The Finance Blog: Income Tax Slabs for Financial Year 2012-13

Here?s the Income Tax Slabs for the financial year 2012-13, based on the budget presented by the Finance Minister on 16th March 2012.

General
Till 2,00,000 ? 0%
2,00,001 ~ 5,00,000 ? 10%
5,00,001 ~ 10,00,000 ? 20%
Above 10,00,000 ? 30%

Senior Citizen (Between 60 & 80 years)
Till 2,50,000 ? 0%
2,50,001 ~ 5,00,000 ? 10%
5,00,001 ~ 10,00,000 ? 20%
Above 10,00,000 ? 30%

Very Senior Citizen (Above 80 years)
Till 5,00,000 ? 0%
5,00,001 ~ 10,00,000 ? 20%
Above 10,00,000 ? 30%

Comments
The Finance Minister didn?t mention about a separate tax slab for women. Either it is awaited or we will see that it is unified with the General category. At a time when we see a convergence happening in male and female salaries for the same kind of work (lower salary for female workers for the same kind of work is a phenomenon that?s not seen much in cities, but still prevalent in rural areas), I think the unification of tax slabs for men and women makes greater sense.

The first slab is raised from 1,80,000 to 2,00,000 leading to a maximum tax savings of 2,000. People earning income between 8,00,000 and 10,00,000 are the biggest beneficiaries of the new tax slabs as they move from a 30% slab to 20% slab, resulting in a maximum tax savings of 20,000.

Overall, this is not a great relaxation for the income earning populace at a time when the cost of living has consistently been higher and is not showing any signs of cooling.

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