BUDGET 2

The basic threshold limit for income tax exemption will
remain at Rs 1.60 lakh. Under the new proposal, 10 per cent
tax will be levied between Rs 1,60,001 and Rs 5,00,000, 20 per
cent on incomes between Rs 5,00,001 and Rs 8,00,000 and 30 per
cent above Rs 8,00,000.
The present income tax slabs and rates are 10 per cent
for income between Rs 1,60,001 and Rs 3,00,000, 20 per cent
for income between Rs 3,00,001 and Rs 5,00,000 and 30 per cent
for income above Rs 5,00,001.
Proportionately, similar changes have been made in the
taxes related to women and senior citizens aged above 65
years.
Mukherjee also gave another relief to individual tax
payers by raising the existing limit of Rs 1,00,000 on tax
savings by an additional amount of Rs 20,000 for investments
in long-term infrastructure bonds.
Contributions to Central Government Health Scheme (CGHS)
have also been allowed as deductions within the overall
ceiling for tax rebate besides contributions to health
insurance schemes which are currently allowed as deductions
under the Income Tax Act.
The budget also proposed a hike in defence expenditure
from Rs 1,41,703 crore to Rs 1,47,344 crore, including Rs
60,000 for capital expenditure. (MORE) PTI