New Delhi: The budget has raised income tax exemption limit from Rs110,000 to Rs150,000, which will result in every assessee a relief at minimum of Rs4,000.
The tax rate will be 10 per cent for the income slab between Rs150,001 and Rs300,000 and 20 per cent between Rs300,001 and Rs500,000. For the income slab of Rs500,001 and above, the income tax rate will be 30 per cent.
The exemption limit for women has been increased to Rs180,000 and in case of senior citizens to Rs225,000.
The finance minister has not proposed any changes in corporate income tax or in the rate of surcharge. A person paying medical insurance premium for his parents will be allowed an additional deduction of Rs15,000 under Section 80D.
Justifying the changes in the slabs for personal income tax the finance minister said that he was confident that moderation would beget revenues and fairness would beget compliance.