Question

The exemption limit for general category individual tax payers in the Union Budget 2012-13 is _______.

• A. Rs 1,50,000 per annum
• B. Rs 1,80,000 per annum
• C. Rs 2,50,000 per annum
• D. Rs 2,00,000 per annum

Hint:

The limit was raised in this budget from the previous year's Rs 1,80,000 figure.

Answer 1

The Correct Option is D

This question checks awareness of the income tax slabs announced in the Union Budget 2012-13, which was an important budget for individual taxpayers.

1. Rs 1,50,000 per annum: This was the exemption limit in earlier budgets, from before the slabs were revised upward, so it does not match 2012-13.
2. Rs 1,80,000 per annum: This was the exemption limit that applied just before the 2012-13 budget, that is, in 2011-12. The new budget raised it further, so this is the previous year figure, not the answer.
3. Rs 2,50,000 per annum: This limit came into effect only in a later budget, after 2012-13, so it does not apply here.
4. Rs 2,00,000 per annum: The Finance Minister raised the basic exemption limit to this figure in the 2012-13 budget, giving relief of Rs 20,000 in the minimum tax free income compared to the year before.

The correct option is Rs 2,00,000 per annum, since this is the exact limit that was announced for general category individual taxpayers for the financial year 2012-13.

Let's summarize:

• The exemption limit before 2012-13 was Rs 1,80,000.
• Budget 2012-13 raised it to Rs 2,00,000, benefiting all general category taxpayers.

So, the exemption limit for general category individual taxpayers in Union Budget 2012-13 was Rs 2,00,000 per annum.