The Union Budget for 2003-04 proposes to raise the tax rebate for senior citizens to Rs 20,000.
As a result, their income of up to Rs 153,000 would now become exempt from income tax.
In the case of senior citizens on pension the effective exemption limit would become Rs 183,000 because of standard deduction of Rs 30,000.
They could get further relief by taking advantage of the tax rebate available under Section 88.
In order to reduce bureaucratic hassles, the Budget proposes to accept self-declaration filed by senior citizens in regard to no deduction of tax at source.
PTI
