Finance Minister P Chidambaram has announced changes in the Income Tax slabs. The threshold of exemption for all Income Tax assesses raised from from Rs 1,10,000 to Rs 1,50,000.

Every income tax assessee will get a relief of a minimum of Rs 4,000.

New tax slabs will be: 10 per cent for Rs 1,50,000 to Rs 3,00,000, 20 per cent for Rs 3,00,000 to Rs 5,00,000 and 30 per cent above 5,00,000.

An additional deduction of Rs 15,000 under Section 80D has been allowed to an individual who pays medical insurance premium for his/her parents.

For government employees, there is more good news as the Sixth Central Pay Commission will submit report by March 31, 2008, which the finance minister believes will be favourable to government staff.

Direct tax proposals to be revenue neutral. Image: Bank employees, representing a big chunk of India's middle and salaried class, protest in a one-day strike over privatisation and outsourcing last year.