Double Bonanza for Income Tax Payers

The Finance Minister has proposed to increase the basic exemption limit as well as realign income tax slabs with different tax brackets. Income Tax payers are among the biggest beneficiaries of the budget with some standing to add over Rs 45000/- to their annual savings.

Following table will show what amount exactly you are saving in the next Financial Year.

Annual MEN Women People

Income (below 65) (below 65) (above 65)

1,50,000 4,120 515 Not taxable

1,80,000 7,210 6,695 Not taxable

2,25,000 11,845 11,330 6,180

3,00,000 24,710 24,205 19,055

5,00,000 45,320 44,805 39,655

7,00,000 45,320 44,805 39,655

10,00,000 45,320 44,805 39,655

11,00,000 29,780 26,265 21,115

(Above Rs 10 lacs, the saving will be less because of the ten percent surcharge.)

F.M. said,“In fact, this (changing the tax slabs) will bring me more revenue”.

Economic theory says that by cutting tax rates, revenues actually increase as more people are eager to come clean on undeclared income and pay tax.