Basic Tax Amendments (Budget 2012-13)
i. Tax limits amended
• Basic Limits Enhanced – Increase
in the basic exemption limit in the
case of
individual taxpayers from 1.80 lakhs to 2 lakhs.
• Upper Limits Enhanced – Increase
in the upper limited in the case
of the
individual taxpayers from Rs. 8 lakhs to Rs. 10 lakhs.
• Income tax slabs for individual taxpayers to be as follows-
For all Individuals (Males/ Females) below 60
Years
Income up to Rs 2 lakh
|
Nil
|
Income above Rs 2 lakh and up to Rs. 5 lakh
|
10 per cent
|
Income above Rs.5 lakh and up to Rs. 10 lakh
|
20 per cent
|
Income above Rs. 10 lakh
|
30 per cent
|
For Senior Citizens above 60 Years but below 80
years
Income up to Rs 2.50 lakh
|
Nil
|
Income above Rs 2.50 lakh and upto Rs. 5 lakh
|
10 per cent
|
Income above Rs.5 lakh and upto Rs. 10 lakh
|
20 per cent
|
Income above Rs. Rs 10 lakh
|
30 per cent
|
For
Senior Citizens on or above 80 Years
Income up to Rs 5 lakh
|
Nil
|
Income above Rs 5 lakh and up to Rs. 10 lakh
|
20 per cent
|
Income above Rs. 10 lakh
|
30 per cent
|
ii. New deductions allowed
• Deduction for interest
earned from saving bank – Amount
upto Rs. 10,000/-
allowed as deduction u/s 80TTA to individuals and HUF.
• Deductions of Rs 5,000
u/s 80D allowed for preventive health
check up - Within
the existing limit
for deduction allowed for health insurance
under section 80D,
now a deduction of
up to Rs 5,000 for preventive health
check-up is allowed to
Individuals.
iii. Other benefits / amendments applicable to other than companies
• No Advance Tax to
be paid by the senior citizens - Senior
citizens who do not
have any income from
business are proposed to be exempted
from the payment
of advance tax, thus reducing their compliance burden.
• Relief from long-term
capital gains tax on transfer of residential
property if
invested in a manufacturing small or medium enterprise
• Tax Audit not compulsory
for turnover upto Rs. 1 crore - The
turnover limit for
compulsory tax audit
of accounts is raised from Rs 60
lakh to Rs 1 crore in the
case of persons
carrying on business and from fifteen lakh rupees to twenty
five
lakh rupees in the case of persons carrying on profession.
• AMT on all persons
other than company if income exceeds
Rs. 20 lakhs- Levy of
Alternate Minimum Tax
(AMT) in the case of a person
other than a company
@18.5% on Income
before deductions chapter VIA (except 80P). AMT Tax credit
will be allowed for set off for 10 assessment years. AMT will only be applicable if
the normal income is below 18.5%.
• Date of return filing
extended for non-corporate assessee -
Date of filing shall
be November 30, for
all those non-corporate assessee’s liable to
file Transfer
pricing report.
• AMT on all persons
other than company if income exceeds
Rs. 20 lakhs- Levy of
Alternate Minimum Tax
(AMT) in the case of a person
other than a company
@18.5% on Income
before deductions chapter VIA (except 80P). AMT Tax credit
will be allowed for set off for 10 assessment years. AMT will only be applicable if
the normal income is below 18.5%.
• Date of return filing
extended for non-corporate assessee -
Date of filing shall
be November 30, for
all those non-corporate assessee’s liable to
file Transfer pricing report. ongoing year
shall get time barred on March 31,
2013 instead of December 31, 2012.
• Compulsory
filing of income tax return in
relation to assets located outside
India – All residents assessee’s having assets located outside India (immovable or
movable) shall have to compulsorily file tax returns in India.
Courtsey: Mr. Kamal Tejwani (jktco.com)
