Budget proposes tax cuts for individual taxpayers

February 29th, 2008 - 9:06 pm ICT by admin  

A file-photo of P. Chidambaram

New Delhi, Feb 29 (IANS) Income tax payers in India stand to gain at least Rs.4,000 per year with Finance Minister P. Chidambaram proposing to raise the exemption limit from Rs.110,000 to Rs.150,000 as he presented the 2008-09 budget here Friday. In the case of women, the tax exemption threshold is proposed at Rs.180,000 against Rs.145,000 now, while for senior citizens (above 65), it is to be Rs.225,000 from Rs.195,000 now.

“I believe that boldness pays. I also believe that trust will beget trust, moderation will beget revenues and fairness will beget compliance,” the finance minister said.

Accordingly, he declared that every taxpayer will get relief of a minimum of Rs.4,000 per year, with tax experts saying it could go up to a maximum of Rs.44,000 at the peak rate.

The new slabs propose nil tax up to an annual income of Rs.150,000, 10 percent till Rs.300,000, 20 percent till Rs.500,000 and 30 percent for income above Rs.500,000.

To taxpayers who pay medical insurance premium for their parents, the finance minister allowed an additional deduction of Rs.15,000, and said the post office deposit schemes would also be notified for tax concessions.

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