Budget opens new windows for taxpayers

Slabs with salaries in excess of Rs 8.5 lakh will have to shell out starting from a minimum of Rs 5,225, thanks to the surcharge raised from 5 to 10 per cent.

Singh has tried to offset the interest cut in small savings/PPF by the first-ever rebate in income tax for expenses incurred on children’s education upto Rs 12,000 per child per year for a maximum of two kids.

The standard deduction for salaried class has been raised to 40 per cent of salary or Rs 30,000, whichever less for incomes upto Rs 5 lakh and deduction of Rs 20,000 for those above beyond Rs 5 lakh gross salary per annum.

The Budget has retained the tax sops on housing loans and small savings, income from dividends and interest will be given a general deduction of Rs 12,000 as against Rs 9,000 so far. An additional deduction of Rs 3,000 has also been proposed in respect of government securities, thus taking the total deduction under section 80 L to Rs 15,000.