|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 up to Rs. 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.
(In case of queries and suggestions Author may be contacted at email@example.com)