With barely a week left for the budget, the parliamentary standing committee on finance on Friday recommended raising the income tax exemption limit to Rs 3 lakh from the existing Rs 1.8 lakh.
The committee, headed by BJP leader and former finance minister Yashwant Sinha, also recommended a major rejig in the tax slabs. It favoured 10% tax for those in the income bracket of Rs 3-10 lakh, 20% for R10-20 lakh and 30% for income beyond Rs 20 lakh.
At present, income between Rs 1.8-5 lakh is taxed 10%, that between Rs 5-8lakh is taxed 20% while income above Rs 8 lakh attracts 30% tax.
The panel that submitted its report on the Direct Taxes Code Bill to the Lok Sabha speaker on Friday has also recommended a higher exemption limit for women.