Gsoftnet: Union Budget-2012-13

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Highlights of Union Budget 2013-14

2:13 PM Dharmen

NEW DELHI: India must make tough spending choices, finance minister P Chidambaram said on Thursday, even as he unveiled a bigger-than-expected outlay for the coming fiscal year in one of the most highly anticipated Indian budgets of recent years.
Following are highlights of the Budget:

FISCAL DEFICIT

Fiscal deficit seen at 5.2 point of GDP in 2012/13
Fiscal deficit seen at 4.8 point of GDP in 2013/14
Faced with huge fiscal deficit, India had no choice but to rationalise expenditure

BORROWING

Gross market borrowing seen at 6.29 trillion rupees in 2013/14
Net market borrowing seen at 4.84 trillion rupees in 2013/14
Short-term borrowing seen at 198.44 billion rupees in 2013/14
To buy back 500 billion rupees worth of bonds in 2013/14

SPENDING

2013/14 major subsidies bill estimated at 2.48 trillion rupees from 1.82 trillion rupees
Petroleum subsidy seen at 650 billion rupees in 2013/14
Revised petroleum subsidy for 2012/13 at 968.8 billion rupees
Estimated 900 billion rupees spending on food subsidies in 2013/14
Revised food subsidies at 850 billion rupees in 2012/13
Revised 2012/13 fertiliser subsidy at 659.7 billion rupees

GROWTH

India faces challenge of getting back to its potential growth rate of 8 point
India must unhesitatingly embrace growth as highest goal

SPENDING

Total budget expenditure seen at 16.65 trillion rupees in 2013/14
India's 2013/14 plan expenditure seen at 5.55 trillion rupees
Revised estimate for total expenditure is 14.3 trillion rupees in 2012/13, which is 96 point of budget estimate
Set aside 100 billion rupees towards spending on food subsidies in 2013/14

REVENUE

Expect 133 billion rupees through direct tax proposals in 2013/14
Expect 47 billion rupees through indirect tax proposals in 2013/14
Target 558.14 billion rupees from stake sales in state-run firms in 2013/14

CURRENT ACCOUNT DEFICIT

India's greater worry is the current account deficit - will need more than $75 billion this year and next year to fund deficit

INFLATION

Food inflation is worrying, will take all steps to augment supply side

TAX

Proposes surcharge of 10 point on rich taxpayers with annual income of more than 10 million rupees a year
To increase surcharge to 10 point on domestic companies with annual income of more than 100 million rupees
To continue 15 point tax concession on dividend received by India companies from foreign units for one more year
Propose to impose withholding tax of 20 point on profit distribution to shareholders
Amnesty on service tax non-compliance from 2007
10 billion rupees for first installment of balance of GST (Goods and Services Tax) payment
Propose to reduce securities transaction tax on equity futures to 0.01 point from 0.017 point
Time to introduce commodities transaction tax (CTT)
CTT on non-agriculture futures contracts at 0.01 point

CORPORATE SECTOR AND MARKETS

Plans to issue inflation-indexed bonds
Proposes capital allowance of 15 point to companies on investments of more than 1 billion rupees
Foreign institutional investors (FIIs) can use investments in corporate, government bonds as collateral to meet margin requirements
Insurance, provident funds can trade directly in debt segments of stock exchanges
FIIs can hedge forex exposure through exchange-traded derivatives
Investor with less than 10 point stake in a company will be regarded as FII, more than 10 point stake as FDI (foreign direct investment)
Stock exchange regulator will simplify know-your-customer norms for foreign portfolio investors
To implement quickly recommendations of financial sector legislative reforms commission

POWER AND ENERGY SECTOR

Proposes zero customs duty for electrical plants and machinery
Proposes to move to revenue-sharing from profit-sharing policy in oil and gas sector
To equalise duties on steam and bituminous coal to 2 point customs duty and 2 point cvd (countervailing duty)

FOREIGN TRADE

To cut duty on exports of precious and semi-precious stones to 2 point from 10 point
No duty on import of ships, vessels

BANKING

To provide 140 billion rupees capital infusion in state-run banks in 2013/14

DEFENCE

To allocate 2.03 trillion rupees to defence in 2013/14

AGRICULTURE

To allocate 801.94 billion rupees to rural development in 2013/14
Plan to allocate 270.49 billion rupees for agriculture in 2013/14

FINANCE MINISTER COMMENTS

"Faced with a huge fiscal deficit, I have no choice but to rationalize expenditure. We took a dose of bitter medicine. It seems to be working."

