Taxpayers have something to rejoice thanks to provisions listed out by Finance Minister Pranab Mukherjee while announcing Budget 2011-12 in Parliament on Monday.
Senior citizens are the main beneficiary in the latest budget. Mukherjee has reduced the age limit for classification as a senior citizen from 65 years to 60 years. The tax exemption limit has also been increased from Rs 2.4 lakh to Rs 2.5 lakh.
A new tax slab has been created for "very senior citizens" above 80 years. These taxpayers will enjoy a tax exemption limit of Rs 5 lakh.
Individual taxpayers will be able to save Rs 2,000 in taxes as the tax exemption limit has been increased from Rs 1.6 lakh to Rs 1.8 lakh.
Women taxpayers might be disappointed by the latest budget as they have not been given any new tax benefits. The tax exemption limit remains unchanged at Rs 1.9 lakh.
The Direct Taxes Code is set to come into effect from April 2012. The new tax regime will not have a separate category for women taxpayers.
The Rs 20,000 deduction for investment in notified infrastructure bonds will also be available in 2011-12.