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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 ...


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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