Exemption Limit for Individual Taxpayers Raised to Rs. 2 Lakh
Upper Limit of 20 Per Cent Tax Slab Raised to Rs. 10 Lakh
Deduction up to Rs. 10,000 Proposed for Savings Bank Interest
It has also been proposed to raise the upper limit of 20 per cent tax slab from Rs. 8 lakh to Rs. 10 lakh. The proposed personal income tax slabs are:
|Income uptoRs. 2 lakh||Nil|
|Income above Rs. 2 lakh and uptoRs. 5 lakh||10 per cent|
|Income above Rs. 5 lakh and upto Rs.10 lakh||20 per cent|
|Income above Rs. 10 lakh||30 per cent|
In another relief to the individual taxpayers, a deduction of uptoRs. 10,000 has been proposed for interest from savings bank accounts. This would help a large number of small taxpayers with salary incomes uptoRs. 5 lakh and interest from savings bank accounts uptoRs. 10,000 as they would not be required to file income tax returns.
It has also been proposed to allow deduction of Rs. 5,000 for preventive health check up.
For senior citizens not having income from business, it has been proposed to exempt them from payment of advance tax.