Income tax rate in India has changed due to the finanacial Budget 2007.
Taxable income limit was increased from Rs 1 Lakh to Rs 1.1 Lakh. For women, it is Rs 1.45 lakh and for senior citizens is 1.85 lakh. For this amount, no tax is payable.
If your annual income is higher, you can save tax by investing it in Provident fund, Life Insurance of India policies, National Savings Certificates, Mutual funds etc (Savings maxi limit is Rs.1 Lakh). Donations to registered charitable agencies, Prime minister's relief fund etc. are exempted from income tax.
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