Following are some of the key highlights of the Union Budget 2012-13, presented by Finance Minister Pranab Mukherjee in the Parliament on Friday:
* Tax burden for individuals to come down: Income tax exemption limit raised from Rs. 1,80,000 to Rs. 2,00,000; 10 per cent tax for 2-5 lakh income; 20 per cent for 5-10 lakh and 30 per cent beyond Rs. 10 lakh; Savings bank account interest up to Rs. 10,000 exempted from tax.
* Many services and goods to cost more: No change in corporate tax rate, but standard rate of excise duty, as also service tax rates, raised from 10 per cent to 12 per cent; No change in peak customs duty of 10 per cent on non-agri goods.
* Large cars, imported bicycles, cigarettes, bidis and some imported jewellery to cost more; branded silver jewellery may get cheaper.
* Boost for capital markets: Securities Transaction Tax on cash delivery reduced by 25 per cent to 0.1 per cent; A new Rajiv Gandhi Equity Saving Scheme to allow income tax deduction to retail investors in stocks.
* Economy expected to gain ground: GDP growth rate pegged at 7.6 per cent in 2012-13; Subsidy Expenditure to be checked and higher tax revenues targeted; Rs. 30,000 crore to be raised from disinvestment.
* Capital boost to financial and infrastructure sectors: Rs. 15,888 crore to be provided for capitalisation of public sector banks and financial institutions; Infrastructure investment of Rs. 50 lakh crore in 12th period, with half from private sector; Tax free bonds of Rs. 60,000 crore to be allowed for financial infrastructure projects.
* Fight against black money: White paper on black money in current session of Parliament; Introduction of compulsory reporting requirement for assets held abroad; tax collection at source on high-value cash purchase of bullion, jewellery, immovable property and trading in coal, lignite and iron ore.
* Greater scrutiny of closely-held companies for funds; Taxation of unexplained money, credits, investments, expenses at highest rate of 30 per cent irrespective of income slab.
* Tax reforms: Direct Taxes Code (DTC) at earliest; GST network to be operational by August 2012; Central Excise and Service Tax being harmonized. A General Anti-Avoidance Rule (GAAR) to be introduced to counter aggressive tax avoidance.
* Attracting foreign funds: Efforts on to allow FDI in multi-brand retail and permitting foreign airlines invest in domestic players; External borrowings to the extent of USD one billion for aviation companies; Qualified Foreign Investors to get access to corporate bond market.
* Tax relief for stressed sectors: Sectors like agriculture, infrastructure, mining, railways, roads, civil aviation, manufacturing, health and nutrition, and environment to get duty relief; Turnover limit for compulsory tax audit for SMEs raised from Rs 60 lakh to Rs 1 crore.
* Farming for growth: Target for agricultural credit raised to Rs 5,75,000 crore; Interest subvention for short-term crop loans to farmers at 7 per cent interest continues; additional 3 per cent for prompt paying farmers.
Financial Highlights of Budget 2012-12:
* Direct proposals to give in net revenue loss of Rs. 4,500 crore and net gain of Rs. 45,940 crore from indirect taxes, resulting into a net gain of Rs. 41,440 crore.
* Fiscal deficit targeted at 5.1 per cent of GDP in 2012-13, down from 5.9 per cent in 2011-12; Central Government debt at 45.5 per cent of GDP.
* Total expenditure budgeted at Rs. 14,90,925 crore; plan expenditure at Rs. 5,21,025 crore, 18 per cent higher than 2011-12 budget; non-plan expenditure at Rs. 9,69,900 crore.
* Gross Tax Receipts estimated at Rs. 10,77,612 crore, 15.6 per cent higher than original budget estimates and 19.5 per cent over the revised estimates for 2011-12.
* Net tax to the Centre in 2012-13 estimated at Rs. 7,71,071 crore; Non-Tax Revenue Receipts estimated at Rs. 1,64,614 crore and Non-debt Capital Receipts at Rs. 41,650 crore.
* Total expenditure for 2012-13 budgeted at Rs. 14,90,925 crore, including Rs. 5,21,025 crore of Plan Expenditure and Rs. 9,69,900 crore as Non-Plan Expenditure.
* Defence services get Rs. 1,93,407 crore; any further requirement to be met.
Keywords: Budget 2012-13, Pranab Mukherjee
finance minister has made a mockery of the people of this country. Most
unimaginative budget. He has offered a gain of 2000 bucks where as their
monthly expenses have gone beyond 5000 pm. He is fooling the entire
middle class people. To improve the position let them reduce their
salaries and perks instead of increasing it 200 percent.
most unfortunate to be in this country where the old dictum says
burdening the people with more taxes indicate a bad administration.
