Income Tax exemption limit raised by Rs. 10,000
The union budget for the current fiscal year could not be presented
fully in the month of February as is being done every year due to parliamentary election and the
government change. At that time, the then ad-hoc finance minister
Pranab Mukherjee presented the interim budget, which did not include every concerned matter needed in a full budget.
After the general election and the formation of the new central government, the current finance minister, incidentally the same Pranab Mukherjee, presented the full budget today (6.7.09) in the parliament.
In his budget speech, he has taken care of almost all aspects connecting finance of the country, which many of us (Common People) strive to understand, and face its effect afterwards. The common people i.e. the middle class, upper middle class, and people below are concerned directly with income tax that we are supposed to pay on our income. The previous exemption limit of rupees 1,50,000 for working men has been raised to rupees 1, 60,000, and rupees 1, 80,000 raised to 1, 90,000 for the women. This limit for the senior citizens is rupees 2, 40,000. Rupees, which has been raised by 15,000. Ten thousand may not be a big sum, yet this relief is a welcome acceptance to the common people. This a relief the government has announced, but the government is not going to face any loss due to this relief according to the finance minister’s words that is, “direct tax proposals are revenue-neutral and would not result any revenue loss.”
Another advantage the finance minister has extended to the taxpayers is the exemption of surcharge on income above Rs. 10, 00,000 (1 million). Previously this levy was @ 10% on income over ten lacs.
On the medical expenses of dependents, the minister has raised the deduction figure from Rs. 75,000 to 100,000 giving a little benefit to the earning members of the family.
Working people and corporate houses will also rejoice with the abolition of the fringe benefit tax as well as commodities tax altogether.
The finance minister has proposed to introduce the Saral – II form for easy submission of tax return.
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