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Exemption limit for individual taxpayers raised to Rs. two lakh


March 16, 2012 - New Delhi

The exemption limit for the general category of individual taxpayers has been enhanced to Rs. 2,00,000 from Rs. 1,80,000 in the General Budget 2012-13, presented by Union Finance Minister Pranab Mukherjee in the Lok Sabha here today.

This measure will provide tax relief those earning upto Rs.2,000 to every taxpayer in this category.

Mukherjee also introduced the Direct Taxes Code (DTC) rates for personal income tax, marking progress in the direction of movement towards DTC and GST (Goods and Services Tax).

It has also been proposed to raise the upper limit of 20 per cent tax slab from Rs. eight lakh to Rs. 10 lakh. The proposed personal income tax slabs are:

In another relief to the individual taxpayers, a deduction of uptoRs. 10,000 has been proposed for interest from savings bank accounts.

This would help a large number of small taxpayers with salary incomes upto Rs. five lakh and interest from savings bank accounts uptoRs. 10,000 as they would not be required to file income tax returns.

It has also been proposed to allow deduction of Rs. 5,000 for preventive health check up.

For senior citizens not having income from business, it has been proposed to exempt them from payment of advance tax.

ANI

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