In the budget proposal 2011-12 presented in Lok Sabha today, the Finance Minister has proposed to increase the income tax exemption limit for general tax payers from Rs 1.60 lakh at present to Rs 1.80 lakh per annum, which will be equivalent to a tax benefit of Rs 2000 for a tax payer. The proposal also introduced a high new tax slab for senior citizens of 80 years and above under which they will not have to pay any tax for annual income up to Rs 5 lakh. Moreover, age limit for senior citizens has been reduced from 65 to 60 years and the tax exemption limit has been raised upto 2.5 lakh.
Source: www.timesofindia.com, February 28, 2011. “Union Budget 2011: Income Tax limit raised to Rs 1.8 lakh”
Also Check: Union Budget 2011-12