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New tax slabs - how you can save up to Rs 50,000 per annum

Budget 2010, announced last month, changed the tax slabs such that the common person can save up to approximately Rs 50,000 per annum. Further, it also offers an annual deduction of Rs 20,000 towards an investment in long-term infrastructure bonds, on top of whatever 80C deduction a taxpayer might have taken. So, the total savings for tax payers can be substantial.

If you earn up to Rs 3 lakhs per annum, then there will be no change in your tax liability. If you earn between Rs 3 lakhs to Rs 5 lakhs, you can now save up to Rs 20,000 per annum. And, if you earn between Rs 5 lakhs to Rs 8 lakhs, you can now save between Rs 20,000 to Rs 50,000.

The following are the new tax slabs according to your gender and age that might be applicable to you.

For Men

For Women

For Senior Citizens

The following looks at the case of Mr Venkat, an individual taxpayer earning Rs 10 lakhs annually who takes his full 80C deduction. It compares his pre-budget and post-budget tax liability. You will see from the example how Mr Venkat can save under the new tax slabs announced in Budget 2010.

Calculate your income tax in 2 minutes

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