New Delhi: In some relief to general tax payers, finance minister Pranab Mukherjee on Monday enhanced the tax exemption limit by Rs 20,000 to Rs 1.80 lakh, gave additional benefits to senior citizens but excluded women from additional sops.
While proposing to raise the income tax limit to Rs 1.80 lakh for general tax payers and Rs 2.5 lakh for senior citizens, the minister in his budget proposals for 2011-12 has lowered the age for senior citizens to 60 years from 65 years now.
Besides, a new category of “very senior” citizens of 80 years and above has been introduced with no tax on their income upto Rs 5 lakh.
For general tax payers, the measure will result in “a uniform tax relief of Rs2,000”, Mukherjee said.
Senior citizens will get tax exemption for income up to Rs 2.5 lakh, higher from Rs 2.4 lakh now.
However, income of very senior citizens between Rs 5 lakh and Rs 8 lakh will attract a tax of 20% and above Rs 8 lakh 30%.
The general tax payers will have to pay 10% tax on income between Rs 1.8 lakh and Rs 5 lakh; 20% between Rs5 lakh and Rs8 lakh; and 30% on income above Rs 8 lakh.
The exemption limit for women tax payers will be Rs 1.9 lakh. They will have to pay 10% tax on income between Rs1.9 lakh and Rs5 lakh; 20% between Rs 5 lakh and Rs 8 lakh; and 30% for income above Rs 8 lakh.