Income Tax Slab

Usually Indian citizen worried about Income tax at last 2 month of Financial year. As per income tax act 1961, every person in India whose total income cross over the maximum exemption limit (as specified or mentioned on official website) , will have to pay income tax.

Every individual have to pay tax to Central and State government.

There are 2 types of Tax:

Direct Tax: Direct tax is a tax that is collected directly through tax payer, for example, income tax, wealth tax etc.

Indirect Tax: Indirect tax is paid by third party, for example service tax, VAT etc. In India VAT or services tax is charges to individual person. For example if a product price is Rs 100 then it’s final price would be Rs 110 after VAT and this additional price Rs 10 will be paid by ultimately by individual person.

 

Income Tax Slab for FY 2012-13 is given below (both for Male & Female)

Rs 0 to Rs 2,00,000/- No tax
Rs 2,00,001 to Rs 5,00,000/- 10%
Rs 5,00,001 to Rs 10,00,000/- 20%
Above Rs 10,00,000/- 30%

There won’t be tax up to Rs 2,00,000 however if your total income is going to beyond 2 lakh but less than 5 lakh in an financial year then there would be 10% tax applicable. This tax would be calculated on 2 to 5 lakh. Similarly if total income in any financial year is going to be above 5 lakh and up to 10 lakh then 20% tax would be applicable.

 

Income Tax Slab for Senior citizens FY 2012-13 is given below:

Rs 0 to Rs 2,50,000/- No tax
Rs 2,50,001 to Rs 5,00,000/- 10%
Rs 5,00,001 to Rs 10,00,000/- 20%
Above Rs 10,00,000/- 30%

Tips to save tax: There are few ways to save tax on your total income these are as follows:

1) Insurance: Purchase Insurance plan that provide rebate on tax.

2) Room Rent: If you don’t have your own house or flat and leaving on rent then you can add the rent to take rebate on tax.

3) Travelling Expenses: If you use own vehicle (2 or 4 wheeler) then you can show the traveling expenses as well to save tax.

 

Remember Financial year 2012-13 is about to end so make sure to filed income tax and use above tips as well to save tax.

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