Home > Taxation > Budget 2011-12: Cheers for the male fraternity

Budget 2011-12: Cheers for the male fraternity

While the Union Budget 2011-12 did not propose major changes on the personal income tax front, men (up to the age of 60 years) now have reasons to cheer. Individuals between 60-65 years of age (senior citizens) get a surprise and those above 80 years (very senior citizens) can feel great about living, still earning and saving so much..!

The basic slab for income tax has been proposed to be raised to Rs.1.8 lakh from the current Rs.1.6 lakh. This results in savings of Rs.2000 for all male tax payers. The slab for women has not been changed from the last budget. (refer my post on last year’s budget)

For senior citizens the slab has been increased from Rs.2.4 lakh to Rs.2.5 lakh and so has the age eligibility (reduced from 65 years to 60 years).

Taxable Income FY 2010-11 FY 2011-12 Savings in 2011-12
From To Tax Rate (%) From To Tax Rate (%)
Male 0 160,000 0 0 180,000 0

2,000

160,001 500,000 10 180,001 500,000 10
500,001 800,000 20 500,001 800,000 20
800,001 onwards 30 800,001 onwards 30
Female 0 190,000 0 0 190,000 0

No Savings 

190,001 500,000 10 190,001 500,000 10
500,001 800,000 20 500,001 800,000 20
800,001 onwards 30 800,001 onwards 30
Senior Citizen 0 240,000 0 0 250,000 0

1,000

240,001 500,000 10 250,001 500,000 10
500,001 800,000 20 500,001 800,000 20
800,001 onwards 30 800,001 onwards 30
Very Senior Citizens       0 500,000 0

26,000

Also the Finance Minister has created a new slab for Very Senior Citizens – for people who are over 80 years. The income tax exemption limit proposed for this group is Rs.5 lakh. Until FY 2011, this segment was considered in the same taxed category as senior citizens.

Read more budget analysis: http://www.ibef.org/economy/Unionbudget2012.aspx

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Categories: Taxation
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