The Finance Minister announced that individual taxpayers earning upto Rs 5 lakh need not pay any tax in the Interim Budget tabled today Those who have gross income upto Rs 6.5 lakh also will not have to pay any tax if investments are made upto Rs 1.5 lakh. Standard tax deduction for salaried persons raised from Rs 40,000 to Rs 50,000.
He further announced that TDS threshhold on banks and post office deposits raised from Rs 10,000 to Rs 40,0000. TDS threshold on rental income raised from Rs 1.8 lakh to Rs 2.4 lakh.
He further said, 'Benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to 2 crore rupees; can be exercised once in a lifetime'.