IT exemption raised to Rs 1.8 lakh

Union Finance Minister Pranab Mukherjee in the annual budget raised the income tax exemption limit from Rs 1.6 lakh to Rs 1.8 lakh.

Exemption for senior citizen raised to Rs 2.5 lakh, Mukherjee said as he presented the Budget 2011.

Senior citizen age has been reduced to 60 years.

For those above 80 years (very senior citizen) the exemtion limit is Rs 5 lakh.

Mukherjee said the priority is to make the taxes moderate.