Income Tax slab has been changed in Budget 2012, some detail regarding income tax slab is given as under :-
Basic Exemption Rs. 2 Lakh Tax =0
Rs. 2 Lakh to 5 Lakh Tax = 10%
Rs. 5 Lakh to 10 Lakh Tax = 20%
above 10 Lakh Tax = 30%
- No change in Corporate Tax.
- No need to Deposit Advance Tax for Senior Citizen.
- Interest from Saving Account upto Rs. 10,000 will be exempt.
- In addition to medical insurance, an additional Rs. 5000 will be exempted for preventive health check-ups.
- Service Tax rate has been proposed to 12% from the present 10 per cent.
- New equity savings scheme (RAJIV GANDHI EQUITY SCHEME) to provide for income tax deduction of 50 percent for those who invest Rs.50, 000 in equity and whose annual income is less than Rs.10 lakh.
- Withholding tax on external commercial borrowings reduced from 20 percent to five percent for power, airlines, roads, bridges, affordable houses and fertiliser sectors for a period of three years
- Investment link deduction of capital expenditure for certain businesses proposed to be provided at the enhanced rate of 150 per cent.
- Proposal to extend weighted deduction of 200 per cent for R&D expenditure in an in-house facility for a further period of 5 years beyond March 31, 2012.
- Turnover limit for compulsory tax audit of account and presumptive taxation of SMEs to be raised from Rs. 60 lakh to Rs. 1 Crore.
- Exemption from Capital Gains tax on sale of residential property, if sale consideration is used for subscription in equity of a manufacturing SME for purchase of new plant and machinery.
- Proposal to provide weighted deduction at 150 per cent of expenditure incurred on skill development in manufacturing sector.
- Re-open tax assessment for 15 years of overseas assets
- Reduction in securities transaction tax by 20 per cent on cash delivery transactions.
- Restriction on Venture Capital Funds to invest only in 9 specified sectors proposed to be removed.
- Proposal to extend the levy of Alternate Minimum Tax to all persons, other than companies, claiming profit linked deductions.
- Proposal to introduce General Anti Avoidance Rule to counter aggressive tax avoidance scheme.
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