Summate News and Events

Highlights of Budget 2012-13

  1. Some of the key highlights of the Union Budget 2012 - 13, presented by Finance Minister Pranab Mukherjee in the Parliament yesterday :
  2. *Tax burden for individuals to come down:
  3. Income tax exemption limit raised from Rs1,80,000 to Rs2,00,000;
    10 per cent tax for 2-5 lakh income;
    20% for 5-10 lakh and 30% beyond Rs10 lakh;
  4. Savings bank account interest up to Rs10,000 exempted from tax.
  5. * Many services and goods to cost more :
  6. No change in corporate tax rate, but standard rate of excise duty, as also service tax rates, raised from 10% to 12%;
  7. No change in peak customs duty of 10% on non - agri goods.
  8. * Large cars, imported bicycles, cigarettes, bidis and some imported jewellery to cost more;
  9. Branded silver jewellery may get cheaper.
  10. *Boost for capital markets :
  11. Securities Transaction Tax on cash delivery reduced by 25% to 0.1%;
  12. A new Rajiv Gandhi Equity Saving Scheme to allow income tax deduction to retail investors in stocks.
  13. * Economy expected to gain ground :
  14. GDP growth rate pegged at 7.6% in 2012 - 13; Subsidy Expenditure to be checked and higher tax revenues targetted;
  15. Rs30,000 crore to be raised from disinvestment.
  16. * Capital boost to financial and infrastructure sectors: Rs 15,888 crore to be provided for capitalization of public sector banks and financial institutions;
  17. Infrastructure investment of Rs 50 lakh crore in 12th period, with half from private sector; Tax free bonds of Rs60,000 crore to be allowed for financial infrastructure projects.
  18. * Fight against black money :
  19. White paper on black money in current session of Parliament;
  20. Introduction of compulsory reporting requirement for assets held abroad;
  21. * Tax collection at source on high-value cash purchase of bullion, jewellery, immovable property and trading in coal, lignite and iron ore.
  22. * Greater scrutiny of closely - held companies for funds;
  23. Taxation of unexplained money, credits, investments, expenses at highest rate of 30% irrespective of income slab.
  24. * Tax reforms: Direct Taxes Code (DTC) at earliest;
  25. GST network to be operational by August 2012; Central Excise and Service Tax being harmonised.
  26. A General Anti-Avoidance Rule (GAAR) to be introduced to counter aggressive tax avoidance.
  27. * Attracting foreign funds :
  28. Efforts on to allow FDI in multi-brand retail and permitting foreign airlines invest in domestic players; External borrowings to the extent of $1 billion for aviation companies; Qualified Foreign Investors to get access to corporate bond market.
  29. * Tax relief for stressed sectors : Sectors like agriculture, infrastructure, mining, railways, roads, civil aviation, manufacturing, health and nutrition, and environment to get duty relief; Turnover limit for compulsory tax audit for SMEs raised from Rs 60 lakh to Rs1 crore.
  30. * Farming for growth :
  31. Target for agricultural credit raised to Rs5,75,000 crore; Interest subvention for short-term crop loans to farmers at 7% interest continues; additional 3% for prompt paying farmers.
  32. [ From our media Head : Jen, Mumbai ]