Welcome to the official blog of AIPSA. This blog is meant for use by members of All India Postal Stenographers' Association******E-mail: parambilmohan@gmail.com
================ Blog maintained by : P. Radhamohan Nair, Private Secretary to Post Master General, (Retired) Northern Region, Calicut, Kerala Circle=================

Monday, March 19, 2012

New Income Tax rates for 2012-13.

Exemption Limit for Individual Tax payers raised to Rs. 2 Lakh
Upper Limit of 20 Per Cent Tax Slab Raised to Rs. 10 Lakh
Deduction up to Rs.10,000 Proposed for Savings Bank Interest
Senior Citizens not having income from business exempted from Payment of Advance Tax
The exemption limit for the general category of individual tax payers has been enhanced to Rs.2,00,000 from Rs.1,80,000 in the General Budget 2012-13. This measure will provide tax relief upto Rs.2,000 to every taxpayer in this category.  The Finance Minister, introduced the DTC (Direct Taxes Code) 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.8 lakh to Rs.10 lakh. The proposed personal income tax slabs are:

Income upto Rs. 2 lakh - -  Nil
Income above Rs. 2 lakh and upto Rs. 5 lakh - - 10 per cent
Income above Rs. 5 lakh and upto Rs.10 lakh - - 20 per cent
Income above Rs. 10 lakh  - - 30 per cent

In another relief to the individual taxpayers, a deduction of upto Rs.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. 5 lakh and interest from savings bank accounts upto Rs.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.