Income tax exemption limit raised to Rs.1.8 lakh
By IANSMonday, February 28, 2011
NEW DELHI - Finance Minister Pranab Mukherjee Monday proposed to enhance the income tax exemption limit to Rs.1.8 lakh for the next financial year, from Rs.1.6 lakh now, and introduce a new category of senior tax payers.
“The measures will provide a uniform tax relief of Rs.2,000 to every tax payer in the country,” the finance minister said, while presenting the federal budget for the next fiscal in the Lok Sabha.
Mukherjee also said he was proposing a very senior category of income tax payers, above the age of 80, for whom the tax exemption will be up to Rs.5 lakh. The qualifying age limit for senior citizens was being lowered to 60 years from 65 years.
Following are the rates of income tax for male tax payers:
* Up to Rs. 180,000 - Nil
* Rs.180,001 to Rs. 500,000 - 10 percent
* Rs.500,001 to Rs.800,000 - 20 percent
* Rs.800,001 and above - 30 percent
Following are the rates of income tax for women tax payers:
* Up to Rs. 190,000 - Nil
* Rs.190,001 to Rs. 500,000 - 10 percent
* Rs.500,001 to Rs.800,000 - 20 percent
* Rs.800,001 and above - 30 percent
Following are the rates of income tax for people between 60 and 80 years:
* Up to Rs.250,000 - Nil
* Rs.251,001 to Rs.500,000 - 10 percent
* Rs.500,001 to Rs.800,000 - 20 percent
* Rs.800,001 and above - 30 percent
Following are the rates of income tax for people above 80 years:
* Up to Rs.500,000 - Nil
* Rs.500,001 to Rs.800,000 - 20 percent
* Rs.800,001 and above - 30 percent
