Budget 2011: Income tax exemption limit raised to Rs1.8 lakh

Finance minister Pranab Mukherjee Monday proposed to enhance the income tax exemption limit to Rs1.8 lakh (Rs180,000 or $4,000) for the next financial year, from Rs1.6 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% from 18% and the surcharge has been lowered to 5% from 7.5%.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 Rs5 lakh. The qualifying age limit for senior citizens was being lowered to 60 years from 65 years.