Budget 2012: New tax slabs and exemption limit raised

Mr. Pranab Mukherjee has annouced new Tax Slabs for us so that we can enjoy more on cafes, apps, movies and gadgets.

Up to 2 lakh rupees – NIL

2 lakh – 5 lakh rupees – 10%

5 lakh – 10 lakh rupees – 20%

Above 10 lakh rupees – 30%

Now if you have a package of lets say 7 Lakhs per annum then how you would get taxed? lets check that…

For your first 2 Lakhs our government is kind enough to forgive you. so NIL. for next 3 Lakhs you will need to shell out 10% that is… INR 30,000. For the next income of INR 5,00,000 to INR 7,00,000 it is 20% so another INR 40,000.  So for a annual income of 7 Lakhs you are taxed for INR 54,000 + Education Cess + Surcharge = INR 71,140.

Now looking at this figure you may want to save your taxes. If you are on a job…  well only options is to make investments and save few bucks.

Below is a good calculator from InvestmentYogi