New Delhi, Feb 29 : Union Finance Minister P Chidambaram on Friday gave tax benefits to almost all section of society. Chidambaram has restructured the tax slabs for income tax payment by raising the exemption limit from 110 thousand rupees to 150 thousands rupees for men, for women it has been raised from 145 thousand rupees to 180 thousand rupees and for senior citizens it has been raised from 195 thousand rupees to 225 thousand rupees.
The minimum benefit to a person with an annual income of 150 thousand rupees at the threshold will be around Rs 4,000, Finance Minister P Chidambaram said, while presenting the Budget 2008-09 in Lok Sabha. According to the proposed slabs, income between 150 thousand and Rs 300 thousand will be taxed at 10 per cent, between Rs 300 thousand and Rs 500 thousand at 20 per cent, while for Rs 500 thousand and above the rate would be 30 per cent in addition to 3 per cent education cess. Chidambaram also said that there would be no change in the corporate tax rate and banking transaction tax will be waived during next fiscal.