The Finance Bill 2013-14 proposes a relief of Rs.2000 to every person who has a total income upto Rs.5 lakh in a financial year. Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram said that 1.80 crore taxpayers are expected to benefit to the value of Rs.3600 crore on account of this proposal of tax credit of Rs.2000. He further said that the current slabs were introduced only last year. Hence, there is no case to revise either the slabs or the rates. However, he proposed to give some relief to the taxpayers in the first bracket of Rs.2 lakh to Rs.5 lakh.

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DSM/RC/nb/6

(Release ID :92732)

Tax credit proposal targets lower middle income taxpayers, offering a uniform credit to eligible individuals under an income threshold. Proposal to grant a tax credit of two thousand rupees to every person whose total annual income does not exceed five lakh rupees, targeted at taxpayers with incomes between two lakh and five lakh while preserving existing tax slab rates and thresholds.