Exemption limit for senior citizens may be correspondingly increased to Rs. 270000 to
maintain the differential.
A marginal increase of 20K will not help the salaried group. For an individual, to meet their as well as their family expenses is tightening day by day due to hike in prices. Hike in prices and the tightening of insurance schemes will only help the middle class to go down to lower middle class level.
For senior citizens who retired 20 years back the 5lakhs limit should be advocated. we were retired on reaching 58 whereas others who retired few years after our retirement retired after reaching 60 and they had the benefit of salary for 2 years. why not make it 20 years after retirement instead of making 80
i think this budget is bogus because
Senior citizen's concerns are not taken care of in this budget.IT
exemption for senior citizens is now Rs 250000/-Will it come down to
200000/-?Nothing is mentioned about it in the budget. and
Nothing is mentioned about AADHAR scheme, which is one of most expensive non statutory one. Although Disinvestment was one of the option to someway consolidate fiscal it was not followed seriously.
Whats so great about tax exemption and revised slabs. If one looks at
it, its only a marginal Rs.2000/- saving for individuals earning upto
Rs.8 lakhs. But for those earning above Rs.8 lakhs upto Rs.10 lakhs
get a saving of Rs.22,000/-. Is Mr. Pranabh Mukherjee trying to
increase the already existent high divide between the poor and rich?
Why all those commentators and those who boast of taking up the cause
of common man not reacting to this? All those politicians are
hypocrites. And yes where is the press? They all must be earning more
than Rs.8 lakhs per annum. So why should they react?
our indian budget is every year increasing the tax rate but our budget also increasing but our salary?
where is the crores of money!!!!!!
Increase of basic exemption by 20K there is no much benefit middle class people and government. Instead government may put 40% for over 1crore.
This budget was deviced under high pressure from top financial bodies to keep the fiscal deficit low and bring to below 3% in coming 2-3 years. Probably this was the best that can be done. Government had to raise more without planning any new expenditure.
When they go for increasing salary or perks of their own then their attitude is different but when it is a talk of others they say that a relief of just Rs.172/- p.m. is much more than enough. In fact, FM should not have provided this relief instead he should have increased salary/perks for ministers because increase in cost of living is to pinch them more. It is time now to go for income tax reforms. While each of the earning person should contribute as per their income, say upto Rs.1.00 lac - 1%, 2.00 lac (2%), 3.00 (3%), 4.00 lac (8%), 5.00 (10 %), 6.00 lac ( 12%), 7.00 lac (15%), 8.00 lac (20%) 9.00 lac (25%) and the rate of tax should continue go up with the increase in salary. For businessmen and others (including ministers) whatever increase in their assets they should be asked to pay income tax in above manner on their asset accumulation to be ascertained as per their declaration every year. Further, no person should be allowed to accumulate assets beyond a limit say 50.00 cr.
I am a salary persion i had lot of expectation with this budget, all went into vein.Finance Minister should understand that by increasing the limit from rs1,80,000 to rs2,00,000 will save just Rs 2,000/4000 and it seems that there is no inflation in the cost of living. Sir, it would be better if you would not have not increased this limit.I would like to say Pranab Sir that please try to think for salary person, when increasing the limit and making budget for the whole year.
Nothing is mentioned about AADHAR scheme, which is one of most expensive non statutory one. Although Disinvestment was one of the option to someway consolidate fiscal it was not followed seriously.
Raising the IT exemption limit would not provide any relief to middle
class from rising inflation....It would only lead to more inflation as
the disposal income will increase which in turn would pressurize
demand and hence it will be inflation on already existing
inflation...Huge increment in property prices, fake currency,rising debt are the reason behind the rising inflation. If govt. takes step regarding these.......the demand push inflation will come down. If govt. spends more money on development and less on implementing it( less on its administration) then cost push inflation can also come down.
Think........if the demand push inflation continues like that in future.........crores rupees would not be enough to fulfill basic needs. Inflation is a depreciation on value of money......Compare our economy with other economies of other countries........how much one rupee can get you? and HOW MUCH ONE DOLLAR CAN GET YOU?? THE REASON IS DEMAND PUSH INFLATION......
really it is a very dissopoint budget for middle class people.and there is no benefit for farmers as well as employees.The tax payer is just surviving. Can you ever publish the Tax recovered from salaried class and collected from other sources.
The budget is good. am adami budget
Why the seniormost responsible people fail to understand that only through Research and Development the future can be tamed? Why they don't put faith in the indegenous talent pool?Very sad to see that no provosions were made to encourage R&D activities in India.
There is disappointment amongst salary class due to mere releif of Rs. 20,000/-. The Govt. can consider more as was exected upto Rs. 3.0 lakh keeping in view of inflation, high increase price of all commodities. Also the proposed levy of TCS on iron ore, etc will increase the cost and a costly affair for middle and lower income people.
