Below is excerpts from Budget speech :
I, therefore, propose to reduce the existing rate of taxation for individual assesses between income of `2.5 lakhs to `5 lakhs to 5% from the present rate of 10%. This would reduce the tax liability of all persons below `5 lakh income either to zero (with rebate) or 50% of their existing liability. In order not to have duplication of benefit, the existing benefit of rebate available to the same group of beneficiaries is being reduced to `2500 available only to assessees upto income of `3.5 lakhs. The combined effect of both these measures will mean that there would be zero tax liability for people getting income upto `3 lakhs p.a. and the tax liability will only be `2,500 for people with income between `3 and `3.5 lakhs. If the limit of `1.5 lakh under Section 80C for investment is used fully the tax would be zero for people with income of `4.5 lakhs. While the taxation liability of people with income upto `5 lakhs is being reduced to half, ----
Is there any contradiction about Rebate of 87A being reduced to Rs 2,500 ? It the rebate now only for income up to Rs 3,50,000 or till 5,00,000?
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