Income tax exemption limit raised to Rs 1,50,000

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New Delhi, Feb 29 (UNI) Finance Minister P Chidambaram today raised the personal income tax exemption limit to Rs 1,50,000 from Rs 1,10,000, ensuring a minimum relief of Rs 4000 for every assessee.

He also revised the slabs for personal tax in the Budget 2008-09, giving relief to every assessee.

The exemption limit has been raised to Rs 1,50,000 from Rs 1,10,000, ensuring a minimum relief of Rs 4000 for every assessee.

The new slabs and rates in the Budget are as under: Upto Rs 1,50,000 Nil Rs 1,50,001 to Rs 3,00,000 10 per cent Rs 3,00,001 to Rs 5,00,000 20 per cent Rs 5,00,001 and above 30 per cent In the case of a woman assessee, the exemption will be upto Rs 1,80,000 from Rs 1,45,000 whereas the exemption limit of Senior Citizens has raised to Rs 2,25,000 from Rs 1,95,000.

An additional deduction of Rs 15,000 under Sector 80D has been allowed to an individual who pays medical insurance premium for his/her parents.

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.

UNI RR AS1336

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