Income Tax Slabs for the Fiscal Year 2010-2011

Knowing one's taxable income is an easy job, yet there is a lack of knowledge among people on the subject. This write-up is to spread awareness about the calculation of one's taxable income and the taxes applicable on one's total earning. Here is to explain the same in most simple terms. Below is the table that tells us the exemptions that we are eligible for as per the provisions given in the Union Budget for the fiscal year 2010-2011 (AY 2011-2012) :

Slab for FY 2010-2011(Assessment Year 2011-12)
For Men below 65 years of age		For Women below 65 years of age		For Senior Citizens
Income Level (Rs.)	Tax Rate	Income Level (Rs.)	Tax Rate	Income Level (Rs.)		Tax Rate
Up to 1,60,000	Nil	Up to 1,90,000	Nil	Up to 2,40,000		Nil
1,60,001 - 5,00,000	10%	1,90,001 - 5,00,000	10%	2,40,001 - 5,00,000		10%
5,00,001 - 8,00,000	20%	5,00,001 - 8,00,000	20%	5,00,001 - 8,00,000		20%
Above 8,00,000	30%	Above 8,00,000	30%	Above 8,00,000		30%
Education Cess
Education Cess is applicable at the rate of 3 % on the income tax. (Inclusive of surcharge, if any.)
Section 80C
Section 80C provides for a deduction of up to Rs 1 lakh from taxable income in respect of investments made towards certain savings instruments. This includes all the bonds, NSC, PPF, Life Insurance Premiums, Fixed Deposits of more than 5 years and Super Annuation etc.

One may easily calculate one's taxable amount and hence the amount of income tax for the year on the basis of the above table and the description. Please note that the exemption of Rs. 1.0 lakh under section 80C, includes one's PF contribution and the additional or voluntary PF deducted, if any.