View Union Budget-2012 (Click Here)
Highlights of Buget 2012 (Click Here)

Source- The Times of India

Salaried Employee (Taxpayee) expected from Budget-2013.

11:35 PM Dharmen

Friends we are very known the Financial Year 2013-14 budget will presented by Finance Minister of Union Territories on 28th Feb., 2013. Every Economist, Businessman, Industrialist and Taxpayee specially Salaried Employee more expected and demanded from this budget-2013. This factor is very specially and all are most important part regarding Tax Revenue, but apart from these the Common Man is want not more or less interested in Direct Tax Proposal of Government. All common man and such taxpayee whose Income not more than 5 Lacks specially awaiting Direct Tax Proposal. All taxpayee of India and Common Man wants from this year Budger-2013, which are as under:

Tax Exemption Limit:

The exemption Income Tax limit is expected to be increased from Rs 2,00,000 to Rs 3,00,000. It means the tax liability will be reduced around Rs 10300/-. As well as it should effect in Sr. Citizen or Ver Sr. Citizen Tax Salab. This will increase the disposable income of the salaried individual and would be a welcome change.

Further taxapyee wants the Tax Slab of 10 % should be increases from Rs 5,00,000 to Rs 6,00,000. And highest Tax Rate of 30% should be enhanced from Rs. 10,00,000/- to Rs. 12,00,000/-.

U/s. 80C Deduction Limit:

This budget may increase deduction limit under section 80C from Rs. 1,00,000/- to Rs. 1.50.000/-, it will increase Savings and deposit fund to help Govenemrnt and increase social security.

Restore u/s. 80CCF :

U/s. 80CCF may restore again in Fin. Year 2013-14 for investors to increase the Fund and it will help Infrastructure Companies as well as it will increase Interest Rate as Infrastructure Bond with revised limit of Rs. 30,000/-.

Transport Allowance:

The Exemption of Transport Allowance limit has not increased sin long and due to more inflation and rising in fuel cost/prices it is require to increase Exemption of Transport allowance from Rs. 800 to Rs. 4,000/-. Because 6th Pay Commission had increased the limit of Transport Allocance to all employee as well as Private sector also pay higher amount to Employee.

Medical Reimbursement and Children Education Allowance :

This budget may expect to increase Medical Reimbursement up to 30,000/- (Current limit is upto Rs. 15,000/-). The Children Education allowance may be raised by Rs. 750/- per month for each child (not more 2 Children).

Locking period of Tax Saving FDR:

Current lock period for Tax saving FDR is 5 years. It may reduce form 5 years to 3 years only.

U/s. 80CCG:

The Rajiv Gandhi Equity Saving Scheme (RGESS) deduction u/s. 80CCG may enhance for those Taxpayee whose Income more than Rs. 10,00,000/- first time Investor.

Deduction of interest of repayment on House Property Loan:

The deduction for Interest on House Loan may be increased from Rs. 1,50,000/- to Rs. 2,00,000/- becasue of high cost of Real Estate sector and higher cost of constructions.

Leave encasement exemption Limit:

On Leave Encasement Exemption limit may be increase from Rs. 3,50,000/- to 5,00,000/- for all Employee whether it is Government Employee or Non-Govt. Employee.

House Rent Allowance (HRA) exemption:

In this regard due to higher construction cost many house property holders increases House rent and it is difficult to pay by Employee. So, considering the increase in rental amounts, the exemption allowed under section 10 (13A) of the Act could be increased by the Government.

