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I-T exemption limit retained at present level

The Budget has retained I-T exemption limit at existing Rs 50,000 level but removed 5% surcharge on personal income tax.

business Updated: Feb 28, 2003 13:32 IST

The Budget 2003-04 has retained the Income Tax exemption limit at the existing level of Rs 50,000, abolished the five per cent surcharge on personal income tax.

The Budget has also announced a 10 per cent surcharge to be levied on income over Rs 8.5 lakh per annum.

Additional deduction for dividend earnings has been raised from Rs 9,000 to Rs 12,000. Total deduction under section 80-l would be Rs 15,000, including Rs 3,000 for investment in government securities.

Presenting the Budget in Parliament, Finance Minister Jaswant Singh said a simple one page income tax return form is being introduced.

Singh announced that from April 1, 2003, dividend will be made tax exempt in the hands of the investors, though domestic companies will have to paya 12.5 per cent dividend distribution tax.

He announced exemption in long-term capital gains tax and in equity-orientedschemes of mutual funds, in a bid to boost the sagging stock markets.

Singh said standard deduction for salaried class with an annual income up to Rs 5 lakh will be up to 40 per centof salary or Rs 30,000, whichever is lower. For those earning above Rs 5 lakh, standard deduction will be Rs 20,000.

Senior citizens with an income of Rs 1.53 lakh will be exempted fromincome tax and self declaration of tax returns from them will also be accepted, said Singh.

First Published: Feb 28, 2003 13:10 IST