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Marginal relief to IT payers
Tribune News Service

New Delhi, August 26
Finance Minister P. Chidambaram today announced relief to income tax assessees whose taxable income is marginally above Rs 1 lakh.

Mr Chidambaram had announced in his budget speech that those persons with an annual taxable income upto Rs 1 lakh would be exempted, even though those earning more than Rs 1 lakh would be liable to pay income tax from Rs 50,000.

This had resulted in a situation where the real income ( net of taxes) of a person earning Rs 1,10,000 was less than the person whose annual income was Rs 1 lakh.

The marginal relief provided under section 88 D after the amendment in the Finance Bill, 2004, as passed by Parliament today, this anomaly will be resolved.

Persons with annual income of Rs 1,11,240 will get relief under the amended Finance Bill.

In all, 55 official amendments were moved by the Finance Minister. On the tax on NRI and NRE deposits, the Finance Minister said that although the provision remains as per the Budget and stands deferred till April 2005, it would be taken up after the elaborate consultations.

Similarly, the budgetary provisions on tax on leasing of aircraft has been deferred till April 2005.