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BW Businessworld

The New Proposed Tax Slab

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1)    Proposed Tax rates

In case of resident senior citizen (age 60 years or more) taxpayer and very senior citizen (aged 80 years or more) tax payer, the basic exemption limit remains at the existing level of Rs 250,000 and Rs 500,000 respectively.

An education cess of 3 per cent would be charged on the tax computed as per the above slabs.

No special relief for female tax payer.

2)    A deduction proposed on account of payments made for preventive health check up (maximum upto Rs 5,000) under the existing limits as per Section 80D of the Income Tax Act, 1961 (the Act). 

3)    A deduction proposed upto Rs 10,000 on account of interest from savings bank account.


For salary bracket of Rs 3,00,000 (Click here to view graphic)

Under the current salary structure, the exemption of conveyance allowance ( upto Rs 800 per month) and reimbursement of medical expenses upto Rs 15,000 per annum under the current provisions of the Act remain the same.

Based on the proposed tax rates, the tax payer would save upto Rs 2,575 per annum

Recently the Government notified that individuals with taxable employment income of up to Rs 5 lakhs and having only saving bank interest not exceeding INR. 10,000 would no longer be required to file the tax return provided certain other specified conditions are met. There would be no requirement to file the tax return under the current salary structure.


For salary slab of Rs 8,00,000 (Click here to view graphic)

Under the current salary structure, the exemption of conveyance allowace (upto Rs 800 per month) and reimbursement of medical expenses upto Rs 15,000 per annum under the current provisions of the Act remain the same.

Based on the proposed tax rates, the tax payer would save upto Rs 3,090 per annum


For salary slab of Rs 15,00,000 and Rs 2500,000 (Click here to view graphic for salary slab of Rs 15,00,000 and Click here to view graphic for salary slab of Rs 25,00,000 )

Under the current salary structures, the exemption of conveyance allowace (upto Rs 800 per month) and reimbursement of medical expenses upto Rs 15,000 per annum under the current provisions of the Act remain the same.

Based on the proposed tax rates, the tax payer would save upto Rs 25,750 per annum

Kuldip Kumar, Executive Director Chander Talreja, Senior Manager and Ritika Jain, Associate - Tax & Regulatory Services, PwC India