income tax benefits exemptions budget 2011

income tax exemptions in budget 2011

Giving relief to individual taxpayers, the government raised the income tax exemption limit by Rs 10,000 for general taxpayers, and by Rs 15,000 for senior citizens.

For general taxpayers, income of up to Rs 1.6 lakh per annum for men and Rs 1.90 lakh per annum for women is tax-exempt.

Senior citizens will not have to pay tax up to an annual income of Rs 2.4 lakh.

Announcing these measures while presenting the Budget for 2010-11, Finance Minister Pranab Mukherjee said his direct tax proposals are revenue-neutral and would not result in any revenue loss.

The present income tax exemption limit is Rs 1.5 lakh for men, Rs 1.8 lakh for women and Rs 2.25 lakh for senior citizens.

Mukherjee also removed the surcharge on income above Rs 10 lakh for personal income tax payers. The surcharge was levied at the rate of 10 per cent on income above Rs 10 lakh.

In tune with the poll promises made by the Congress and reflecting the pressures of the global financial crisis, Finance Minister Pranab Mukherjee on Monday presented the Budget for 2009-10 that contained a series of measures that could be termed popular.

The government today announced a slew of tax sops, including an additional Rs 10,000 personal income tax exemption and scrapping of 10 per cent surcharge, while announcing cheaper loans to farmers and incentives for export and infrastructure to attain nine per cent growth.

Beginning with incentives for individual tax payers that included an additional exemption of Rs 15,000 for senior citizens and Rs 10,000 for women and others, Mr. Mukherjee also abolished Fringe Benefit Tax that could ease pressure on employers in giving benefits to the workers, but there was no change in corporate tax as also the rates for customs, excise and service tax.

The income tax exemption limit for senior citizens was sought to be hiked by Rs.15,000, while that for women and others was stepped by Rs.10,000. The 10 percent surcharge on personal income tax also sought to be removed in Mr. Mukherjee's budget presented in the Lok Sabha.

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