MUMBAI (Reuters) - India raised personal income tax slabs for 2010/11, which could result in a net tax saving of 20,000 to 50,000 rupees for those earnings above 300,000 rupees, giving a boost to the country's rising consumption, experts said.

Finance Minister Pranab Mukherjee in his budget speech on Friday also allowed a deduction of up to 20,000 rupees for investments in long-term infrastructure bonds, in addition to the existing 100,000 rupees under Section 80C of the Income Tax Act.

"Assuming you have 800,000 worth of income, then you can save close to 50,000 rupees," Kartik Varma, co-founder of iTrust Financial Advisors, said, adding saving for those earning between 300,000 and 500,000 would be about 20,000 rupees.

The savings will boost spending and ease pressure from a vast Indian middle class which is fighting double-digit food inflation.

Reacting to the budget, shares in comsumer firms such as Marico, Godreh Consumer Products and Colgate India were up more than 2.5 percent in a strong Indian stock market which was up over 1.3 percent.

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(Reporting by Nishant Kumar; editing by Ramya Venugopal)

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