Union Budget 2005 - A Synopsis - Income Tax Proposals

Mondaq Business Briefing › India Law Articles in English (2005)

Author: Mr Keshav Jetsey

Author position: K.F. Jetsey & C.

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Union Budget 2005 - A Synopsis - Income Tax Proposals

1. Exemption Levels:

The threshold level of income exempt from tax is proposed to be raised from Rs: 50,000 to Rs: 1,00,000.

The threshold level for women who have not attained the age of 65 is proposed at Rs: 1,25,000. This replaces the rebate allowable to women u/s 88 - C which now stands eliminated.

The threshold level for senior citizens is proposed at Rs: 1,50,000. This replaces the rebate allowable to senior citizens u/s 88 - B which now stands eliminated.

The above amendment is proposed to take effect from A.Y: 2006 - 07.

2. Rates of Tax:

2.1 Individuals & HUF:

It is proposed to revise the rates of tax for individuals and HUF. The new slabs proposed are as under:

EXISTING RATES

PROPOSED RATES

SLABS

TAX RATE

SLABS

TAX RATE

Upto Rs.50,000

NIL

Upto Rs. 1,00,000

NIL

Rs.50,000 to Rs.60,000

10%

Rs. 1,00,000 to Rs. 1,50,000

10%

Rs.60,000 to Rs. 1,50,000

20%

Rs: 1,50,000 to Rs. 2,50,000...

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