Budget 2012

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mk76

Herald
Quick highlights -

LCD/LED/Memory to cost less
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AC, fridge, phone bills to cost more

Tax Slabs

The proposed tax slabs are as follows:
  • Income up to Rs 2 lakh - nil
  • Income between Rs 2 lakh to Rs 5 lakh - 10%
  • Income between Rs 5-10 kakh - 20%
  • Inncome above Rs 10 lakh - 30 %
 
Tax slabs are a joke.. Keeping in view the increased living costs , such minimal rise in tax exemptions ?? .. With the implementation of DTC things would worsen further, i believe...
 
budget is only there for increasing prices on everything directly or indirectly. they increase sales tax, service tax (and put vat, gst, etc) on many items, and they increase tax slabs for show.

govt is a big blood sucking leech.
 
It was obvious from my side.Nothing drastic will happen.

Reason::Elections are 2 years away.So a populist budget mainly comes just before elections which will happen next year.

Highlights of budget::

GST coming from august 2012

The new tax rates:

From Rs 2 lakh to Rs 5 lakh at 10%,

Rs 5 lakh to Rs 10 lakh at 20%,

And beyond Rs 10 lakh at 30%.

Service tax increased from 10% to 12%

No advance tax for senior citizens.

Health insurance deduction upto Rs 5000 for preventive health checkup.​

Service tax net widened; to include most sectors

Negative list to include pre-school and high school education, entertainment services.

Sale of residential property exempted from capital gains if invested in equity or equipment of an SME.

All services to be taxed except those in negative list.

service Tax net expanded — 17 services negative list introduced.

STT reduced in cash market by 20 percent to 0.1 percent

Remove cascading effect of dividend distribution tax

Withholding tax on ECB reduced to 5% from 20%

Propose common tax code for service tax and excise

Govt services, public transport exempt from service tax.

Income Tax deduction of 50 per cent on investments of up to Rs 50,000 in savings scheme named after Rajiv Gandhi.3-year lock-in period exemption under Rajiv Gandhi scheme.

Tax exemption on individual share investment below Rs 10 lakh.

Increase in standard excise duty to 12%

Bond yields move higher to 8.40 percent

Import of aircraft parts exempted from customs duty.

Introduction of compulsory reporting of assets held abroad.

Customs duty on std gold raised from 2% to 4%

Duty reduced on energy saving lamps .

Customs duty on Bicycles increased

Cuts customs duty on rail equipment to 7.5% from 10%

To allow external commercial borrowing to part finance rupee debt in power projects

Proposes to remove sector-specific restriction on venture capital fund investments

Mobile phone parts exempted from basic customs duty

Automated shuttle looms exempted from customs duty

School education exempt from service tax

12% excise duty imposed on branded retail garments.

LCD and LED panels exempted from custom duty.
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Key Tax Proposals of Budget - 2012

  1. Will take expeditious steps for DTC enactment
  2. APAs to be introduced in current Finance Bill, says will reduce TP litigations
  3. Sec 9 amended retrospectively, SC's Vodafone ruling overturned
  4. APAs will provide certainty for foreign investors
  5. 50% deduction to retail investors on investments upto Rs 50,000 in specified securities
  6. PAN as common identification base for Direct and Indirect taxes and under GST regime
  7. White paper on Black money in current Budget session
  8. Gross tax receipts for FY 2012-13 estimated at Rs 10.75 lakhs Cr, up by 15%
  9. Direct tax collection for FY 2011-12 to fall short of target by Rs. 32000 Cr
  10. New Personal Tax Slab rates Upto Rs. 2 lakh - nil; Between 2 lakhs to 5 lakhs - 10%, 5 to 10 lakhs - 20% and above 10 lakhs - 30%
  11. WHT on interest on ECB in Infra sector reduced to 5% from 20%
  12. Sunsent clause on tax holiday to Power sector extended by One year
  13. FM introduces GAAR to clamp down on tax avoidance
  14. Section 148 amended, IT Department can re-open cases upto 16 years for overseas assets
  15. All services to be taxed except those in Negative List
  16. Presumptive Taxation & Tax Audit Limit increased to Rs 1 cr from Rs 60 lakhs
  17. Reduction in STT by 20% on delivery transactions
  18. No advance tax for senior citizens
  19. No change in corporate tax rate
  20. Cascading effect of DDT in multi-layer structure to be rationalised
  21. Service tax rate raised from 10% to 12%
  22. Beneficial tax rate of 15% on dividend from foreign subsidiary extended by 1 year
  23. Additional depreciation to power companies allowed
 
Cars are going to get expensive from tata nano to pretty much every passenger car/MUV/SUV/MPV on 4 wheels.

Service tax increased which means your phone/internet,cable ,dth ,electricity,water bill etc are going to be more expensive.

So for eg those on BSNL 750 who used to pay 10.3% as service tax now has to pay 12.3% service tax.
 
indy1811 said:
So, LCD/LED TVs will now cost lesser? By how much?
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Lcd/led tvs of 20" and above and which are assembled in india will be cheaper by 5% (pre vat and octrio) .So only samsung and lg lcd/led-lcd tvs assembled in india will be cheaper.

All Plasma and lcd tvs from Sony,Panasonic,philips,Sharp etc which are a direct import will cost the same.

Lcd monitors will cost the same.
 
adder said:
Lcd/led tvs of 20" and above and which are assembled in india will be cheaper by 5% (pre vat and octrio) .So only samsung and lg lcd/led-lcd tvs assembled in india will be cheaper.

All Plasma and lcd tvs from Sony,Panasonic,philips,Sharp etc which are a direct import will cost the same.

Lcd monitors will cost the same.
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Could you explain what changed in the fine print for the prices of LED/LCD TVs manufactured in India to go down and the LCD monitor prices will stay the same ?

Moreover no word on FDI in Retail.

challapradyumna said:
What about mobile phones??
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Mobile Phones exempted from basic custom duties is what I can see flashing on the news channels.
 
Only lcd tv panels of 20" above(not lcd monitor panel )that benefit from decreased custom duties from 5% to nil.
 
gauz88 said:
Someone should challenge this government to a cricket match, Jeet gaye toh Lagaan maaf.
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To sum up some initial reactions:

The government is neither in a position politically and nor the financial outlook for the FY 2012-13 of the world(after the Euro meltdown) is favorable. So it won't be possible for the government to make some bold moves.
 
The tax slabs are a joke. Just a 20k increase in exemption and nothing else..? Considering the escalating cost of living, it is nothing.

BTW, any idea about ELSS Mutual Funds?

EDIT:

Never mind. Came to know that as long as DTC is not implemented, ELSS schemes are here to stay,
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How much is the GST? I'm guessing it would be around the 5-12% mark. If that is the range, then nothing will be cheaper since GST will be added to price.
 
Since the tax base needs to be widened and people don't pay timely taxes, our govt has decided to rake it in a new form.

It's such a dumb move. The IT dept. should come up with new ways to collect unpaid taxes. Guess this was coming.

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