Budget 2012

Highlights on Union Budget 2012

Budget Highlights

Here's what is getting costlier.

*Customs duty on gold, platinum doubled.

*Beedis, cigarettes and other tobacco products to cost more too.

*Luxury items, air travel and leisure trips to cost more.

*Eating out in restaurants charging VAT to turn dearer too.

*Customs duty on large, imported SUVs also raised

*Basic customs duty on imported bicycles raised to 30 percent.

Large cars to become expensive -to attract up to 27% duty.

Up to Rs 2 lakh – NIL; Rs 2– Rs 5 lakh – 10%; Rs 5–Rs 10 lakh rupees – 20%; Above Rs 10 lakh – 30%. Interest earned from bank deposits to stay tax free up to Rs 10,000. School education to be exempt from service tax..

School education, though, will be exempt from service tax.

Service tax rates raised to 12 percent from 10 percent.

The Securities Transaction Tax (STT), imposed while buying and selling shares, is brought down by 20%.

Interest earned from bank deposits to stay tax free up to Rs 10,000.

No change in corporate tax rate, the Finance minister says. Guess everybody can make their peace with that last bit.

Personal income tax exemption limit raised to Rs 2 lakh, as expected

Those in the 2 lakh to Rs 5 lakh bracket will now be under the 10% slab.

And those in the 5 lakh to 10 lakh bracket will be under the 20% slab.

30% tax for those with income above Rs 10 lakh, including for the Ambanis of the world.

The Finance Minister also announces the setting up of a dedicated cell to track black money.

The allocation for the National Rural Health Mission (NRHM) has also been increased - to Rs 20,820 crore.

Also, Rs 15,850 crore to be allocated to Integrated Child Development Scheme (ICDS) in 2012-13 as against Rs 10,000 crore during the current fiscal year.

The defence budget allocation has been raised to Rs 1.93 lakh crore

On to graver things then. Government will raise investment in the education sector, the finance minister promises. 6000 more schools will be set up under the 12th year plan, he assures.

Watery updates from the budget now. Irrigation projects and dams will be eligible for special funding.

More support for the ailing aviation sector. External Commercial Borrowings (ECB) to the extent of $ 1 billion to be allowed for aviation sector for next year.

Government to hand out contracts for 8800 km of national highway roads this year, says Pranab. Allocation for the national highways programme has been upped by 14 per cent.

Moves to beging direct cash subsidy for LPG, Kerosene have been set in motion

The government expects to raise Rs 30,000 crore from disinvestment this year

a change in IPO guidelines to help people in small town to join the fun and burn their money too

The government will exempt investment of Rs 50000 a year in equities from tax for those with a salary below Rs 10 lakh. This will have a three year lock-in period.

Direct transfer of subsidies as per Aadhar head Nandan Nilekani's recommendation

Aadhar-enabled payment of subsidies for select government schemes in 50 districts on an experimental basis

Exports grew 23% in the first quarter, says the Finance Minister. He expects the Gross Domestic Product (GDP) to grow to 7.6 per cent by next year.



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