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No relief to individual tax-payers
February, 17th 2009

If individual tax-payers, like the corporate sector, had hopes of relief in the interim budget, the government has thrown a wet blanket on them, despite stating recently that there was no Constitutional bar on providing fiscal concessions.

"Constitutional propriety requires that (the) new government formulates the tax and expenditure policies for 2009-10...," Finance Minister Pranab Mukherjee said in his interim budget speech.

Mukherjee introduced in the Lok Sabha the Finance Bill, 2009, which seeks to "continue the existing rates of income tax for the financial year 2009-10".

Thus, those earning between Rs 1,50,001 and 3,00,000 a year will continue to pay 10 per cent income tax. The I-T rate remains 20 per cent for those earning between Rs 3,00,001 and 5,00,000 and 30 per cent on income above Rs 5,00,000. The exemption threshold for women assessees remains unchanged at Rs 1,80,000 and Rs 2,25,000 for senior citizens.

 
 
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