Changes expected in Personal Income Tax structure in the budget 2012-13

The following changes are expected in the Personal Income tax front today, while Finance MinisterMr.Pranab Mukherjee presents the Union Budget 2012-13.

Changes expected in Personal Income Tax Front

Basic Income Tax Exemption Limit may be raised from Rs. 1.8 lakh to Rs. 3 lakh

Increase of deduction under Section 80 C of the the Income tax Act (investments in GPF, PPF, LTC etc) from Rs. 1 lakh to Rs.3 lakh

Interest deduction limit for self occupied house property could be increased from Rs.1.50 lakh to Rs.2.5 lakh per annum

This expectation is an offshoot of recommendations of Parliamentary Standing Committee’s report on Direct Tax Code Bill recently. This committee was headed by Former Finance Minister Mr.Yashwant Sinha.

Source: Times of India : gconnect