News Brief: In the next Union Budget government is likely to raise Tax exemption limit for individual income tax payers to Rs 2 lakh, as provided in the Direct Taxes Code (DTC), and hiking the slabs for different tax brackets. But keeping in the mind fiscal deficit possibility of lowering the tax rates is unlikely. The Finance Minister, Mr Pranab Mukherjee will be unveiling the Budget proposals for 2012-13 around mid of March.

As per Direct Tax Code (DTC) proposals the income tax exemption limit be hiked to Rs 2 lakh from Rs 1.8 lakh at present.

It also proposes that the highest personal income tax rate of 30 per cent should apply to annual income above Rs 10 lakh, as against Rs 8 lakh.