Budget 2009 - Personal Income Tax Exemption Limit Raised

THE Finance Minister, in today's budget speech, announced marginal tax benefits for individual tax payers.

He increased the basic exemption limit for male taxpayers and female taxpayers by Rs 10,000 and that of senior citizens by Rs 15,000. Further, he abolished the surcharge of 10% on income over Rs 10 lakh.

The new tax slabs now stand as follows:

Male taxpayers
0 to 160000 0
160001 to 300000 10%
300001 to 500000 20%
Above 500000 30%

Female taxpayers
0 to 190000 0
160001 to 300000 10%
300001 to 500000 20%
Above 500000 30%

Senior citizens
0 to 240000 0
160001 to 300000 10%
300001 to 500000 20%
Above 500000 30%

In addition to this, an education cess of 3% on the tax amount continues while a 10% surcharge on income over Rs 10 lakh has been abolished.

Savings after Budget

For men and women

Taxable income (Rs)	Tax - before budget		Tax -after budget		Difference
	Male	Female	Male	Female	Male	Female
200000	5150	2060	4120	1029	1030	1031
500000	56650	53560	55620	52529	1030	1031
1000000	211150	208060	210120	207029	1030	1031
1200000	300245	296845	271919	268829	28326	28016
1500000	402215	398815	364619	361529	37596	37286
2000000	572165	568765	519119	516029	53046	52736
2500000	742115	738715	673619	670529	68496	68186
4000000	1251965	1248565	1137119	1134029	114846	114536
						In Rs