Income Tax 2012-13 -Slabs and deductions permitted

• Income Tax 2012-13 Slabs for different categories depending on Annual Income is given below.
• These rates will be applicable for assessment year 2013-14(Financial year 2012-13).

Individuals below 60 years	IT Rate
Up to Rs.2,00,000	Nil
Rs.2,00,001 – Rs.5,00,000	10%
Rs.5,00,001 – Rs.10,00,000	20%
Rs.10,00,001 upwards	30%
Sr. Citizen (60-79 yrs)	IT Rate
Up to Rs.2,50,000	Nil
Rs.2,50,001 – Rs.5,00,000	10%
Rs.5,00,001 – Rs.10,00,000	20%
Rs.10,00,001 upwards	30%
Very Sr. Citizen (80 yrs & above)	IT Rate
Up to Rs.5,00,000	Nil
Rs.5,00,001 – Rs.10,00,000	20%
Rs.10,00,001 upwards	30%

• Deduction in tax will be given for amount upto Rs.1 lakh  invested in tax savings under 80C.
• 50 % deduction on investment upto Rs.50,000 directly in equities for taxpayers with annual income upto Rs. 10 lacs will be given under Rajiv Gandhi Equity Savings Scheme.
•  With the new slab salaried employees will have minimum Rs. 2000 tax relief.
• A deduction of upto Rs 10,000 for interest from savings bank accounts is proposed while computing taxable income.
• If taxable salary income is up to Rs 5,00,000 and interest from savings bank accounts is up to Rs 10,000, no tax return is to be filed.
• Rs 5,000 to cover expenses for preventive health check-ups for self and family members are deducted from taxable income within the overall limit of Rs 15,000 for Mediclaim insurance premium.
• Capital gains from sale of house property will not be taxable, if invested in equity shares of eligible companies (typically SMEs).
• Tax benefits (deduction for premium or exemption for maturity proceeds) are no longer available to new life insurance policies having annual premiums of more than 10% of sum assured (this does not take into account the loyalty bonus component).