The slabs for personal income tax have been
revised,
giving relief to every assessee . The exemption limit has been raised to Rs. 1.50 lakhs from Rs.1.10 lakhs ensuring a minimum relief
of Rs.4000 for every assessee. The new slabs and rates will be as under :
Upto Rs.
150,000
Nil
Rs.150,001 to
Rs.300,000
10 per cent
Rs. 300,001 to Rs.
500,000
20 per cent
Rs.500.001 and above
30 per cent
In the case of a woman assessee, the exemption will be upto
Rs.180,000 from Rs.
145,000 whereas Senior Citizen will now have the exemption limit of
Rs. 225,000
from Rs.195,000.
An additional deduction of Rs.15,000 under Section 80D has been
allowed to an individual who pays medical insurance premium for his/her
parent(s).
Senior Citizens Saving Scheme 2004 and
the Post Office Term Deposit Account have been added to the basket of saving
instruments under
Section 80(C) of the Income Tax Act.
