New Delhi, Feb 28: Income tax exemption limit for individuals has been raised from ` 1.6 lakh to ` 1.8 lakh, giving a relief of ` 2000 to every tax payer, in the Budget for 2011-12 which widened the Service Tax net to cover more services that will raise the cost of air travel and hotel accommodation.
Presenting his third Budget in the Lok Sabha, Finance Minister Pranab Mukherjee preferred not to roll back central excise duty levels to November 2008 and kept it at 10 per cent while he levied a nominal one per cent central excise duty on 130 items that will enter the tax net.
 Mukherjee's income tax sops included reducing eligibility age of senior citizens from 65 to 60 and enhancing the exemption limit for them from ` 2.40 lakh to Rs 2.50 lakh. He also created a new category of ‘Very Senior Citizens’ of 80 years and above who will be eligible for a higher exemption limit of ` 5 lakh.
 Pranab announced that deduction of ` 20,000 from taxable income for investment in long-term infra bonds shall be extended till next fiscal.
 The housing loan limit raised from ` 20 lakh to ` 25 lakh from priority sector lending; 1 percent interest rate subsidy for home loans up to ` 15 lakh.
 Remuneration of Anganwari workers has been raised from ` 1,500 to ` 3,000 a month. Helpers to get ` 1,500 from ` 750.
 The old age pension to persons over 80 years has been raised from ` 200 to ` 500.

Lastupdate on : Mon, 28 Feb 2011 21:30:00 Makkah time
Lastupdate on : Mon, 28 Feb 2011 18:30:00 GMT
Lastupdate on : Tue, 1 Mar 2011 00:00:00 IST