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I-T exemption limit raised to Rs 100,000

July 08, 2004 12:25 IST

Finance Minister P Chidambaram has some good news for the salaried class. He has raised the exemption limit on Income Tax raised to Rs 1 lakh (Rs 100,000), meaning anyone earning up to Rs 100,000 per year will not have to pay any Income Tax.

  • The finance minister has, however, not made any changes in the tax slabs.
  • Chidambaram said that everyone will file tax returns and anyone with an annual income of Rs 100,000 will have his tax automatically rebated.
  • This will take 1.4 crore tax assessees out of I-T net.
  • Government remained committed to moderation and stability in tax rates, Finance Minister P Chidambaram said.
  • Family pension for widows of armed forces and para-military forces killed in operations are exempted from income tax.
  • 100 beds hospital in rural areas to get 100 % tax  exemption under 80 I B.
  • Section 80(DD) and Section 80 (U) will be given to persons suffering from autism, cerebral palsy and multiple disability.
  • Contributions to Contributory Pension Scheme exempted form tax. Terminal Tax to be paid at the time of receipt.
  • Loopholes in gift tax exemption to be plugged.
  • Encouragement to automobile sector. Industry to be provided 150 per cent exemption for in-house research and development.
  • Capital Gains Tax revamped on securities. Long term capital gains tax abolished.
  • Tonnage tax introduced for shipping industry but will have option to pay either tonnage tax or corporate tax.

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Number of User Comments: 32




Sub: Investment to reduce tax burden

Someone draw a basic of Rs. 2 lac pa & HRA of 1 lac pa. What should be his investment pattern to keep the tax ...


Posted by Paresh Mathur





Sub: new IT slab

hello Respected Sir, I want to know i have taxable income for the year 2004 -- 2005 Rs.2,66,000 so how much i paid tax plz ...


Posted by Ansari





Sub: I-T Exemption limit raised to Rs. 1lakh

Hi can someone clarify. Suppose a guy draws Rs.2 lakh salary. Will he have to pay tax on Rs.1 lakh only. Or will the min. ...


Posted by Ananthakrishnan





Sub: it exemption limit

This is an ambigues declaration only because the employee whosgross income is more than one lakh will not get the benifit.A person earning 100000 will ...


Posted by SANTOSH KUMAR RATH





Sub: Clarification about Section 80DD

Till now I was taking rebate of Rs.40,000/- p.a. under Section 80DD as my sister is mentally retarded. Now it is said that "Section 80(DD) ...


Posted by ABHISHEK




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