Union Budget 2012-2013 Major Plus and Minus

Finance Minister Pranab Mukherjee has raised the income-tax exemption limit to Rs 2 lakh from Rs 1,80,000. No tax will be charged for income up to Rs 2 lakh. A tax of 10% will be charged for income between Rs 2-5 lakh, while 20% will be charged for income between 5-10 lakh and 30% will be charged above 10 lakh. Pranab has however left the corporate tax unchanged.




Union Budget 2012-2013 Major Plus and Minus

Excise Tax on ready made garments reduced

No advance tax for senior citizens.
No changes in corporate tax rate.

Service tax Hiked to 12%.

Excise tax Hiked to 12%.

Luxury Items, Eating out, AirTravel More Expensive.

Ac ,Fridge , Phone Bills to cost more.

Compulsory reporting of Assets Sold Abroad.

Excise duty on Large Cars Increased from 22% to 24%

White Paper For Black Money Next P Session


Cheaper
MatchBoxes
Branded Silver Jewelry
Soya Products
Iodised Slat




Tax slab

Up to 2 lakh rupees - NIL

2 lakh - 5 lakh rupees - 10%

5 lakh - 10 lakh rupees - 20%

Above 10 lakh rupees - 30%

Presenting Budget 2012-13, F



Budget Highlights


*Customs duty on standard gold raised from 2% to 4%
*Branded silver jewellery exempted from excise duty
*Doubled custom duty on refined gold
*Excise duty on cigarettes raised
*Duty on bicycles and bicycle parts reduced
*Medicines for treating cancer, HIV cheaper
*AC, fridge, phone bills to cost more
*20% tax on buying & selling shares
*Excise tax raised to 12%
*Service tax raised from 10% to 12%
*Luxury items, eating out to become more expensive
*Large cars duty raised from 22% to 24%
*Propose to set up a common tax code for service tax & excise
*Govt services, education, ent exempted from service tax
*Service tax net widened
*No change in corporate tax rate
*To exempt some movie services from service tax
*School education exempt from service tax
*Tax deduction of 200 % for research extended
*Compulsory ceporting requirement of assets held abroad
*No advance tax for senior citizens
*30% tax rate for income above Rs 10 lakh
*20% tax rate for income between Rs 5-10 lakh
*Exemption limit for I-T raised to Rs 2 lakh
*Raises income tax exemption limit to Rs 2 lakh from 1.80 lakh
*Non-tax expenditure revenue receipts estimated at Rs 1.64 lakh crores
*Tax collection up 15%
*Seven medical colleges to be upgraded
*Financial assistance for universities across states
*Propose additional funds for Aadhar to cross 40 cr enrollment
*Dedicated cell to track black money
*Rs 1000 cr for National Skill Development Fund
*White paper on black money in current session
*Defence budget raised to Rs 1.93 lakh crores
*Kisan credit cards can be used at ATMs
*Allocation for mid-day meal scheme for schools at Rs 11937 crore
*National urban health mission set up
*Repay loans on time, get sops
*3% interest subsidy for farmers
*Tracking of tax evasion through PAN
*Health schemes in urban areas to have higher allocation
*1% subsidy on home loans up to 15lakhs
*Rs 15,850 cr to be allocated to Integrated Child Development Scheme in 2012-13 as against Rs 10,000 cr this fiscal
*100 crores for Agriculture University in Kerala
*NRHM allocation hiked to Rs 20,820 crores
*Credit guarantee fund for education loans
*Credit guarantee fund for education Loans
*Over Rs 12,000 cr for backward area projects in FY13
*6000 schools to be set up in 12th five year plan
*Public distribution system to be computerised
*Kisan credit cards can be used at ATMs
*Tax-free bonds of Rs 10,000 crore for NHAI
*Propose to allocate Rs 10,000 cr NABARD for refinancing RRB
*27% more funds for rural sanitation and drinking water
*Over Rs 11,000 cr for school mid-day meal scheme
*Agriculture credit target raised to Rs 5.75 lakh crore in FY13:
*Direct Tax Code implementation deferred
*New equity savings scheme for small investors
*10% of IPO above Rs 10 cr via electronic platform
*Financial Holding company to meet financial needs of PSU banks
*49% airline FDI under active consideration
*Propose tax free bonds of Rs 10,000 cr for power sector
*Interest subsidy for farmers to continue
*Govt raises foreign loan limit for aviation
*Agriculture credit target raised to Rs 5.75 lakh crore in FY13
*Govt raises foreign loan limit for aviation
*Foreign investment in low cost affordable housing projects
*Propose tax free bonds of Rs 10,000 cr for power sector
*ECB cap raised for airlines
*49% airline FDI under active consideration
*Financial Holding company to meet financial needs of PSU banks
*To allow QFIs in corporate bond market
*10% of IPO above Rs 10 cr via electronic platform
*New tax exemption proposed for retail investment
*Rs 60,000 crore for infrastructure development
*To introduce Rajiv Gandhi Equity Scheme
*Qualified foreign investors will enter bond market
*Direct cash subsidy to be given for oil & kerosene
*Lack of infrastructure is major problem
*Subsidies to be under 2% of GDP
*GST to be operational by August 2012
*Rs 30,000 crore to be raised by disinvestment
*Current account deficit is likely to be at 3.6%
*India's share of trade has gone up
*Expect GDP to grow at 7.6% next year
*India is expected to grow at 6.9%
*Agriculture and services continue to perform well and slowdown can be attributed to slow manufacturing industry.


NEW DELHI: A large variety of day-to-day usage items and services will burn a hole in the common man's pocket with Finance Minister Pranab Mukherjee proposing to raise excise duty to 12 percent from 10 percent and a similar hike in service tax rate.  
Following is a list of what will be costlier and which ones will be cheaper following the Budget 2012-13.

Costlier
Two-wheelers, cars, commercial vehicles.
Refrigerators, air-conditioners, washing machines, watches
Soaps, cosmetics, homecare items,
Cigarettes and bidis,
Packaged food items
Pan masala and chewing tobacco,
Unbranded precious metal jewellery,
Imported luxury vehicles,
Imported bicycles and bicycle parts,
Imported digital still cameras,
Imported gold bars and coins of certain categories, platinum
Imported cut and polished coloured gem stones,
Air travel, eating out at restaurants and hotel stays
Not all is gloomy as the Budget has also made some items and activities cheaper.

Cheaper
Mobile phone parts,
Branded silver jewellery,
Branded garments
Imported LCD and LED TV panels of over 20 inch,
Matches
Footwear below Rs 500,
Adult diapers
Soya protein food products,
Probiotics
Writing instruments
Imported medical equipment.