Giving some relief to tax payers, Finance Minister Pranab Mukherjee on Friday proposed raising the income tax exemption limit for individuals to Rs. 2 lakh per annum from Rs. 1.80 lakh.
Unveiling the Budget proposals for 2012-13 in the Lok Sabha, he also increased the limit to Rs. 10 lakh under the 20 per cent tax slab. The current limit is Rs. 8 lakh.
“My proposals on direct taxes are estimated to result in a net revenue loss of Rs. 4,500 crore for the year,” Mr. Mukherjee said.
The Budget also exempt up to Rs. 10,000 of interest income from tax.
Individuals will have to pay 10 per cent tax on income between Rs. 2 lakh and Rs. 5 lakh; 20 per cent between Rs. 5 lakh and Rs. 10 lakh; and 30 per cent for above Rs. 10 lakh.
Mr. Mukherjee said increasing the exemption limit is a move towards implementation of the Direct Taxes Code (DTC).
The Standing Committee of Parliament that has scrutinised the DTC Bill had suggested raising the tax exemption limit to Rs. 3 lakh.
The exemption limit for the senior citizens between 60 and 80 years of age will be Rs. 2.50 lakh; 10 per cent will be levied on income between Rs. 2.5-5 lakh, 20 per cent between Rs. 5-10 lakh and 30 per cent above Rs. 10 lakh.
For very Senior Citizens (80 years and above), the income tax exemption limit will be Rs. 5 lakh; 20 per cent will be levied on income between Rs. 5-10 lakh and 30 per cent for above Rs. 10 lakh.
On implementation of DTC, Mr. Mukherjee said, “We received the report of the Parliamentary Standing Committee on March 9, 2012. We will examine the report expeditiously and take steps for enactment of DTC at the earliest.”
The DTC Bill seeks to replace the half-a-century-old Income Tax Act, 1961.
The savings bank account deductions, Mr. Mukherjee said, will help small tax payers.
“This would help a large number of small tax payers with salary income of up to Rs. 5 lakh and interest from savings bank accounts up to Rs. 10,000, as they would not be required to file income tax returns,” Mr. Mukherjee said.
Keywords: Budget 2012-13, I-T exemption limit, Direct Taxes Code
finance minister has decided to kill the senior citizens by denying any
increase in the base tax limit.when he can increase it 2.00 lacs why he
can not give the same amount of relief to the senior citizens . since
his needs are well met by the govt. he can not understand the problems
of the middle class and senior citizens who have to spend more on
health.
Most ungrateful FM on this land.
The Finance bill in the union budget did not touch the exemptions allowable under section 80-C as they need upward revision from Rs 1 lakh to 1.50 lakhs since the prices of essential services and essential commodities are sky rocketing as philip to the savings this limit should be considered for up ward revision.Secondly since it is already 3 to 4 years the education cess should be removed.As it was done in the case of TDS Deductions.There is one more suggestion most of the Transactions that come under the TDS Perview such as 194A,194H the base amount that attracts TDS liability shuld be revised.and increased to a limit of Rupees 20000
From : T suresh Tax advocate and consultant
Most of the salaried class were denied justice by the Indian Govt .
The salaried class netsalary was paid after TDS ( tax deduction at source) by respective employers which ensures salary to Income tax dept employees every month. Also the family expenditure borne by salaried class is increasing drastically by price rise, school,college, medical expenses but the increase in Their salary is minimal.The gap between the salary & expenditure is huge thereby leading to corruption mostly , excepting a few who grumble & bear the undue burden siliently. Only solution is TDS for salaried class is to be abolished & allow Them to pay by compulsorily IT reurns yearly . Tax the rich politicans & business class based on Their personal&family assets which will boost revenue to the Govt. Also bring back the money of tax evading
Indians who have kept Their money in Foriegn banks .Only dedicated & daring politicians who are loyal to India can do for the welfare of citizens of India .
At last the Finance Minister realised the stupidity of exempting people from filing IT returns when a paltry interest of 4% in an economy where inflation was almost double being taxed.No banker wants to increase his work and hence the ruling about exemption to file IT returns proved a damp squib.Our babus have no idea about the practical realities of life.They live in a crooked world of their own. Whilst a paltry amout of Rs.2000/- has been given as relief to the salaried class no relief has been given to the Senior Citizen who lives on a pension or interest on past savings. The Senior Citizen of today bore the brunt of a high tax regime coupled with a 'no loan' regime. Whatever little he could save during his employment days has been spent on building a house and marriage of his children. He needs the maximum relief but nobody bothers about him. The 10% tax slab should be raised to 7 lakhs and the 20% slab to 12 lakhs.
The VVIP senior citizen should be exempted from Income Tax.
Additional tax exemption for women tax payers has vanished, the rationale for which has not been explained in the budget. When exemption limit for the general category was Rs.1.60 lacs, the exemption limit for women tax payers was fixed at Rs.1.90 lacs. Last year, the the general exemption limit was raised to Rs.1.80 lacs from Rs.1.60 lacs without changing the lowest slab for women tax payer, which remained at Rs.1.90 lacs, thus giving marginal benefit of Rs.10,000/-. Now even this benefit no longer available. Why?
It is of little solace to the MIG category to know that the income tax exemption limit for individuals has been proposed to raise to Rs. 2 lakh from Rs. 1.80 lakh. The Standing Committee's suggestion to raise the tax exemption limit to Rs. 3 lakh sounds accommodating. The news that savings bank account deductions would help small tax payers with salary income of up to Rs. 5 lakh and interest from savings bank accounts up to Rs. 10,000 is welcome.
India Budget 2012-2013 is the clear indication that in the forth coming general elections the Chapter of UPA Govt led by Cong-I will be closed. Mouni-Baba & Bangla-Dada are the servants of USA and they are not for the people of India to control of the Price Hike. This is the TALK among the Working and Employed lot.
Tough raising the basic exemption limit from 1.8 to 2 lakhs the Fin.
Min. could have raised it to 3 lakhs and it would not caused much
revenue loss. The rates could have been revised 3 to 7 lakhs _ 10%,
7 to 12 lakhs _ 15% and 12 to 20 lakhs - 20% AND ABOVE 25 lakhs- 30%.
This would have left more money with the people for higher spending
boosting demand for better goods and services, and would have lead to
higher savings by allowing more exemption for long term savings schemes
like PPF, PO Savings, and 5 or 7 years term deposits.
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