Budget 2011 – What's there for individual tax payers?

1. Exemption limit for the general category of individual taxpayers enhanced from 1,60,000 to 1,80,000 giving uniform tax relief of around 2,000.

Upto Rs. 1,80,000	Nil
Rs. 1,80,001 to Rs. 5,00,000	10 per cent.
Rs. 5,00,001 to Rs. 8,00,000	20 per cent.
Above Rs. 8,00,000	30 per cent.

2. Exemption limit enhanced and qualifying age reduced (from 65 years to 60 years) for senior citizens.

Upto Rs. 2,50,000	Nil
Rs. 2,50,001 to Rs. 5,00,000	10 per cent.
Rs. 5,00,001 to Rs.8,00,000	20 per cent.
Above Rs. 8,00,000	30 per cent.

3. Higher exemption limit for Very Senior Citizens, who are above the age of 80 years.

Upto Rs. 5,00,000	Nil
Rs. 50,00,001 to Rs. 8,00,000	20 per cent.
Above Rs. 8,00,000	30 per cent.

4. No need to file Income Tax Return for salaried , if there is no other source of income (as per Memorandum to the Finance Bill 2011) . More info on this is still awaited. This change will take effect from 1st June, 2011.

Memorandum to the Finance Bill 2011.
Exemption to a class or classes of persons from furnishing a return of income
Under the existing provisions contained in section 139(1) of the Income-tax Act, every person, if his total income during the previous year exceeds the maximum amount which is not chargeable to income-tax, is required to furnish a return of his income.
In the case of salaried tax payer, entire tax liability is discharged by the employer through deduction of tax at source. Complete details of such tax payers are also reported by the employer through Tax Deduction at Source (TDS) statements. Therefore, in cases where there is no other source of income, filing of a return is a duplication of existing information. In order to reduce the compliance burden on small tax payer, it is proposed to insert sub-section (1C) in section 139. This provision empowers the Central Government to exempt, by notification in the Official Gazette, any class or classes of persons from the requirement of furnishing a return of income, having regard to such conditions as may be specified in that notification. Consequential amendments are also proposed to be made to the provisions of section 296 to provide that any notification issued under section 139(1C) shall be laid before Parliament. These amendments will take effect from 1st June, 2011.
[Clauses 23, 32]

5. Additional deduction of 20,000 for investment in long-term infrastructure bonds proposed to be extended for one more year.