Income slab for Assesment Year 2011-12 (F Y 2010-11) in Rs

Up to 1,60,000
Up to 1,90,000 (for women)
Up to 2,40,000 (for resident individual of 65 years or above) - NIL

1,60,001 – 5,00,000 10 %
5,00,001 – 8,00,000 20 %
8,00,001 - upwards 30 %

So normally, one's income up to Rs. 1,60,000 is free of income tax. If one's income is Rs 2,60,000 and he invests Rs 1,00,000 (ceiling) in PF, NSC, LIC etc, he will have to pay Nil tax.

An individual having salary income and no business income must file his return not later than 30th June of the assessment year. The due date of filing the return by an individual having business income and whose accounts are not required to be audited under the Act is 31st August. The return should be in the prescribed form (Saral Form). It is also necessary to file a return to claim a refund of any excess tax paid.

You need to attach documentery support for tax deducted at source, investments/payments made that allow you to claim deductions and tax rebates and employer's certificate in Form 16-A.

The income tax year or assessment year is the year in which income of the previous year is to be assessed. The financial year following a previous year is called the assessment year in relation to that previous year. Thus the assessment year for the previous year 1999-2000 is 2000-2001.