Finance minister Pranabh Mukharjee has presented the union budget for year 2009-10 today. The budget that has more stress for infrastructure development also includes a modified income tax slab.
Main attraction - Income tax exemption limit increased. Income tax exemption limit for senior citizens is now 2.4 lakh, for women it is 1.90 lakh and for all others the income tax exemption limit will be 1.60 lakh.

Highlights
• Income tax slab base for 2009-2010 raised to 1,60,000 rupees for individual tax payer. This in an increase of slab base from the earlier Rs 1.50 lakh. For women the exemption limit according to latest tax slab will be Rs 1.90 lakh, which is an increase of Rs 10,000 from the earlier rate of Rs 1.80 lakh. Senior citizens will enjoy an extra Rs 15000 as the exemption limit is increased to Rs 2.40 lakhs from an earlier 2.25 lakhs
• The current budget has removed of 10 per cent surcharge on personal income tax.
• Fringe benefit tax and Commodities transaction tax has been removed in the current budget
• The budget displayed a major allocation for infrastructure projects.
• Defence budget increased by 34 per cent. Current allocation is 1,41,703 crore

Check Modified Income tax slab for the modified income tax slabs for financial year 2009-2010. You may also want to use the free quick Income tax calculator for finding out your tax based on the latest income tax slab.