INCOME TAX:-

1.       Exemption limit for the general category of individual taxpayers enhanced from 1,60,000 to and 1, 80,000 giving uniform tax relief of 2,060.

2.       Exemption limit enhanced and qualifying age reduced for senior citizens from 65 years to 60 years. From Rs. 2,40,000 to Rs. 2,50,000/-

3.       Exemption limit for Very Senior Citizens, who are 80 years or above is Rs. 5,00,000/-

4.       Current surcharge of 7.5 per cent on domestic companies proposed to be reduced to 5 per cent.

5.       Rate of Minimum Alternative Tax proposed to be increased from 18 per cent to 18.5 per cent of book profits.

6.       Additional deduction of 20,000 for investment in long-term infrastructure bonds proposed to be extended for one more year.

7.       Lower rate of 15 percent tax on dividends received by an Indian company from its foreign subsidiary.

8.       No additional Tax exemption for Women

9.       Weighted deduction on payments made to National Laboratories, Universities and Institutes of Technology to be enhanced to 200 per cent.

EXCISE LAW:-

Central Excise Duty to be maintained at standard rate of 10 per cent.

1.       Nominal Central Excise Duty of 1 per cent imposed on 130 items entering in the tax net.

2.       Lower rate of Central Excise Duty enhanced from 4 per cent to 5 per cent.

3.       Optional levy on branded garments or made up proposed to be converted into a Mandatory levy at unified rate of 10 per cent.

4.       Scope of exemptions from Excise Duty enlarged to include equipments needed for storage and warehouse facilities on agricultural produce.

5.       Basic Food & Fuel exempted from Excise duty.

6.       Parallel Excise Duty exemption for domestic suppliers producing capital goods needed for expansion of existing mega or ultra mega power projects.

7.       Full exemption from basic Customs Duty to bio-asphalt and specified machinery for application in the construction of national highways.

9. Jumbo rolls of cinematographic film fully exempted from CVD by providing full exemption from Excise Duty.

10.Out right concession to factory-built ambulances from Excise Duty.

11. Relief measures proposed for raw pistachio, bamboo for agarbatti, lactose for the manufacture of homoeopathic medicines, sanitary napkins, baby and adult diapers.

CUSTOM LAW:-

1.       Basic Custom Duty reduced for specified agricultural machinery from 5 per cent to 2.5 per cent.

2.       Basic Custom Duty reduced on micro-irrigation equipment from 7.5 per cent to 5 per cent.

3.       Cut in Import duties of Raw Material for mobile Phones.

4.       Basic Custom Duty on two critical raw materials of cement industry viz. pet coke and gypsum is proposed to be reduced to 2.5 per cent.

5.       Cash dispensers fully exempt from basic Customs Duty

6.       Full exemption from basic Customs Duty and a concessional rate of Central Excise Duty extended to batteries imported by manufacturers of electrical vehicles.

7.       Concessional Excise Duty of 10 per cent to vehicles based on Fuel cell technology.

8.       Exemption granted from basic custom duty and special CVD to critical parts/assemblies needed for Hybrid vehicles.

9.       Reduction in Excise Duty on kits used for conversion of fossil fuel vehicles into Hybrid vehicles.

10.     Excise Duty on LEDs reduced to 5 per cent and special CVD being fully exempted.

11.     Basic Customs Duty on solar lantern reduced from 10 to 5 per cent.

12.     Full exemption from basic Customs Duty to Crude Palm Stearin used in manufacture of laundry soap.

13.     Full exemption from basic Excise Duty granted to enzyme based preparation for pre-tanning.

14.     Scope of exemptions from basic Customs Duty for work of art and antiquities extended to apply for exhibition or display in private art galleries open to the general public.

15.     Exemption from Import Duty for spares and capital goods required for ship repair units extended to import by ship owners.

16.     Concessional basic Custom Duty of 5 per cent and CVD of 5 per cent available to newspaper establishments for high speed printing presses extended to mailroom equipment.

SERVICE TAX:-

1.       Standard rate of Service Tax retained at 10 per cent, while seeking a closer fit between present regime and its GST successor.

2.       Hotel accommodation in excess of 1,500 per day and service provided by air conditioned restaurants that have license to serve liquor added as new services for levying Service Tax.

3. Tax on all services provided by hospitals with 25 or more beds with facility of central air conditioning.

4.       Service Tax on air travel both domestic is Rs. 50/- ticket & on international ticket is Rs. 250/- ticket.

5.       Services provided by life insurance companies in the area of investment and some more legal services proposed to be brought into tax net.

6 De-oiled rice bran cake to be fully exempted from basic Custom Duty. Export Duty of 10 per cent to be levied on its export.

7 Legal representations for businesses are now covered under service tax.

OTHERS:-

1.       Foreign unit dividend tax rate cut to 15 percent for Indian companies

2.       Electronic filing of taxes available all over the country

3.       DTC to be implemented from FY. 12

4.       E-stamping in all states in three years. Only six states have introduced e-stamping so far.

5.       1 per cent interest subvention on home loans of up to Rs 15 lakh.

6.       Subvention for farmers who promptly repay their loans raised from 2 to 3 per cent.

6.       To stay on course for transition to GST

7.       Rate of Export Duty for all types of iron ore enhanced and unified at 20 per cent ad valorem. Full exemption from Export Duty to iron ore pellets.

8.       Priority sectors Home loan limits raised to Rs. 25 lakh from 20 lakh.

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Category : Finance (3662)
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Tags : Government Policy (1965)

0 responses to “Budget Amendments on Tax Front Applicable for A.Y. 2012-13”

  1. vrushal says:

    dear sir,

    i m manufacturer of abarbatti raw material in India.how ever in bangalore and other state also manufacturer they do more than 1.5carore turn over in business year but not come in excise.they said there business is excise exempted.i m finding government circulation about it but now one give me and tell me so how can i know agarbatti raw material manufacturing and selling business is excise exempted even agarbatti manufacturing is also excise exempted but material manufacturing also?

    can u gyouive me suggestion about it how can i find out.. thank

  2. prem butola says:

    lot of thanks for information

  3. shamim says:

    thanks sir for updating us

  4. Bijay Kumar barik says:

    can you tell me what is difference between variant of VAT and method of VAT and applicablity of GST for 2012 exam

  5. TAML says:

    thank you sir….

  6. pavan says:

    Thank you sir for updating us the changes in the amendments of income tax act.

  7. Nikhil Padhye says:

    Thanking you for the overview of the Budget.

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