Income tax Slab Budget 2012 in India

Union Finance Minister Pranab Mukherjee has presented the budget for then year 2012-13 in the Indian parliament. This happens to be the seventh time that budget has been presented by Pranab Mukherjee in parliament. The main agenda of the budget is to reduce subsidies down the line. According to the budget speech by the finance minister, the idea is to eliminate the subsidies for gas and kerosene and provide subsidy as incentive directly to the bank account of the individuals to eliminate corruption in the distribution.

Here are the new slabs for income tax payers inIndiaas per budget 2012:

There will not be tax up to an income of Rs.2 lakhs for both male and female individuals. A 10% tax is for incomes of Rs.2 lakhs to Rs.5 lakhs and 20% for individuals with income ranging from Rs.5 lakhs to Rs.10 lakhs. For those with income of above Rs. 10 lakhs the tax is about 30%.

Income tax slabs for senior citizens in the age group 60 to 80 years:

Budget 2012 for senior citizens with age of above 60 years and below 80 years, the income tax limit is Rs.2, 50,000/-. A 10% tax for income in the range of Rs.2.5 lakhs to Rs.5 lakhs and 20% tax for senior citizens with income range of Rs.5 to 10 lakhs. 30% Income tax for income above Rs.10 lakhs.

Income tax slab as per budget 2012 for senior citizens above 80 years:

Income tax is exempted for income up to Rs.5 lakhs and 10% income tax for income in the range of Rs.5 toRs.10 lakhs and 30% for income above Rs.10 lakhs.

Interest income up to Rs.10,000/- is exempted from income tax. Investment in the equities up to Rs.50,000/- with a lock in period of 3 years is given a tax exemption up to half the amount.