Pranab Mukherjee, Union Finance Minister, Presented Budget 2012-2013. In this Budget Proposal the Finance Minister allows to raise the personal income tax exemption limit for individuals up to Rs. 200000. The present limit is Rs. 180000 for men and Rs. 190000 for women. There is a relief of Rs. 2000 Income Tax and its education cess.
The 20% Tax slab also increased to Rs. 1000000 from the existing Rs. 800000. At the same time there is no tax for interest up to Rs. 10000.
The following are the new income tax rate as per new budget 2012-2013 for men and women.
Income Tax Rate
Up to Rs. 200000 Nil
From Rs. 200001 to Rs.500000 10%
From Rs. 500001 to Rs. 1000000 20%
Rs. 1000001 and above 30%
New Tax for Senior Citizen with the age between 60 years to 80 years
Income Tax Rate
Up to Rs. 250000 Nil
From Rs. 250001 to Rs.500000 10%
From Rs. 500001 to Rs. 1000000 20%
Rs. 1000001 and above 30%
New Income Tax Rate for Very Senior Citizen (80 years and above)
Income Tax Rate
Up to Rs. 500000 Nil
From Rs. 500001 to Rs. 1000000 20%
Rs. 1000001 and above 30%
Tax benefit at a glance as per new budget 2012 -2013
1.Tax Exemption limit increased from Rs.180000 to Rs.200000
2. Tax Exemption for interest income up to Rs. 10000
With these slight changes in Income tax levels the Union Finance Minister try to console the normal tax payers. But the increasing inflation devalues these exemptions.
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