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.