Tax Changes in Budget 2013-14

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Budget 2013 and its effects on Tax Planning

Lets look at how the Union Budget 2013 Tax Proposals is going to effect our Tax planning

  1. No change in Tax rates on income up to Rupees 2 lakh
  2. Income in the bracket of Rupees 2-5 lakh braket Total tax is reduced by Rupees 2060 which is very marginal
  3. There is no change in the tax rates for other income categories except those who have income level above Rupees one Crore. A new surcharge of 10% is imposed on the total tax payable by them.
  4. The Rupees one lakh tax saving which was set in 2005 with the introduction of section 80c in 2005, still holds.
  5. A new section is introduced under income tax act Section 80ccd(2) which says that up to 10 % of the basic salary of the employee is fully deductible if intvested in in National Pension Schemes (NPS) by the employer on behalf of the employee.

Last Updated on 03/07/2013