The
income
tax slab helps to calculate your tax for Year 2012-2013 based on budget
2012 budget. Tax exemption limit exceeds to Rs 2 lakhs and other tax rates have
changed. Income tax act helps the assesses to save the tax on the annual
income. Individual can get a rebate on tax liabilities with the help of income
tax act. In this act if a person can invest up to 1 lakh then, it will save
income tax on income. There are several ways to save the income tax by
investing money on several things.
How much tax you
are supposed to pay?
Person
must have heard about 'Income Tax Slabs'. Following are the income tax slab for
the year 2012-13 is Income tax exemption limit
Up
to Rs 2 lakh: No tax
From
Rs 2 lakh to 5 lakh: 10%
From
Rs 5 lakh to 10 lakh: 20%
Above
Rs 10 lakh: 30%
Tax modification
for the FY 2012-13 are mentioned below:
1.
Age of Senior citizen reduced from 64 years to 60 years.
2.
People who are above 80 years to be included in 'Very Senior citizen' category.
3.
Exemption limit on tax remains the same i.e. Rs. 20,000 on investment in tax
saving.
4.
A set of Direct Tax Codes have been proposed, which will be approved from
Financial Year 2012.
What are income tax
deductions?
People
plan their taxes and make investments to avail the tax
saving schemes. There are various different investments in which the person
can get tax benefits and earn a profit from them. Deductions are tax benefits
person might be allowed to avail. If a person income is Rs. 4,00,00 then,
person is allowed to deductions of Rs. 1,00,000 and will only have to pay tax
on Rs. 3,00,000 at the slab rates.
There are a number
of deductions that are:
1.
Certain Mutual Funds purchased
2.
Housing Loan Repaid
3.
Amount deposited in a Public Provident Fund
(PPF) Account
4.
Premium paid on a Life Insurance Policy
5.
ULIPs purchased