Under the current tax laws, the exemption is limited to the least of the following -
- Actual HRA received
- Rent paid in excess of 10% of salary
- 50% of salary or 60% of salary (in case of metros)

The salaried class will take benefit if the Government re-looks at the above formula which provides little benefit to the salaried class who pays rent.

Your comments is highly recommended for justification.

Petrol Price hiked by INR 7.50 (above Approx.) in India from midnight.

8:51 PM Dharmen No comments

Indian Oil Corporation of India will raise petrol prices by INR 7.50 (Approx.) per litre from Today's midnight. As per IOC of India the sell of fuel in India across their State would be in losses by huge amount and thus the Central Government rises the Prince.

The following statement shows the comparative price including local Taxes.

City Name	Current Price	Revised Price	Increase INR
Delhi	65.64	73.18	7.54
Kolkata	70.03	77.88	7.85
Mumbai	70.66	78.57	7.91
Chennai	69.55	77.53	7.98

This increase price be effected on common man life.

A view about Effect of Budget on Income Tax For Financial Year 2012-13.

8:50 AM Dharmen No comments

Year Budget Effected on Tax Policies for nest Financial Year all taxpayee knows although it more effected on Income Tax except other Tax i.e. Service Tax, Excise Tax etc. A common Man watches all on Budget every year only for projection of income and saving of tax. Some Important Changes in this Financial Year 2012-13 by Budget-2012 are as follows:

Rajiv Gandhi Equity Savings scheme: It will provide income tax deduction of 50% for those who invest upto Rs.50,000 directly into equities and whose annual income is less than Rs.10 lakh, subject to a three -year lock in.
Implementation of Direct tax code has again been deferred and won’t be applicable from 1st April, 2012.
Exemption limit raised to Rs 2 lakhs from Rs 1.8 lakh. 30% slab now starts from 10 lakh rather than 8 lakh earlier. Men and women now have same tax slab. No gender bias.
Within the existing limit for deduction allowed for health insurance, Rs 5000 deduction for preventive health checkup is allowed.
Deduction of upto 10,000 for interest from savings bank accounts under a new section 80TTA.
Senior citizens not having income from business proposed to be exempted from payment of advance tax.
Securities Transaction tax (STT) reduced to 0.1% from 0.125%
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.
Service tax rate increased to 12% from current 10%. This would mean more taxes in your mobile, telephone, internet, restaurant bills and life insurance premium etc.
Import duty free amount limit raised to Rs 35000 from 25000. So guys coming from abroad can bring more stuff.
Gold to be more expensive. Customs duty on standard gold raised from 2 per cent to 4 per cent.
Duty on large cars raised to 27%, so cars would be more expensive now.
Tax saving mutual funds (ELSS) deduction to continue.
80C deduction on insurance policies purchased after 1st April, 2012 only if premium is less than 10% of sum assured. Benefit for existing purchased policies to continue.
1% TDS on any immovable property sale above 50 lakh (20 lakh in case of non-urban areas).
1% tax at source on cash purchases of jewellery over Rs 2 lakh.
80CCF deduction for infrastructure bonds not valid anymore.
Income tax return filing would be now mandatory for every resident having any asset located outside India irrespective of the fact whether the resident taxpayer has taxable income or not.
80G deduction not applicable in case donation is done in form of case for amount over Rs 10,000.

Effect of Budget 2012-13 on Taxpayee.

