IT limit increased by Rs 15000 for senior citizens, Rs 10000 for others

The Finance Minister Shri Pranab Mukherjee in his Budget Speech today in the Lok Sabha proposed in increase the personal income tax exemption limits to be raised by Rs. 15,000 for senior citizens from Rs. 2.25 lakh to Rs.2.40 lakh. Further, he proposed to raised the exemption limits by Rs.10,000 from Rs.1.80 lakh to Rs.1.90 lakh for women taxpayers and from Rs.1.50 lakh to Rs.1.60 lakh for all other categories of individual tax payers.

Shri Mukherjee also told the House that he proposes to increase the deduction under Section 80-DD to Rs.1 lakh from the present limit of Rs.75,000 in respect of maintenance including medical treatment of a dependent who is a person with severe disability.

The Finance Minister recognized that surcharge of direct taxes should be removed as the Government has set out National Calamity Contingency Fund to build up resources to meet emergency situations. Under lining that such removal has to be balanced with the revenue needs of the Government, Shri Mukherjee said that in the first instance he propose to phase out the surcharge on direct taxes by eliminating the surcharge of 10% on personal income tax.

Further, to make the process of income tax return form simple and user friendly, Shri Mukherjee has asked his department work on SARAL II form for early introduction.

Source : Equity Bulls

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