FM prunes tax rates:
Income up to Rs 1.6 lakh – nil
Income above Rs 1.6 lakh and up to Rs 5 lakh – 10 per cent
Income above Rs 5 lakh and up to Rs 8 lakh – 20 per cent
Income above Rs 8 lakh – 30 per cent.
New tax rates would offer relief to 60 per cent of taxpayers, the finance minister said.
Additional deduction of Rs 20,000 allowed on long-term infrastructure bonds for income tax payers; this is above Rs one lakh on saving instruments allowed already.
Investment linked tax deductions to be allowed to two-star hotels anywhere in the country.
Source : NDTV