With the union budget 2014 increasing the income tax slabs for particular sections, taxpayers have a reason to cheer.
Now the exemption limit for small, marginal and senior tax payers has been increased to `2.5 lakh from `2 lakh previously, which means people annually earning up to `2.5 lakh would not have to pay income tax, while those earning above 2.5 lakh and up to 5 lakh the income tax will be charged by a tax rate of 10%.
The tax exemption limit for senior citizens aged 60 to 79 has also increased from `2.5 lakh to `3 lakh.
Jatinder Khurana, general secretary, Taxation Bar Association, said “This is a welcome move by the government, as it will provide relief to millions of taxpayers in the country.”
Khurana added, “Though the budget promises numerous benefits for the common man of the country, but at the same time, nothing concrete was ensured to curb or deal with the black money sent abroad and operating within the country.”
Jasbeer Arora, one of the taxpayers, said, “Paying tax for as low as `2 lakh annual income was a huge burden on thousands of taxpayers in the country. Therefore, the increase in tax slab is welcome.”
However, the slab for the age group above 80, remained unchanged at `5 lakh, while the provident fund ceiling has been increased up to `1.5 lakh.