India finance Minister Pranab Mukherjee has cut personal income tax across various slabs.

There is a raise in the exemption limit to Rs 2 lakh for all individual tax payers. This will result in a savings of a minimum of Rs 2,000 for all tax payers.

The upper limit of 20% tax slab has been raised from Rs 8 lakh to 10 lakh - a saving of Rs 22,000 for people in this tax bracket.

The proposed tax slabs are as follows:

Income up to Rs 2 lakh - nil
Income between Rs 2 lakh to Rs 5 lakh - 10%
Income between Rs 5-10 kakh - 20%
Inncome above Rs 10 lakh - 30 %

Global crisis has affected us. India's gross domestic product (GDP) is expected to grow at 6.9 percent in 2011-12, after having grown at 8.4 percent in each of the two preceding years.

AC, gold jewelery, fridge, mobile bills and cigarettes willcost more. whereas
Cinema and films, SUVs, LCD and LED TVs, bicycles, housing society charges, LPG, mobiles, medicines for treating cancer and HIV to will cost less now.