The budget this year failed to do any drastic changes to tax regime. The changes are more on the extreme ends viz. basic tax limit and for senior citizens.  Some of the important changes from last year are as follows:

1. The basic tax exemption limit has been increased to Rs 1,80,000 which will provide tax relief of Rs 2,060 to all tax brackets.
2. For senior citizen the exemption limit has been increased from Rs. 2,40,000 to Rs. 2,50,000/-
3. For senior citizen the qualifying age reduced from 65 years to 60 years.
4. Another major change is introducing a high new tax slab for senior citizens of over 80 years in age (Super Seniors) who will not be required to pay taxes for income upto Rs 5,00,000
5. The Rs 20,000 exemption limit for investments into Infra bonds stays for this year
6. The Govt is also thinking of doing away with the requirement of filing returns if salary is your only source of income and TDS is being deducted.

Here are the Income Tax Slabs/Rates/Brackets after the budget 2011. It will be applicable from FY 2011 – 2012 (or AY 2012 – 2013)

Men up to 60 Years          

Women up to 60 years

Senior Citizen above 60 years in age

Senior Citizen Above 80 Years in age

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