It’s marginal and it’s not exactly what the salaried class wanted keeping in mind the raise in their annual income thanks to 6CPC implementation.
These are certain key features of budget 2009-10 relating to Personal Income Tax
The Union Govt has marginally increased personal income tax exemption limit by Rs 15,000 from Rs 2.25 lakh to Rs 2.40 lakh for senior citizens.
Similarly it has aslo raised the exemption limit by Rs 10,000 from Rs 1.80 lakh to Rs 1.90 lakh for women tax payers and by Rs 10,000 from Rs 1.50 lakh to Rs 1.60 lakh for all other categories of individual taxpayers.
Further, it has also increased the deduction under section 80-DD in respect of maintenance, including medical treatment, of a dependent who is a person with severe disability to Rs 1 lakh from the present limit of Rs 75,000.
The budget has phased out the surcharge on various direct taxes by eliminating the surcharge of 10 per cent on personal income tax.
There is no change in corporate taxation.
The budget has aslo abolished the Fringe Benefit Tax that was introduced in the Finance Act, 2005 on the value of certain fringe benefits provided by employers to their employees.