The tax year ending March 2011, is nearing its end, therefore you must prepare for your tax planning for calculating the income tax liability for the current financial year. The first and foremost aspect which comes across your mind is the applicable tax slab. The government has brought about relief for the common man by widening this tax slab from the previous years. Basic tax exemptions limits have been retained. However, the brackets have been broadened. Below are the applicable income tax slabs for the current financial year 2010-2011.

Tax Slabs for Male Assesses(less than 65 years) & HUFs

Income	Tax thereon
Upto Rs. 1.6 lakhs	Nil
Above Rs. 1.6 lakhs to Rs. 5 lakhs	10%
Above Rs. 5 lakhs to Rs. 8 lakhs	20%
Above Rs. 8 lakhs	30%

Tax Slabs for Women Assesses (less than 65 years)

Income	Tax thereon
Upto Rs. 1.9 lakhs	Nil
Above Rs. 1.9 lakhs to Rs. 5 lakhs	10%
Above Rs. 5 lakhs to Rs. 8 lakhs	20%
Above Rs. 8 lakhs	30%

Tax Slab for Senior Citizen (For 65 years or above)

Income	Tax thereon
Upto Rs. 2.4 lakhs	Nil
Above Rs. 2.4 lakhs to Rs. 5 lakhs	10%
Above Rs. 5 lakhs to Rs. 8 lakhs	20%
Above Rs. 8 lakhs	30%

From the existing tax slab there is no increase in the basic exemption limit, but an individual can save upto Rs. 20,000 whose income falls in the next bracket of Rs. 5 lakhs. Earlier, this bracket of 10% tax rate was applicable only up to an income of Rs. 3 Lakhs. Similarly, for the tax slab of Rs.8 Lakhs and above, there could now be a saving of more than Rs.50, 000.

Timely and efficient tax planning go long way in lowering your total taxes by employing and taking advantages of in-built provisions of tax exemptions, deductions, concessions, rebates, relief’s, allowances and other benefits granted by the tax laws so that the incidence of tax is reduced.

We at Taxmantra.com have the expertise to guide you in lowering your tax outgo and thus enhancing your total take away.  We at Taxmantra.com provide full year support solving all your tax issues, in addition to filing of your return of income with excellent tax planning.

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Alok Patnia

Founder and Director at Taxmantra.com