Upper Limit of 20 Per Cent Tax Slab up to Rs. 10 Lakh
Deduction up to Rs. 10,000 Proposed for Savings Bank Interest
Senior Citizens not Having Income from Business Exempted from Payment of Advance Tax
The Finance Minister, Shri Mukherjee introduced the DTC (Direct Taxes Code) rates for personal income tax, marking progress in the direction of movement towards DTC and GST (Goods and Services Tax).
It has also been proposed to raise the upper limit of 20 per cent tax slab from Rs. 8 lakh to Rs. 10 lakh. The proposed personal income tax slabs are:
|Income uptoRs. 2 lakh||NIL|
|Income above Rs. 2 lakh and uptoRs. 5 lakh||10 per cent|
|Income above Rs. 5 lakh and upto Rs.10 lakh||20 per cent|
|Income above Rs. 10 lakh||30 per cent|
It has also been proposed to allow deduction of Rs. 5,000 for preventive health check up.
For senior citizens not having income from business, it has been proposed to exempt them from payment of advance tax.