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Budget 2012: 8 ways it impacts the SALARIED
Budget 2012 announced by honourable finance minister Pranab Mukherjee will have impact on individuals also: salaried individual as well as self-employed.
In this article Taxmantra has summarised eight amendments which would have impact on the salaried class.
Budget 2012: 8 ways it impacts the SALARIED
1. Tax slab
The tax slab has been amended and the basic exemption limit has been extended from Rs 1800,00 to Rs 200,000 for all individuals. No further benefits will be provided to women as the proposed budget has brought the men and women in the general category.
Further, there is no enhancement of basic exemption limit in case of senior citizen and very senior citizens.
Budget 2012: 8 ways it impacts the SALARIED
Life insurance premium deduction u/s 80C
In the budget it is proposed that deduction of life insurance premium of policy taken on own life, life of the spouse or any child which was subject to a maximum of 20 per cent of the sum assured has been amended to 10 per cent of sum assured. (Sum assured does not include any premium agreed to be returned or any benefit by way of bonus).
Budget 2012: 8 ways it impacts the SALARIED
U/S 80TTA (Interest on savings account)
A new deduction u/s 80TTA has been introduced for interest on savings account. Under this, deductions is allowed on savings account interest up to Rs 10,000 per annum. This deduction will come into effect from April 1, 2013.
Budget 2012: 8 ways it impacts the SALARIED
U/S 80D (Preventive health check ups)
Budget 2012 also proposed to provide deduction of payment made for 'preventive health check up' of self, spouse, dependent children or parents during the previous year u/s 80D.
The proposed deduction on preventive health check up will be available upto Rs 5,000 and it is included in overall limit and is not an additional one.
Budget 2012: 8 ways it impacts the SALARIED
Deduction u/s 80CCF removed
Additional deduction of Rs 20,000 for investment in long term infrastructure bond which was available to individuals has been removed. As per the new budget no tax exemption will be provided on investment in infrastructure bonds.
Budget 2012: 8 ways it impacts the SALARIED
Deduction u/s 80G (Donations)
Budget also proposes that any donation made which exceeds a sum of ten thousand rupees shall only be allowed as a deduction if such sum is paid by any mode other than cash.
Budget 2012: 8 ways it impacts the SALARIED
Securities transaction tax (STT) reduced from 0.125 per cent to 0.1 per cent
For every equity transaction, STT is payable. As per the new budget it has now been reduced by 1 per cent... Earlier it was 1.25 per #162 now it has been reduced to 1 per cent.
So it means you will have to pay less for your equity transactions.
Budget 2012: 8 ways it impacts the SALARIED
TDS @1 per cent in case of selling residential property
If you want to sell your residential flat/house/plot (any kind of real estate) whose selling price is more than Rs 50 lakh then you will have to pay TDS. As per this budget, whenever you sell your residential property and the selling price is more than 50 lakh, you will have to compulsorily pay TDS @1 per cent.