Discuss budget 2012-13 here !!

INCREDIBLE UPA GOVT,WORST BUDGET EVER SEEN BEFORE,PERHAPS NEVER AFTER,HOPE NOT TO SEE.

i think there is a printing mistake..... the budget says "the rates are specified for A.Y. 2012-13"

When will they come out with the white paper of black money? Huge amount of unaccounted black money is the cause of common man's financial woes. If corruption is prevented on all levels of administration, to some extent inflation can come down.

Some highlights of Budget:

1. Standard Excise duty raised from 10% to 12 %
    
2. Merit Excise duty raised from 5% to 6 %
    
3. Lower merit rate raised from 1% to 2 %
    
4. Lower merit rate for coal, fertilisers, mobile phones and precious metal jewellery retained at 1%
    
5. Excise duty on large cars up from 22% to 24%
    
6. Customs duty cut to 2.5% on sugarcane planter, root or tuber crop harvesting machine and rotary tiller and weeder
    
7. Customs duty cut to 5% on specified coffee plantation and processing machinery
    
8. To extend project import benefit to green house and protected cultivation for horticulture and floriculture 
    
9. Customs duty cut to 5% on some water soluble fertilisers and liquid fertilisers
    
10. Customs duty cut to 2.5% on urea
     
11. To extend concessional import duty for Mechanised Handling Systems and Pallet Racking Systems in mandis or warehouses for horticultural produce
     
12. Imports of equipment for initial setting up or expansion of fertiliser projects fully exempt for three years 
     
13. Steam coal fully exempt, concessional CVD of 1% for two years
     
14. Natural Gas and Liquified Natural Gas exempt 
     
15. Uranium concentrate, Sintered Uranium Dioxide in natural and pellet form exempt 
     
16. Customs Duty on Mining machinery cut to 2.5%
     
17. Customs Duty on Railways safety equipment cut to 7.5%
     
18. Import Duty on road, tunnel boring equipment fully exempt
     
19. Parts of aircraft, testing equipment and tyres exempt 
     
20. Customs Duty on coating material for manufacture of electrical steel cut to 5 %
     
21. Nickel ore and concentrate and nickel oxide/ hydroxide fully exempt 
     
22. Customs Duty on non-alloy, flat-rolled up at 7.5% 
     
23. Automatic shuttle-less looms fully exempt
     
24. Automatic silk reeling and processing machinery fully exempt
     
25. Second-hand textile machinery to attract basic duty of 7.5 %
     
26. Duty on wool waste and wool tops cut to 5% 
     
27. Duty on Titanium dioxide cut to 7.5% 
     
28. Aramid yarn and fabric used for the manufacture of bullet proof helmets fully exempt
     
29. Duty on branded ready-made garments up at 12 %
     
30. Waste Paper fully exempt
     
31. LCD and LED TV panels fully exempt
     
32. Memory card for mobile phones fully exempt
     
33. Duty on Adult diapers cut to 5%
     
34. Duty on bicycles increased to 30%
     
35. Duty on bicycle parts increased to 20% 
     
36. Excise Duty on hand-made matches cut to 6%
     
37. Six specified life-saving drugs/ vaccines for HIV-AIDS, renal cancer etc fully exempt 
     
38. Customs Duty on Soya protein concentrate and isolated soya protein cut to 15% and 10% respectively 
     
39. Iodised salt to have concessional basic customs duty of 2.5%
     
40. Customs Duty on Probiotics cut to 5%
     
41. Solar energy equipment to be fully exempt 
     
42. Excise duty on LED lamps cut to 6 %
     
43. Hybrid vehicle batteries to be fully exempt
     
44. Customs duty on gold bars, gold coins increased to 4%
     
45. Customs duty on non-standard gold increased to 10% 
     
46. Customs duty on platinum increased to 4%
     
47. Basic duty on gold ore, concentrate and dore bars increased to 2%
     
48. Excise duty on refined gold increased to 3 %
     
49. Polished, coloured gem stones to attract 2% duty 
     
50. Excise duty on cigarettes to attract ad valorem component of 10% on existing rates
     
51. Excise duty on hand-rolled beedis increased to Rs 10 per thousand
     
52. Excise duty on machine-rolled beedis increased to Rs 21 per thousand
     
53. Duty increased on pan masala, gutkha, chewing tobacco, unmanufactured tobacco and zarda scented tobacco in pouches
     
54. Cess on Crude petroleum oil increased to Rs 4,500 per metric tonne
     
55. Customs Duty on large cars/ MUVs/ SUVs with value exceeding USD 40,000 enhanced from 60 per cent to 75 per cent ad valorem
     
