UNION BUDGET 2012-2013
Highlights of the Budget -
- 12% excise duty imposed on branded retail garments.
- Baggage allowance for people of Indian origin increased from Rs25,000 to Rs35,000 and for children - to Rs15,000.
- 5% customs duty exempted on equipment for fertilizer plants.
- Customs duty on bicycles and parts increased.
- Ad valorem duty on some cigarettes.
- Automated shuttle looms exempted from customs duty.
- Basic customs duty on cigarettes reduced; duty on hand-rolled beedis increased.
- Branded silver jewellery fully exempt from excise duty.
- Customs duty on import of parts of aircraft, tyres and testing equipment fully exempted.
- Customs duty on refined gold doubled.
- Customs duty on some gold and platinum products increased.
- Customs duty on standard gold bar and coins exceeding 99.5% purity, platinum and
non-standard -gold raised.
- Customs duty reduced from 7.5% to 2.5% for iron ore equipment.
- Cuts customs duty on rail equipment to 7.5% from 10%.
- Excise duty on handmade and semi-mechanised matches reduced from 10% to 6%.
- Excise duty raised to 12% from 10%.
- Full exemption from basic customs duty for equipment for road and highway construction.
- Full exemption on customs duty on coal.
- Import of aircraft parts exempt from basic customs duty.
- Increased customs duty on gold and platinum to 4% from 2%.
- LCD and LED panels exempted from custom duty.
- LNG out of customs duty.
- Mobile phone parts exempted from basic customs duty.
- No change in peak customs duty.
- Standard excise duty hiked to 12%.
- Thermal power companies exempted from customs duty for 2 years.
- To raise duty on large cars to 27%.
- Gold jewellery not bearing brand name to be included in the one percent levy on precious metal jewellery.
- Full exemption from basic customs duty on natural gas, LNG, uranium for generation of electricity for two years.
- Securities Transaction Tax (STT) reduced from 0.125 percent to 0.1 percent.
- Tax exemption of up to Rs5,000 for health insurance for annual preventive health checkup.
- Exemption from interest for saving bank accounts up to Rs10,000.
- All services to be taxed except 17 items listed in the negative list.
- Income Tax deduction of 50% on investments of up to Rs50,000 in savings scheme named after Rajiv Gandhi.
- 10000 crores allocated to NABARD to fund RRBs.
- Agri credit target for FY12-13 at Rs5.75 lakh crore, up Rs1 lakh crore.
- Agriculture credit target raised to Rs5.75 lakh crore.
- Allocated Rs 25,555 cr for Right to Education in FY13; cuts interest rates on loans to women self help groups.
- Allocation to National Rural Livelihood Mission for women increased by 34%.
- Allocation under National Rural Health Mission raised to Rs20,822 crore from Rs18,115 crore.
- Allow External Commercial Borrowings (ECB) for low cost housing projects.
- Amendments to FRBM Act part of the budget.
- Central subsidies to be under 2% of GDP.
- Coal India advised to sign FSA with power plants.
- Credit guarantee fund for loans to students.
- Current account deficit to be at 3.6%; Expect current account deficit to decrease next year.
- Defence Budget hiked by more than 17%.
- Direct Tax Code implementation deferred.
- Economy to grow at 7.6% in 2012/13.
- Efforts to arrive at broad-based consensus with state governments on allowing FDI in multi- brand retail up to 51%.
- Expect average inflation to be lower next year; expect current account deficit to be lower next year.
- FM announces new equity savings scheme.
- Focus on removing infrastructure bottlenecks.
- Food Security Act will be fully provided for and subsidy to be 2% per cent of GDP for next two years.
- FY12-13 net market borrowing at Rs4.8 lakh crore.
- GDP expected to grow at 6.9%.
- GDP to grow by 7.6% in 2012-13; plus, minus 0.25%.
- Government to raise Rs30,000 crore in 2012-13 from disinvestment of stake in PSUs.
- Govt. doubles allocation for tax-free bonds to Rs60,000 crore for financing infrastructure projects in 2012-13.
- Govt. to fully provide for food subsidy and food security act in 2012-13.
- Gross tax receipts at 10.77 lakh crore.
- Headline inflation to moderate further in next few months and remain stable thereafter.
- High crude oil prices hit growth, averaged $115/bbl in 2011-12.
- Installation of solar plants exempted from CVD.
- Interest subsidy for women SHGs up to Rs3 lakh at 7%; 3% more for SHGs that repay promptly
- New Income Tax Slab: upto Rs.2 Lakh – NIL,
- Rs.2 Lakh to 5 Lakh – 10%,
- Rs.5 Lakh to Rs.10 Lakh – 20%,
- Above Rs.10 Lakh – 30%
- New Rajiv Gandhi Equity scheme to allow for 50% deduction to small investors.
- No change in corporate tax rates.
- Oil cess on domestic crude raised to Rs4,500 per ton from Rs2,500 per tonne.
- Pilot project for direct transfer of subsidiary for kerosene has been initiated in Alwar, Rajasthan
Propose central KYC depository.
- Raises Income Tax exemption limit to Rs 2 lakhs from Rs 1.8 lakhs.
- Rs 15890 crores for recapitalization of PSU banks.
- Rs 18660 crores will result from service tax rise.
- Rs 30,000 cr divestment target in FY 13.
- Rs 50,000 tax exemption for retail investors.
- Rs14,000 crore for rural drinking and sanitation in FY12-13.
- School education exempt from service tax.
- Securities Transaction Tax (STT) may be abolished.
- Service tax up from 10% to 12%.
- Service tax up from 10% to 12%; Rs18,660 crore will result from service tax rise.
- Tables a white paper on black money issue.
- Tax exemption on individual share investment below Rs10 lakh.
- Tax free bonds of Rs10,000 cr for IRFC.
- To address black money, corruption in public life.
- To allocate Rs 14232 cr to UID project, up 13% in FY 13.
- To allocate Rs14,232 crore for UID project, up 13% in FY12-13.
- To allow qualified foreign investors in Indian corporate debt markets.
- To enhance supply side; cut infra bottlenecks.
- To introduce new law for micro finance institutions.
- To introduce new Rajiv Gandhi equity scheme.
- To move national housing amendment bill.
- To roll out computerized scheme for fertilizer subsidy transfer.
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