Basic exemption for individual tax payers was increased by Rs 10,000 for general tax payers and women and Rs 15,000 for senior citizens (i.e. 65 years and above) by the finance minister on Monday.
The current income tax exemption limit is Rs 1.5 lakh (Rs 150,000) for men, Rs 1.8 lakh (Rs 180,000) for women and Rs 2.25 lakh (Rs 225,000) for senior citizens.
Finance Minister Pranab Mukherjee removed the surcharge on income above Rs 10 lakh (Rs 1 million) for personal income tax payers. The surcharge was levied at the rate of 10 per cent on income above Rs 10 lakh.
In another relief to the tax payers, the minister raised the deduction for maintenance of medical treatment of dependence from Rs 75,000 to Rs 1 lakh. Higher exemption limit will help the taxpayers in meeting the medical needs of dependents.
Meanwhile, he also proposed to introduce Saral-II form to enable the taxpayers to file their returns without difficulty.
The new tax slabs will stand as follows:
|
INCOME |
TAX RATE |
|
For GENERAL taxpayers | |
|
Up to Rs 160,000 |
Nil |
|
Rs 160,001 to Rs 300,000 |
10 per cent |
|
Rs 300,001 to Rs 500,000 |
20 per cent |
|
Rs 500,001 and above |
30 per cent |
|
For WOMEN taxpayers | |
|
Up to Rs 190,000 |
Nil |
|
Rs 190,001 to Rs 300,000 |
10 per cent |
|
Rs 300,001 to Rs 500,000 |
20 per cent |
|
Rs 500,001 and above |
30 per cent |
|
For SENIOR CITIZENS | |
|
Up to Rs 240,000 |
Nil |
|
Rs 240,001 to Rs 300,000 |
10 per cent |
|
Rs 300,001 to Rs 500,000 |
20 per cent |
|
Rs 500,001 and above |
30 per cent |