New Delhi: Giving relief to individual taxpayers, the government on Monday raised the Income Tax exemption limit by Rs 10,000 for general taxpayers, and by Rs 15,000 for senior citizens.
For general taxpayers, income of up to Rs 1.6 lakh per annum for men and Rs 1.90 lakh per annum for women is tax-exempt.
Senior citizens will not have to pay tax up to an annual income of Rs 2.4 lakh.
Announcing these measures while presenting the Budget for 2009-10, Finance Minister Pranab Mukherjee said his direct tax proposals are revenue-neutral and would not result in any revenue loss.
The present income tax exemption limit is Rs 1.5 lakh for men, Rs 1.8 lakh for women and Rs 2.25 lakh for senior citizens.
Annual Income
Rate
Up to Rs 1,60,000
NIL
Rs 1,60,001 to Rs 3,00,000
10 per cent
Rs 3,00,001 to Rs 5,00,000
20 per cent
Rs 5,00,000 and above
30 per cent
Annual Income
Rate
Up to Rs 1,90,000
NIL
Rs 1,90,001 to Rs 3,00,000
10 per cent
Rs 3,00,001 to Rs 5,00,000
20 per cent
Rs 5,00,000 and above
30 per cent
Annual Income
Rate
Up to Rs 2,40,000
NIL
Rs 2,40,001 to Rs 3,00,000
10 per cent
Rs 3,00,001 to Rs 5,00,000
20 per cent
Rs 5,00,000 and above
30 per cent
Mukherjee also removed the surcharge on income above Rs 10 lakh 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.
As regards the corporate tax, the minister raised the Minimum Alternate Tax to 15 per cent from 10 per cent.
The Minister, however, abolished the Fringe Benefit Tax and Commodities Transaction Tax (CTT).
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