Budget 2011 IT: How much will you save in tax during FY 2011-12
February, 28th 2011
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 senior citizens, 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 their income 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.
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.