8:50 AM Dharmen No comments

Effects of budget-2012 placed by Finance Minister recently on Taxpayee that Personal Income Tax rates rationalized. Basic exemption limit to be increased to Rs. 2 Lakh for both women and men, thereby removing gender discrimination. 30% rate of income tax to be attracted in respect of total income above Rs. 10 Lakhs. Deduction of up to Rs. 10,000 in respect of interest on savings account in bank, post office or co-operative society engaged in the business of banking. Deduction of up to Rs. 5,000 in aggregate for preventive health check-up of the assessee, his family and parents. This is within the overall limit specified under section 80D. However, payment for preventive health check-up can also be made in cash to qualify for deduction. Senior citizens not having business income to be exempted from payment of Advance Tax. Age of senior citizen for availing higher deduction for medical insurance premium, medical treatment of a specified disease or ailment, etc. to be aligned with the reduced age of 60 years for availing higher basic exemption limit of Rs. 2,50,000 applicable to senior citizens. Deduction under section 80C in respect of Life Insurance Premium paid to be allowed for only so much of premium as does not exceed 10% of the actual capital sum assured, in respect of policies issued on or after 1st April, 2012. Currently, the limit is 20% of actual capital sum assumed. Further, exemption under section 10(10D) in respect of any sum received under a life insurance policy issued on or after 1st April, 2012, would be available only where the premium payable for any of the years during the life of the policy does not exceed 10% of actual capital sum assured.

Budget-2012 and Business, Industries and Tax and Common Man.

8:55 AM Dharmen No comments

The finance minister quoted Shakespeare's Hamlet before starting the second part of his budget speech. A long monotonous speech had a humorous pause albeit a very small one. To quote him "The life of Finance Minister is not easy. Various players, including policy makers, politicians, agriculturists and business houses, participate in the making of the economy.

High importance has been given to Agriculture and ailed businesses and also power sector.

Securities Transaction tax has been reduce by 20% to 0.1%

The cruel part beings...
Service tax will attain adulthood the fiscal year (it has been in existence since 17.5 year as of today), and has been made to grow. The Finance Minister has done a "Honey, I grew up the kids" by widening the tax base. He has also increased the rate of service tax rates to 12% from the existing 10% Apart from the hike in the standard rate, Mr. Finance minister has also increased the merit rate from 5% to 6%.

The Finance Minister has also increased the duty on large cars from 22% to 24% and for some cares to 27% and valorem. This will effect the luxury brands like Audi BMW etc.

Initiatives for specific sectors of business a quick take

Agriculture - Overall a lot of positive points to take away.

Infrastructure - Multiple exemption for fuels like NG, LNG and uranium.

Mining - support for surveying and prospecting

Railway - Impetus for boosting safety and service delivery.

Road industry - Exemptions given for road construction equipments

Civil aviation - Most positive things

Manufacturing - Proposals with the intention of cost reduction for raw materials and inputs and capital cost.

Textile - Positive proposals to improve modernization.

Branded retail - Taxes as a component of Retail sale price to come down by 0.9%

Bicycle - Custom duty rose to 30% for cycle and 20% for parts - negative effect on manufacturers depending on imports.

Health and Nutrition - Positive measures by reducing/removing customs duty for drugs and equipment now cruel or how kind the budget truly is will be known once we analyses the entire fiance bill.

Highlights of Maharashtra's - 2012 Budget Presented by Ajit Pawar

8:56 AM Dharmen No comments

Mumbai is the economy heart of India and thus the Budget of Maharashtra will effect all over the india. The Finance Minister Mr. Ajit Pawar had presensed the Budget-2012 of Maharashtra State with Rs. 152.49 Crore revenue surplus in the Financial year 2012-13 in the State Legislative Assembly. The following are major points of the Maharashtra's Budget-2012:

