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

Step 1: Understanding the Question:
We need to find the basic income tax exemption limit set for a general category individual taxpayer in the Union Budget presented for the financial year 2012-13.

Step 2: Key Formula or Approach:
Recall the tax slab changes announced by the then Finance Minister Pranab Mukherjee while presenting the Union Budget for 2012-13 in February 2012.

Step 3: Detailed Explanation:
Before this budget, the basic exemption limit for a general category individual was Rs 1,80,000 per year.
In the Budget 2012-13, this limit was raised to Rs 2,00,000 per year, giving every general category taxpayer some relief from tax on the first two lakh rupees of income.
The option of Rs 1,50,000 was an older exemption limit from a few years earlier, and Rs 2,50,000 became the exemption limit only in a later budget, so both do not match 2012-13.

Step 4: Final Answer:
The exemption limit for general category individual taxpayers in the Union Budget 2012-13 was Rs 2,00,000 per annum.