TMI BlogBudget Summary 2012X X X X Extracts X X X X X X X X Extracts X X X X ..... Budget Summary 2012 - By: - Vivek Harsh - Income Tax - Dated:- 16-3-2012 - - Income Tax Tax collection up 15% Income Tax proposals: Personal Income Tax slabs for individuals relaxed Exemption limit enhanced from Rs 1.8 lakh to Rs 2 lakh Upper limit of 20% tax raised from Rs 8 lakh to Rs 10 lakh New Slabs as follows: Upto Rs 2 lakh - Nil Rs 2-5 lakh - 10% Rs 5 10 lakh 20% Above Rs 10 lakh 30% Interest from savings account up to Rs 10,000 to be exempt from tax In addition to medical insurance, an additional Rs 5000 to be exempted for preventive health check-ups Senior Citizens exempted from filing advance tax Compulsory reporting of assets sold abroad Corporate Tax Corporate Tax structure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... left unchanged Withholding tax on certain overseas borrowings reduced to 5% from 20% Securities Transaction Tax cut by 20% for stock market orders Service Tax Service Tax rate up from 10% to 12% Higher Service Tax to add Rs 186.6 bn in revenue Duty-free baggage allowance for Indians increased to Rs 35,000 Duty-free baggage allowance for children increased to Rs 15,000 Proposal to tax all services except negative list Exempted services include: Government services Pre-school, school education, recognised education at higher levels and approved vocational education Renting of residential dwellings, entertainment and amusement services to be exempt Public transportation to be exempt from service tax Agricultural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities and animal husbandry to be exempt from service tax Health care Charities, religious persons Sportspersons Performing artists in folk and classical arts Individual advocates providing services to non-business entities Independent journalists Services related with animal care and car parking Services of business facilitators and correspondents to banks and insurance companies Construction services relating to specified infrastructure, canals, irrigation works, post-harvest infrastructure, residential dwelling, and low-cost mass housing up to an area of 60 sq. mtr. Exemption for the monthly charges payable by a member to a housing society up from Rs 3,000 to Rs 5,000 Industry related with cinematographic films ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... To set up a Study Team to examine the possibility of a common tax code for service tax and central excise New scheme to simplify refunds Indirect Taxes Other Indirect Taxes Standard Excise duty raised from 10% to 12 % Merit Excise duty raised from 5% to 6 % Lower merit rate raised from 1% to 2 % Lower merit rate for coal, fertilisers, mobile phones and precious metal jewellery retained at 1% Excise duty on large cars up from 22% to 24% Customs duty cut to 2.5% on sugarcane planter, root or tuber crop harvesting machine and rotary tiller and weeder Customs duty cut to 5% on specified coffee plantation and processing machinery To extend project import benefit to green house and protected cultivation for horticulture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and floriculture Customs duty cut to 5 % on some water soluble fertilisers and liquid fertilisers Customs duty cut to 2.5 % on urea To extend concessional import duty for Mechanised Handling Systems and Pallet Racking Systems in mandis or warehouses for horticultural produce Imports of equipment for initial setting up or expansion of fertiliser projects fully exempt for three years Steam coal fully exempt, concessional CVD of 1% for two years Natural Gas and Liquified Natural Gas exempt Uranium concentrate, Sintered Uranium Dioxide in natural and pellet form exempt Customs Duty on Mining machinery cut to 2.5% Customs Duty on Railways safety equipment cut to 7.5% Import Duty on road, tunnel boring equipment fully exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt Parts of aircraft, testing equipment and tyres exempt Customs Duty on coating material for manufacture of electrical steel cut to 5 % Nickel ore and concentrate and nickel oxide/ hydroxide fully exempt Customs Duty on non-alloy, flat-rolled up at 7.5% Automatic shuttle-less looms fully exempt Automatic silk reeling and processing machinery fully exempt Second-hand textile machinery to attract basic duty of 7.5 % Duty on wool waste and wool tops cut to 5% Duty on Titanium dioxide cut to 7.5% Aramid yarn and fabric used for the manufacture of bullet proof helmets fully exempt Duty on branded ready-made garments with up at 12 % Waste Paper fully exempt LCD and LED TV panels fully exempt Memory card for mobil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e phones fully exempt Duty on Adult diapers cut to 5% Duty on bicycles increased to 30% Duty on bicycle parts increased to 20% Excise Duty on hand-made matches cut to 6% Six specified life-saving drugs/ vaccines for HIV-AIDS, renal cancer etc fully exempt Customs Duty on Soya protein concentrate and isolated soya protein cut to 15% and 10% respectively Iodised salt to have concessional basic customs duty of 2.5% Customs Duty on Probiotics cut to 5% Solar energy equipment to be fully exempt Excise duty on LED lamps cut to 6 % Hybrid vehicle batteries to be fully exempt Customs duty on gold bars, gold coins increased to 4% Customs duty on non-standard gold increased to 10% Customs duty on platinum increased to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4% Basic duty on gold ore, concentrate and dore bars increased to 2% Excise duty on refined gold increased to 3 % Polished, coloured gem stones to attract 2% duty Excise duty on cigarettes to attract ad valorem component of 10% on existing rates Excise duty on hand-rolled bidis increased to 10 per thousand Excise duty on machine-rolled bidis increased to `21 per thousand Duty increased on pan masala, gutkha, chewing tobacco, unmanufactured tobacco and zarda scented tobacco in pouches Cess on Crude petroleum oil increased to `4,500 per metric tonne Customs Duty on large cars/ MUVs/ SUVs with value exceeding USD 40,000 enhanced from 60 per cent to 75 per cent ad valorem Packaged cement to have unified rate of 12 % + `12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 PMT for non-mini cement plants and 6 % + `120 PMT for mini-cement plants Non-branded jewellery to attract excise duty of 1% Branded silver jewellery fully exempt Building of commercial vehicle bodies to attract an ad valorem rate of 3% Regards Vivek Harsh 9899627168 - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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