The Union budget 2011 announced by the Finance Minister has revised tax slabs for individual tax payers but comparing between the tax payable last year and the announced one it seems that too late and too little has been done for the common man.

The exemption limit for men assesses has been raised from Rs. 160,000 to Rs. 180,000 and for women it remains same from the last year at Rs. 190,000. There is no relief for women taxpayers due to consideration of Direct Tax Code (DTC) as it has eliminated the gender discrimination and DTC will come into force from 1^st April 2012. Apart from this the individuals will also get Rs 20,000 additional Tax Benefit if you invest in long term Infrastructure Bonds.

For Senior citizen the basic exemption limit has been raised by Rs. 10,000 i.e, the limit raised from Rs. 240,000 to Rs. 250,000. Along with this the qualifying age limit of senior citizen is reduced to 60 years from 65 years.

Further, Budget introduced a new category of taxpayer ‘very senior citizen’ having age of 80 years or more with maximum exemption limit of Rs. 500,000. This budget bring most benefits to the senior citizen assesses.

Apart from all that, Introducing Saral-2 form back is a good initiative and would make it simpler for the tax payers to file their Income Tax returns.

Further, we provide below a comparative chart for different categories of individuals:

I) For resident Woman
FY 2010-11	FY 2011-12	TAX RATE
Upto Rs 1.9 lakh	Upto Rs 1.9 lakh	NIL
Rs 1.9 – 5 lakh	Rs 1.9 – 5 lakh	10%
Rs 5 – 8 lakh	Rs 5 – 8 lakh	20%
Above Rs 8 lakh	Above Rs 8 lakh	30%

II) For resident Senior Citizen
FY 2010-11	FY 2011-12	TAX RATE
Upto Rs 2.4 lakh	Upto Rs 2.5 lakh	NIL
Rs 2.4 – 5 lakh	Rs 2.5 – 5 lakh	10%
Rs 5 – 8 lakh	Rs 5 – 8 lakh	20%
Above Rs 8 lakh	Above Rs 8 lakh	30%

III) For any other Individuals
FY 2010-11	FY 2011-12	TAX RATE
Upto Rs 1.6 lakh	Upto Rs 1.8 lakh	NIL
Rs 1.6 – 5 lakh	Rs 1.8 – 5 lakh	10%
Rs 5 – 8 lakh	Rs 5 – 8 lakh	20%
Above Rs 8 lakh	Above Rs 8 lakh	30%

Further, it is pertinent to note that non-resident irrespective of being females or senior citizens will get basic exemption limit of Rs. 160,000.

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