Union Budget 2012-2013 - Tax Proposals
The following are the some of the budget proposals prepared based on the budget speech by the Finance Minister.
1) Baggage allowance for people of Indian origin increased from Rs 25,000 to Rs 35,000 and for children from Rs 12,000 to Rs 15,000
2) Tax Assessment re-open 15 years for overseas assets
3) Direct tax proposals
Personal tax: Exemption limit for individuals from Rs 1, 80,000 to Rs 2, 00,000.
Income up to Rs 2 lakh - Nil
Rs 2-5 lakh - 10%;
Rs 5-10 lakh - 20%
Rs 10 lakh and above - 30%
Since there is no other announcement, the income rates applicable for women and senior citizens are unknown. But still wait for more information and announcements
4) Exemption on interest from savings bank accounts up to Rs 10,000
5) Tax exemption of up to Rs 5,000 for health insurance towards annual preventive check up
6) Dividend repatriation for foreign companies extended by a year
7) Securities Transaction Tax reduced to 0.1% for delivery based transactions
8) Compulsory reporting requirement for companies with assets abroad
9) No change in corporate tax rate
10) service tax increased from 10 to 12%
11)Excise duty increased from 10 to 12%
12) Basic custom duty 10% no change
13) All services except 17 in the negative list to be brought under service tax net.
14) Gold jewellery not bearing brand name to be included in the 1% levy on precious metal jewellery
15) Doubled custom duty on refined gold
16) DTC Implementation deferred
17) Cars to cost more- Excise tax on cars raised, small cars at 12% from 10%; large cars at 24% from 22%
18) Exempts LCD, LED panels from Customs duty
19) Branded silver jewellery exempted from Customs duty
20) Use of PAN in both direct and indirect taxes as a preparation towards GST rollout.
21) DTC implementation deferred.
22) To encourage investment in infrastructure sector tax-free bonds of Rs 60,000 crore for next fiscal. Of this Rs 10,000 crore each for NHAI, IRFC, IIFCL, Power; Rs 5,000 crore each for HUDCO, NHB, SIDBI, and Ports.
23) PPP schemes for 2,500 schools announced
24)A new equity savings scheme named after Rajiv Gandhi will 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,
25) Senior citizens need to pay Advance Tax subject to certain conditions (more details awaited)
26) Salaried employees having annual salary upto 500,000 and bank interest upto 10,000 need not file tax returns
Best Regards