10 points to remember in budget 2012-13

CA. Brijesh Baranwal (CA Practice) (4366 Points)

16 March 2012  

 

10 POINTS TO REMEMBER IN BUDGET 2012-13

 

  1. New Tax slabs/Income Tax rates;

 

 

New Income Tax slab

Rates of Income Tax

Income up to Rs. 2 Lacs

0%

Income from Rs. 2 Lacs to 5 Lacs

10%

Income from Rs. 5 Lacs to 10 Lacs

20%

Income from Rs. 10 Lacs and above

30%

 

 

  1. Goods and Services Tax shall be applicable from August, 2012 and Direct Tax Code has been deferred for the time being.

 

  1. Health insurance deduction shall be allowed upto Rs. 5000 for preventive health checkup.

 

  1. Introduction of strict anti tax avoidance measures like compulsory reporting requirement of assets held abroad etc.

 

  1. Purchase of jewellery above Rs. 2 lacs shall come under tax net.

 

  1. Service Tax @ 12% shall be applicable on all services except those in negative list like; Govt. services, entertainment, public transport, pre school and high school education etc.

 

  1. PAN Card No. shall be used as a common identifier for all tax purposes/matters.

 

  1. Senior citizens shall be exempted from advance tax payments.

 

  1. Branded silver jewellery shall be exempted from excise duty.

 

  1. Tax exemption upto 50% on the investments upto 50,000/- in Rajeev Gandhi Equity Scheme/Fund for the people having income below Rs. 10 Lacs.

 

Brijesh Baranwal

Practicing Chartered Accountant

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