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Budget 2014: Latest income tax slabs based on the Union budget

Salaried class has got something to cheer with Finance Minister Arun Jaitley today raising tax exemption limit to Rs 2.5 lakh from Rs 2 lakh, providing a relief of Rs 50,000.

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The proposal, according to an estimate, is likely to benefit about 2 crore tax payers. Similarly, he raised tax exemption limit from Rs 2.5 lakh to Rs 3 lakh in the case of senior citizens. "I do not propose to make any change in the rate of surcharge for either for corporates or individual.

The education cess for all tax payers shall continue at 3 per cent," he said.

The FM also raised investment limit under 80 C has to Rs 1.5 lakh from the existing Rs 1 lakh to encourage savings. Investment in Public Provident Fund up to Rs 1.5 lakh would now be exempt from tax. This was earlier pegged at Rs 1 lakh.

He also raised tax deduction limit on account of interest of housing loan in case of self occupied property to Rs 2 lakh from Rs 1.5 lakh.

Following is the table indicating the impact of changes in income tax provisions proposed by Finance Minister Arun Jaitley in the Budget for 2014-15.

Tax exemption limit has been raised to Rs 2.5 lakh from Rs 2 lakh.

INCOME TAX RATE IMPACT (Individual Tax Payers)
1. Up to Rs 2,50,000 NIL Rs 5,000 (Savings)
Rs 2,50,001 to Rs 5,00,000 10 per cent Do
Rs 5,00,001 to Rs 10,00,000 20 per cent
Above Rs 10,00,000 30 per cent Do

2. (For Senior Citizens - above 60 years) Up to Rs 3,00,000 NIL Rs 5,000 (Savings)
Rs 3,00,001 to Rs 5,00,000 10 per cent
Rs 5,00,001 to Rs 10,00,000 20 per cent
Above Rs 10,00,000 30 per cent

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