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Increase in Tax Exemption limit in Union Budget 2008-09
May, 26th 2008

Finance Minister P Chidambaram today raised the exemption limit from Rs 1.10 lakh to 1.50 lakh for all individual assesses and from Rs 1.45 lakh to 1.80 lakh for women assesses and for the senior citizens from 1.95 lakh to 2.25 lakh.

Hike in the basic limit from Rs 1.1 lakh to Rs 1.5 lakh will make a tax saving of Rs 4,000 for individuals, Rs 6,500 for women assesses and Rs 6,000 for senior citizens.

New tax rates for various income levels are as follows:

    * 10% on income of Rs 1.50-3 lakh;
    * 20% on income of Rs 3-5 lakh;
    * 30% on income above Rs 5 lakh

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