The budget envisages revenue receipts of Rs 1,36,711.70 crore against expenditure of Rs 1,36,559.21 crore.
The gross state domestic product is supposed to rise by 8.5 percent, while the net state domestic product is estimated at Rs 9,82,452 crore.
The budget earmarks Rs 100 crore to celebrate the birth centenary of Y B Chavan, the first Chief Minister of Maharashtra.
“It also provides funds for construction of a `Marathi Bhasha Bhavan’ in Mumbai to promote the language. Rare Marathi books would be available online through e-books to buy and volumes of the Marathi encyclopedia would be made available on the internet”, he said. An amount of Rs 5 crore has been made for nurturing of Marathi language and culture in Maharashtra-Karnataka border areas.
The size of the annual plan of the state is Rs 45,000 crore. The special component plan for scheduled castes is Rs 4,590 crore, tribal sub plan Rs 4,000 crore and district plan (general) Rs 4,950 crore, an increase of Rs 630 crore over the last year.
Rs 415 crore have been provided for Rashtriya Krushi Vikas Yojana. Rs 2,500 crore have been allocated to concession in electricity bills to farmers.
The budget sets a target of electrification of 1.50 lakh agricultural pumps. Rs 65.56 crore have been set aside for the proposed World Bank-assisted Maharashtra Agricultural Competitiveness Project, to improve agricultural marketing infrastructure.
Rs 90 crore have been allocated for construction of sports complex, Rs 1,444.80 crore for National Rural Drinking Water Programme, Rs 2,200 crore for JNNURM, and Rs 573.98 crore for the Indira Aaawas Yojana.
The state government would be spending Rs 156.55 crore on the police modernisation, Rs 256.75 crore would be spent on residential and administrative buildings of police.
Rs 262 crore would be spent on construction of court buildings. Rs 140 crore would be spent on construction of administrative buildings of revenue department.
The budget envisages tax proposals of Rs 600 crore, It proposes 12.5% tax on sale of beedis. Tobacco and its products are taxed at 20%. Beedi and un-manufactured tobacco are excluded from tax (at present). Beedi is also equally injurious to health. It is taxed in many states.
A five% tax has been proposed on sale of LPG for domestic use. “LPG for domestic use was exempted in 2008. This concession was continued last year also. It (LPG) is taxable in many states. Kerosene used for domestic purposes is already being taxed in the state,” Pawar added.
Tax on plaster of paris would be increased from 5% to 12%. A single tax rate of 5% for all dry fruits has been proposed.
The budget also proposes tax on Aviation Turbine Fuel in places other than Mumbai and Pune at 5% from April 1.
The tax rate on diesel cars and jeeps would be increased by 4%. “I propose to increase the tax rate by 2% on petrol cars and jeeps,” Pawar added.
However, the budget gives concession for CNG vehicles. Tax rates would be reduced by 2% across the slabs. “The new tax rate will be 5% for CNG vehicles costing up to Rs 10 lakh, 6% for vehicles costing between Rs 10 to 20 lakh and 7% for above Rs 20 lakh,” he said.
Tax exemption on essential goods like rice, wheat, pulses and their flours, turmeric, chillies, tamarind, gur, coconut, coriander seeds, fenugreek, parsley, papad, wet dates, solapuri chaddars and towels would continue till March 31, 2013, the minister said. Lower rate of 5% tax on tea would also continue.
The minister also announced an amnesty scheme for outstanding electricity duty. “If the outstanding electricity dues as of December 31, 2011 are paid in single instalment, 50% of interest accrued thereon would be waived, subject to withdrawal of pending court cases,” Pawar said. The scheme would be in operation from April 1, 2012 to June 30, 2012, he further added.

Fees for Professional or Technical Services i.e. "Director Remuneration" under Section 194J in Budget from this year.

8:56 AM Dharmen No comments

In the Budget new provision under section 194J i.e. Directors Remuneration which required on Fees for Professional or Technical Services and TDS Will be deducted @ 10% on Fees for Professional or Technical Services. This amendment will be effected from 01st July, 2012 and applicable for Financial year 2012-13 (Assessment Year 2013-14).

Section : 194J
Subject : Fees for Professional or technical services
w.e.f. : 01-07-2012
Changes : Payment to a director of a company any sum by way of any remuneration, fees or commission Which is not a salary shall also attract TDS of 10%

For more Clarity read exact words as per Chapter III of Income Tax Act -

In section 194J of the Income-tax Act, in sub-section (1), after clause (b), the following clause shall be inserted with effect from the 1st day of July, 2012, namely -

“(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company; or”.

