HIGH LIGHTS OF UNION BUDGET 2012 - P.SAIJAYRAM,

HIGH LIGHTS OF

UNION BUDGET  2012

By P.SAIJAYRAM, SRO 0313279, IPCC Student – PREMIER ACADEMY, Chennai,  Ph: 09382877019

INCOME TAX:-

INCOME TAX SLAB RATES

 FOR INDIVIDUALS (MEN AND WOMEN ) BELOW 60 YEARS:-                                                                             

INCOME IN RUPEES	% OF TAX ON INCOME
UP TO 200000	NIL
200001 TO 500000	10%
500001 TO 1000000	20%
ABOVE 1000000	30%

 

FOR SENIOR CITIZEN  WHOSE AGE IS 60 YEARS OR MORE BUT LESS THAN 80 YEARS:-

INCOME IN RUPEES	% OF TAX ON INCOME
UP TO 250000	NIL
250001 TO 500000	10%
500001 TO 1000000	20%
ABOVE 1000000	30%

 

FOR  VERY SENIOR CITIZEN  WHOSE AGE IS 80 YEARS OR MORE:-

INCOME IN RUPEES	% OF TAX ON INCOME
UP TO 500000	NIL
500001 TO 1000000	20%
ABOVE 1000000	30%

PLUS 3% EDUCATIONAL CESS ON TAX AMOUNT IS APPLICABLE ON ALL PERSONS

TURNOVER LIMIT FOR COMPULSORY TAX AUDIT FOR SME'S RAISED FROM Rs.60 LAKH TO ONE CRORE

 

ALTERNATE MINIMUM TAX (AMT) ON ALL PERSONS OTHER THAN COMPANIES (AFECTS TO THE PERSON WHOSE TOTAL INCOME IS MORE THAN 20 LAKHS)

 

REMOVAL OF CASCADING EFFECT OF DIVIDEND DISTRIBUTION TAX (DDT)

 

REDUCTION IN THE RATE OF SECURITIES TRANSACTION TAX FROM THE EXISTING 0.125% TO 0.1%

 

CONCESSIONAL RATE OF TAXATION @15% ON GROSS DIVIDEND RECEIVED BY THE INDIAN COMPANY FROM SPECIFIED FOREIGN COMPANY

ADDITIONAL DEDUCTION FOR INVESTMENT IN INFRA BONDS OF RS.20000 REMOVED

 

ANY DONATIONS MADE ABOVE A SUM OF Rs.10000 SHALL BE ELIGIBLE FOR DEDUCTION ONLY IF SUCH SUM IS PAID BY ANY MODE OTHER THAN CASH

 

SENIOR CITIZENS NOT HAVING INCOME CHARGEABLE UNDER THE HEAD " PROFITS AND GAINS OF BUSINESS OR PROFESSION" SHALL NOT BE LIABLE TO PAY ADVANCE TAX

 

UNDISCLOSED INCOME FOUND DURING THE COURSE OF SEARCH AND ADMITTED

AT THE STAGE OF SEARCH WILL ATTRACT PENALTY OF 10%

 IF ADMITTED AT THE STAGE OF FILING OF RETURN WILL ATTRACT PENALTY @20%  AND

 IN ANY OTHER CASE PENALTY RANGE BETWEEN 30% TO 90% OF UNDISCLOSED INCOME

 

TAXATION OF CASH CREDITS, UNEXPLAINED MONEY, INVESTMENTS ETC @30%

 

TDS AT THE RATE OF 10% TO BE DEDUCTED ON REMUNERATION PAID TO THE DIRECTOR WHICH IS NOT IN THE NATURE OF SALARY.