56. Packaged cement to have unified rate of 12 % + Rs 120 PMT for non-mini cement plants and 6 % + Rs 120 PMT for mini-cement plants 
     
57. Non-branded jewellery to attract excise duty of 1% 
     
58. Branded silver jewellery fully exempt
     
59. Building of commercial vehicle bodies to attract an ad valorem rate of 3%

It`s becoming clearer that the Budget will do nothing to change the course of the economy. It is all incremental stuff so far - nothing to set the Hooghly on fire 

One more update - Small service provider exemption increased from Rs 10L to Rs 50L

1. For small and medium enterprises (SMEs) the turnover limit for compulsory tax audit of accounts as well as for presumptive taxation is proposed to be raised from Rs. 60 lakh to Rs. 1 crore. In order to augment funds for SMEs,  sale of residential property will be exempt from capital  gains tax, if the proceeds are used for purchase of plant and machinery, etc.
2. Individual income upto Rs.2 lakh will be  free from income tax; income upto Rs.1.8 lakh was exempt in 2011-12.  Income above  Rs.5 lakh and upto Rs.10 lakh now carries tax at the rate of 20 per cent; the 20% tax slab was from Rs.5 lakh to Rs.8 lakh in 2011-12.  A deduction of upto Rs.10,000 is now available for interest from savings bank accounts. Within the existing limit for deduction allowed for health insurance, a deduction of upto  Rs.5000 is being allowed for preventive health check-up.  Senior citizens not having income from business will now not need to pay advance tax.
3. The Finance Minister has  proposed a series of measures to deter the generation and use of unaccounted money. In the case of assets held abroad, compulsory reporting is being introduced and assessment upto 16 years will now be allowed to be re-opened.  Tax will be collected at source on trading in coal, lignite and iron ore; purchase of bullion or jewellery above Rs. 2 lakh in cash; and transfer of immovable property (other than agricultural land) above a specified threshold.  Unexplained money, credits, investments, expenditures etc. will be taxed at the highest rate of 30 per cent irrespective of the slab of income.
4. All services will now attract service tax, except those in the negative list.  The negative list  has 17 heads and includes  specified services provided by the government or local authorities, and services in the fields of education, renting of residential dwellings, entertainment and amusement,   public transportation, agriculture and animal husbandry.  A number of other services including health care, and services provided by charities, independent journalist, sport persons, performing artists in folk and classical arts, etc are exempt from service tax.  Film industry also gets tax exemption on copyrights relating to recording of cinematographic films.
5. All services will now attract service tax, except those in the negative list.  The negative list  has 17 heads and includes  specified services provided by the government or local authorities, and services in the fields of education, renting of residential dwellings, entertainment and amusement,   public transportation, agriculture and animal husbandry.  A number of other services including health care, and services provided by charities, independent journalist, sport persons, performing artists in folk and classical arts, etc are exempt from service tax.  Film industry also gets tax exemption on copyrights relating to recording of cinematographic films.
6. Silver jewellery will now be fully exempt from excise duty. Unbranded  precious metal jewellery will attract excise duty on the lines of branded jewellery. Operations are being simplified and measures taken to minimize impact of this provision on small artisans and goldsmiths
7. Service tax rate is being increased from 10 per cent to 12 per cent, with consequential change in rates for services that have individual tax rates. The standard rate of excise duty for non-petroleum goods is also being raised from 10 per cent to 12 per cent. No change is proposed in peak rate of customs duty of 10 per cent on non-agricultural goods.
8. STANDARD RATE OF EXCISE DUTY RAISED FROM 10 PER CENT TO 12 PER CENT; SERVICE TAX RATES RAISED FROM 10 PER CENT TO 12 PER CENT; NO CHANGE IN PEAK CUSTOMS DUTY OF 10 PER CENT ON NON-AGRICULTURAL GOODS.
9. Calling for strengthening investment environment, Shri Mukherjee said that efforts are on to arrive at a broad-based consensus in respect of decision to allow FDI in multi-brand retail up to 51 per cent.  He proposed to introduce a new scheme  called Rajiv Gandhi Equity Savings Scheme  to allow for income tax deduction of 50 per cent to new retail investors who invest up to  Rs.50,000 directly in equities and whose annual income is below Rs.10 lakh.  The scheme will have a lock-in period of 3 years.  Regarding capital markets, the Finance Minister  proposed to allow Qualified Foreign  Investors (QFIs) to access Indian Corporate Bond market.  He also  proposed simplifying  the process of Initial Public Offer  (IPO).
10. He said drafting of  model  legislation for Centre and State Goods and Services Tax (GST) in concert with States is under progress.  He added that the GST network will be set up as a  National Information Utility and will become operational by August 2012.

