new delhi presenting the union budget for 201213 in the lok sabha finance minister pranab mukherjee said the upper limit for the 20 percent tax slab would be increased to rs10 lakhthe finance minister pranab mukherjee announced raising the tax exemption limit from the curent level of rs 18 lakh to rs 2 lakh for income upto rs 2 lakh the tax deduction will now be nill for those with an income between rs 25 lakh the tax deduction would be 10 for income between rs 510 lakh the tax bracket will be 20 income above rs 10 lakh will now come under the 30 tax bracketbudget at et budget 2012 union budget live union budget blog railway budget budget news economic survey of indiathe finance minister also announced the introduction of dtc tax rates corporate tax rates were left unchanged savings accounts will now get rs 10000 tax deduction for interest earnedi propose to enhance the exemption limit for individual from rs180 lakh to rs2 lakh i also propose to raise the upper limit of the 20 percent tax slab from rs8 lakh to rs10 lakh mukherjee saidthis measure will provide a tax relief of rs2000 to every taxpayer of this category mukherjee saidthe new tax slab for the coming fiscal will be 10 percent tax for income above rs2 lakh and up to rs5 lakh 20 percent for above rs5 lakh and up to rs10 lakh and 30 percent for income above rs10 lakhthe parliamentary standing committee on finance had recommended an increase in basic tax exemption limit to rs 3 lakh and another rs 320 lakh rebate for eligible investments and spending in its report on the direct taxes code or dtc the direct taxes code bill had proposed the basic exemption limit of rs 2 lakhthe senior bjp leader yashwant sinha headed panel that looked into the bill had also asked the government to continue with higher exemption limit for women the panel had suggested retaining the threeslab structure of 10 20 and 30 for personal income tax