Good News for Tax Payers. Mr.Pranab Mukharjee, the Union Finance Minister unveiled on Wednesday i.e. he is going to cut the tax liability from April 1, 2011. Now you have to pay 10% of Income Tax for your income is between 1.60 lakhs and 3 lakhs. If your income is between 3 lakhs and 5 lakhs 20% Tax. Above 5 lakhs the income tax is 30%. The proposed Direct Tax Code is expected to be approved in Parliament during the Winter Session. If it is approved the benefits are as below:

1. Income between 1.60 lakhs and 10 lakhs the tax will be only 10%

2. Income between 10 lakhs and 25 lakhs the tax will be 20%

3. Income above 25 lakhs the tax will be 30%

4. Now under section 80CC the tax deduction is Rs.1 lakh it will be raised to Rs.3 lakhs.

So great relief for Tax Payers. You will get lot of money for your other expenses.