New Delhi: Tax-paying individuals stand to benefit this fiscal. Finance Minister Pranab Mukherjee has eased their tax burden and provided relief for specific groups of people such as senior citizens, physically handicapped and women.
Mukherjee, 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 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.
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.