Union Budget 2008 – Income Taxes reduced

The old tax slabs were:

• Upto Rs 1,10,000 – Nil
• Rs 1,10,001 – Rs 1,50,000 – 10%
• Rs 1,50,001 – Rs 2,50,000 – 20%
• Above Rs. 2,50,000 – 30%

The new tax slabs are:

• Upto Rs 1,50,000 – Nil
• Rs 1,50,001 – Rs 3,00,000 – 10%
• Rs 3,00,001 – Rs 5,00,000 – 20%
• Above Rs 5,00,000 – 30%

Income ,Old Tax, New Tax, Reduction
Rs 2,50,000 (14,000) Rs 24,000 Rs 10,000
Rs 5,00,000 (44,000) Rs 99,000 Rs 55,000
Rs 7,50,000 (44,000) Rs 1,74,000 Rs 1,30,000
Rs 10,00,000 (44,000) Rs 2,49,000 Rs 2,05,000