In the Budget for 2012-13, the finance minister has increased the tax exemption limit to Rs2 lakh and also increased limits of tax slabs
Here is what you will be paying as income tax for FY13.. For up to Rs3 lakhs - NIL; Rs4 lakhs - Rs6,180; Rs5 lakhs - Rs6,180; Rs6lakhs - Rs10,300; Rs8 lakhs - Rs10,300 Rs9 lakhs - Rs10,300; Rs10 lakhs - Rs18,540
Here are the tax savings as per new proposals: For income up to Rs3-Rs8 lakhs you would be able to save Rs2,060, for income of Rs9 lakhs you would save Rs12,360 and for income between Rs10-Rs25 lakhs you would save Rs22,660.
Income up to Rs2 lakh: NIL
Income between Rs2- Rs5 lakh: 10%
Income between Rs5-Rs10 lakh: 20%
Income above Rs10 lakh: 30%
Senior Citizen: Minimum Tax Exemption remains at Rs2,50,000
Women : Remains unchanged; i.e. at Rs1,90,000
Senior citizens to be exempt from advance tax payments
Health insurance deduction upto Rs5,000 for annual preventive health checkup
Interest income from banks tax-free upto Rs10,000
Income Tax deduction of 50% on investments of up to Rs50,000 in savings scheme named after Rajiv Gandhi Equity Scheme. This will be for retail investors. A three year lock-in period exemption under Rajiv Gandhi scheme.
Service tax rates hiked to 12% from 10%
All services to be taxed except those in negative list. Negative list to include pre-school and high school education, entertainment services.
Service tax net widened; to include most sectors
Government services, public transport, School education exempted from service tax
Securities Transaction Tax (STT) reduced to 0.10% from 0.125%.
No change in peak customs duty
Standard excise duty rate raised to 12% from 10% .
Finance minister Pranab Mukherjee presented the General Budget for 2012-13 in the Lok Sabha amid uproar in the House. Highlights of the finance minister's speech:
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