New Income slab and tax rebate on savings declared in Union budget 2012 -2013


In Union budget of India 2012 -2013, there has been slight changes in income tax slab giving some relief to common Indian. See details about the new income tax slab and new rebate in tax saving investments announced in Union budget 2012 - 2013.

Fiscal contraints, pressure to control rising inflation, slowing growth and expectation from people for tax exemption balancing all these factors Finance Minister Pranab Mukherjee is going to announce Union Budget of India 2012-13 on Friday 16th March 2012.

As per direct tax code (DTC) recommendation the tax exemption for year 2012 -2013 will slightly increase and there may be some changes in different slabs too.

Income tax slab in India for 2011 - 2012


At present income tax slab in India is as follows :-
Upto 1,80,000 Rs - Nil
1,80,001 to 3,00,000 - 10%
3,00,001 to 8,00,000 - 20%
Above 8 lakhs - 30%

For women the income tax slab is
Upto 1,90,000 Rs - Nil
1,90,001 to 3,00,000 - 10%
3,00,001 to 8,00,000 - 20%
Above 8 lakhs - 30%

For senior citizen
Upto 2,40,000 Rs - Nil
2,40,001 to 3,00,000 - 10%
3,00,001 to 8,00,000 - 20%
Above 8 lakhs - 30%

There is no surcharge and educational cess is 3% of above tax. Age for senior citizen is considered one above 60 years f age.

Tax exemption under 80 cc is 1 lakh and 20000 from infra structure bonds and interest on home loans upto 1.5 lakhs is directly deducted from total income.

New Income tax slab for 2011 - 2012 in India



As per DTC recommendation it is expected that the new slab for tax exemption will be as follows

2012 - 2013 Income tax slab in India


Upto 2,00,000 Rs - Nil
2,00,001 to 5,00,000 - 10%
5,00,001 to 10,00,000 - 20%
Above 10 lakhs - 30%

Income tax slab for women in 2012 - 2013
Upto 2,00,000 Rs - Nil
2,00,001 to 5,00,000 - 10%
5,00,001 to 10,00,000 - 20%
Above 10 lakhs - 30%

Income tax slab for senior citizen in 2012 - 2013
Upto 2,50,000 Rs - Nil
2,50,001 to 5,00,000 - 10%
5,00,001 to 10,00,000 - 20%
Above 10 lakhs - 30%

There will be no surcharge but education cess will remain 3 % on total tax. Tax exemption on house building loan interest will continue upto 1.5 lakhs.

Tax exemption in 2012 -2013 on tax saving investments


In 2011 - 2012 maximum tax saving investments were upto 1 lakh under 80 cc which included savings in PF, PPf, VPF,LIC, mutual funds etc. In 2012-2013 it is expected that this limit will increase to 1.5 lakhs and 20000 from infrastructure bonds will continue.


More articles: Union budget 2012 2013

Comments

Author: Likon16 Apr 2012 Member Level: Bronze   Points : 0

Hi



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