Taxation
Economy & Nation Exclusive
No Income tax for income up to Rs2 lakh: Budget Highlights 1

In the Budget for 2012-13, the finance minister has increased the tax exemption limit to Rs2 lakh and also increased limits of tax slabs

Here is what you will be paying as income tax for FY13.. For up to Rs3 lakhs - NIL; Rs4 lakhs - Rs6,180; Rs5 lakhs - Rs6,180; Rs6lakhs - Rs10,300; Rs8 lakhs - Rs10,300 Rs9 lakhs - Rs10,300; Rs10 lakhs - Rs18,540

Here are the tax savings as per new proposals: For income up to Rs3-Rs8 lakhs you would be able to save Rs2,060, for income of Rs9 lakhs you would save Rs12,360 and for income between Rs10-Rs25 lakhs you would save Rs22,660.

PERSONAL TAXATION:
 
Individuals:
Income up to Rs2 lakh: NIL
Income between Rs2- Rs5 lakh: 10%
Income between Rs5-Rs10 lakh: 20%
Income above Rs10 lakh: 30%
 
Senior Citizen: Minimum Tax Exemption remains at Rs2,50,000
Women : Remains unchanged; i.e. at Rs1,90,000
Senior citizens to be exempt from advance tax payments
Health insurance deduction upto Rs5,000 for annual preventive health checkup
Interest income from banks tax-free upto Rs10,000
Income Tax deduction of 50% on investments of up to Rs50,000 in savings scheme named after Rajiv Gandhi Equity Scheme. This will be for retail investors. A three year lock-in period exemption under Rajiv Gandhi scheme.

INDIRECT TAX:
 
Service tax rates hiked to 12% from 10%
All services to be taxed except those in negative list. Negative list to include pre-school and high school education, entertainment services.
Service tax net widened; to include most sectors
Government services, public transport, School education exempted from service tax
Securities Transaction Tax (STT) reduced to 0.10% from 0.125%.
No change in peak customs duty
Standard excise duty rate raised to 12% from 10% .

User

COMMENTS

Prakash

5 years ago

- STT on equity reduced to 0.1%. What about STT on redemption of Mutual Fund scheme ?

- Does this mean that a 'woman' assessee's tax free limit is below that of an 'individual' ? Does that mean now a 'woman' has lost the advantage and thus the previlege of being a woman ?

Nagesh Kini FCA

5 years ago

This is a lack lustre budget all about great reforms without any bold action plan that can boost the economy.
The new items - are non-starters -
the hike in basic exemption to Rs.2lakh is meaningless, not in keeping with the galloping inflation. It would have made sense if it was the
Rs.3l proposed by the DTC.
The so-called Rs.10,000 exemption for SB interest for Sr. Citizens with incomes upto Rs.5l should have read to cover ALL bank interest as it is interest from FD that the all elders earn substantive interest.They don't earn very little on SB Accounts. The Tedious TDS on all Bank interest earned should have been withdrawn, not even Rs.10,000.
Only new concession of Rs.5,000 deduction for expenses on preventive health is token. Mediclaim insurance doesn't allow preventive checks. Even a single check up costs that much. It ought to have covered a comprehensive check like blood, urine, ECG, hypertension, opthal., ENT all geriatric ailments.
No advance tax for Sr. Citizens with incomes upto Rs.5l again is no great shakes it ought have been Rs.10l. .

Economy & Nation Exclusive
Union Budget 2012 Highlights: FM presents Budget amid uproar in House

Finance minister Pranab Mukherjee presented the General Budget for 2012-13 in the Lok Sabha amid uproar in the House. Highlights of the finance minister's speech:

