Income tax exemption limit raised to 1.8 Lakh

New Delhi: Finance Minister Pranab Mukherjee proposed to enhance the income tax exemption limit to 1.8 lakh ( 180,000 or $4,000) for the next financial year, from 1.6 lakh now.

He announced this while presenting the federal budget for the next fiscal.

The minimum alternate tax levied on the corporate sector has, however, been increased to 18.5 percent from 18 percent and the surcharge has been lowered to 5 percent from 7.5 percent. Mukherjee also said he was proposing a very senior category of income tax payers, above the age of 80, for whom the tax exemption will be up to 5 lakh. The qualifying age limit for senior citizens was being lowered to 60 years from 65 years.