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First of all the main highlights of this budget which was addressed to the public is the increase in the basic exemption limit of almost all category of person except the women tax slab. The basic exemption limit for male person has been increased from the earlier Rs. 160000 to Rs. 180000. Therefore one will now be able save tax on Rs.20000 which was paid to be paid earlier i.e. 2060/-.

The basic exemption limit for Senior Citizen has been brought to Rs. 250000 which previously stood at Rs. 240000.

In fact there has been surprise entry of a new category of senior citizen covering those individual whose age is 80 or above. For these people the basic exemption limit starts from a whopping Rs. 500000. This is really a bonanza for this category of people. While the other structure of the slab remaining the same for them.

The age limit to be categorized as senior citizen too has been brought down from the earlier limit of 65 years to currently 60 years. So now any individual who have attained the age of 60 or above will now have a basic exemption limit of Rs. 250000. The Finance Minister has given us another reason to cheer by continuing the period for tax saving infrastructure bonds for a year more. Hence one can avail deduction under section 80 CCF up to a maximum limit of Rs. 20000 for this year too.

As far as the companies are concerned they to have been shown a bit of mercy and the budget brought reduction in the surcharge rate for both the domestic companies as well as the foreign companies. In case of domestic companies the surcharge rate has been brought down to 5% from 7.5% and in case of foreign companies the surcharge rate has gone to 2 % from the earlier 2.5%.

There has been provided tax break to government employee in the form contribution to Notified Pension Scheme. They will now be allowed a deduction of 10% of their salary on the gross taxable income over the basic limit of Rs. 100000 in order to make such scheme more popular in the government sector. An important thing to note is that there has not been placed any ceiling limit on this type of deduction.

The tax on income in the form of interest through infrastructure debt funds has been brought to 5% for the foreign companies and non resident which earlier was hovering around 20% or a lower rate depending upon the treaties signed between the respective nations.
Therefore we could see that the budget has brought about good tax benefits for every class of person and companies. But it is to be seen with time how such proposal fair in the coming time.

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