New Delhi, Feb 28: The standard deduction for the purpose of income tax for salaried employees has been raised to 40 per cent of salary, or Rs 30,000, whichever is less, for income upto Rs five lakh and a deduction of Rs 20,000 for those having income above Rs five lakhs. Presenting the budget proposals, Finance Minister Jaswant Singh said there would be no change in the tax slabs.
Individual tax-payers having income from dividends and interest would be given a general deduction of Rs 12,000 as against Rs 9,000.

An additional deduction of Rs 3,000 has also been proposed in respect of interest from government securities, taking the total deduction available under Section 80L to Rs 15,000. Bureau Report