The much awaited budget has not given much benefit for taxpayers. The Finance minister does not offer any changes in tax slabs and percentage of taxes. However the following Income Tax Changes in Budget 2103 are allowed by the union finance minister.
Rs. 2000 Tax Credit: Income tax changes in budget 2103 is only a marginal deduction of Rs. 2000 in tax in the form of tax credit for those who have a taxable income less than Rs. 5 Lakh. So they will get a slight change of the Nill taxable income of Rs. 2.2 Lakh. But when their taxable income has a mere increase of Re. 1 this benefit will be removed. If a person has a taxable income of Rs. 5 Lakh, he should pay only 28000 as tax (Plus Cess) But if his income is Rs. 500001 he has to pay a tax of Rs. 30000 (Plus Cess). As per the estimate the benefit of this change will get around 1.8 Crore tax payers. So the Income tax department will lose Rs. 3600 crores.
Increased exemption limit of home loan interest: The another income tax changes in budget 2103 is the increase of the exemption limit of home loan interest up to Rs. 2.5 Lakh. This is only for those who buy a residential house (house for self occupation) in first time. Earlier the exemption limit of home loan interest is 1.5 Lakh for all home buyers. But now for first time purchase of self occupied house the exemption limit of loan interest is Rs. 2,50000.
10 percent Surcharge. 10 percent surcharge chargeable from high income people those who have an income over Rs. 1 crore. But for corporates those who have a taxable income more than Rs. 10 crore the present surcharge of 5% has been increased to 10 percent.
TDS on sale of immovable property. To avoid tax evasion a TDS of 1% will be levied from the sale of immovable property over Rs. 50,00,000.
The above changes are the important income tax changes in budget 2103 proposed by the union finance minister, which are directly affected to common man.
Income tax changes in Budget 2012-13
Income tax rate changes in 2011-12
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