Salaried people to have more money in their pockets with the new income tax rates coming into effect on Thursday. Annual earnings of salaried people in the range of 3 to 8 lakh rupees will now attract 10.3 per cent to 20.6 per cent income tax, against 20.60 to 30.90 per cent in the fiscal ended yesterday. These rates are inclusive of 3 per cent education cess. Finance minister Pranab Mukherjee had announced the new income tax rates in his budget. While the Finance Bill 2010 is yet to approved by Parliament, the changes in the direct taxes will remain effective from today. Besides the personal income tax, the other direct tax proposals, including higher incidence of MAT, will come into effect from today, subject to modification and approval of the Finance Bill.