Income tax slabs for fiscal year 2012-13

March 20, 2012   ·   0 Comments

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Lesson 1: Understanding Income Tax

http://stockssavvy.comHow Budget affected the common man? Did it bring more in the pocket of a common man? How Budget impacts you? Read on for the answers. Much awaited Budget 2012-13 have given a marginal benefit to common man by increasing the tax slab to 2 LA.

 

The biggest beneficiaries would be people having income between Rs. 800,001 to 999,999 per annum. They move from the 30% slab to the 20% slab. What this means for a person earning 10 Lakh rupees in a year? This leads to a savings of Rs. 2,000 for bracket of 1.8 Lac rs. to 2 Lakh rs. and additional saving of 30k thousand rs. from 8 to 10 Lakhs which makes it total tax exemption of 32,000 rs. What budget could have offered for a common man is in addition of shifting of 20% of tax slab, shifting of 10% of Tax slab limit to 6 lakh from 5 lakh which would have benefited more number of people. Only 10 Lac people in India earn more than 10 Lakh rs. In India according to . If this figure is actually true, then budget seemed to have ignored the common man again.

 

 

India 2012-2013 for General tax payers

Income tax slab (in Rs.) Tax
0 to 2,00,000 No tax
2,00,001 to 5,00,000 10%
5,00,001 to 10,00,000 20%
Above 10,00,000 30%

India Income tax slabs 2012-2013 for Female tax payers

Income tax slab (in Rs.) Tax
0 to 2,00,000 No tax
2,00,001 to 5,00,000 10%
5,00,001 to 10,00,000 20%
Above 10,00,000 30%

India Income tax slabs 2012-2013 for Senior citizens (Aged 60 years but less than 80 years)

Income tax slab (in Rs.) Tax
0 to 2,50,000 No tax
2,50,001 to 5,00,000 10%
5,00,001 to 10,00,000 20%
Above 10,00,000 30%

India Income tax slabs 2012-2013 for very senior citizens (Aged 80 and above)

Income tax slab (in Rs.) Tax
0 to 5,00,000 No tax
5,00,001 to 10,00,000 20%
Above 10,00,000 30%

 

 

5000 RUPEES EXEMPTION

The FM has proposed to give a deduction of Rs 5000 for expenses incurred on preventive health check-up. Now you can go fearlessly to that neighborhood hospital and get the executive master health check-up done and get a tax benefit too.

 

INVEST IN EQUITY AND GET TAX BENEFITS

A new equity scheme called Rajiv Gandhi Equity Saving Scheme is being introduced to promote equity investments. The scheme will get income tax deduction, which will be purely applicable to the new retail investors who will invest directly into equity up to Rs. 50000, with a lock-in period of three years. The investor’s annual income should not exceed Rs. 1,000,000.

In order to ensure more participation from small towns in IPOs, the FM has announced that changes have been made in the IPO guidelines. The exact guidelines have not been mentioned yet. However, this will help the capital markets in the long-run and even your neighbor share broker who can now look at rural India in a big way.

 

TAX FREE BONDS

The Finance Minister has proposed to allow selected government undertakings to issue tax-free bonds of Rs. 60,000 crore, which is double the amount assigned in the previous year.

 

SAVE, EARN INTEREST AND AGAIN SAVE

The FM has proposed to give a tax deduction of up to Rs 10,000 on interest earned from savings bank accounts. This means you can keep up to Rs. 2.5 lakhs continuously in your savings bank, get interest (currently 4% in most banks) and not worry about the interest getting taxed.

 

EASE ON EDUCATION LOAN RATES

The finance minister has said that Credit Guarantee Fund is to be set up which is likely to reduce the risk of banks. For that reason, the banks might reduce the rate of interest on educational loans.

 

HOUSING LOANS

The Interest subvention of 1 percent has been extended for one more year on housing loans up to Rs. 15 lakhs. The Finance Minister has also announced that a Credit Guarantee Trust Fund is to be set up to ensure better flow of Institutional Credit for Housing Loans.

Click to read What were the tax bracket for 2011-12?

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Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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