Finance Minister raises Income tax exemption limit

The Union Finance Minister Mr P Chidambaram during has proposed in his budget to hike the Income tax exemption limit to Rs. 1.5 lakh.

10 per cent tax for income between Rs. 1.5 lakh and Rs. 3 lakh; 20 per cent between Rs. 3 lakh and Rs. 5 lakh. Income above Rs. 5,00,001 to attract 30 per cent income tax

The Exemption limit for women tax payers increased to Rs. 1,80,000 and for senior citizens to Rs. 2,25,000.

Source : Press Information Bureau

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