No change in personal income tax rates

There will be no change in the rates of personal income tax or corporate income tax.

There will be no change in the rates of personal income tax or corporate income tax.

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Announcing this in Lok Sabha today while presenting the Budget proposals for 2006-07, Finance Minister P Chidambaram said no new taxes are being imposed.

The Minister abolished one-by-six scheme under the Income Tax Act obliging certain categories of persons to file returns.

Responding to the demand for tax exemption on fixed deposits of certain tenure, the Finance Minister proposed to include investments in fixed deposits in scheduled banks for a term of not less than five years in Section 80C of the Income Tax Act.

He also proposed to remove the limit of Rs 10,000 in respect of contribution to certain pension funds in Section 80CC, subject to the overall ceiling of Rs.One lakh.

The Finance Minister also proposed to remove the exemption under Section 10(23G), which he said, was not relevant when interest rates are moderate.