
Offering some respite to the common man, Finance Minister Pranab Mukherjee today proposed that the personal income tax exemption limit will be raised to Rs 200,000 (Rs 2 lakh) from the existing Rs 180,000.
Thus persons earning up to Rs 2 lakh a year would not need to pay any tax. The finance minister also revised the income tax slabs. The new tax slabs and rates are as follows:
For annual income up to Rs 2 lakhs: No tax .
For annual income from Rs 2 lakh to Rs 5 lakh: Tax at 10% .
For...