Budget and tax implications for salaried class

In a nut-shell, following are the tax implications for the salaried class based on the Budegt tabled by Pranab Mukherjee on 06-July-2009.

1. Tax exemption limit raised by 15,000 for senior citizens and by 10,000 for all other segments

The new tax slabs are as follows:

Senior Citizens:

0 - 240000 -NIL

240001 - 300000 - 10%

300001 - 500000 - 20%

> 500000 - 30%

Women:

0 - 190000 -NIL

190001 - 300000 - 10%

300001 - 500000 - 20%

> 500000 - 30%

Men:

0 - 160000 -NIL

160001 - 300000 - 10%

300001 - 500000 - 20%

> 500000 - 30%

2. Tax benefit raised to 1,00,000 from 75,000 for care-take of dependants with "severe" disability

3. Surcharge on taxable income greater than 10,00,000 is now NIL.

UTN not needed for now

As per the CBDT, stated here and in the major newspapers today, the requirement to quote the UTN for all IT filings is lifted. Assessees can now file retrurns and claim refunds (if applicable) with the need to quote UTN.

Online Tax Filing - Mailing cumpulsory

As per item#10 in CBDT Circular No. 03 / 2009 dated May 21, 2009, ITR-V (for thoe not using a DSC) should henceforth be signed and mailed (preferably in unfolded A4 envelope for bar code safety) to:
Income Tax Department – CPC,
Post Box No - 1,
Electronic City Post Office,
Bangalore - 560100,
Karnataka
and that no other office would receive the ITR-V and in no other manner.

On receipt, the Dept. will send a confirmation e-mail.

In effect, if filing through an Agent / Agency, ensure that they are aware of this. If filing personally, ensure that you submit as stated.