Highlights of Union Budget - 2012.

3:19 PM Dharmen No comments

The biggest challenges during long Political Career of Finance Minister Mr. Pranab Mukherjee that Today's Budget-2012. The Finance Minister set the tone for announce the Budget as this year gone likes "year of recovery interrupted." As the Global Economic scenario, the battle with double digit inflation and said it was time for tough decisions. Here are the highlights of this fiscal's financial budget.

Highlights of Union Budget-2012 :

Income tax exemption limit raised to Rs.2 lakh to provide relief of relief of Rs.2,000 for all assessees; 20 per cent tax on income over Rs.10 lakh, up from Rs.8 lakh.
Deduction of up to Rs.10,000 from interest from savings bank accounts.
Defence to get Rs.1.93 lakh crore during 2012-13.
Service tax rate raised from 10 per cent to 12 per cent to bring in Rs.18,660 crore.
Number of proactive steps taken on black money (stashed away abroad); information has started flowing in, prosecution to be initiated; White Paper in current session.
No change in corporate taxes but measures to enable them better access funds.
Withholding tax on external commercial borrowings reduced from 20 per cent to five per cent for power, airlines, roads, bridges, affordable houses and fertilizer sectors.
National Skill Development Fund allocated Rs.1,000 crore.
Four thousand residential quarters to be constructed for paramilitary forces with an allocation of Rs.1,185 crore.
National Population Register to be completed in two years.
Excise duty raised from 10 to 12 per cent.
Cinema industry exempted from service tax.
Branded silver jewellery fully exempt from excise duty.
Customs duty on warning systems/track upgrade equipment for railways reduced from 10 per cent to 7.5 per cent.
Import duty on equipment for iron ore mining reduced from 7.5 to 2.5 per cent.
Allocation of Rs.200 crore for research on climate change.
Irrigation and water resource company to be operationalized.
National mission on food processing to be started in cooperation with state governments.
Integrated Child Development Scheme to be strengthened and restructured with allocation of Rs.15,850 crore.
Allocation of Rs.14,000 crore for rural water supply and sanitation.
Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-13.
Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector.
Completion of highway projects 44 per cent higher than in previous fiscal.
External commercial borrowing of up to $1 billion permitted for airline sector.
External commercial borrowings permitted to low-cost housing sector.
From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
Hope to raise Rs.30,000 crore from disinvestment.
New equity savings scheme to provide for income tax deduction of 50 per cent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
Corporate market reforms to be initiated.
Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
India's inflation structural, driven largely by agricultural constraints.
Current account deficit 3.6 per cent in 2011-12; this put pressure on exchange rate.
Growth in 2012-13 estimated at 7.6 per cent; expect inflation to be lower.
Better monitoring of expenditure on government schemes.
Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
GDP growth in 2011-12 estimated at 6.9 per cent; had to battle double digit inflation for two years.
Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.

Budget - 2012 and Expectation of Salaired Employee

7:54 AM Dharmen No comments

Hite Exemption of Tax Limit:
The exemption limit is expected to be increased from Rs 1,80,000 to Rs 3,00,000. This will increase the disposable income of the salaried individual and would be a welcome change.

Hi-tech Income Tax Slab from 30%:
Currently, the highest tax rate of 30% is applicable to income above Rs 8,00,000 per year. This limit could be enhanced to Rs 10,00,000 thereby resulting in some savings and also aligning the slabs with the proposed Direct Tax Code (DTC).

Increase in deduction amount under section 80CCF of the Income tax Act, 1961 (Act):
Given the focus on Infrastructure development, one can look forward to higher deduction for investment into infrastructure bonds u/s 80 CCF. Currently, the deduction limit u/s 80CCF is restricted to the extent of Rs 20,000 and the proposed DTC does not provide this deduction.

Deduction of interest repayment under the head Income from House Property:
Under the current tax laws, the repayment of interest amount towards purchase/ construction of a self occupied house property is eligible for deduction to the extent of Rs 1,50,000. In view of the raising property prices, the deduction limit could be enhanced. This could bring a relief to the salaried individual who has borrowed and invested in a self occupied residential house.

