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Likely Tax Breaks in Budget 2012 – 13 for Common Man in India

Well, we will leave it to the God to provide the service and business class with some additional tax breaks because as per available indicators, tax slab is not going to be changed.

This is a fact which comes from the horses mouth in form of a finance ministry official who has stated that the government needed to boost its revenue collections immediately and it would be difficult to widen personal income tax slabs further. “The last Budget had tried to bring tax slabs closer to those proposed in the Direct Taxes Code (DTC) and there is not much scope for any tinkering this time,” he said.

This is one aspect which is very keenly watched by a common man as every Rupee saved in tax means more spending power. 

Let us hope that wisdom prevails in Finance ministry and they do provide a tax break for common man of India who is overburdened with taxes. The Finance ministry can do it as they can raise the tax exemption limit, which currently stands at Rs 1.80 lakh for men and Rs 1.90 lakh for women to the stipulated tax breaks in DTC Bill which seeks to increase this limit to Rs 2 lakh a year for both the categories. However one may not see any change in corporate tax rate which will remain intact at 30 per cent (exclusive of cess and surcharge).

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