Income Tax benefit from this Year

 

For 2007-2008 Let us take a case where the assessee's income is Rs. 6,00,000.

• According to the Income Tax Slab, the first 1,10,000 is not taxable.
• The next Rs. 40,000 (1,50,000-1,00,000) is taxable @10%. So 10% of Rs. 40,000 is Rs. 4,000/-
• The next 1,00,000 (2,50,000-1,50,000) is taxable @20% .So for 1,00,000 it is Rs 20,000/-
• The remaining Rs.3,50,000 (6,00,000-2,50,000) @ 30%.So it will be Rs 1,05,000/-
• Therefore, the net Income Tax Payable is Rs. 4,000 + Rs. 20,000 + Rs. 1,05,000 i.e Rs 1,29,000/-+Education Cess Extra

For 2008-2009 Let us take a case where the assessee's income is Rs. 6,00,000.

• According to the Income Tax Slab, the first 1,50,000 is not taxable.
• The next 1,50,000 (1,50,000-3,00,000) is taxable @10%.So 10% of 1,50,000 is Rs 15,000/-
• The next 2,00,000 (5,00,000-3,00,000) is taxable @20%.So 20% of 2,00,000 is Rs 40,000/-
• The remaining 1,00,000 (6,00,000-5,00,000) is taxable @30%.So 30% of 1,00,000 is Rs 30,000/-
• Therefore, the net Income Tax Payable is Rs. 15,000 + Rs. 40,000 + Rs. 30,000 i.e Rs85,000/-+Education Cess Extra

So the benefit from this Budget for 6 lakhs salary individual is Rs 1,29,000- Rs85,000 i.e Rs 44,000/-