Tax Brackets
Before we set out to see how we can reduce taxes,
it is important to understand how much tax we are liable
to pay. The first step is to understand which tax bracket
you fall under. You are liable to pay tax on your income
after certain deductions.
Your Taxable Income
Let’s look at the tax brackets as laid out by the current Income Tax Laws:
For the Assessment Year 2009-10 |
Taxable income slab (Rs.) |
Rate (%) |
Up to 1,50,000
Up to 1,80,000 (for women)
Up to 2,25,000 (for resident individual of 65 years or above) |
NIL |
1,50,001 – 3,00,000 |
10 |
3,00,001 – 5,00,000 |
20 |
5,00,001 upwards |
30* |
*These rates do not include applicable surcharges and education cess. |
