Certain key features of budget 2009-10
relating to Personal Income Tax:
The Union Govt has marginally increased personal
income tax exemption limit by Rs 15,000 from Rs 2.25 lakh to Rs 2.40
lakh for senior citizens.
has also raised the exemption limit by Rs 10,000 from Rs 1.80 lakh
to Rs 1.90 lakh for women tax payers and by Rs 10,000 from Rs 1.50
lakh to Rs 1.60 lakh for all other categories of individual
has also increased the deduction under section 80-DD in respect of
maintenance, including medical treatment, of a dependent who is a
person with severe disability to Rs. 1 lakh from the present limit
of Rs 75,000.
The budget has phased out the surcharge on various
direct taxes by eliminating the surcharge of 10 per cent on personal
No change in corporate taxation.
The budget has also abolished the Fringe Benefit Tax
that was introduced in the Finance Act, 2005 on the value of certain
fringe benefits provided by employers to their employees.