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Budget proposed a new change in tax rates for Financial Year 2008-09, for an individual. Some major highlights are like:

1. Exemption Limit Increased To Rs 1,50,000 From Rs 1,10,000.
2. Tax Exemption For Women: Rs 180000
3. Tax Exemption For Senior Citizens: Rs 225000
4. No Change In Corporate Income Tax, No Change In Surcharge
5. Changes In It Slab. Threshold Of Exemption For All Income Tax Assesses Raised From From 1,10,000 To 1,50,000.
6. Every Income Tax Assessees To Get Relief Of Minimum Of Rs 4,000.
7. No Change In Rate Of Surcharge.
8. No Change In Corporate Income Tax.
9. For Women, The Income Tax Limit Goes Up From Rs 1.45 Lakh To Rs 1.80 Lakh.
10. In Case Of Senior Women Citizens, It Increases From Rs 1.95 Lakh To Rs 2.25 Lakh.
    

The new Tax rates are as below:

Tax rates ->	0%	10%	20%	30%
Male	0 to 1.5 Lakh	1.5 to 3 Lakh	3 to 5 lakh	Above 5 Lakh
Female	0 to 1.8 Lakh	1.8 to 3 Lakh	3 to 5 lakh	Above 5 Lakh
Senior Citizen	0 to 2.25 Lakh	2.25 to 3 Lakh	3 to 5 lakh	Above 5 Lakh

However there is no change in tax rates for Corporates as well as No change in Surcharge for any of the categories.

Source: Relyon | Back to Budget Page