Since the finance ministry is looking for increasing the income tax slabs to compensate for increased prices, the proposed Direct Tax Code (DTC) is likely to bring in some relief to the taxpayer.

Benefiting the common man in saving as much as Rs 4,120 in taxes per year, the proposal includes raising income tax slabs by Rs 40,000, reports Joseph Samson of Rupee Times.

According to the current tax slabs, till an income of Rs. 1,60,000, a person doesn't have to pay income tax.

Although the draft that DTC proposed in August last year had kept the slabs same, the finance ministry is rethink thier decision because of increasing inflation rates.

However, the finance ministry also said that Government's total revenue layout will decide the final limit.