Removal of provisions relating to deemed let out house property:
Currently, if an individual has two house properties which are self occupied, one house property will be treated as self occupied and the other will be treated as deemed let out house property. The taxation is done based on the deemed rental value. Considering that the determination of notional rental value could lead to unnecessary litigation, this provision can be done away with and the proposed DTC also suggests the same.

Deduction limit under section 80C of the Act:
Increase in deduction limit under section 80C could enhance the disposal income for salaried individual. Considering the type of investments that are covered under this section, the present deduction limit of Rs 1,00,000 could be increased. Recently, the limit for PPF has also been increased from Rs 70,000 to Rs 1,00,000.

Transport Allowance:
Considering the inflation and rise in fuel cost, the exemption limit for transport allowance to meet expenditure of commuting from residence to the place of work may be increased from the current limit of Rs. 800 which is not comparable to the expenditure levels.

Children Education Allowance:
The exemption limit for Children Education allowance may be raised from the current limit of Rs.100 per month per child for maximum 2 children or actual expenses, whichever is less.

House Rent Allowance (HRA) exemption
Considering the increase in rental amounts, the exemption allowed under section 10 (13A) of the Act could be increased by the Government.

Under the current tax laws, the exemption is limited to the least of the following -
- Actual HRA received
- Rent paid in excess of 10% of salary
- 40% of salary or 50% of salary (in case of metros)

The salaried class will benefit if the Government re-looks at the above formula which provides little benefit to the salaried class who pays rent.

Reimbursement of Medical Expenses:
Considering the present cost of medical facilities and medicines, the exemption limit could be increased from the current limit of Rs 15,000. The DTC has proposed the limit to be increased to Rs 50,000. The exemption limit was increased from Rs 10,000 to Rs 15,000 by the Finance (No.2) Act, 1998.

Restoration of standard Deduction
Earlier Standard deduction of 25000 was available for salaried person u/s 16(i) .This deduction is given as there are expenses incurred by the salaried employee to do his /her job and no other expenses are allowed as such . So this deduction must be restored and at least increased to Rs 50000.

Kindly submit your comments from Budger-2012.

Railway Fare Hike or No Change - Railway Budger-2012

5:15 AM Dharmen 1 comment

The government will table the Economic Survey 2011-12 data on March 13th Midnight. The Survey is a document on the state of economy prepared by the economic division in the ministry of finance. The Parliamentary affairs minister Pawan Kumar Bansal said the Budget session of Parliament will start on March 12, with the Railway Budget slated to be presented on March 14. A meeting of the Cabinet Committee on Parliamentary Affairs, headed by Finance Minister Pranab Mukherjee, was held earlier on Tuesday, to decide the schedule of the session which is generally a three-month affair.

Today Railway Minister placed a Rail Budget in parliamentary, but before submitting Rail Budget he will says something like link this. "Due to inflationary reason , This year rail freight rates are not going to be increased, No Change.............? ".

But the truth will be beyond her statements. In fact Railway has increased railway freight across the board for all most all class of goods from 20 to 35 % wef 06.03.2012. Never in the history of railway such an increase has been done ,a flat increase of freight by 20 % which is gone by 35 % in few cases.Appox 70% revenue of railways comes from freight. So what more left in Budget, Just a bundle of Figure ? Few New trains ? New Factories in West Bengal ? Main thing of Budget (increase in rates) has already been done without any noise. To distinguish the deference see the below picture.

