Income Tax Bonanza for Salaried Class Persons in Budget 2012-13

Friends,

Income Tax Rates (Proposed) for F/Y 2012-13

Budget 2012-13 is in process. The government is planning to enhance tax slabs of salaried class persons. According to reports, Union Finance Minister Sh. Pranab Mukherjee may announce the income tax slab rates soon. The basic tax exemption may increase from 1.8 lakh to 2 lakh. Further the income between Rs. 2-5 lakh will be taxed at 10 percent, Rs. 5-10 Lakh be taxed at 20 percent and income above Rs. 10 Lakh will be taxed at 30 percent rate. 

The present tax structure is that incomes between Rs 1.8 lakh and Rs 5 lakh are taxed 10 percent, those between Rs 5-8 lakh taxed 20 percent while 30 percent tax is slapped on incomes above Rs 8 lakh.