[Mr_Bean]

Have a look at the following tax slabs proposed for the year 2011.

The Introduction of new tax slabs applicable from 2011 | SQUAMBLE

Even received a mail from my company informing that is had started to make arrangements. Wondering why so early?

From the link, did not understand the technicalities of the following statement:

"Interest component on home loan for self-occupied property to be ineligible for deduction for calculating income from house property."

Will the tax exemption on the principal paid for the insurance plans stay intact.

[condor]

Has anyone done calculations on the tax outgo with these new slabs ? I have a sneaky feeling that we will end up where we are today .. paying the same amount of tax, but calculated differently.

Work on this tax structure was started by PC. And from previous budgets, I dont think he is going to let go of any thing that the govt is already taking from us.

[sbraj]

Making retirement benefits like PF, Insurance as EET is harsh. For many, this would be their only saving and with EET, this savings takes a hit further in addition to inflation.

[aaggoswami]

1) In general, in our country remember one thing. The take home salary will be Baisc + DA. All other things you will not get.

2) PC is afterall a Netaji, so on paper he will reduce all stuff, but after that he will eat more money. No big deal. What you will take home will be a lot less than what is shown on paper.

3) For the lower middle class affording even food is getting more and more difficult, and new IT rules will further raise trouble. Inflation has simply increased too much.

Originally Posted by Mr_Bean

y so early?

From the link, did not understand the technicalities of the following statement:

"Interest component on home loan for self-occupied property to be ineligible for deduction for calculating income from house property."

The rule is like this:

Currently if you have a loan for your own house, and are paying back as interest, than according to current IT rules, that interest amount you are paying will be deducted from your overall income as Interest losss.

Now with the arrival of new " eat salaried middle class rules " :

If you have a house lona and you are paying back interest, then that interest amount will not be deduceted from your income. So you end up paying more.

[arin_12]

Some thing more. All these will be taxable.
1. LTA
2. Car Lease
3. Petrol/Vehicle maintenance.
4. Meal Coupon.

[coolfyre]

Originally Posted by Mr_Bean

Will the tax exemption on the principal paid for the insurance plans stay intact.

Yes this will stay. Under the section 80C this is available with a limit of Rs. 1 lakh as per the current tax exemptions. As per the new tax slabs, the limit would be raised to Rs. 3 lakhs.

[Mr_Bean]

Originally Posted by sbraj

Making retirement benefits like PF, Insurance as EET is harsh. For many, this would be their only saving and with EET, this savings takes a hit further in addition to inflation.

I spoke to an LIC insurance advisor regarding the EET at the withdrawal stage, it seems all plans taken before the new tax slab came into place will not have the EET imposed.

Don't know how far this is true?

[rsjaurr]

Originally Posted by Mr_Bean

I spoke to an LIC insurance advisor regarding the EET at the withdrawal stage, it seems all plans taken before the new tax slab came into place will not have the EET imposed.

Don't know how far this is true?

Your LIC agent is probably right.
I am quoting below text from the link you provided in very 1st post.

All withdrawals from Provident Fund accounts opened from April 2011 to be taxable; life insurance also proposed to be covered by EET method.

[tsk1979]

New tax slabs are announced now. Anybody earning over 800000pa will save 50K a year!

[Laxminarayan]

True, savings of 50K in terms of tax. So in effect, I'm getting a hike of approximately 4K per month

[s3va]

More than 50K, I am expecting atleast 6k p.m with more prspective savings if I invest in Infrastructure bonds !

But the savings will be now spent on the additional Rs 2.67/ litre on petrol for my car !!

See this [FONT=Arial][COLOR=#800080]http://www.moneycontrol.com/news/business/fm-announces-bumper-for-common-man-ups-tax-slabs_443976.html[/COLOR] [/FONT]

[PatienceWins]

Originally Posted by tsk1979

New tax slabs are announced now. Anybody earning over 800000pa will save 50K a year!

The new rates are good for the common man. The new slab and savings are available here:
More power to aam aadmi; FM cuts tax rates - Moneycontrol.com -

[vasudeva]

The figure quoted in the link above is the same as was told to me by our Accounts Deptt.

[finneyp]

Finally, something to cheer about for salaried class, Thank you Pranab babu!

[ashthedivx]

Originally Posted by Mr_Bean

I spoke to an LIC insurance advisor regarding the EET at the withdrawal stage, it seems all plans taken before the new tax slab came into place will not have the EET imposed.

Don't know how far this is true?

Here goes the only beneficial govt. retirement scheme Need to rush to my bank to open PF account in the name of Wife and Kid to avoid paying tax upon withdrawal 15 yrs. later.