Question:easy

As per the Indian Union Budget of 2012-13, the income-tax exemption limit for persons below 65 years of age is

Show Hint

Think of the first slab of the 2012-13 tax table, the one taxed at nil. The Budget lifted the old Rs. 1,80,000 limit by Rs. 20,000 and scrapped the separate slab for women.
Updated On: Jul 17, 2026
  • Rs. 175000
  • Rs. 200000
  • Rs. 250000
  • Rs. 190000
Show Solution

The Correct Option is B

Solution and Explanation

Step 1: Understanding the Question:
The question asks for one number: the yearly income up to which an ordinary individual paid zero income tax, as fixed by the Union Budget for 2012-13. This Budget was presented in Parliament on 16 March 2012 by Pranab Mukherjee.

Step 2: Key Formula or Approach:
Recall the personal tax slab table of Budget 2012-13 and read off the first slab boundary. The slab table announced was:
Up to Rs. 2,00,000: nil.
Rs. 2,00,001 to Rs. 5,00,000: 10 per cent.
Rs. 5,00,001 to Rs. 10,00,000: 20 per cent.
Above Rs. 10,00,000: 30 per cent.
The point where the "nil" slab ends is the exemption limit.

Step 3: Detailed Explanation:
The nil slab ends at Rs. 2,00,000, so that is the exemption limit for a general taxpayer below senior-citizen age. It was a rise of Rs. 20,000 over the earlier Rs. 1,80,000, worth about Rs. 2,000 of tax saved per person.
The same Budget kept Rs. 2,50,000 as the exemption limit for senior citizens aged 60 and above, and Rs. 5,00,000 for very senior citizens aged 80 and above. That is why Rs. 2,50,000 shows up as a tempting wrong choice.
Rs. 1,90,000 belonged to the old women-only slab, which this Budget abolished so that men and women had the same limit.
Rs. 1,75,000 was the general limit set back in Budget 2010-11 and was already history by 2012.
Only Rs. 2,00,000 matches the 2012-13 slab table.

Step 4: Final Answer:
The exemption limit for persons below 65 years under Budget 2012-13 was Rs. 2,00,000, which is option (B).
Was this answer helpful?
0

Top Questions on Economics

Questions Asked in CLAT exam

Read the passage and answer the question.

Passage (extract): The work which Gandhiji had taken up was not only regarding the achievement of political freedom but also the establishment of a new social order based on truth and non-violence, unity and peace, equality and universal brotherhood and maximum freedom for all. A new order cannot be established without radically changing the mind and attitude of men towards property and, at some stage or the other, the 'haves' have to yield place to the 'have-nots'. We have seen, in our time, attempts to achieve a kind of egalitarian society and the picture of it after it was achieved. But this was done, by and large, through the use of physical force. It may even be that, like a gas kept confined within containers under great pressure, or water held back by a big dam, once the barrier breaks, the reaction will one day sweep back with a violence equal in extent and intensity to what was used to establish and maintain the outward egalitarian form. This enforced egalitarianism contains, in its bosom, the seed of its own destruction. If egalitarianism is to endure, it has to be based not on the possession of the maximum material goods by a few or by all but on voluntary, enlightened renunciation of those goods which cannot be shared by others or can be enjoyed only at the expense of others.

According to the passage, egalitarianism will not survive if
View Solution
Read the passage and answer the question.

Passage (extract): The work which Gandhiji had taken up was not only regarding the achievement of political freedom but also the establishment of a new social order based on truth and non-violence, unity and peace, equality and universal brotherhood and maximum freedom for all. This unfinished part of his experiment was perhaps even more difficult to achieve than the achievement of political freedom. In the political struggle, the fight was against a foreign power and all one could do was either join it or wish it success and give it his/her moral support. In establishing a social order on this pattern, there was a strong possibility of a conflict arising between diverse groups and classes of our own people.

According to the passage, which was the unfinished part of Gandhi's experiment?
View Solution
Read the passage and answer the question.

Passage (extract): In the political struggle, the fight was against a foreign power and all one could do was either join it or wish it success and give it his/her moral support. Experience shows that man values his possessions even more than his life because in the former he sees the means for perpetuation and survival of his descendants even after his body is reduced to ashes. We have seen, in our time, attempts to achieve a kind of egalitarian society and the picture of it after it was achieved. But this was done, by and large, through the use of physical force. This enforced egalitarianism contains, in its bosom, the seed of its own destruction. The root cause of class conflict is possessiveness or the acquisitive instinct.

Which of the following statements is 'not true' in the context of the passage?
View Solution