In budget 2009-2010 they increased the basic exemption limit for male taxpayers and female taxpayers by Rs 10,000 and that of senior citi...
- In budget 2009-2010 they increased the basic exemption limit for male taxpayers and female taxpayers by Rs 10,000 and that of senior citizens by Rs 15,000. Further, he abolished the surcharge of 10% on income over Rs 10 lakh.
The current income tax exemption limit is Rs 1.5 lakh (Rs 150,000) for men, Rs 1.8 lakh (Rs 180,000) for women and Rs 2.25 lakh (Rs 225,000) for senior citizens.
- Removed the surcharge on income above Rs 10 lakh (Rs 1 million) for personal income tax payers. The surcharge was levied at the rate of 10 per cent on income above Rs 10 lakh.
- The finance minister raised the deduction for maintenance of medical treatment of dependence from Rs 75,000 to Rs 1 lakh
- The finance minister also proposed to introduce Saral-II form to enable the taxpayers to file their returns without difficulty.
The new tax slabs now stand as follows:
| 0 to 160000 | 0 |
| 160001 to 300000 | 10% |
| 300001 to 500000 | 20% |
| Above 500000 | 30% |
| 0 to 190000 | 0 |
| 190001 to 300000 | 10% |
| 300001 to 500000 | 20% |
| Above 500000 | 30% |
| 0 to 240000 | 0 |
| 240001 to 300000 | 10% |
| 300001 to 500000 | 20% |
| Above 500000 | 30% |
In addition to this, an education cess of 3% on the tax amount continues while a 10% surcharge on income over Rs 10 lakh has been abolished.
Example:
| Taxable income (Rs) | Tax before budget | Tax after budget | Difference |
| | Male | Female | Male | Female | Male | Female |
| 200000 | 5150 | 2060 | 4120 | 1029 | 1030 | 1031 |
| 500000 | 56650 | 53560 | 55620 | 52529 | 1030 | 1031 |
| 1000000 | 211150 | 208060 | 210120 | 207029 | 1030 | 1031 |
| 1200000 | 300245 | 398815 | 364619 | 516029 | 53046 | 52736 |
| 1500000 | 402215 | 568765 | 519119 | 670529 | 68496 | 68186 |
