S.S.AGRAWAL INSTITUTE OF MANAGEMENT AND TECHONOLOGY NAVSARI
Finance Minister Pranab Mukherjee has presented the budget 7 times.
• IT Exemption limit raised to Rs.2 lakh 2 To 5 10% 5 To 10 20% 10 To More 30%• Interest up to 10,000 on Savings Bank A/C to be exempted from tax• Age limit for senior citizen for tax benefits reduced to 60 from 65.• Deduction of 50% investment up to Rs. 50000 in equity by new investors with annual income up to Rs. 10 lakh.
STT reduced 20% on Delivery based transaction. Additional Avenues for investing in tax-free bonds made available TDS made mandatory for sale of immovable property worth over 50 lakhs in urban areas and 20 lakhs in rural areas. 1% tax to be collected by seller for any sale in cash with value of 2 lakhs of jewellery, bullion etc. TDS for investors from Debentures if amount exceeds 5000/- No tax benefits for new life insurance policy with annual premium over 10% of sum assured.
Withholding tax on interest on ECBs, reduced from 20% to 5% for Powers, Airlines, Roads etc for 3years Tax Audit exemption limits increase from 60 lakh to 1 core for SMEs, Rs 15 lakh to 25 lakh for professionals. Minimum Alternate Tax (MAT) extended to partnership firm, sole proprietorship etc., at 18.5%. All Assets, Financial Interests etc. abroad to be declared to IT Penalty up to 90% on undisclosed income found during search Threshold for payment of service tax on apartment maintenance raised from 3000 to 5000
No excise on branded silver jewellery. Duty free baggage allowance at airports raised by 10000 to 35000 Excise duty on branded ready made garments reduced from 4.6 to 3.7 Service tax rate up from 10.3% to 12.3% Basic Custom Duty on imported vehicle over $40000 (3000 cc or more for petrol, 2500 cc more for diesel) raised from 60 to 75% Excise duty on cars of 1500 cc and above raised to 27%.
Rs.43,580 crore petroleum subsidy to 68,481 Subsidies target 2% of GDP & 1.7% of GDP to next 3 years. Rs.60,974 crore for fertilizer. Rs.75,000 crore for food.
Agriculture Credit target raised by Rs.100000 crore for 2012-13 Irrigation Scheme raised by 13% to Rs. 14242 crore. Import duty on farm equipment has been reduced from 7.5 to 5% The minister allocated Rs. 10000 crore for NABARD Kissan Credit Card used as ATM Card Govt. provide 20820 crore grant for the “Rastriya Gramin Aarogya Mission “ Budget allocation for important scheme like Rastriya Krishi Vikas Yojana (RKVY) raised to 17% (9217 crore)
The Bringing Green Revaluation in Eastern India (BGRBI) have also been increased by Rs 1000 crore. The Budget Allocate Rs 200 crore for R&D in Agriculture Integrated child Development Services (ICDS) increased 58% (15850 crore). Budget Allocate Rs. 750 crore for Rajiv Gandhi Scheme for Empowerment of Adult son Girls (SABLA)
To overcome the problem of food grain storage , the government is building an additional 15 million tones capacity of extra grain storage on way in 19 states with help from private entrepreneurs. Allocating in drinking water and utility services increased by 27% (Rs.14000 crore ) Allocate 5000 crore for development of ware houses
17% hike in defense Budget Rs. 193407 crore from last years Rs.164415 crore Rs.79500 Crore would be spent on procuring modern weapon system of the total amount.
Education subsidies increase by 21%(25555 cr). 6000 new school established. Rs 11937 corer for Madhyhan Bhojan Scheme in School.
Gain:- Rs 5000 cr. Venture funds for small & medium scale business. Withholding tax on interest on ECB reduce from 20% to 5% for 3 years for following sectors:(Power, airlines, roads, bridges, ports & shipyards, housing projects, fertilizer units.) Tax exemption on dividend amount to subsidiaries companies to parent companies by 30% to 15%. 49% FDI in airlines
Capital investment exemption , 100% written off to150% written off. On following sector:(cold storage, hospitals, fertilizers, sugar storage, housing projects) Airlines companies getting foreign loans for 1years up to US$1 trillion .Pain: 51% FDI in retail. 100% FDI in single retail brand Rs.212 crore marked for training babus.
Gain: Audit limit 60 lakh to 1 crore. 5% duty reduces in imported automatic looms. Coal & gas import duty removedPain: Excise duty increase 2%. 2% import increase on Imported colored gems. 4%customs duty on standard gold bars. 1% excise duty on non branded jewellery. 2%excise duty on men-made fiber yarn.
Rs. 20,822 crore allocates for health sector. Allocated national social assistance program(NSAP) raised to 37% rs.8,447 crore. Amount on pension increased by 100 crore(300 crore) If earning person of poor family dies, family get 20,000 rs. 100% nutrition services program for children.
GST (goods & service tax) implemented from august-2012. (Petroleum, aviation fuel, petrol,disel, natural gas, liker are exempted on GST. ) MAT( minimum alternate tax) extended to partnership firm, sole proprietorship etc., at 18.5% 1% TDS on immoveable property from 1st october-2012. 1% TCS on gold up to rs.2,00,000
The allocated to road transport & highway has been enhanced by 14% rs. 25,360 crore. (8800km) Rs.60,000 crore raise from tax free bonds for infrastructure project.