Tax payers can expect some relief from high inflation in Budget 2011-12, as the government may raise the income tax (I-T) exemption limit for individuals from Rs 1.6 lakh per annum to Rs 2 lakh in line with the Direct Taxes Code (DTC) in 2012-13. Tax payers could expect at least some relief in the upcoming Budget on February 28.
The finance ministry would keep in mind the high inflation in the Budget. Since there is no dearness allowance for a vast section of the society, hike in income tax exemption limit is likely.
At present, income up to Rs 1.6 lakh is exempt from tax for individuals. For women and senior citizens, the limit is 1.9 lakh and 2.4 lakh, respectively.
Categories: Income Tax