Quick highlights of the Union Budget 2012 that was presented by the F.M. in the Parliament
- · Income tax exemption limit raised to Rs.2 lakh to provide relief of relief of Rs.2,000 for all assessees; 20 percent tax on income over Rs.10 lakh, up from Rs.8 lakh.
- · Deduction of up to Rs.10,000 from interest from savings bank accounts.
- · Expect a total additional direct tax benefit of Rs.25,000 p.a. to those earning more than 10 lakhs on account of change in tax slabs and exemption on savings bank interest upto Rs.10,000.
- · Defence to get Rs.1.93 lakh crore during 2012-13.
- · All services covered under service tax net with a brief negative list
- · Service tax rate raised from 10 percent to 12 percent to bring in Rs.18,660 crore.
- · Duty hike on large cars
- · Number of proactive steps taken on black money (stashed away abroad); information has started flowing in, prosecution to be initiated; White Paper in current session.
- · No change in corporate taxes
- · Withholding tax on external commercial borrowings reduced from 20 percent to five percent for power, airlines, roads, bridges, affordable houses and fertiliser sectors.
- · Excise duty raised from 10 to 12 percent.
- · Cinema industry exempted from service tax.
- · Branded silver jewellery fully exempt from excise duty.
- · Customs duty on warning systems/track upgrade equipment for railways reduced from 10 percent to 7.5 percent.
- · Import duty on equipment for iron ore mining reduced from 7.5 to 2.5 percent.
- · Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-13.
- · Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector.
- · External commercial borrowing of up to $1 billion permitted for airline sector.
- · External commercial borrowings permitted to low-cost housing sector.
- · From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
- · Hope to raise Rs.30,000 crore from disinvestments.
- · New equity savings scheme to provide for income tax deduction of 50 percent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
- · Corporate market reforms to be initiated.
- · Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
- · Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
- · India's inflation structural, driven largely by agricultural constraints.
- · Current account deficit 3.6 percent in 2011-12
- · Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
- · Better monitoring of expenditure on government schemes.
- · Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
- · GDP growth in 2011-12 estimated at 6.9 percent
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