Budget 2005-06: Buck for India, break for Bharat

Banking heavily on India?s ability to create more wealth, Chidambaram made key changes that affect the middle-class directly. Highlights

Banking heavily on India’s ability to create more wealth, Finance Minister P. Chidambaram made key changes that affect the middle-class directly: changes in how much income tax we pay; and how we save.

SLABS: While Budget 2005 doesn’t make any changes for people earning in the region of Rs 1 lakh-they get to keep all their money — it’s at higher income levels that tax-payers will see real gains. On a salary income of Rs 1.5 lakh, for instance, there’s a saving of Rs 8,000: income tax has been brought down from Rs 13,000 to Rs 5,000. And for those who are self-employed the saving is greater, tax is down from Rs 19,000 to Rs 5,000.

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