Friday, March 16, 2012

5-minute guide to the Union Budget proposals


The finance minister slashed securities transaction tax (STT) by 20% to from 0.125% to 0.1% which will help bring down transaction cost.
Below are some of the key highlights of the budget: 
  • GDP growth in 2012-13 pegged at 7.6 per cent. 
  • Disinvestment target at Rs. 30,000 crore for FY2012-13.  
  • Fiscal deficit at 5.1 per cent of GDP in FY 2012-13.
  • Income tax slab proposed for FY 2012-13
Income
Tax Rates
Up to 2 lakhs
NIL
2 lakhs- 5 lakhs
10%
5 lakhs- 10 lakhs
20%
More than 10 lakhs
30%













Changes
    • The exemption limit has been enhanced from
      Rs. 1,80,000 to Rs. 2,00,000.
    • The upper limit of the 20 per cent tax slab has been escalated from
      Rs. 8 lakh to Rs. 10 lakh.
  • Securities transaction tax (STT) reduced 20% to 0.1% for delivery transactions in cash market.
  • The government is striving to come at a consensus on bringing FDI in multi-brand retail up to 51 per cent.
  • Rs. 15,888 crore to be infused to capitalize public sector banks and financial institutions. A financial holding company will be created to raise resources to raise capital requirements of PSU banks.
  • A central KYC depository will be created to avoid duplication of registration
  • External commercial borrowing (ECB) will be allowed to part finance rupee debt of existing power projects.
  • A proposal will be placed for a white paper on black money in the current session of parliament.
  • Net market borrowing to finance deficit is set at Rs. 4.79 lakh crore in FY 2012-13.
  • Proposal to allow deduction of up to Rs. 5,000 for preventive health check up.
  • Senior citizens not having income from business will be exempted from paying advance tax.
  • Proposal to raise service tax from 10% to 12%, with exemption of service tax to some sectors.
  • Corporate tax remains unchanged.
  • Excise duty of 1% on branded precious jewellery to be extended to include unbranded jewellery.
  • Branded Silver jewellery exempted from excise duty.
  • Proposal to increase basic customs duty on imports of gold and other precious metals.

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