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The tax-paying individuals are entitled to more benefits this fiscal. Pranab Mukherjee has eased the tax burden and has provided relief for specific groups of people like senior citizens, physically handicapped and women.
The Finance Minister, in his union budget for 2009-10 on Monday, has increased the personal income tax exemption limit by Rs.10,000 for individual tax payers, raising it to Rs.160,000. A similar increase for women raises the ceiling to Rs.190,000.
He raised the tax exemption limit for senior citizens by Rs.15,000 to Rs.240,000 from the current Rs.225,000.
The minister also gave some relief for medical treatment of physically disabled people.
"I propose to increase the deduction in respect of maintenance, including medical treatment, of a dependent who is a person with severe disability to Rs.1 lakh from the present limit of Rs.75,000," said Mukherjee.
"I propose to increase the deduction in respect of maintenance, including medical treatment, of a dependent who is a person with severe disability to Rs.1 lakh from the present limit of Rs.75,000," said Mukherjee.
The burden of surcharges on personal income tax has been done away with. The government has proposed to eliminate "the surcharge of 10 percent on personal income tax".
There is reason for students to rejoice as well, as the deduction in respect of interest paid on loans taken for pursuing higher education has been extended to all fields of study, including vocational studies.
Interest paid on such education loans can be claimed as deductions while filing tax returns.
Mukherjee said he would aim at rationalising the existing tax structure and start by releasing the new Direct Taxes Code within the next 45 days.
Mukherjee said he would aim at rationalising the existing tax structure and start by releasing the new Direct Taxes Code within the next 45 days.
