New Delhi: Finance Minister Pranab Mukherjee on Friday announced tax relief for individual tax payers. Presenting Union Budget 2012-13 in Lok Sabha, Mukherjee said income upto Rs 2 lakh would be tax free; income from Rs 2-5 lakh to be taxed 10%; from Rs 5-10 lakh to be taxed 20%; and income above Rs 10 lakh would attract tax of 30%.
Mukherjee earlier said India continues to remain among front-runners in economic growth. Mukherjee however said the economic growth is estimated at 6.9 percent during the current fiscal year which was was “disappointing”.
“The global crisis has affected us. India’s gross domestic product (GDP) is expected to grow at 6.9 percent in 2011-12, after having grown at 8.4 percent in each of the two preceding years,” the minister said. “But it is also a fact that in any cross-country comparison, India still remains among the front-runners in economic growth,” he added.
The minister stated that the Indian economy was at the cusp of a revival, as agriculture and services have continued to grow at a decent pace. It was industrial performance that was acting as a drag. The Finance Minister also exuded confidence that headline inflation would moderate in the next few months and remain stable.