Exemption Limit for Individual Taxpayers Raised to Rs. 2 Lakh
Upper Limit of 20 Per Cent Tax Slab Raised to Rs. 10 Lakh
Deduction up to Rs. 10,000 Proposed for Savings Bank Interest
Senior Citizens not Having Income from Business Exempted from Payment of Advance Tax

The exemption limit for the general category of individual taxpayers has been enhanced to Rs. 2,00,000 from Rs. 1,80,000 in the General Budget 2012-13, presented by the Union Finance Minister Shri Pranab Mukherjee in the LokSabha here today. This measure will provide tax relief uptoRs. 2,000 to every taxpayer in this category.

The Finance Minister, Shri Mukherjee introduced the DTC (Direct Taxes Code) rates for personal income tax, marking progress in the direction of movement towards DTC and GST (Goods and Services Tax).

It has also been proposed to raise the upper limit of 20 per cent tax slab from Rs. 8 lakh to Rs. 10 lakh. The proposed personal income tax slabs are:

Income uptoRs. 2 lakh Nil
Income above Rs. 2 lakh and uptoRs. 5 lakh 10 per cent
Income above Rs. 5 lakh and upto Rs.10 lakh 20 per cent
Income above Rs. 10 lakh 30 per cent

In another relief to the individual taxpayers, a deduction of uptoRs. 10,000 has been proposed for interest from savings bank accounts. This would help a large number of small taxpayers with salary incomes uptoRs. 5 lakh and interest from savings bank accounts uptoRs. 10,000 as they would not be required to file income tax returns.

It has also been proposed to allow deduction of Rs. 5,000 for preventive health check up.

For senior citizens not having income from business, it has been proposed to exempt them from payment of advance tax.

More Under Income Tax

Posted Under

Category : Income Tax (28050)
Type : Featured (4021) News (13854)

0 responses to “Income Tax exemption limit raised to Rs 2 lakh”

  1. Rahul Sharma says:

    Indian Budget is a joke ..even a high school drop out can come up with this. Take 2 eggs from one basket and put it in another..end of budget 2012. No real strategy or logic involved to stimulate over all growth and improve the life of the masses. Never in line with reality

  2. r says:

    SPECIAL FIXED DEPOSIT /BONDS / MUTUAL FUND INVESTMENTS….THOSE TYPE OF INVESTMENTS GOVT CAN FIX THE PERIOD SAY 5 OR 7 OR 10 YEARS LIKE THAT
    THOSE TYPE OF DEPOSIT SHOULD NOT GET ANY TDS EVEN IF FORM 15 G OR 15 H SUBMITTED.
    GOVT CAN CHANNEL THIS TYPE LONG TERM INVESTMENT OF THE PUBLIC FOR INFRA AND OTHER INDUSTRIAL OR NATIONAL GROWTH ON VARIOUS SECTORS. SIMPLY PAYING INTEREST RATES IS NO USE… BEING AN INDIVIDUAL I WANT MY INVESTMENT SHOULD CARRY INTEREST PLUS I WANT MY FUND TO BE USED BY THE COUNTRY FOR GROWTH AND AS A MATTER OF FACT I DONT WANT MY FUND TO BE DEDUCTED ON TDS …AFTER MATURITY….WHY NO GOVT FUNCTIONED SINCE INDEPENDENCE ON BUDGET NOTES BRINGING THIS TYPE OF THINGS…SO ALL PEOPLE WILL PARTICIPATE IN THIS TYPE OF LONG TERM INVESTMENT….IF CANCELLED AS TOLD EARLIER PUT HEAVY FINE ON PRINCIPAL AND INTEREST SAY DEDUCT 20% ON PRINCIPAL IF HE OR SHE CANCELLING THE 5 YEARS OR GOVT FIX THE PERIOD FOR THOSE TYPE OF SPECIAL DEPOSIT….FINCANCE MINISTRY …PLEASE LOOK ON ,,,,,,,,

  3. r says:

    IF GOVERNMENT WANTS PUBLIC MONEY TO BE USED FOR NATIONAL AND GLOBAL
    DEVELOPMENT….ON ALL FIXED DEPOSIT MORE THAN FIVE YEARS TDS SHOULD NOT BE DEDUCTED EVEN IF FORM 15 G OR 15 H GIVEN TO THE BANK OR OTHER INSTRUMENTS ON YEAR TO YEAR BASIS…FOR EXAMPLE NATIONAL SAVINGS SCHEME 6 YEARS KEEPING FOR THE NATIONAL GROOWTH OF INVESTMENT ..SHOULD BE WAIVED OFF ON TDS..

    COMMON PUBLIC IS NOT BENEFITTING OR PARTICIPATING IN THIS TYPE OF GROWTH. NO NEED TO FILE RETURN IF HE OR SHE NOT CANCELLING THE FIXED DEPOSIT IN NSC BANK OR BONDS MORE THAN 5 YEARS OR MORE ( LET GOVERNMENT CAN DECIDE) THOSE TYPE OF DEPOSIT NEED NOT REQUIRED TO SUBMIT IT RETURNS…THIS TYPE OF POLCICY NO FINANCE MINISTERS SINCE INDEPENDENCE FOR THE COUNTRY GROWTH THINKING ON THIS….. WE ARE SAYING IF ANY DEPOSIT CANCELLED ON THIS TYPE OF SPECIAL DEPOSITS DIRECTLY PUT HEAVY FINE ON PRINCIPAL AND INTEREST…..HERE GOVT BENEFITED BY THIS NOTES….PLEASE THINK IN A LONG TERM GLOBAL PERSPECTIVE. IN THIS CASE U ARE UNWANTEDLY PAYING NRI MORE INTEREST FOR WHAT PURPOSE…THIS TYPE OF SPECIAL SCHEMEN U CAN BRING FOR NRI ALSO THOSE WHO ARE INVESTING LONGTERM IN INDIA …THOSE DEPOSITS NO NEED TO FILE ITAX RETURN SO ALL NRIS WILL INVEST WITHOUT FEARING TAX APPLICATION IF THE MONEY BROUGHT IN…..FINANCE MINISTRY PLEASE SEE THIS….

  4. Tanveer says:

    Indian govt really sucks……..this new budget is nothing more than pain in the asss…..

Leave a Reply

Your email address will not be published. Required fields are marked *