Decoding the Union Budget 2010-2011: Direct Taxes

The Union Budget for fiscal year 2010-11 has already been presented. In all, it has tried to maintain the key spending as they were with a prime focus on bringing down the FISCAL DEFICIT of a whopping 6.8% of GDP to 5.5% of GDP(for the next fiscal) as said by FM Pranab Mukherjee.
3 main challenges to continue as a key focus:
1. Achieving 9% GDP growth rate & above
2. Inclusive growth
3. Strengthening food security.
Hereby I present a detailed analysis of important changes in our TAX STRUCTURE:

CHANGES IN DIRECT TAXES:
Income tax-
- No tax upto Rs. 1.6L for all, upto Rs. 1.9L for women, upto Rs. 2.4L for senior citizens.
- 10% tax limit Rs. 1.6L to Rs. 5L for all, Rs. 1.9L to Rs. 5L for women, Rs. 2.4L to Rs. 5L for senior citizens.
- 20% tax limit Rs. 5L to Rs. 8L for all including women & senior citizens.
- 30% tax limit on income of Rs. 8L & above for all including women & senior citizens.
Finance Minister estimated that about 60% of tax payers to be benefited. Experts say this slab would save about 4-6% of tax outgo of the "aam aadmi".
Corporate tax:
- Reduced to 7.5% from 10%
MAT(Minimum Alternative Tax) increased from 15% to 18%.
The Corporate sector seems to be quite disheartened as the reduction in Corporate tax is being overpowered by the increase in MAT!