WHAT TO EXPECT IN BUDGET-INCOME TAX -MORE MONEY IN YOUR POCKET

1. The finance ministry might go for raising zero income tax slab to Rs 1,50,000 against the current level of Rs 1,00,000.
2. Over and above Rs 1,00,000, income tax exemption might be given for another Rs 30,000-50,000, especially for infrastructure. Or alternatively, there might be consolidated savings limit of Rs 1,30,000-1,50,000 . With the government exploring various options to attract long-term funds for infrastructure, savings in certain categories up to Rs 1,30,000-1,50,000 a year may qualify for income tax exemption in the coming Budget against Rs 1,00,000 currently.
3. So far as the slabs are concerned, currently, income up to Rs 1,00,000 does not attract any tax with Rs 1,00,000-1,50,000 drawing tax at the rate of 10 per cent.
4. Income from Rs 1,50,000 -2,50,000 attract 20 per cent income tax and 30 per cent above Rs 2,50,000. Besides, there is surcharge of 10 per cent on Rs 10 lakh taxable income.
5. For women, income up to Rs 1,35,000 does not attract income tax and Rs 1,35,000-1,50,000 draws 10 per cent tax rate. Above this level, the tax rates are same as that for men.
6. Senior citizens get tax exemption up to Rs 1,85,000 and do not have 10 per cent tax slab. There is also likelihood that the Budget would lower the age for senior citizens from 65 years to 60 years, the sources added.