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Friday, March 16, 2012

Simplified Version of Union Budget Proposals


Key Highlights of the Budget :

* GDP Growth in 2012 - 13 Pegged at 7.6 %

* Disinvestment Target at Rs 30000 Crore for Fy 2012 - 13

* Fiscal Deficit at 5.1% of GDP in FY 2012 - 13

* Income Tax Slab Proposed for FY 2012-13


         Upto 2 Lacs - No Tax
         2 - 5 Lacs      - 10%
         5 - 10 Lacs    - 20%
         > 10 lacs       - 30%


Important Changes


*  The exemption limit has been enhanced from Rs. 1,80,000 to Rs. 2, 00,000.

* The upper limit of the 20 per cent tax slab has been escalated from Rs. 8
   lakh to Rs. 10 lakh.

* Securities transaction tax (STT) reduced 20% to 0.1% for delivery
   transactions in cash market.

* The government is striving to come at a consensus on bringing FDI in multi-
   brand retail up to 51 per cent.

* Rs. 15,888 crore to be infused to capitalize public sector banks and financial
   institutions. A financial holding company will be created to raise resources
   to raise capital requirements of PSU banks.

* A central KYC depository will be created to avoid duplication of registration

* External commercial borrowing (ECB) will be allowed to part finance rupee
   debt of existing power projects.

* A proposal will be placed for a white paper on black money in the current
   session of parliament.

* Net market borrowing to finance deficit is set at Rs. 4.79 lakh crore in FY
   2012-13.

* Proposal to allow deduction of up to Rs. 5,000 for preventive health check
   up.

* Senior citizens not having income from business will be exempted from
   paying advance tax.

* Proposal to raise service tax from 10% to 12%, with exemption of service 
   tax to some sectors.

* Corporate tax remains unchanged.

* Excise duty of 1% on branded precious jewellery to be extended to include 
   unbranded jewellery.

* Branded Silver jewellery exempted from excise duty.

* Proposal to increase basic customs duty on imports of gold and other 
   precious metals.

* The finance minister slashed securities transaction tax (STT) by 20% to from
   0.125% to 0.1% which will help bring down transaction cost.

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