Updated Income Tax Slabs for individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI) for FY 2010-11

1. For individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI):
Income Tax Rates/Slab for Assesment Year
Rate (%)
2011-12 (F Y 2010-11)
Up to 1,60,000
Up to 1,90,000 (for women)
NIL
Up to 2,40,000 (for resident individual of 65 years or
above)
1,60,001 – 5,00,000 10
5,00,001 – 8,00,000 20
8,00,001 upwards 30
Few amendments made to the taxation system for the FY
2010-11:
• From now onwards there will be only 2 pages in the IT
filing form for individuals.
• More cases can now be appealed against.
• Rs. 20,000 tax exemption will be provided for investments
in certain investment bonds. This is in addition to the
already allowed exemption (Rs. 1,00,000) in certain
savings instruments.
• Tax Exemption will be given for contribution to the Central
Government Health Scheme (CGHS).
• New fields have been added to the e-TDS/TCS form.
These new fields are Ministry name; PAO / DDO code;
PAO / DDO registration no.; State name; and Name of the
utility used for return preparation.
Income Tax Rates/Slab for Assesment Year
Rate (%)
2010-11 (F Y 2009-10)
Up to 1,60,000
Up to 1,90,000 (for women)
NIL
Up to 2,40,000 (for resident individual of 65 years or
above)
1,60,001 – 3,00,000 10
3,00,001 – 5,00,000 20
5,00,001 upwards 30*
*A surcharge of 10 per cent of the total tax liability is applicable where the total income
exceeds Rs 1,000,000.

2. Note : -
• Education cess is applicable @ 3 per cent on income tax,
inclusive of surcharge if there is any.
• A marginal relief may be provided to ensure that the
additional IT payable, including surcharge, on excess of
income over Rs 1,000,000 is limited to an amount by
which the income is more than this mentioned amount.
• Agricultural income is exempt from income-tax.
Thus, now there shall be three slabs –
• Rs. 160,001/- to Rs. 500,000/- 10%
• Rs. 500,001/- to Rs. 800,000/- 20%
• Above Rs. 8 Lacs 30%
In a relief to individual tax payers, the government today changed the slabs cutting the rate to
10 per cent for income up to Rs 5 lakh, while leaving the threshold limit for tax-free income
unchanged at Rs 1.6 lakh. Income between Rs 5 lakh to Rs 8 lakh will attract 20 per cent tax
against the current slab of Rs 3 lakh to Rs 5 lakh. Hitherto, the income between Rs 1.6 lakh
and Rs 3 lakh was taxed at the rate of 10 per cent.
In case of income over Rs 8 lakh, tax would be levied at a rate of 30 per cent — which was
applicable on income above Rs 5 lakh. The tax concessions would put more money in the
hands of consumers.
Finance Minister Pranab Mukherjee also extended income tax exemption to investment in
infrastructure bonds by up to Rs 20,000, over and above the existing limit of Rs 1 lakh.
In a major relief to the corporate sector, the government proposed to reduce the surcharge on
corporate tax to 7.5 per cent from 10 per cent now.
However, it has increased the Minimum Alternate Tax (MAT) from existing 15 per cent to 18
per cent on book profits of those companies which do not pay tax because of various
exemptions.