New Income Tax Slab for the Year 2011-12 ? ? Due to the high inflation impact, the central government may hike the Income Tax Limit in the coming Budget on February 28 for the Financial Year 2011-2012.
The tax payers , including the central government employees may get some relief if the tax limit is increased. When the Direct Tax code will be implemented, the government is committed to increase the IT limit from 1.6 Lakh per annum to 2 lakh per annum. Between this, the upcoming budget will be a great relief for the Employees.
In the Direct Tax Code Bill which was presented in the Parliament this year, the tax exemption limit is 2 lakhs. But DTC will come in 2012 April only.
80 (c) limit should be increased.That's where most of people get hit. As base salary increases , a substantial (if not all) amount under 1 lakh 80 c limit gets covered with PF , Now a days minimal insurance amount doesn't help. Insurance , ULIp also comes under 80 (C). As if this is not enough, Even home loan part also come under 80 c , So essentially you end up saving very less if you compare to what all you have invested under 80 c. More than 90% of investments by a average indian falls under 80 c . 1 lakh limit on 80c is grossly under par.
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