Union Budget 2012 - Highlights for Salaried Individuals

Introduction:  The Budget for 2012-13 presented by Finance Minister Pranab Mukherjee in the Lok Sabha on 16^th March 2012. I would like to list of some key points related to salaried case implications in the Budget.

Income tax slab for FY-2012-12: Till now Income tax slab there is difference between the men and women taxpayers. But this budget removes that distinction and made the common slabs except the senior citizen slab. This move by Finance Minister towards closer to the Direct tax code (DTC). Both the Men & Women tax payers brought under General category and made the basic exemption slab of Rs.2 lakh. The Income tax slab for the financial year 2012-13 & Assessment year 2013-14 as follows:

Education cess of 3% will apply on income tax calculated based the rates above This above changes in the Income tax slab will give the basic savings on tax of Rs.2060 to Men tax payers & Rs.1030 to Women tax payers and also additional tax savings of Rs. 20,600 for those are having income more than Rs.10 lakh from the existing tax.

Deductions U/s.80TTA for interest from Savings Bank a/c:  A new section 80TTA has been brought to giving deduction for savings bank interest of Individuals & HUFs. This deduction will available for the interest earned in only savings bank accounts with the Banks/Co-operative society/Post office savings accounts. Deduction available under this section is Rs.10, 000/- or actual interest whichever is less. 

Amendments in Section.80D:  Under section 80D mediclaim Insurance premium, the deduction maximum of Rs.5000 paid by any mode including case for preventive health check-ups will be allowed. This will be allowable for preventive health checkup of the the assessee and his/her family & parents of the assessee.  This will be the additional deduction along with the existing deduction of Rs.15000.

Thanks

CMA Ramesh Krishnan.