Mr Pranab Mukherji, Finance Minister of India has proposed many changes in his annual budget for the year 2011-2012 introduced in the Parliament of India, giving some relief to the tax payers in India. Some of the provisions proposed in the budget for the financial year 2011-12 are:
1. The general basic income tax exemption limit is enhanced by Rs 20,000 from Rs 1,60,000 to Rs 1,80,000.
2. There is no change in the basic income tax exemption limit for women assesses which will remain at Rs 1,90,000.
3. The basic income tax exemption limit for senior citizens is increased by Rs 10,000 from Rs 2,40,000 to Rs 2,50,000.
4. The qualifying age for the senior citizen category is reduced from 65 years to 60 years giving much relief to the recently retired employees.
5. A new category of “Very Senior Citizens” is introduced for the tax payers aged above 80 years.
6. The basic income tax exemption limit for Very Senior Citizens will be Rs 5,00,000.
7. Rs 20000 additional exemption for investment in infrastructure bonds.
8. Salaried employees who do not have any other source of income and whose incomes are subject to tax deduction at source will be exempted from filing the income tax returns
9. The new income tax slabs and rates of tax will be as under:
a. For general tax payers, the income tax rate is 10% for the net income between Rs 1.8 lakhs and Rs 5 lakhs
b. It is 20% for the income between Rs 5 lakhs and Rs 8 lakhs.
c. It is 30% for the income above 8 lakhs
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