Gtc budget


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Ms. Sujatha Raghuraman ( Understanding Budget 2012-2013)

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Gtc budget

  1. 1. CA.Sujatha Raghuraman 1
  2. 2.  Budget is a financial plan of government for a given period. Used for projection of future income and expenditure Components of Government Budget – Revenue Receipts and Expenditure & Capital Receipts and Expenditure. Revenue receipt – Revenue collected from collection of taxes and other receipts. Other Receipts – Fees, Fines and penalties, Profit from public sector enterprises, Gifts and grants. CA.Sujatha Raghuraman 2
  3. 3.  Revenue Expenditure – Education, consumption of goods and services, agriculture and industrial development, scientific research, health, civil and aviation etc., Capital Receipt – Loan and borrowings from public through Bonds, from RBI and other Financial Institutions, Loans from IMF, World Bank, NSC, PF, Recovery of loan from states and union territories. Capital Expenditure – creation of Infrastructure Project, Irrigation Project, land, Machine, Equipment, Oil exploration, i.e investment in long term Physical and Financial Assets CA.Sujatha Raghuraman 3
  4. 4.  Population of India as on March’12 : 1.225 Billion Population growth rate:1.24% Life Expectancy – 66.08 years (Male) - 68.30 years (Female) Literacy Rate 74.04%. Per Capita Income – USD 1,525 . Export Growth – 23.5 % Import Growth – 29.4% Fiscal Deficit – 5.9% of GDP GDP -7.6% CA.Sujatha Raghuraman 4
  5. 5. DIRECT TAXESUpto Rs.2 Lacs – NILRs.2 Lacs – Rs.5 Lacs - 10%Rs.5 Lacs – Rs.10 Lacs - 20%Above 10 Lacs - 30%Education Cess continues at 3%.Due to reduction in tax rates, direct tax collections reduceby Rs.4,500 crores. CA.Sujatha Raghuraman 5
  6. 6. Indirect Taxes :Excise Duty : Luxury Cars -Gone up to 27% from 22%Import Duty : Luxury cars, Gold have gone up.Customs Duty: High purity gold in various forms doubled.Service Tax: Raised from 10.3 % to 12.36%Collections from Indirect Taxes Rs.41,400 crores. CA.Sujatha Raghuraman 6
  7. 7.  Costlier Cars, Two wheeler prices go up. Milk products, Ice creams , Chocolates, Biscuits go up. AC and First Class travel covered under Service Tax, cost of travel goes upto 4%. Refrigerator, Cements Gold and Platinum Jewellery. Travel, Stay in Hotel, Mobile bills, Courier, beauty, health care. AC, Washing Machine, Laptops, watches, perfumes CA.Sujatha Raghuraman 7
  8. 8. Cheaper: Branded apparels. LCD TV Silver Jewellery. Home loans. Mobile Phones CA.Sujatha Raghuraman 8
  9. 9.  FDI has no clarity in our economy till the next election. – Aviation, Retail, Vodafone etc., Indian Investors: TDS at 1% on sale of property Above Rs.50 lacs.TDS on cash purchase of Jewellery or bullion beyondRs.2lacs. All assets held abroad needs to be declared.Income Tax Assessment can be re-opened upto 16 yearson the assets held abroad. CA.Sujatha Raghuraman 9
  10. 10.  Service Tax exemption increased from Rs.15 lacs to Rs.50 lacs. Alternate Minimum tax now on partner ship,and sole proprietorship. Corporate tax remain at the same rate. CA.Sujatha Raghuraman 10
  11. 11.  No requirement of paying Advance Tax if don’t have “Income from Business / Profession”. Deduction on Medical Insurance premium gone up from Rs.15,000 to Rs.20,000. Senior Citizen age reduced from 65 to 60 years. CA.Sujatha Raghuraman 11
  12. 12.  Rs.50,000 investment in Equity market, those who come within Rs.10 lacs of income get 50% tax exemption- tax savings upto Rs.5,000. Rs.10,00 deduction on interest on savings bank account. Rs.5,000 exemption on the preventive health checkup under medical insurance premium u/s 80D . Long term capital gain exempted if invested Equity Shares of SMEs. STT reduced to 0.1% from 0.125%. CA.Sujatha Raghuraman 12
  13. 13.  Moderate Budget – Direct Taxes Unreasonable – Consumers FDI –No hopes for future Costlier – Businessman. Happy Budget – Film makers Transparent – Investors. Growth – Banks and FII. CA.Sujatha Raghuraman 13
  14. 14. CA.Sujatha Raghuraman 14