Key recommendations of the Parliament Standing Committee on Finance

  1. Raise annual income limit for I-T from Rs 1.8 lakh to Rs 3 lakh
  2. 10% I-T on annual income beyond Rs 3 lakh and up to Rs 10 lakh
  3. 20% on annual income beyond Rs 10 lakh and up to Rs 20 lakh
  4. 30% on annual income over Rs 20 lakh
  5. Exemption up to Rs 1.5 lakh for social security contributions
  6. Exempt expenses on professional studies or education up to Rs 50,000 a year
  7. Increase exemption limit on long-term savings from Rs 1 lakh a year to Rs 1.5 lakh
  8. Annual contribution up to Rs 1 lakh for medical insurance should also be exempted, besides Rs 50,000 for dependent parents
  9. Increase in  long-term savings limit for the purpose of exemption from income-tax to Rs 1.5 lakh from Rs one lakh.
  10. Contribution to social security such as pension be exempted up to Rs 1.5 lakh a year;
  11. medical insurance up to Rs one lakh; up to Rs 50,000 medical insurance for dependent parents;
  12. Rs 50,000 for professional studies and education be exempted from income tax, the panel has said.
  13. No changes in the corporate tax rates.
  14. Cautiously implement the General Anti-Avoidance Rules to authorising the tax department to demand tax in situations where the main motive of a transaction is to get a tax advantage.
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0 responses to “Budget 2012 Recommendations – Exemption 3 lakh, 10 to 20 lakh 20%, Above 20L 30%, increase in 80C Limit”

  1. Anshumali Shrivastav says:

    VERY GOOD PROPOSAL.

    We request the government to look upon it for the benefit of lower & middle class persons as the inflation is raising day by day.

    Anshumali Shrivastav
    Mumbai 01/02/13

  2. srs says:

    no tds on interest earnings by senior citizens out of bank/postal deposits, when declaration form 15G/15H given.

    two days before there was a income tax dept circular saying tds will be deducted as below needs to be withdrwan

    The Government has issued followed clarification regarding Senior Citizens Saving Scheme:
    1.An individual resident in Indian of sixty-five years of age or above may furnish a declaration in From No. 15H to the bank/post office if the tax on his estimated income for the financial year is nil.
    2.A declaration in From No. 15G can be furnished by a depositor of less than sixty-five years of age if-
    ■The tax on his estimated total income for the financial year is nil, and
    ■The aggregate amount of interest credited or paid or likely to be credited or paid during the during the financial year is not more than the maximum amount which is not chargeable to tax (Rs. 1, 00, 000 for male taxpayer and Rs. 1, 35, 000 for a woman taxpayer)

    Note: Both the above conditions are required to be fulfilled. The information relating to deposits under the Senior Citizen Saving Scheme, 2004 may be given by the depositors in Schedule III of from No. 15G

  3. CA.subhash Chandra Podder says:

    Recommendation as proposed should be considered by the Finance Minister in his forthcoming budget 2012-2013. There should not be any deletion from the above proposal as recommended by the parliamentary standing committee on finance.
    CA. Subhash Chandra Podder
    Kolkata
    05/03/2012

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