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I-T Limit Raised To Rs 1.8 Lakh, Senior Citizen Age Threshold Reduced

New Delhi, Feb 28 :  In some relief to general tax payers, Finance Minister Pranab Mukherjee today enhanced the tax exemption limit by Rs 20,000 to Rs 1.80 lakh, gave additional benefits to senior citizens
PTI February 28, 2011 14:31 IST
PTI
New Delhi, Feb 28 :  In some relief to general tax payers, Finance Minister Pranab Mukherjee today enhanced the tax exemption limit by Rs 20,000 to Rs 1.80 lakh, gave additional benefits to senior citizens but excluded women from additional sops.

While proposing to raise the income tax limit to Rs 1.80 lakh for general tax payers and Rs 2.5 lakh for seniorcitizens, the Minister in his budget proposals for 2011-12 has lowered the age for senior citizens to 60 years from 65 years now.

Besides, a new category of "very senior" citizens of 80 years and above has been introduced with no tax on theirincome upto Rs five lakh.For general tax payers, the measure will result in "a uniform tax relief of Rs 2,000", Mukherjee said.

Senior citizens will get tax exemption for income up to Rs 2.5 lakh, higher from Rs 2.4 lakh now.Introducing a new tax slab for very senior citizens(80 years and above), Mukherjee said, they will not have to pay any tax for annual income up to Rs 5 lakh.

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However, income of very senior citizens between Rs 5 lakh and Rs 8 lakh will attract a tax of 20 per cent and above Rs 8 lakh 30 per cent.

The general tax payers will have to pay 10 per cent tax on income between Rs 1.8 lakh and Rs 5 lakh; 20 per cent between Rs 5 lakh and Rs 8 lakh; and 30 per cent on income above Rs 8 lakh.

The exemption limit for women tax payers will be Rs 1.9 lakh. They will have to pay 10 per cent tax on income between Rs 1.9 lakh and Rs 5 lakh; 20 per cent between Rs 5 lakh and Rs 8 lakh; and 30 per cent for income above Rs 8 lakh.

In case of senior citizens (between 60 and 80 years),the exemption limit has been raised to Rs 2.5 lakh from Rs 2.4 lakh. They will have to pay 10 per cent on income between Rs 2.5 lakh and Rs 5 lakh; 20 per cent between Rs 5 lakh and Rs 8 lakh; and 30 per cent on income above Rs 8 lakh.

For very senior citizens (80 years and above), there will be no tax on income up to Rs 5 lakh. They will have to pay 20 per cent on income between Rs 5 lakh and Rs 8 lakh and 30 per cent above Rs 8 lakh. PTI