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Finance minister Pranab Mukherjee may have some good news for the salaried class in his forthcoming budget, with the government considering a Rs 20,000 raise in the income tax exemption limit from the current Rs 1.60 lakh per annum. Government sources said the move is aimed at putting money into the hands of people hit by sharp rises in the prices of essential commodities.

“At this point in time, giving relief for rising prices is a bigger priority,” said an official, who did not want to be named.

The last major hike in the income tax exemption limit was in 2008-09 when the then finance minister P Chidambaram increased the exemption threshold by Rs 40,000 in one go to Rs 1.50 lakh per annum.

That was increased to Rs 1.60 lakh per annum the following year.

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0 Comments

  1. P.P. Sonker says:

    Respected Sir,
    I think the IT may be hiked to 3.00 lacs as the Grade C & D employee have not got any other income or involved in great corruptions like we have seen in recent time.

  2. MANJUNATH K S says:

    Respected Sirs,

    At least if the Finance Minister hikes the exemption limit upto 2.00 Lacs, the middle class salaried people like me will feel happy, because every penny will count to us to built a better future for our children in the current scenerio ( i.e. abnormal price increase of commodities).

  3. MUDIT AGRAWAL says:

    Well, it is good to raise the income tax exemption limit but in my opinion it should be at least Rs. 200000.

    Secondly, as it is the demand from all the corners of business orgainesations the limit u/s 80 C must be increasd to Rs. 3 lacs. It will automatically give funds to the government departments automatically.

    And my dear sir remove any type of investment in shares and MF from the perview of sec. 80C. Because we all know that shares, MF, MCX all are ruining our society and country.

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