What is Taxable and Non-Taxable Salary in India?

Income Tax Slab for Financial Year 2011 – 2012

      The finance ministry of India released the income tax slabs for salaried professionals in the country. Listed below is the income tax to be paid by Indian citizens for corresponding annual incomes.

Income Tax Slab (in INR) for General Tax Payers in 2011 – 2012

• 0 to 1,80,000 – no tax to be paid
• 1,80,001 to 5,00,000 – 10 % of annual of income
• 5,00,001 to 8,00,000 – 20 % of annual income
• Above 8,00,000 – 30 % of annual income

Income Tax Slab (in INR) for Women in 2011 – 2012

• 0 to 1,90,000 – no tax to be paid
• 1,90,001 to 5,00,000 – 10 % of annual of income
• 5,00,001 to 8,00,000 – 20 % of annual income
• Above 8,00,000 – 30 % of annual income

Income Tax Slab (in INR) for Senior Citizens (from age 60 to 80) in 2011 – 2012

• 0 to 2,50,000 – no tax to be paid
• 2,50,001 to 5,00,000 – 10 % annual of income
• 5,00,001 to 8,00,000 – 20 % of annual income
• Above 8,00,000 – 30 % of annual income

Income Tax Slab (in INR) for Very Senior Citizens (above 80 years old) in 2011 – 2012

• 0 to 5,00,000 – no tax to be paid
• 5,00,001 to 8,00,000 – 20 % of annual income
• Above 8,00,000 – 30 % of annual income

The highlights of the income tax slab released in 2011 – 2012

•           The base slab for the general tax payers was increased from INR 1,60,000  in financial year 2010 – 2011 to INR 1,80,000 .
•          The minimum qualifying age for senior citizens was reduced from 65 years in financial year 2010 – 2011 to 60 years.
•           The base slab for the senior citizen category was also increased from INR 2,40,000  in financial year 2010 – 2011 to INR 2,50,000 .
•           The category of ‘very senior citizen’ is a first time addition in the 2011 – 2012 income tax slabs. This category was not in existence in the previous reports of the union budget authority for income tax payment.
•            There has been no increase in the base tax slab for women when compared to the income tax report of the previous year.

            The income tax slabs for the assessment year 2012 – 2013 has also been released by the Income Tax Department of the government of India. The slab is exactly the same as that of financial year 2011 – 2012. The slabs for the general tax payers in 2011 – 2012 are also applicable to in the case of Hindu Undivided Families in 2012 – 2013.

          The income tax slab is applicable only for salaried professionals residing in India. The non residents (NRIs) are exempted from payment of taxes if their salary is drawn from a foreign country. However, the same slabs as applicable for general tax payers, are applicable if non residential Indians accrue income through business units or other professional settings within the boundaries of India.