  • Baggage allowance for people of Indian origin increased from Rs25,000 to Rs35,000 and for children from Rs12,000
  •  Customs and central excise proposals to net revenue of Rs27,280 crore
  •  Branded silver jewellery fully exempted from excise duty
  • Unbranded gold jewellery to be included in the 1% levy on precious metal jewellery
  •  Import duty on large cars, MUVs, SUVs enhanced
  • Oil cess on domestic crude raised to Rs4,500 per ton from Rs2,500 per tonne
  •  Customs duty on standard gold bar and coins exceeding 99.5% purity, platinum and non-standard gold raised
  •  Installation of solar plants exempted from CVD
  • Agriculture credit target raised to Rs5.75 lakh crore
  •  Diamonds emerald and ruby prices will increase
  •  Basic customs duty on cigarettes reduced; duty on hand-rolled beedis increased
  •  Customs duty on some gold and platinum products increased
  •  To allow external commercial borrowing to part finance rupee debt in power projects
  •  Proposes to remove sector-specific restriction on venture capital fund investments
  •   Mobile phone parts exempted from basic customs duty
  •   School education exempt from service tax
  •  12% excise duty imposed on branded retail garments
  •   LCD and LED panels exempted from custom duty
  •   Excise duty on handmade and semi-mechanised matches reduced from 10% to 6%
  •  Customs duty on import of parts of aircraft, tyres and testing equipment fully exempted
  •  Full exemption from basic customs duty for equipment for road and highway construction
  •   Thermal power companies exempted from customs duty for 2 years
  •   5% customs duty exempted on equipment for fertilizer plants
  •   LNG out of customs duty
  •   To raise duty on large cars to 27%
  •  FY12-13 net market borrowing at Rs4.8 lakh crore
  •  Standard excise duty hiked to 12%
  •  Service tax up from 10% to 12%; Rs18,660 crore will result from service tax rise
  • Direct Tax Code implementation deferred
  • Income Tax at 30% for income of over Rs10 lakh
  • Income Tax at 20% for Rs5 lakh to Rs10 lakh
  •   Income Tax at 10% for Rs2-Rs5 lakh bracket
  •   No change in corporate tax rates
  •  Raises exemption limit to Rs2 lakh from Rs1.8 lakh
  •   Non plan expenditure at Rs9.7 lakh crore
  •   Tables a white paper on black money issue
  •  Coal India advised to sign FSA with power plants
  •   Agri credit target for FY12-13 at Rs5.75 lakh crore, up Rs1 lakh crore
  •  To introduce new law for micro finance institutions
  • Credit guarantee fund for loans to students
  •   Interest subsidy for women SHGs up to Rs3 lakh at 7%; 3% more for SHGs that repay promptly
  •   Allocation to National Rural Livelihood Mission for women increased by 34%
  •   Allocation under National Rural Health Mission raised to Rs20,822 crore from Rs18,115 crore
  •   Rs14,000 crore for rural drinking and sanitation in FY12-13
  •  New equity savings scheme announced
  •   Govt doubles allocation for tax-free bonds to Rs60,000 crore for financing infrastructure projects in 2012-13
  •  To allow qualified foreign investors in Indian corporate debt markets
  • To allocate Rs14,232 crore for UID project, up 13% in FY12-13
  • Rs50,000 tax exemption for retail investors
  • Tax exemption on individual share investment below Rs10 lakh
  • Securities Transaction Tax (STT) may be abolished
  • Allow ECB for low cost housing projects
  • To move national housing amendment bill
  • Tax free bonds of Rs10,000 cr for IRFC
  • Propose central KYC depository
  • To roll out computerized scheme for fertilizer subsidy transfer
  • Central subsidies to be under 2% of GDP
  • High crude oil prices hit growth, averaged $115/bbl in 2011-12
  • Current account deficit to be at 3.6%; Expect current account defict to decrease next year
  • To address black money, corruption in public life
  • To enhance supply side; cut infra bottlenecks
  • Efforts to arrive at broad-based consensus with state governments on allowing FDI in multi-brand retail up to 51%
  • Government to raise Rs30,000 crore in 2012-13 from disinvestment of stake in PSUs Direct Tax Code (DTC) Bill to be enacted at the earliest
  • New Rajiv Gandhi Equity scheme to allow for 50% deduction to small investors
  • Pilot project for direct transfer of subsidiary for kerosene has been initiated in Alwar, Rajasthan
  • Food Security Act will be fully provided for and subsidy to be 2% per cent of GDP for next two years
  • Govt to fully provide for food subsidy and food security act in 2012-13
  • GDP to grow by 7.6% in 2012-13; plus, minus 0.25%
  • Headline inflation to moderate further in next few months and remain stable thereafter
  • We have to expedite decisions to improve delivery systems to address problems of black money and corruption
  • Amendments to FRBM Act part of the budget
  • Expect average inflation to be lower next year; expect current account deficit to be lower next year
  • Economy is now turning around, manufacturing appears to be on revival
  • GDP to grow by 6.9% in 2011-12
  • IPO equity offer above Rs10 crore will have to be made electronically in capital market reforms
  • Rs15,888 crore to be provided for capitalisation of public sector and regional rural banks and NABARD
  • UID allocation at Rs14,232 crore in FY13

    More to follow...  

User

COMMENTS

RAMGOPAL

5 years ago

RS 10000 EXEMPTION IN SAVINGS ACCOUNT A BIG JOKE HOW MANY WILL GET INTEREST RS 10000/FROM SB ACCOUNT.IT SHOULD BE FD NOT SB.TAX EXEMPTION RS20K IS AGREAT BLUNDER UNDER INFLATION COMMON MAN SHOULD GET MINIMUM RS 5 LAKS EXEMPTION TO RUN A FAMILY.STOP FREE HEALTH CARE, HIGHER PENSION,FREE EDUCATION SUBSIDY TO GOVERNMENT EMPLOYEES .LET THEM ALSO SUFFER LIKE ANY OTHERCITIZENS .IT IS A USELESS BUDGET FROM ORDINARY CITIZEN POINT OF VIEW

RAVIGOPALAN

5 years ago

use less budget.no benefit for salaried class,senior citizens and women .service tax raised again to 12% prices will go up.
useless budget to common man rs 20000 increase is an eye wash .cut pension to IAS officers and Government employees you can reduce deficit

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