Let’s have a Quick Glance on Budget FY2012-13.
Tax Slabs: Personal Income Tax slabs for individuals relaxed
Basic exemption Limit for Senior citizen 60-79 Years Rs. 2,50,000.
Basic exemption Limit for Very Senior citizen who are 80 Years and above Rs. 5,00,000.
- Interest from savings account up to Rs. 10,000 to be exempt from tax.
- In addition to medical insurance, additional Rs. 5,000 to be exempted for preventive health check-ups.
- Senior Citizens exempted from filing advance tax.
- STT is reduced by 20% on cash delivery transactions to 0.1% from .125%.
- Compulsory reporting requirement of companies with assets abroad.
- New scheme – Rajiv Gandhi Equity Scheme – to be introduced;
The scheme, named Rajiv Gandhi Equity Savings Scheme, will allow 50% tax deduction for those whose annual income is below Rs. 10 Lakhs and who invest up to Rs 50,000 in stocks subject to a three -year lock in.
For instance, an assessee who invests Rs. 50,000 in equities stands to get income tax deduction on Rs 25000, if her annual income is below Rs 10 lakh.
it cannot be in Mutual Funds. (Now some selected MFs and ETFs have also been included)
Other changes are;
- 1% loan sop plan for home loans up to Rs. 25,00,000.
- Credit guarantee fund for skill development
- Services tax is increased to 12% from 10% earlier.
- Govt Services, education, entertainment, public transport exempted from services tax.
- Govt of India will now allow to Qualified Foreign Investor (QFI) to Indian corporate debt market.
- Custom duty on gold and Platinum increased to 4% from 2% earlier.
- Duty Free Allowance: This duty free allowance has been increased to Rs. 35,000 from the earlier Rs. 25,000. For children, it is Rs. 15,000 from the earlier Rs. 10,000.
- Branded Silver jewellery fully exempted from Serviced tax.
- Insurance law (Amendment) Bill enables increase of FDI in Indian insurance companies to 49% for 26%.
- Introduction of amnesty Scheme for Black money.
- The budget has proposed that all Initial Public Offerings (IPOs) of more than Rs. 10 Crores in value would be done in electronic form. This has been done to encourage stock market participation from people staying in rural and remote areas.
- Proposed Central KYC Depository.
Few more points to be noted;
- Direct Tax Code (DTC) Bill to be enacted at the earliest after expeditious examination of the report of the Parliamentary Standing Committee.
- Drafting of model legislation for the Centre and State Goods Services Tax in concert with States is under progress.
- GST network to be set up as a National Information Utility and to become operational by August 2012.