakh (Rs 145,000), they now enjoy a higher limit of Rs 1.8 lakh (Rs 180,000). Senior citizens have it the best, men and women taxpayers above the age of 65 have the benefit of Rs 2.25 lakh (Rs 225,000) of their income coming under exemption, up from Rs 1.95 lakh (Rs 195,000) earlier.
Text: Swami Saran Sharma & Sunil Dhawan, Outlook Money
Good times for tax payers: Women under 65 years. Click here...
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