Advertisements

Budget 2012-Impact on your personal finances


Tax

Budget 2012 presented by Pranab Mukherjee though largely perceived to be a non-event, has some sops for the individual investor.

  • More disposable income in the hands of the individual investor through favourable revision of the income tax slabs.

The basic exemption limit has been increased from Rs 1.8 lakh to Rs 2 lakh for all individuals under age 60.

Taxable income between Rs 8 lakh – Rs 10 lakh earlier taxed at 30 % will now be taxed at 20% which means extra savings of Rs 20,000/- for those in this income bracket.

Earlier                                                                                                 Revised

Income                    Tax Rate                                                        Income                      Tax Rate

Upto Rs 1.8 lakh             NIL                                                         Upto Rs 2 lakh                  NIL

Rs 1.8- Rs 5 lakh           10 %                                                         Rs 2 – Rs 5 lakh                10 %

Rs  5 – Rs 8 lakh             20 %                                                        Rs 5 – Rs 10 lakh                20 %

Above Rs 8 lakh             30 %                                                        Above Rs 10 lakh              30 %

  • Senior citizens (above age 60) are now exempted from paying advance tax if they do not earn any income from business or profession.
  • A new scheme called the Rajiv Gandhi Equity Savings Scheme to be introduced where individuals with an income below Rs 10 lakh can get 50 % tax deduction on direct equity investments up to Rs 50,000.
  • Savings Bank interest up to Rs 10,000 to be exempt from income tax for individuals and HUF.
  • Rs 5000 tax deduction ( included in  overall limit of Rs 15000 u/s  80 D ) for individuals who go for preventive health check up.

Now for the bad part !!!

  • Increase in service tax rate from 10% to 12%.
  • Beginning October 2012, sale of residential properties in urban areas over Rs 50 lakh will attract 1 % tax deduction at source.
Advertisements

Have a query/an opinion/a comment to make? Would love to hear it !

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: