New income tax rates proposed in budget 2010 for senior citizens for assessment year 2011-12/ financial year 2010-11. In the case of every individual, being a resident in India, who is of the age of sixty-five years or more at any time during the previous year, New income tax rates proposed in budget 2010 for assessment year 2011-12/ financial year 2010-11 is as follows:-

SLAB INCOME TAX RATE
Upto Rs. 2,40,000 Nil.
Rs. 2,40,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs. 8,00,000 20 per cent.
Above Rs. 8,00,000 30 per cent.

No Surcharge.

Impact of Budget 2010 on taxation of Resident Senior Citizens

Gross Total Income (Rs) 3,00,000 5,00,000 8,00,000 10,00,000
A.Y. 2010-11 A.Y. 2011-12 A.Y. 2010-11 A.Y. 2011-12 A.Y. 2010-11 A.Y. 2011-12 A.Y. 2010-11 A.Y. 2011-12
Gross Income 300000 300000 500000 500000 800000 800000 1000000 1000000
Tax Benefit u/s 80C 100000 100000 100000 100000 100000 100000 100000 100000
Tx exemption under Infra Bonds 20000 20000 20000 20000
Net Taxable Income post sec. 80C 200000 180000 400000 380000 700000 680000 900000 880000
Income Exempt from Tax as per slabs 240000 240000 240000 240000 240000 240000 240000 240000
Taxable Amount 0 0 160000 140000 460000 440000 660000 640000
Amount taxable @ 10% 0 0 60000 140000 60000 260000 60000 260000
Amount taxable @ 20% 0 0 100000 0 200000 180000 200000 300000
Amount taxable @ 30% 0 0 0 0 200000 0 400000 80000
Tax Amount Pre-Cess 0 0 26000 14000 106000 62000 166000 110000
Education cess @3% 0 0 780 420 3180 1860 4980 3300
Total Tax Payable 0 0 26780 14420 109180 63860 170980 113300

Note: Only Sec 80C deduction has been assumed and excess deduction of Rs20000 in Infrastructure bonds in current amendments has been taken into account.

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