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Income tax exemption limit raised

business Updated: Feb 29, 2008 15:09 IST

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Bringing cheer to the salaried class, the slabs for personal income tax have been revised with the exemption limit being raised from Rs 1.10 lakh to Rs 1.50 lakh, ensuring a minimum relief of Rs 4,000 for every assessee.

Personal income upto Rs 1.50 lakh will attract no income tax, Finance Minister P Chidambaram announced while presenting the Budget for 20008-09 in the Lok Sabha today.

Income between Rs 1.50 lakh and Rs three lakh will attract a 10 per cent tax and incomes between Rs 3 lakh and Rs 5 lakh 20 per cent. Income above Rs five lakh will attract 30 per cent tax.

In the case of a woman assessee, the exemption will be upto Rs 1.80 lakh from the existing Rs 1.45 lakh whereas senior citizen will now have the exemption limit of Rs 2.25 lakh from Rs 1.95 lakh.

An additional deduction of Rs 15,000 under Section 80D has been allowed to an individual who pays medical insurance premium for his/her parents.

Senior Citizens Saving Scheme 2004 and the Post Office Term Deposit Account have been added to the basket of saving instruments under Sec 80 (C) of the Income Tax Act.