Budget 2013 highlights for Individuals

Budget 2013 highlights for Individuals:

• Income Tax Exemption Limit :

Basic limit of exemption (general category) increased to Rs. 2.2 Lakhs from Rs. 2 Lakhs – saving of Rs. 2000 for the persons who are having taxable income between Rs. 2 Lacs to Rs.5 Lakhs. i.e. Basic exemption limit remained same for persons having taxable income over Rs.5lakhs. We many assume that only persons whose taxable income is less that Rs.5 Lakhs have got benefit against inflation.

• Super Rich Tax:

 Surcharge @ 10% for Income of More than 1 crore income. This surcharge is only for 1 year i.e. for FY 2013-14. This can be important change for super rich Indians when we are talking about Budget 2013 highlights for Individuals

• Home Loan Deductions:

Benefit to First Time home loan takers. Interest of Rs. 1lakhs on Loan amount up to Rs 25 lakh, taken in FY 2013-14, This deduction will be allowed as an additional over and above existing deduction limit of Rs. 1.5lakhs u/s.24 of interest on housing loan. Pending deduction can be carried forward to next year.

• RGES Scheme:

Rajiv Gandhi Equity saving (RGES) scheme  liberalised. This benefit has been given to persons entering into equity market for the first time, which is now extended to Mutual Fund market as well.

• Deductions for Health Scheme:

Contributions made to the State Government Health Scheme are included for deduction u/s. 80D

• Donations:

Donation made to National children fund will eligible for 100% deduction u/s. 80G

•  Service tax:

Levy of service tax on all air conditioned restaurants. You have to pay more money while eating out in A.C. restaurants.

This is  inclusive list of Budget 2013 highlights for Individuals .