new delhi giving some relief to tax payers finance minister pranab mukherjee on friday proposed raising the income tax exemption limit for individuals to rs 2 lakh per annum from rs 180 lakhbudget at et budget 2012 union budget live union budget blog railway budget 2012 budget news economic survey of india unveiling the budget proposals for 201213 in the lok sabha he also increased the limit to rs 10 lakh under the 20 per cent tax slab the current limit is rs 8 lakhmy proposals on direct taxes are estimated to result in a net revenue loss of rs 4500 crore for the year mukherjee saidthe budget also exempt up to rs 10000 of interest income from taxindividual will have to pay 10 per cent tax on income between rs 2 lakh and rs 5 lakh 20 per cent between rs 5 lakh and rs 10 lakh and 30 per cent for above rs 10 lakhmukherjee said increasing the exemption limit is a move towards implementation of the direct taxes code dtcthe standing committee of parliament that has scrutinised the dtc bill had suggested raising the tax exemption limit to rs 3 lakhthe exemption limit for the senior citizens between 60 and 80 years of age will be rs 250 lakh 10 per cent will be levied on income between rs 255 lakh 20 per cent between rs 510 lakh and 30 per cent above rs 10 lakh for very senior citizens 80 years and above the income tax exemption limit will be rs 5 lakh 20 per cent will be levied on income between rs 510 lakh and 30 per cent for above rs 10 lakhon implementation of dtc mukherjee said we received the report of the parliamentary standing committee on march 9 2012 we will examine the report expeditiously and take steps for enactment of dtc at the earliestthe dtc bill seeks to replace the halfacenturyold income tax act 1961 the savings bank account deductions mukherjee said will help small tax payersthis would help a large number of small tax payers with salary income of up to rs 5 lakh and interest from savings bank accounts up to rs 10000 as they would not be required to file income tax returns mukherjee said