COLUMNISTS
ECONOMY
INDUSTRY
FINANCE
ARCHIVES

Tax rate stays, but exemption limits up

Finance Minister Yashwant Sinha today proposed no change in the existing income tax rate structure either for individual or corporates.

However, considering the difficulties experienced by the tax payers at the marginal level, the level for tax exemption was proposed to be raised from the existing Rs 40,000 to Rs 50,000.

The finance minister has proposed to raise the ceiling of standard deduction from Rs 20,000 to Rs 25,000 for income up to the limit of Rs 100,000. No change has been proposed for salary earners having income between Rs 100,000 and Rs 500,000. The deduction will not be allowed for salary earners whose income is more than Rs 500,000.

The ceiling for tax-free reimbursement of medical expenses has been enhanced from Rs 10,000 to Rs 15,000.

Budget '98