I-T exemption limit raised to Rs 1 lakh

NEW DELHI: The Budget 2004-05 has some good news for the salaried class with the finance minister P Chidambaram raising the exemption limit on Income Tax to Rs 1 lakh.

Presenting the Budget for the fiscal the minister clarified that anyone earning up to Rs 1 lakh per year will neither have to pay any Income Tax, nor any cess.

The finance minister has, however, not made any changes in the tax slabs. Chidambaram also said that everyone will have to file tax returns and anyone with an annual income of Rs 1 lakh will have his tax automatically rebated. “The Government remains committed to moderation and stability in tax rates,” Chidambaram said.