The finance minister proposed the following slabs for individual tax payers:
There will be no tax for income upto Rs 1.6 lakh. The earlier slab was 1.6 - 3 Lkh
For income between 1.6 lakh - 5 lakh, the tax liability will be 10%. The older slab was 3-5 lakh.
For income between 5 lakh - 8 lakh, the tax liability will be 20%. The earlier slab was 5 lakh.
Individuals with income of above 8 lakh will have tax liability of 30%.
The government would allow a deduction of up to Rs 20,000 for investments in long-term infrastructure bonds. The deduction would be in addition to Rs 100,000 allowed under Section 80C of India's Income Tax Act.
