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Quick analysis of the 81st Union Budget 2012.

1. Increase in the threshold limit for Zero tax to Rs. 2 Lakhs from the existing limit of Rs.1.8 lakhs. This will translate into tax reduction of approximately Rs. 1,000 for women and approximately Rs. 2,000 for men.
2. The second tax slab of 20% has been enhanced with the upper limit being raised to Rs.10 lakhs from the existing Rs.8 Lakhs.
3. Exemption of savings account interest of up to Rs. 10,000 from tax.
4. A new tax deduction for retail investors, investing in equities (with a lock-in period) up to a limit of Rs. 50,000 and get a tax deduction of 50%.
5. Exemption from Capital Gains tax on sale of residential property would be available if the sale consideration is used for subscription in equity of a manufacturing.
6. It has been proposed to exempt Senior citizens not having income from business from payment of advance tax if they do not have any business income.
7. Deduction of up to Rs.5,000 for individuals going in for preventive health check-up.
8. Small business men could benefit from the proposal to raise the turnover limit for compulsory tax audit of account and presumptive taxation from the current Rs. 60 lakhs to Rs. 1 crore.