First, let's start by assessing your income tax liability. Once you have identified your tax liability, you can then create the right plan. Please note that this applies only to salaried individuials.
The following rates are applicable for computing tax liability for the current Financial Year ending on March 31, 2011, i.e. Assessment Year 2011-12
For Resident Male Individuals below 65 years of age and HUFs
| Net Income Range | Income Tax | Plus Education Cess |
| Up to Rs. 1,60,000 | Nil | Nil |
| Rs. 1,60,001 to Rs. 5,00,000 | 10% of income above Rs. 1,60,000 | 3% of income tax |
| Rs 5,00,001 to Rs 8,00,000 | Rs. 34,000 + 20% of the income above Rs. 5,00,000 | 3% of income tax |
| Above Rs. 8,00,000 | Rs. 94,000 + 30% of income above Rs. 8,00,000 | 3% of income tax |
For Resident Women below 65 years of age
| Net Income Range | Income Tax | Plus Education Cess |
| Up to Rs. 1,90,000 | Nil | Nil |
| Rs. 1,90,001 to Rs. 5,00,000 | 10% of the income above Rs. 1,90,000 | 3% of income tax |
| Rs 5,00,001 to Rs 8,00,000 | Rs. 31,000 + 20% of the income above Rs.5,00,000 | 3% of income tax |
| Above Rs. 8,00,000 | Rs. 91,000 + 30% of the income above Rs. 8,00,000 | 3% of income tax |
For Resident Senior Citizens (who are 65 years or more at any time during the Financial Year 2007-08)
| Net Income Range | Income Tax | Plus Education Cess |
| Up to Rs. 2,40,000 | Nil | Nil |
| Rs. 2,40,001 to Rs. 5,00,000 | 10% of the income above Rs. 2,40,000 | 3% of income tax |
| Rs 5,00,001 to Rs 8,00,000 | Rs. 26000 + 20% of the income above Rs. 3,00,000 | 3% of income tax |
| Above Rs. 8,00,000 | Rs. 86000 + 30% of the income above Rs. 8,00,000 | 3% of income tax |
Rules for the "Senior Citizens" are same as for 'Men' as well as for 'Women'. Any person who turns 65 on any day prior to or on March 31, 2011 will be treated as a Senior
Tax Liability