 

TDS TO BE DEDUCTED ON DEBENTURES IF THE  INTEREST AMOUNT EXCEEDS RS.5000

 

TDS @1% ON TRANSFER OF CERTAIN IMMOVABLE PROPERTIES (OTHER THAN AGRICULTURAL LAND) IF THE CONSIDERATION EXCEEDS

RS.50 LACS IN CASE OF URBAN AREAS

RS.20 LACS IN CASE OF RURAL AREAS

 

TCS @1% IN THE SALES OF BULLION AND JEWELLERY PROVIDED IF THE PERSON PAID IN CASH FOR MORE THAN RS.2 LACS

 

SHARE PREMIUM IN EXCESS OF FAIR MARKET VALVE WILL BE TREATED AS INCOME. THIS WILL INCREASE THE TAX OUTGO FOR FIRMS AS SHARE PREMIUM HAS SO FAR HAS BEEN TREATED AS CAPITAL

 

TAX ATTRACTED ON TRANSFER OF CAPITAL ASSETS ON PROPERTY LOCATED IN INDIA WHICH IS BIG BLOW TO FOREIGN INVESTORS

 

INTRODUCTION OF COMPULSORY REPORTING REQUIREMENT IN CASE OF ASSETS HELD ABROAD BY RESIDENTS

 

RESIDENT HAVING ANY ASSET OUTSIDE INDIA NEED TO FILE THE RETURN OF INCOME COMPULSORILY EVEN IF HE DOESNOT HAVE TAXABLE INCOME

 

EXTENDED PERIOD OF 16 YEARS FOR REASSESSMENT IN RESPECT OF PERSONS WHOSE INCOME IN RELATION TO SUCH ASSETS LOCATED OUTSIDE INDIA

 

NEW RULES REGARDING TRANSFER PRICING INCREASE THE TAX OUTGO AND COMPLIANCE BURDEN WILL RISE.

 

NO TAX ON  INTEREST INCOME OF  SAVING BANK A/C  UP TO RS.10000

DEDUCTION U/S 80D ALLOWED FOR MEDICAL CHECK UP  UPTO RS.5000

SERVICE TAX:-

SERVICE TAX RAISED FROM 10% TO 12%

SERVICE TAX IS TO BE CHARGED TO ALL SERVICE EXCEPT THOSE IN THE NEGATIVE LIST

THE NEGATIVE LIST CONSIST OF 17 SERVICES

SALES TAX:-

WORKS CONTRACT COMPOSITION RATE INCREASED FROM 4% TO 4.8%

CUSTOMS DUTY:-

CUSTOMS DUTY ON LNG HAS BEEN ABOLISHED

 

FULL EXEMPTION FROM CUSTOM DUTY FOR IMPORT OF LITHIUM-ION CELLS USED IN ELECTRIC,   HYBRID VEHICLES.

 

STANDARD GOLD, PLATINUM BARS TO ATTRACT 4% CUSTOMS DUTY

 

IMPORT ON NON STANDARD GOLD WILL ATTRACT 10%

 

 CUSTOMS DUTY WAIVED ON INPUTS FOR FERTILISER AND IRON ORE PLANTS WHICH IS A BIG BOOST FOR INFRASTRUCTURE SECTOR

 

EXCISE DUTY ON AUTOMOBILES RAISED

 

UNBRANDED GOLD JEWELLERY WILL ATTRACT 1% EXCISE DUTY

 

NO EXCISE DUTY ON BRANDED SILVER JEWELLERY

 

RAISED THE LOWER SLAB RATE OF EXCISE DUTY FROM 1%,5% , 10% TO 2%,6%,12% RESPECTIVELY

THIS RAISE LIKELY TO IMPACT THE PACKAGED FOOD INDUSTRY

 

10% MORE TAX ON CIGARATTES LONGER THAN 65MM, EXCISE LEVY TO BE ON 50% RETAIL SELLING PRICE

 

12% MEDIAN RATE ON EXCISE DUTY WHICH IS LEVIED ON 90% OF MANUFACTURED GOODS COULD ERODE MARGINS AND MODERATE DEMAND

 

HIGHER EXCISE DUTY OF 12% ON CEMENT, MAY HIT CONSTRUCTION AND HOUSING COMPANIES.

       

DUE TO BUDGET THERE WILL BE A PRICE RISE IN:

GOLD

AUTOMOBILES ( EX CARS)

CEMENT

CIGARATTES

COST OF SERVICE RELATED JOBS

MANUFACTURED GOODS  ETC.,

        DUE TO BUDGET THERE WILL BE A PRICE LOW IN:

FERTILISERS

IRON ORE PLANTS

LITHIUM ION CELLS USED IN ELECTRIC AND HYBRID CELLS

BRANDED SILVER  ETC.,

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