Finance Minister Shri Pranab Mukherjee just completed presentation of the budget for the year 2011. The highlights pertaining to individual Income Tax are given below:
In a relief provided to the salaried class in Union Budget 2011-12, Finance Minister Pranab Mukherjee on Monday hiked the individual taxpayers’ Income Tax exemption limit from the current Rs 1.60 lakh to Rs 1.80 lakh. This will translate into an annual savings of Rs 2,000 on Income Tax.
The exemption limit for senior citizens has also been increased from the current Rs 2,40,000 to Rs 2,50,000, while senior citizens’ age limit has been reduced from 65 years to 60 years. A very senior citizens category has also been created for people with age 80 years and above and they will get a higher exemption limit of Rs 5 lakh. The exemption limit for women tax payers remains unchanged at Rs 1,90,000.