The latest income tax rates as given by Indian Finance Minister in budget 2012 are as given below:
- Savings accounts get Rs 10,000 tax deduction
- personal income tax exemption limit enhanced to Rs 2 lakhs from present Rs 1,80,000
- Income tax at 10% for Rs 2-5 lakhs ( No change)
- 20% for Rs 5-10 lakhs (earlier slab upto 8 Lakhs)
- 30% for above 10 lakhs; corporate tax rates left unchanged
- You can check service tax rates here.
This new slab is effectively only providing some significant savings to individuals whose income is annually more than 8 Lakh-10 Lakh per annum.