Union Budget 2012-13 - Highlights

[swapnil tambe]

Dear Friends,

Budget 2012-13 is being presented by Finance Minister against the backdrop of slowing growth and economy.... Some of the Highlights of Union Budget are as follows : 

GDP to grow by 6.9 per cent in 2011-12  &  GDP to grow by 7.6 per cent in 2012-13; plus, minus 0.25 per cent.

Direct Tax Slab in FY 2012- 13 

Income Tax Slab	Tax Rate
Rs 0 - Rs 2,00,000	NIL
Rs 2,00,001 - Rs 5,00,000	10%
Rs 5,00,001 - Rs 10,00,000	20%
Rs 10,00,001 and above	30%

 

Tax exemption of up to Rs 5,000 for health insurance for annual preventive health checkup.

• All services except 17 in the negative list to be brought under service tax net.

–      2% Higher tax on mobile bill, Hotel stay and many more other services 

• Securities Transaction Tax (STT) reduced from 0.125 per cent to 0.1 per cent. 

• IPO equity offer above Rs 10 crore will have to be made electronically in capital market reforms.

• Capital gains tax on residential property exempted if sale proceeds used for SMEs.

• Introduction of compulsory reporting of assets held abroad. 

• Withholding tax on power, airlines, road and brides, ports and shipyard, fertilisers, dams and affordable houses lowered to 5 pc from 20 pc for 3 years. 

• No change in corporate tax rate. 

• No tax on saving bank interest up to 10,000 for those having income up to Rs 5 lakh  

• Income Tax deduction of 50 per cent on investments of up to Rs 50,000 in savings scheme named after Rajiv Gandhi.

• Proposal to allow foreign airlines to participate direct or indirectly in India being considered actively & External commercial borrowings to the extent of USD one billion to be allowed for aviation sector for next year 

• Efforts to arrive at broadbased consensus with state governments on allowing FDI in multibrand retail up to 51 per cent 

• Total debt of the Centre will be 45 per cent of GDP.  

• Govt to raise Rs 30,000 crore in 2012-13 from disinvestment of stake in PSUs  

 

• Rs 3,915 crore to be spent on National Rural Livelihood Mission 

• Rs 1000 crore to be provided for National Skill Development Corporation in 2012-13. 

• Interest subvention of 7 pc to women self groups for loans up to Rs 3 lakh, additional 3 pc for those making timely repayment. 

• Rs 20,822 crore earmarked for National Rural Health Mission against Rs 18,115 crore this year.  

• Rs 20,000 cr to be spent on rural infrastructure development, including Rs 5,000 cr for creating warehousing facilities. 

• National Backward Region Grant scheme outlay raised by 22 per cent to Rs 12,040 crore. 

• Allocation for rural drinking water and sanitation scheme increased from Rs 11,000 cr in FY 12 to Rs 14,000 cr in 2012-13. 

• Rs 15,850 cr to be allocated to Integrated Child Development Scheme in 2012-13 as against Rs 10,000 cr this fiscal. 

• Govt to create PDS through Adhaar platform by Dec to realise objectives of
• Food Security Bill. 

• National Mission on Food Processing to be started in 2012-13. Government to provide Rs 10,000 crore to NABARD for refinancing regional rural banks. 

• Agriculture credit target to be raised by Rs 100,000 cr to Rs 5,75,000 cr

• Government to set up Rs 5000 crore venture fund for MSME sector 

• 8,800-km of highways to be developed under National Highway Development Project in 2012-13 

• Govt to double tax free bonds for infrastructure financing to Rs 60,000 crore in next FY. 

• Infrastructure investment in 12th Plan to go up to Rs 50 lakh crore; half of it to come from pvt sector. 

• Rs 15,888 cr to be provided for capitalisation of public sector and regional rural banks and NABARD. 

• Microfin institution regulation bill, natl housing bank regulation bill, reg bank regulation bill and public debt management bill this session. 

• Food Security Act will be fully provided for and subsidy to be 2 per cent of GDP for next two years. 

• Govt to fully provide for food subsidy and food security act in 2012-13.

 

Thanks & Regards,
Swapnil Tambe.