New Delhi, February 28:A play-safe budget today raisedthe income tax exemption limit from Rs 1.60 lakh to Rs 1.80 lakh leaving at least an extra Rs 2,000 in the hands of tax paying men across the board and made air travel, hotel accommodation and drinking in AC restaurants costlier.
Finance Minister Pranab Mukherjee presented the 2011-12 budget, which shows a net revenue loss of Rs 200 crore, imposed an excise duty of one per cent on 130 specified items which will, however, exempt food and fuel.
The third budget by Mukherjee charted a road map for financial sector reforms by vowing to bring in various legislations, raised social sector spending by 17 per cent to Rs 1,60,887 crore, infrastructure spending by Rs 2,14,000 crore, up by over 23 per cent, and the credit target for
farmers by Rs one lakh crore from Rs 3.75 lakh crore to Rs 4.75 lakh crore.
He also gave some relief to corporates by reducing the current income tax surcharge of 7.5 per cent on domestic companies to five per cent but raised the Minimum Alternate Tax (MAT) from 18 to 18.5 per cent including developers of Special Economic Zones (SEZs) in it.
While leaving the rest of exemption slabs, surcharge and cess on income tax untouched, he reduced the qualifying age of senior citizens from 65 to 60 years, raised their exemption limit from Rs 2.40 lakh to Rs 2.50 lakh. No special benefit was announced for women below 60 years whose basic exemption
limit remains at Rs 1.90 lakh.
Mukherjee also created a new category of “Very Senior Citizens” of 80 years and above who will be eligible for a higher exemption limit of Rs five lakhs. The raising of exemption limit for those above 60 but below 65 will benefit men up to to Rs 9,270 and women up to Rs 6,180.
Between 65 and 80 the benefit will be Rs 1,030 and beyond 80 years both men and women will get up to Rs 26,780.
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