Tax exemption limit raised to 2 lakhs.
| SL NO | Income | Tax Rate (in %) |
| 1 | Upto 2 lakhs | 0 |
| 2 | 2 – 5 lakhs | 10 |
| 3 | 5 – 10 lakhs | 20 |
| 4 | Above 10 lakhs | 30 |
Watch Live webcast of Union Budget 2012
Hon'ble Finance Minister Sri Pranab Mukharjee will be Presenting Union Budget in the Parliament on 16th March, 2012.
Watch Budget Live at http://budgetlive.nic.in/
The budget speech will start at 11.00 AM.
Union Budget 2012 for Central Government employees:
Employees are eagerly waiting whether Tax relief will be there or not . It is expected that some increase will be there in the IT exemption limit.
Government may increase tax exemption limit for transport allowance to Rs 3,200
Government is considering a proposal to raise the tax exemption limit on monthly transport allowance to Rs.3,200 a month from Rs.800. The proposal is being studied by the finance ministry. The move will benefit a large proportion of salaried employees to lower their tax planning by nearly Rs.9,000 a year.
The proposal follows a similar hike for government servants under the Sixth Pay Commission award. However, the private sector employees are expected to benefit as well from the proposal. A decision is expected soon.
In case the proposal materializes, it would lead to an yearly additional exemption of Rs.28,800, and a tax saving of Rs.8,899 a year, including cess, to those in the highest tax bracket.
The Central Board of Direct Taxes, which has the power to formulate and change rules, is exploring the possibility of hiking the exemption through a notification.
source:rtt news
