Question:

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

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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
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The Correct Option is B

Solution and Explanation

This question checks whether you remember the basic personal income-tax slab announced by Finance Minister Pranab Mukherjee in the Union Budget presented on 16 March 2012 for the financial year 2012-13. The "exemption limit" is the amount of yearly income on which an individual pays no income tax at all. In that Budget the limit for a general individual taxpayer was raised from Rs. 1,80,000 to Rs. 2,00,000, giving a small relief of about Rs. 2,000 in tax to every taxpayer. Let us look at each option.

  1. Rs. 175000: This was the general exemption limit fixed in the Budget of 2010-11, not 2012-13. It had already been revised upward before 2012, so it is out of date here.
  2. Rs. 200000: This is the figure announced in the 2012-13 Budget for individual taxpayers below the senior-citizen age. It is the correct answer.
  3. Rs. 250000: This was the higher limit meant for senior citizens (60 years and above but below 80 years) in that Budget, not for the general taxpayer. It became the general limit only much later, from 2014-15.
  4. Rs. 190000: This was the special exemption limit for women taxpayers under the earlier structure. The 2012-13 Budget in fact removed the separate slab for women and merged them into the common Rs. 2,00,000 limit.

So the correct option is (B), Rs. 200000. Along with this change, the Budget also taxed income from Rs. 2,00,000 to Rs. 5,00,000 at 10 per cent, Rs. 5,00,000 to Rs. 10,00,000 at 20 per cent and above Rs. 10,00,000 at 30 per cent.

Let's summarize:

  • Union Budget 2012-13 raised the general exemption limit from Rs. 1,80,000 to Rs. 2,00,000.
  • Rs. 2,50,000 in that year applied only to senior citizens, and the separate women's limit of Rs. 1,90,000 was scrapped.

The income-tax exemption limit for a person below 65 years in Budget 2012-13 was Rs. 2,00,000.

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