Income tax payers are likely to get a major relief

Income tax payers are likely to get a major relief in the Budget 2008-09, as government prepares itself to please middle-class in election year.

The minimum income threshold limit for income tax payer could be raised from Rs 1,10,000 to Rs 1,25,000 or Rs 1,30,000, sources said.The income threshold for 30 per cent tax rate could be raised from the current Rs 2,50,000 per annum, sources said.

Tax payers would get a relief of Rs 1,500 to Rs 2,000 even if the finance minister decides to raise the minimum income threshold limit of income tax by Rs 15,000 to Rs 20,000. The finance minister had earlier said that the code, aimed at simplifying the tax laws, would be put for public comments shortly.