Fare Rates w.e.f. 06.03.2012

Old Fare Rates upto 05.03.2012

Difference in Fare Rates

Download Railway Freight Rates effective up to 05.03.2012
Download Railway Freight rate wef 06.03.2012

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Download Standing Committee Report for more details on Direct Tax Code, 2010

9:22 AM Dharmen No comments

Friends, on Direct Tax Code, 2010 the Standing Committee on Finance has submitted 49th Report today. In this report Standing Committee on Finance advice NIL tax upto 300000 Income. For more silent features see details below:

Recommendation of Tax Slab by Standing Committee.
The Committee has suggested to raise the Income Tax exemption limit from Rs. 2.5 Lakhs to Rs. 3 lakh.
Rs. 0 to Rs. 300000 = NIL
Rs. 300000 to 1000000 = 10%
Rs. 1000000 to 2000000 = 20%
Rs. 2000000 to above = 30%
The Committee has suggested that the limit for total tax saving deductions, which include investment in provident fund, life insurance, children education and infrastructure bonds, be raised to Rs 2.5 lakh from Rs 1.2 lakh. At present,investments up to Rs 1 lakh in specified instruments are deducted while calculating the tax liability. In addition,investments up to Rs 20,000 in infrastructure bonds are also exempted from tax.

The Committee has stated that the wealth tax ceiling should be substantially increased to Rs 5 crore from Rs 1 crore currently to reflect the current realities, and beyond that limit, tax should be payable on slabs basis.

The Committee has suggested that the proposed 60 days stay for non-resident Indians to retain their non-residential status be relaxed and restored to the existing 182 days, subject to conditions.

The Committee has recommend that the definition of “house property‟ should be re-drafted so that the distinction between commercial and non-commercial property is clearly brought out.

No change in the 30 per cent tax rate on corporate proposed.

The Committee has recommended that the ministry could explore the possibility of abolishing the Securities Transaction Tax (STT), while correspondingly calibrating the Capital Gains Tax regime – both short term and long term. Accordingly, the distinction between listed and unlisted securities should be removed. It should also be ensured that companies do not escape paying capital gains tax on the basis of Double Taxation Avoidance Agreements (DTAAs). A large number of foreign institutional investors invest through Mauritius to avoid paying tax on capital gains in India.

Standing Committee Report Download

Necessary & common expectation of Salaried Employee (Taxpayee) from Budget-2012

7:16 AM Dharmen No comments

Railway and Union Budget of 2012-13 comming on 14th & 16th March Respectively.

7:22 AM Dharmen No comments

The Union Budget 2012-13 date is out. Finance Minister Pranab Mukherjee will address Parliament on March 16, a minister said on Tuesday.

Parliamentary affairs minister Pawan Kumar Bansal said the Budget session of Parliament will start on March 12, with the Railway Budget slated to be presented on March 14.

A meeting of the Cabinet Committee on Parliamentary Affairs, headed by Finance Minister Pranab Mukherjee, was held earlier on Tuesday, to decide the schedule of the session which is generally a three-month affair.

The government will table the Economic Survey 2011-12 data on March 15. The Survey is a document on the state of economy prepared by the economic division in the ministry of finance.

Finance Minister Pranab Mukherjee had earlier said that there is a Constitutional sanctity to two dates - one March 31, before which a vote on account should be taken so that there is no problem of withdrawal of money in the new financial year and the 75 days deadline after the presentation of taxation proposals to pass the Finance Bill.

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Highlights of Union Budget 2013-14

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Petrol Price hiked by INR 7.50 (above Approx.) in India from midnight.

A view about Effect of Budget on Income Tax For Financial Year 2012-13.

Effect of Budget 2012-13 on Taxpayee.

Budget-2012 and Business, Industries and Tax and Common Man.

Highlights of Maharashtra's - 2012 Budget Presented by Ajit Pawar

Fees for Professional or Technical Services i.e. "Director Remuneration" under Section 194J in Budget from this year.

Highlights of Union Budget - 2012.

Budget - 2012 and Expectation of Salaired Employee

Railway Fare Hike or No Change - Railway Budger-2012

Download Standing Committee Report for more details on Direct Tax Code, 2010

Necessary & common expectation of Salaried Employee (Taxpayee) from Budget-2012

Railway and Union Budget of 2012-13 comming on 14th & 16th March Respectively.

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