Please help.

I am having aquery regarding tax audit linit that the limit of Rs. 1 crore is being made applicable to all the assessees who had tax audit u/s 44AB in the A.Y. 2012-13 or applies only to the assessees who are registered as SME with the    relevant authorities ?

@ kalpesh .....This limit is for all...not just for SME alone, as far as I know.BUt still not so sure.

the budget seems like made while dreaming, India's conditions are totally ignored.

1. even though the hike in tax rate of 20000 will increase Rs172 in the hands of assesseee....but will also provide additional cost of Rs1888.
2. Inflation is rising above the sky , it seems so impossible to avail the benefits as derieved
3. the retrospective effect from 1962 creates a big confusion....
4. Now companies have to plan their tax really well , as they can't escape now which they used to do while showing less or nil returns.
5. Investment on Infrastracture fund is raised into double from 30000 to 60000 crores which will not only increase the public , but almost 50 % contribution is expected from private sector which was almost 35 % last year.
6. Agriculture and health insurance are really relieved right now from the budget point of view ......But again the question arises whether such fiscal deficit and growing inflation can reduce the relief...
7. cars are taxed more than the last rates.....and above all because of EU prices will hikes in oil ....so what about the comfort zone.
8. now the company's accounts will be checked retrospectively for the white and black money concepts so it seems like govt can take back the money granted to vodafone and such other companies .......
9. Service tax increased to 12 % and wealth tax now includes a big and wider prospect . Nw properties will also be taxed in wealth tax .....buying a new home is still a dream ...........I guess.
10. Mat now AMT rates are also increased............

I personally don't feel the budget to be good. It really puts a question on the saving ......

correct me, if I am wrong somewhere ......

friends goverment ne mast band bajia SC ki decision ki band bja di by over ridding effect of VODAFONE case heheheh

Indian Budget 2012: A critical analysis

Union Budget of 2012, pronounced on 16^th March, 2012, fails to deliver expectations of entire feternity of taxpayers except few lollypops which may not be siffice. A critical analysis of this budget is summarized in following points:

-         Retrospectively amendments in tax law as far as the Vodafone case is concerned. It will result in loss of confidence in Indian financial policies among foreign investors and would result in negative growth in FDI.

-         Applicability of tax deducted at source provisions on only cash sale of bullion and jewellery of value more than Rs. 2 lacs. It will encourage jewellers to undervalue invoicing or result in isolated transactions also.

-         Applicability of GAAR provisions in a manner which cast onus on taxpayer to prove commercial acceptance of transaction. Such provisions drafted in such a manner which shows no trust of government on taxpayer.

-         Applicability of Alternative minimum tax on other taxpayers also apart from corporate and LLP. It would result in complications in tax computing for small businesses running in proprietorship or partnership forms which were out of these provisions till date.

-         Amendment by omitting reference of part III of old schedule VI in sec 115JB as part III is omitted in revised schedule. Such amendment was expected retrospectively in view of applicability of revised schedule VI w.e.f. FY 11-12. Thus it will leave a room for corporate to prepare Profit & Loss accounts for sec 115JB(2) purpose as per old schedule VI for FY 11-12.

-         Applicability of provisions of tax deducted at source on all transaction of transfer or immoveable property other then agriculture land exceeds Rs. 25 lac. And no registration is possible without showing proof of deduction of tax and deposite of the same in revenue account. It would result in compliance burdon and delays in land acquisition process for industries in case if transferor having no PAN.

-         Applicability of provisions of transfer pricing regulations on domestic specified transactions also which results in excess compliance burdon and obligation of maintaining excessive records on taxpayer which results in enhancement of administrative cost of department as well as of assessee. Further lots of cases are laying pending in judiciary related to international transactions and by viding scope of TPR provisions results in increase in disputes traffics.

Hope group of lobbies draw attention of policy makers towards these critics and seek intervention in the matter.

Go through the attachment !!! frnds 

13. In section 44AB of the Income-tax Act,—

(i) in clause (a), for the words “sixty lakh rupees”, the words “one crore rupees” shall be substituted with effect from the 1st day of April, 2013;

(ii) in clause (b), for the words “fifteen lakh rupees”, the words “twenty-five lakh rupees” shall be substituted with effect from the 1st day of April, 2013;

Hike of excise duty and service tax may lead to increase the product prices in future. comman people suffering inflation problem. govt. could have to increase the other taxes like wealth tax. govt. should have to maintain balance between poor and rich people.