Panel wants Rs 3 lakh IT exemption limit

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. HT reports.

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.

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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.