Finance Minister P Chidambaram has proposed the much awaited Union Budget today in the Parliament. The minister described that the budget paves way to spur growth in the nation.
No changes have been proposed in the personal income tax slabs or rates. Following are the applicable tax rates
Income upto Rs.2 lakhs per annum has been exempted from the Tax.
Income between Rs 2 lakhs to Rs. 5 lakhs per annum, will draw 10% income tax. A credit of Rs. 2000/- will be granted for this slab.
Income between Rs 5 lakhs to Rs. 10 lakhs per annum, will draw 20% income tax.
Income above Rs. 10 lakhs per annum will draw 30% income tax.
Medical expenses under the CGHS eligible for deduction under the Section 80 D.