Budget Highlights 2012-13
Income Tax :
- Direct Tax Code implementation deferred
- No tax up to 2 lacs
200,001 to 500,000 = 10%
500,001 to 1,000,000 = 20%
Above 1,000,000 = 30% - No tax on saving bank interest up to 10000/-
- No advance tax for Senior citizen
- No change in Corporate tax rates
- Sec 44AB for Tax Audit of Rs. 60 lakh increased to Rs. 1 Crore.
- Security Transaction Tax cut to 0.1%.
Central Excise :
- Standard Excise duty rate raised from 10% to 12%
- Silver jewellery exempted from excise duty
- 12% excise duty imposed on branded retail garments
- LCD and LED panels exempted from custom duty
Custom Duty :
- No change in peak customs duty
- Import of aircraft parts exempt from basic customs duty
- 5% customs duty exempted on equipment for fertilizer plants
- LNG out of customs duty
- Full exemption on customs duty on coal
- Basic customs duty on cigarettes reduced
- Customs duty on standard gold raised from 2% to 4%
- Customs duty on non standard gold raised to 10% from 5%
- Duty on bicycles and bicycle parts reduced
- Full exemption on imported equipments for road construction projects.
- Thermal power co exempted from customs duty for 2 yrs
- Mobile phone parts exempted from basic customs duty
Service Tax :
- Service tax up from 10% to 12%
- Service tax negative list introduced. 17 services specified in the negative list.
- School education exempt from service tax
- Some infra construction services exempt from service tax
Economy :
- GST to be operational by August 2012
- To allow ECB funding to finance working capital needs of airlines for 1 year
- Change in IPO guidelines to promote small town participation
- Efforts continue to arrive at consensus for 51% in retail FDI
- To allow external commercial borrowing to part finance rupee debt in power projects
- Proposes to remove sector-specific restriction on venture capital fund investments
- FM announces intention of tabling white paper on black money
