say it was a budget  to safe gaurd the numbers in the parliment.

The real benefit on the tax front is for anyone who has a higher amount of income as the 20 per cent tax slab has been increased from Rs 8 lakh to Rs 10 lakh. This will give a straight and flat tax relief to the extent of Rs 20,000 for anyone who has income in excess of Rs 10 lakh. Taken together with the earlier benefit the total figure for a male individual will go upto Rs 22,000 and for a female individual to Rs 21,000.

Service tax Your bills will jump. So will inflation.

Finance Minister Pranab Mukherjee announced the widely expected 'negative' list for service tax.The list contains 17 services that will be exempt from tax; every other service will now be subject to tax.

The 'negative' list includes services provided by the government, renting of residential dwellings, entertainment and amusement services, urban railways, metered cabs, agriculture and animal husbandry. There is also a list of exemptions covering healthcare, services provided by charities, religious persons, sportspersons, performing artists in folk and classical arts, independent journalists and services by way of animal care or car parking.

The tax will raise the cost of several services, but will help the government raise more revenues from a sector that continues to thrive even amid a slowdown in other parts of the economy.

The excise duty on goods has been raised to 12 percent from 10 percent, which is likely to prompt immediate price hikes from manufacturers.

"Budget should be such that pinch the rich a bit & give solace to the poor."

Thank You Anurag Sir. Its been a dissapointing budget this time.

Agree with you Sir .....the budget is really a big hard blow not only on common man but the Indian economy as a whole .

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 around Rs1888.....So where is the profit
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.....may be a good idea to tax corporates ....But still it's totally unjustice.....as I feel.
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.that's really good point of Budget ....as it will provide a good base to economy growth
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 .... Digital camera,laptops and almost all are taxed at high rates from now.....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 ......It may increase 512 billion to govt's revenue but won't it put a question on India's tax system.....as Income tax is silent on the above issue
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 ......

competition between Doller and Rupee is an old war.....But I guess pranab mukherjee has taken it really seriously , where US corporates are taxed around 39 % ...India has also marked a big 35 %.......Please stop this competition.....our economy is still not so strong......

And it's also a prediction that It can benefit the doller more than a rupee being invested in India ............so does this budget really relates to India ....

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

Thanks Rahul Bhai for your analysis.......

Originally posted by : *RENU SINGH *
	Agree with you Sir .....the budget is really a big hard blow not only on common man but the Indian economy as a whole .

Agree with you too Renu...Ab to aadat si ho gayi hai...

Thanks for analysis !!!

Ankur sir,I am too small to say anything, but I have a question... For one full financial year, we pay service tax for many times, whether is there any provision in our taxation laws, that we can show all that service tax amount we paid, as deductions, or are we paying tax on that income also which already received by govt as servicetax...??

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.

thanks for the info sir................

thanks for the info sir................

thanks for the analysis sir

A very nice analysis..................budget is no help to cope increasing inflation.....

"On the whole it is a balanced budget. Not much for the common man for sure. However the spirit and intentions of FM were high, but in India main problem is in execution of policies"

this is the main point which govt needs to understand  & focus well ...............