1 Mar 2005
Tax Brackests
The new budget scrapped all benefits under section 88 and Section 80L has been omitted.Investors continue to have the benefit to reduce their tax liabilities by investing the maximum sum of Rs 1 lakh.
Investments in small savings schemes, ELSS, contributions to insurance policies and pension plans etc have all been made a part of the eligible Rs 1 lakh. In the earlier tax regime, people with 5Lac or more gross income could not claim benefits under Section 88. However with the new tax regime, this is wiped out and they can avail the benefits of 1Lac scheme.
Taxable Income |
Rate of tax |
Upto Rs 100,000 | Nil |
Rs 100,000 to 150,000 | 10% |
Rs 150,000 to 250,000 | 20% |
Above Rs 250,000 | 30% |
The income level for applying the 10% surcharge has been hiked from the erstwhile Rs 8.5 lakh to Rs 10 lakh at present.
This really deserves an applause for Chidambarams efforts to simplify the taxation and giving the investor an oppurtunity and chance to decide on his investment strategy irrespective of tax dependency on type of investments.
Current Mood: Happy
Current Music: Wonderful
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