Income tax rates: Budget 2013 Impact
Lower income group (up to Rs 5 lakh)
Tax payer having income up to Rs 5 lakh to get Rs 2000 as rebate. The benefit available under the Rajiv Gandhi Equity Savings Scheme (RGESS) has been extended to three consecutive years. Further investment in listed units of mutual fund would also qualify as eligible investment for RGESS.
Middle income group (between Rs 5 lakh to Rs 12 Lakh)
No change in the tax rates for the middle income group tax payers. Those earning upto Rs 12 lakh would also benefit for investment into RGESS as eligibility income group limit has been raised from Rs 10 lakh to Rs 12 lakh.
Those tax payers who do not own any house can claim additional deduction of Rs 1 lakh towards housing loan interest. However this is subject to the conditions that the cost of house should not exceed Rs 40 lakh and loan taken does not exceed Rs 25 lakh.
High income group (between Rs 12 lakh to Rs 1 crore)
No change in the tax rates. However the individual can avail the additional deduction in relation to housing loan as explained above.
Very High income
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