BUDGET-2012

Budget 2012-13 : Key Highlights

·        Income tax exemption limit raised from Rs.1,80,000 to Rs.2,00,000; upper limit of 20 per cent tax slab raised from Rs.8 lakh to Rs.10 lakh & 30 per cent tax on individuals having income above Rs.10 lakh.

·        Interest from savings bank accounts deductible upto Rs.10,000; deduction of upto Rs.5,000 for preventive health check-up.

·        Turnover limit for compulsory tax audit for SMEs raised from Rs.60 lakh to Rs.1 crore.

·        STT reduced from 0.125% to 0.1%

·        Senior citizens without business income exempt from advance tax

·        15% rate for dividends from foreign companies extended for FY 2012-13

·        TCS on cash purchase of bullion and jewellery

·        TCS on cash purchase of immovable property above specified limit

·    Withholding tax rate on interest on ECB reduced from 20% to 5% for 3 years for specified sectors

·        General Anti Avoidance Rule being introduced to counter aggressive tax avoidance

·        Re-opening of tax assessments upto 16 years in case of overseas assets

·        White paper on Black Money to be introduced in the current session of Parliament

·        Tax @ 30% on unexplained credit or investment (slab rate benefit not available)

·        No change in corporate tax rate and tax structures

·        Cascading effect of DDT in a multi-layer corporate structure removed

·    82 Double Taxation Avoidance Agreements and 19 Tax Informational Exchange Agreements finalised: FM

·        A number of measures proposed to deter generation and use of unaccounted money

·        Service tax rate increased from 10% to 12%

·        All services to attract service tax except those in the negative list

·        General excise rate to be increased from 10% to 12%

·        Common tax code for Excise and Service tax

·    Relief in indirect taxes to sectors under stress; agriculture, infrastructure, mining, railways, roads, civil aviation, manufacturing, health and nutrition, and environment get duty relief

·        TV sets, Mobile to get cheaper.

·        Excise duty on big cars hiked to 27 per cent.

·        Cinematography in cinema exempted from tax.

·     New equity savings scheme to provide for income tax deduction of 50% for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.