Income Tax exemption limit raised to Rs 2 lakh from 1.4.2011
The Government approved, on Thursday, a new set of direct taxes raising IT exemption limit from 1.6 lakhs to Rs 2 lakhs.
Yes, from next financial year all taxpayers save some income tax due to the increased limit. The Finance Minister also announced that the new tax slabs will be discussed in Parliament.
It is expected that the revised slab rates would be 10 per cent for Rs 2-5 lakh category, 20percent for Rs5-10 lakh category and 30% for above Rs 10 lakhs.