New Income tax rate slabs for 2012-2013

Discussion in 'Investment and Finance' started by Parminder, Mar 16, 2012.

  1. Admin

    Admin Administrator Staff Member

    As most of you already know that new income tax rates were announced today in the budget speed by Mr Finance Minister and there doesnt seem to be a lot to cheer about and there was no mention of DTC either. Below are the new income tax rates for financial year 2012-2013 :

    [TABLE="width: 60%"]
    [TR]
    [TD]0 to 2,00,000[/TD]
    [TD]No tax[/TD]
    [/TR]
    [TR]
    [TD]2,00,001 to 5,00,000[/TD]
    [TD]10%[/TD]
    [/TR]
    [TR]
    [TD]5,00,001 to 10,00,000[/TD]
    [TD]20%[/TD]
    [/TR]
    [TR]
    [TD]Above 10,00,000[/TD]
    [TD]30%[/TD]
    [/TR]
    [/TABLE]

    I was expecting the tax exemption limit to be raised to Rs3 Lakhs atleast if not more. I am not complaining but it wouldnt hurt to bring the top tax rate down from 30% to 20% may be and no tax for people making less then 8lakhs perhaps? That is wishful thinking I guess.

    I hope we get that DTC sooner rather then later and have some clarity on what the rates are going to be.
  2. Admin

    Admin Administrator Staff Member

    The only new deduction I believe is that Rs50000 if you invest in equities in some new scheme that Mr Finance Minister calls Rajiv Gandhi Equity Saving Scheme. You are only eligible if your income is below Rs10 Lakhs per year though... If you make more then that then you should be punished for being successful seems to be the motto of this budget. If you are a marginal farmer you will be rewarded for being poor by giving you "cash" subsidy for fertilizer and what not.

    Rip off the hardworking intelligent people and "buy" the votes of the poor is what the government of every democratic country is doing and more so in India.
  3. Pistole_lachen

    Pistole_lachen New Member

    Its a common man's budget..
    "Income tax payers have nothing to do with it".
  4. Admin

    Admin Administrator Staff Member

    I dont understand this new Rs50000 deduction in that Rajiv gandhi scheme. Some TV channels are just saying its a 50k deduction if you invest in equities and you have to keep those stocks for 3 years but some are saying its a deduction in short term capital gains tax by 50% of your tax slab up to a limit of 50k.

    Does anyone have an idea what it actually is?
  5. itsmemad

    itsmemad Alligator

    Offtopic: Rs. 50000 deduction for "Rajiv Gandhi Equity Saving Scheme" is another gimmick to immortalize the name of the Gandhi family. Already there are so many zoos in the name of Sanjay Gandhi across India, making sure my kids will know him! Ah.. what a great man he must be in his days!
  6. Admin

    Admin Administrator Staff Member

    Why should anything that is built using the tax payers money be named after any one?
  7. just4kix

    just4kix Guardian Angel Staff Member

    Actually, I got so turned off with the budget and in the evening Sachin was nearing the 100th 100, I completely skipped the budget analysis reading. Will have to find details now.
  8. itsmemad

    itsmemad Alligator

    Each minister wants to suck up the Boss Family in India for quick approval/promotion. Just do a Google search for Rajiv Gandhi Awards. There is one in each field.

    He'll be more popular than Emperor Ashoka or Shahjahan in the years to come.
  9. Admin

    Admin Administrator Staff Member

    We dont have the Rs20k exemption for investung in infra bonds anymore.

    Sent from my GT-I9100
  10. panchabhut

    panchabhut Active Member

    Its still there. no amendment made in the relevant section.
  11. panchabhut

    panchabhut Active Member

  12. Admin

    Admin Administrator Staff Member

    Yeh because that section was only applicable untill financial year ending 31st march 2012 and if this was to continue thereafter it had to be announced and it was not announced so no we wont get 20k deduction for infra bonds unless Pranab babu announces it. Atleast thats what I understand.. Please correct me if I am wrong.
  13. stuart.hobs

    stuart.hobs New Member

    of course, there IS what to do. You can not reduce the tax rates because it depends only of the government, but you can try one of these ways to legitimately avoid income tax and corporation taxes - taxratesinfo.com/tax-loopholes
  14. dhirajpatel

    dhirajpatel Banned

    Find the complete information about new tax slab at this link
  15. itsmemad

    itsmemad Alligator

    Years of hard work has finally got Mr Pranab Mukherjee the nomination to become our president. :)
  16. stuart.hobs

    stuart.hobs New Member

    dear itsmemad, even the president can not reduce the high tax rates, no matter he is good or not. That's why I mentioned above about the legislative ways to avoid paying high taxes so I'll post it to you again with risk to be considered as a spammer: taxratesinfo.com
  17. Admin

    Admin Administrator Staff Member

    I am happy with Pranab quitting as our finance minister.. Needed some one who could stop making populist budgets and instead do thungs to strengthen the economy instead of trying to strenghten their vote bank.
  18. itsmemad

    itsmemad Alligator

  19. itsmemad

    itsmemad Alligator

    Markets and Rupee have recovered a little. Petrol prices have been lowered. They are making it appear as if Pranab Mukherjee was the only problem. :D
  20. priyaawasthi

    priyaawasthi New Member

    I do not understand how we are to make any progress as a country if each of us does not contribute. It is like a household. Unless each member contributes towards its upkeep it would go downhill. And if a person earns more he can certainly contribute more. In fact he should do it even before asking. So please do not complain about having to pay more taxes upon earning more. It is a thought that simply reflects your mentality to hoard everything for yourself.

    Regards
    Priya Awasthi
    Visit us at: makemyreturns.com/

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