NEW DELHI, March 16 � Giving some relief to tax payers, Finance Minister Pranab Mukherjee today proposed raising the income tax exemption limit for individuals to Rs 2 lakh per annum from Rs 1.80 lakh.
Unveiling the Budget proposals for 2012-13 in the Lok Sabha, he also increased the limit to Rs 10 lakh under the 20 per cent tax slab. The current limit is Rs 8 lakh. The Budget also exempts up to Rs 10,000 of interest income from tax. Individuals will have to pay 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh; 20 per cent between Rs 5 lakh and Rs 10 lakh; and 30 per cent for above Rs 10 lakh.
Mukherjee said increasing the exemption limit is a move towards implementation of the Direct Taxes Code.