Budget 2012 – 2013: What can impact you…….

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Budget 2012 – 2013: What you need to know…

Tax Rates and Slabs

Following are the proposed tax slabs:
Income (For both Men and Women)

Tax Slabs/Tax Rate

Upto Rs. 2 Lakhs                          0%
Rs. 2 Lakhs to Rs 5 Lakhs       10%
Rs. 5 Lakhs to Rs. 10 Lakhs   20%
Above Rs. 10 Lakhs                  30%

Income (Senior Citizens > 60 Years)
Tax Rate
Upto Rs. 2.5 Lakhs                           0%
Rs. 2.5 Lakhs to Rs 5 Lakhs          10%
Rs. 5 Lakhs to Rs. 10 Lakhs          20%
Above Rs. 10 Lakhs                         30%

Income (Very Senior Citizens> 80 Years)
Tax Rate
Upto Rs. 5 Lakhs                       0%
Rs. 5 Lakhs to Rs. 10 Lakhs  20%
Above Rs. 10 Lakhs                 30%

Deduction of Interest from Savings Account

Interest earned from a bank saving account has been made deductible up to Rs. 10,000 per year.

Checkout in my previous post, have explained in details.

Deduction for Preventive Health Checkup

An expense of up to Rs. 5,000 per year incurred on preventive health checkup would be deductible from your income.
This would be included within the limit of deduction of health insurance premiums.
So far, you could get tax benefit for the premiums paid for health insurance. Now, you would get
tax benefit even for health check up.
Please remember that this is over and above the tax-free reimbursement of medical bills up to Rs. 15,000 per year.

Tax Free Infrastructure Bonds

The upper limit of tax-free infrastructure bonds has been doubled to from Rs. 30,000 Crores to Rs. 60,000 Crores.
This means that various financial institutions can issue double the bonds as compared to last year,
which means you can earn more tax-free income!

Duty Free Allowance

People coming into India can bring items of certain value into India without paying any customs duty. This is called the duty free allowance.
This duty free allowance has been increased to Rs. 35,000 from the earlier Rs. 25,000. for children, it is Rs. 15,000 from the earlier Rs. 10,000.

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