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Highlights of the Union Budget 2012-13

Last updated on: March 16, 2012 14:14 IST

Image: Pranab Mukherjee.
Photographs: B Mathur/Reuters.

Finance Minister Pranab Mukherjee presented the Union Budget for 2012-13 on Friday.

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 #162 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 #162 A new Rajiv Gandhi Equity Saving Scheme to allow income tax deduction to retail investors in stocks.

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Union Budget 2012-13: Complete coverage

Highlights of the Union Budget 2012-13

Image: Men work inside a steel factory at Ludhiana.
Photographs: Ajay Verma/Reuters.

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 targetted; 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 sect#8744 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.

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Union Budget 2012-13: Complete coverage

Highlights of the Union Budget 2012-13

Image: An employee works inside a newly inaugurated textile mill in the western Indian city of Ahmedabad.
Photographs: Amit Dave/Reuters.

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.

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Union Budget 2012-13: Complete coverage

Highlights of the Union Budget 2012-13

Image: A bank employee counts currency notes at a cash counter in Agartala.
Photographs: Jayanta Dey/Reuters.

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 targetted 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.

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Highlights of the Union Budget 2012-13

Image: A man rides a bicycle in front of the construction site of a residential complex in Kolkata.

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.

Union Budget 2012-13: Complete coverage


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