Direct Tax Proposals of Union Budget 2010-11

Broadened the Income Tax Slabs (see the revised tax slabs below).

Income tax return form, SARAL-II, to be made simple and user friendly for individual salaried taxpayers for the coming assessment year.

Allowed a deduction of an additional amount of Rs.20,000 for investment in long-term infrastructure bonds as notified by the Central Government. This would be over and above the existing limit of Rs.1 lakh on tax savings.Extended the provisions of Section 80D, that allows deduction under the Income-tax Act for contributions to health insurance schemes, to include contributions to the Central Government Health Scheme also as a deduction under the same provision.Tax Slabs for Financial Year 2010-11

Assesee Type From To Slab%

Male Upto 160000 0%

160001 500000 10%

500001 800000 20%

800001 and above 30%

Female Upto 190000

190001 500000 10%

500001 800000 20%

800001 and above 30%

Sr. Citizen Upto 240000

240001 500000 10%

500001 800000 20%

800001 and above 30%