Budget 2012: Income tax proposal
exemption limit in case of Individual is increased by Rs. 20000/- now basic exemption limit is Rs. 200000/-
Tax slab is 20% from Rs. 8 to 10Lacs
Deduction on saving bank interest till Rs. 10000/-
No advance tax for senior citizen unless there is Business Income
No change in Corporate tax rates
Compulsory reporting of assets held abroad
TDS on Purchase of Jewellery over Rs. 2 lacs
TDS on sale and purchase of immovable property
Weighted deduction @200% u/s 35(2AB) on scientific research on in-house research and development facility has been extended till 2017.
Section 44AB Minimum Turnover required for compulsory conducting tax audit is proposed to be increased from Rs. 60 Lakhs to Rs. 1 Crore in case of business and Rs. 15 Lakhs to Rs. 25 Lakhs in case of professionals.
Section 50D has been inserted stating that where its not possible to ascertain the value of consideration in case of capital gain the same shall be computed with regard to fair market value of the asset.
Section 56(2)(viib) Inserted which treats any share premium received by a privately held company in excess of fair value of shares as other income of the company.
Section 80D amended to allow preventive health checkup upto Rs. 5,000 as deduction. Senior Citizen age for the purpose of this section to be treated as 60 years.
Section 80G: Deduction not to be allowed on donations made more than Rs. 10,000 unless the same is made otherwise than through cash.
Section 80TTA: Saving bank interest to Individual and HUF of upto Rs. 10,000 allowed as deduction if they are no involved in business.
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