Earning Less than Rs.8 Lakh? Your Tax will Go Up
Tuesday, 03 April 2012, 01:53 IST
By SiliconIndia
By SiliconIndia
The deduction was increased two years ago and it has to be extended every year through an amendment. Tax experts had dreaded the worst when the finance minister did not mention it in his budget speech this year. Finance Ministry sources now authenticate that the Rs.20, 000 deductions has been allowed to tumble this year.
It has come clean by now that the change will not burn those with an income of less than Rs.5-6 lakh a year. The taxpayers in this section generally did not invest in infrastructure bonds in a huge way as the tax benefit is lesser for this slab. In a lot of cases, these taxpayers failed to exhaust even their Rs.1 lakh deduction limit under Section 80C.