In the General Budget 2010-11 presented by the Finance Minister Shri PranabMukherjee in the Lok Sabha , the income tax slabs for individuals have been revised. The new slabs will be as under:

Income upto Rs 1.6 lakh Nil
Income above Rs 1.6 lakh and upto Rs. 5 lakh 10 per cent
Income above Rs. 5 lakh and upto Rs. 8 lakh 20 per cent
Income above Rs. 8 lakh 30 per cent

The existing limit of Rs 1 lakh on tax saving has been raised by an additional amount of Rs. 20,000 for investment in long term infrastructure bonds as notified by the central government. Contributions to the Central Government Health Scheme have also been allowed as deductions within the overall ceiling for tax rebate, besides contributions to health insurance scheme          s which are currently allowed as deductions under the Income Tax Act.

FOR MORE READING ON UNION BUDGET CLICK THE FOLLOWING

SUMMARY OF UNION BUDGET 2010-11

HIGHLIGHTS OF GENERAL BUDGET 2010-11