India’s Finance Minister, P. Chidambaram, presented his fifth and last budget to this Lok Sabha today, February 29, 2008. He has raised income tax exemption limit from Rs. 1,10,000 to Rs. 1,50,000. Exemption limit for women has been raised from Rs 1,45,000 to Rs 1,80,000 and exemption limit for senior citizens has been raised from Rs 1,95,000 to Rs 2,25,000.
He has also modified income tax rate slabs. These slabs were introduced three years ago. Now for income up to Rs 1,50,000 tax liability will be nil, between Rs 1,50,000 and Rs 3,00,000 tax liability will be 10%, from 3 lakh to 5 lakh tax liability will be 20%, from 5 lakh upwards it will be 30%.
This is certainly a good news for individual tax payers.