Indian Finance Minister Pranab Mukherjee has revised the I-T slabs now. The new tax slabs have been aligning as per the proposed Direct Tax Code (DTC).
No tax till 200,000 (from 180,000)
10% from 200,000 to 500,000
20% from 500,000 to 10,00,000
30% above 10,00,000
Now there is no separate exemption limit for women’s while for senior citizens aged above 60 will pay tax only if above Rs 250,000/-
Here are a few other points to note regarding Taxation from the budget:
• Deduction of upto 10,000 on interest on Savings Bank Accounts.
• Purchase of jewellery above Rs 2 lakh now under tax net.
• Tax exemption of up to Rs 5,000 for health insurance for annual preventive health checkup.
Tax Free Bonds:
• In FY 2013 Tax Free bonds from NHAI are expected to be of Rs 10,000 cr.
• In FY 2013 Tax Free bonds from IRFC are expected to be of Rs 10,000 cr.
• Have also proposed Tax Free bonds for Power Sector worth Rs 10,000 cr.
• Tax Free Infra bonds are expected to double to Rs 60,000 cr.
If you are not much aware about all this and planning for tax first time than you should review Tax Planning For First Timers.
If we missed any points do let us know? Invest early Be Happy!