Generally, the Govt. increasing the taxe components every year but no tangible output/benefit to the people.
The budget as usual was disappointing for the salaried who has no way to escape the tax as all the income sources are visible and nothing can be manipulated to hide. Relief for the business class by the limit for turnover from 60 lakhs to 1 crore for tax audits. They mocked the so called AAM AADMI by stating that they will suffer a revenue loss which is tenth of the additional burden which will come on us. The joke of the day I felt is "Rajiv Gandhi Equity Saving Scheme", I don't understand what is the necessity of introducing again a name in the prefix of saving scheme.
Senior citizens are ignored in this budget.No increase in the exemption
limit is allowed in their case as in the case of salaried class.The
status quo is maintained as in last year for them..This is grossly
unfair with mounting inflation and increasing nuclear
families.Unfortunately no newspaper or tv channel has highlighted this.
Senior citizen's concerns are not taken care of in this budget.IT
exemption for senior citizens is now Rs 250000/-Will it come down to
200000/-?Nothing is mentioned about it in the budget.
the budget 2012-13 is overall people friendly and a source of inspiration as well as relief of sigh for tax payee.
definitely DADA did good job & performed their responsibility with
sensibility and unhon ne aam admi ko dekhte hue budget pesh kiya hai
we aam admi is very hankful to him
being a salaried person I would only like to mention about Income Tax.
Our income is hundred percent open to the government, so they can
charge Income Tax and we can't do anything, but the person doing
business and all earns unlimited and their full income is not
accountable. Just compare the standard of living of both the people,
you will find the difference. The tax payer is just surviving. Can
you ever publish the Tax recovered from salaried class and collected
from other sources. you will find the difference. this difference
leads to corruption to survive.
Good one .But the I-T exemption to be raised to 3lakshs. There is no
exmption for senior citizen.
Pranab Da has excelled quietly his own Congress Predecessors in constructive manner without attracting much criticism except fro usual band wagons from opposition benches and unenlightened chief ministers of states ruled by opposite parties.Congrates Pranab Da
I think it is fair to say every Indian must share the burden of growth of the country. With that in mind they also should contribute some income as income tax. Two lakhs is not a small money even today. So the exemption limit must be reduced from two lakhs to one lakh. A tax of 5% will be fair on the amount from 1 lakh to 2 lakhs.
Also the government must make sure that anyone has an income above the exemption limit must pay a tax. That way tax system will be equitable.
If the government does not wish to do that then States should be authorized to collect a tax of 3% on all income beyond the exemption limit.
White paper on black money will nothing do untill unless black money around 400 lac crore depsited in foeign banks declare as national property.otherwise it is cheating with general public.
Turnover limit for compulsory tax audit for SMEs raised from Rs 60 lakh to Rs 1 crore. Will this not encourage in more illegal work?
buget is direction less looks like "sugla "
Yet again Finance Minister couldnot understand that by increasing the limit from 1,80,000 to 2,00,000 will save just Rs 2,000 per individual whose salary is below Rs 500,000, and those people believe it again today that they are beggar and they get this small begarry.. Sir, it would be better if you would not have touched this slab.. I would like to say Pranab Sir dat please try to think as a common man when you touch individual slab.
Budget looks promising and supportive for attaining the GDP growth of around 8%. Good work Pranab Da!!
I have never come across such a disappointing budget so far. I feel UPA is unable to do anything they want to do because of irresponsible allies who wants them run the Govt to meet their fancies.
Nothing great in the bduget . Very timid cosntrianed by colaition structure UPA faild to capture oppertunity .emepty of ideas .Faild to address inflation and development , blacmoney
Old man of UPA plays safe.No signs of reforms where India is going to be next super power in world. No allocation of budget for Research in Science and Technology ??. Defence budget hiked by 17% to aquire the Aircrafts and other, but no budget allocation for indigenous technology.
Got bored to see these type of Budget Sessions.
By raising the standard rate of excise duty and service tax the
fin. Min. has resorted to burdening the common and and the middle income
people to bear the brunt of income tax sops allowed. Cost of
manufactured goods will rise and making dent on home budgets.
highly disappointing Budjet,we must think how to reduce our defence budjet. we cant bare this much as a poor country like ours
Will the enhancement of IT exemption by Rs 20,000 provide the much required relief for the salaried class who are already hit by inflation and petroleum price hike. Mr.Finance Minister it is sad that you have not found way to mop up revenue through direct taxes rather than burdening the salaried class with no better relief. Hopefully, the exemption limit will go up in a decent manner in the budget to be presented ahead of the 2014 Lok Sabha elections.
2012-13 budget is indirectly exploiting the private sector employees
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