Tax Advantage - Here's the exemption of tax for various working class people

Different Tax exemptions for people working in different streams of business/Work.
If you are a...

Woman

Tax saving of Rs 1,030 resulting from increase of the basic exemption limit from Rs 1.9 lakh to Rs 2 lakh. Women earning more than Rs 8 lakh can save up to Rs 21,630 due to expansion of 20 per cent tax slab up to Rs 10 lakh.

No separate tax slab announced for women tax payers.

Senior Citizen

No change in the basic exemption limit for resident senior citizens (aged between 60 and 80 years) and very senior citizens (aged 80 years or more). However, they will save tax up to Rs 20,600 resulting from the expansion of the 20 per cent tax slab up to Rs 10 lakh.

In addition, where senior citizens do not have any income from business or profession, they have been exempted from the payment of advance tax.

Entrepreneur or self-employed

Tax saving of Rs 2,060 resulting from the increase in the basic exemption limit for individuals from Rs 1.8 lakh to Rs 2 lakh. Where individuals have a taxable income of more than Rs 8 lakh, their saving could go up to Rs 22,630, depending on their income levels.

The threshold limit for getting accounts audited has been proposed to be raised to Rs 1 crore from Rs 60 lakh for businessmen, and to Rs 25 lakh from Rs 15 lakh for professionals.

The threshold limit of total turnover or gross receipts required to be covered under the presumptive tax has also been proposed to be raised from Rs 60 lakh to Rs 1 crore.

Salaried

Salaried class to benefit from the increase in the basic exemption limit and expansion of the 20 per cent tax slab as explained above for women and entrepreneurs.

Student/ Disabled/ Widow

No specific exemptions for student/ disabled/widow tax payers. Tax savings, as applicable to the above individuals, would be available to them as well.

Tax relief

Basic exemption limit raised from Rs 1.8 lakh to Rs 2 lakh.20 per cent tax slab expanded from the income level of Rs 5 lakh-8 lakh to Rs 5 lakh-10 lakh.

Payment of up to Rs 5,000 towards preventive health check-up for self and family to be eligible for deduction under Section 80D under the overall limit of Rs 15,000 towards medical insurance.

Deduction introduced for interest up to Rs 10,000 on savings bank accounts with banks and post office.

Long term capital gains on sale of residential property not taxable where the net consideration is reinvested in the equity of manufacturing small and medium enterprises, and where certain conditions are met.

Tax obligations -

• No special slabs for women tax payers.

• No deduction available under Section 80C towards insurance premium on the insurance policies issued after April 1, 2012, where the premium exceeds 10 per cent of the actual capital sum assured.

• Purchaser of an immovable property (other than agricultural land) is under an obligation to deduct taxes at source at the rate of 1 per cent if the sale consideration exceeds a particular limit.

• Collection of tax at source where gold is purchased in cash for a value in excess of Rs 2 lakh.

• Unexplained credit, investments, money and expenditure will be taxed at a flat rate of 30 per cent irrespective of the applicable slab rate.

• Residents to compulsorily file returns in India if they have any asset (including financial interest in any entity) outside India, or they are a signing authority in any account outside India.

• Cash donations in excess of Rs 10,000 will not be eligible for deduction under section 80G and 80GGA .