The Union Budget 2012-13 saw quite a few changes being announced by the Finance Minister Pranab Mukherjee. Here is a look at the highlights of changes announced for direct taxes: > Proposal to allow individual tax payers, a deduction of upto Rs 10,000 for interest from savings bank accounts. > Proposal to allow deduction of upto Rs 5,000 for preventive health check up. > Senior citizens not having income from business proposed to be exempted from payment of advance tax. > To provide low cost funds to stressed infrastructure sectors, rate of withholding tax on interest payment on ECBs proposed to be reduced from 20 per cent to 5 per cent for 3 years for certain sectors. > Restriction on Venture Capital Funds to invest only in 9 specified sectors proposed to be removed. > Proposal to continue to allow repatriation of dividends from foreign subsidiaries of Indian companies at a lower tax rate of 15 per cent upto 31.3.2013. > Investment link deduction of capital expenditure for certain businesses proposed to be provided at the enhanced rate of 150 per cent. > New sectors to be added for the purposes of investment linked deduction. > Proposal to extend weighted deduction of 200 per cent for R&D expenditure in an inhouse facility for a further period of 5 years beyond March 31, 2012. > Tax proposals for 2012-13 mark progress in the direction of movement towards DTC and GST. > DTC rates proposed to be introduced for personal income tax. > Exemption limit for the general category of individual taxpayers proposed to be enhanced from Rs 1,80,000 to Rs 2,00,000 giving tax relief of Rs 2,000. > Upper limit of 20 per cent tax slab proposed to be raised from Rs 8 lakh to Rs 10 lakh. > Proposal to provide weighted deduction of 150 per cent on expenditure incurred for agri-extension services. > Proposal to extend the sunset date for setting up power sector undertakings by one year for claiming 100 per cent deduction of profits for 10 years. > Turnover limit for compulsory tax audit of account and presumptive taxation of SMEs to be raised from Rs 60 lakhs to Rs 1 crore. > Exemption from Capital Gains tax on sale of residential property, if sale consideration is used for subscription in equity of a manufacturing SME for purchase of new plant and machinery. > Proposal to provide weighted deduction at 150 per cent of expenditure incurred on skill development in manufacturing sector. > Reduction in securities transaction tax by 20 per cent on cash delivery transactions. > Proposal to extend the levy of Alternate Minimum Tax to all persons, other than companies, claiming profit linked deductions. > Proposal to introduce General Anti Avoidance Rule to counter aggressive tax avoidance scheme. > Measures proposed to deter the generation and use of unaccounted money. > A net revenue loss of Rs 4,500 crore estimated as a result of Direct Tax proposals. source : Economy Times
One thing i liked about this budget is that it supports the growth of existing SMEs though not helping the new ones to sprout. Exempting capital gains tax on sale of residential property used in for SMEs and raising the tax audit limit to 1 crore will lower the hassles which SMEs have to go through. I think it would be quite a relief to them. what do you say?
2012 budget is so horrible for the middle class people every think has got some hike in price and specially in fare and cars.
