Income Tax Slabs Relaxed

Guys, you'l get a little more next financial year (apr 2010 onwards) even if you dont get a hike. Thanks to change in income tax slabs by Pranab Dada in the budget announced today.

New Slabs:	Old Slabs:
0-1.6 lak no tax	0-1.5 lak no tax
1.6 - 5 lak 10%	1.5 - 3 lak 10%
5 - 8 lak 20%	3 - 5 lak 20%
above 8 lak - 30%	above 5 lak - 30%

For a 6 lak per annum salary, meaning Net Income around 4.5 lak (tax saving investments + HRA), the Old and New tax calculations are:

Old Pattern: 0 - 1.5 no tax 1.5 - 3 15000 (10%) 3 - 4.5 30000 (20%) =45000 - 65000 tax depending on you tax saving investments

New Pattern: 0 - 1.6 no tax 1.6 - 4.5 29000 (10%) escape the 20% slab :-) =29000 to 39000 tax depending on your tax saving investments

So you will be getting 16000 to 26000 extra in your pocket for a 6 lak salary:-)
A person earning more than 6 laks will save even more.