Budget tax sops to help individuals save Rs 1,000 more a year

Individual taxpayers will save only Rs 1,000 more a year following the Government raising the tax exemption threshold by Rs 10,000 to Rs 1,60,000, whereas the benefit for senior citizens (65 years and above) will be higher at Rs 1,500.

Individual taxpayers will save only Rs 1,000 more a year following the Government raising the tax exemption threshold by Rs 10,000 to Rs 1,60,000, whereas the benefit for senior citizens (65 years and above) will be higher at Rs 1,500.

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Finance Minister Pranab Mukherjee in his Budget speech for 2009-10 raised the tax-exempted income limit by Rs 10,000.
Men would now have to pay taxes on income above Rs 1.6 lakh while women have to pay it on income over Rs 1.9 lakh.

However, senior citizens have been given a relief of Rs 15,000, so they would have to pay taxes on income over Rs 2.4
lakh per annum.

High-income individuals earning Rs 10 lakh or more, however, would be the biggest beneficiary as the 10 per cent
surcharge has been done away with, which would help them save Rs 1,000 on every Rs one lakh additional income.

Those under the ambit of wealth tax would also save at least Rs 15,000 a year as threshold for charging of this tax
has been doubled to Rs 30,00,000.