After having crashed headlong with Mamta Di on the railway budget, the government has committed a Kolaveri Di with the nation. It has dashed hopes of taxpayers and signed off it’s last attempt to recover from a reeling economy with a disappointing attempt.
I personally think, the budget was presented because it was meant to be presented. Total Kolaveri Di !
While the Union Budget 2012-13 for India is out, the new Direct Tax Code (DTC) is nowhere being talked about. I think Pranab dada has left a majority of the anxious investor disappointed. !
Though the new direct tax code (DTC) was supposed to come into force from 1st of April 2011, it was pushed out to an implementation date of 1st April, 2012. But where is it ?
New Income Tax Slabs
Union Budget 2012-13 has marginally made investors happy. The basic exemption income tax limit has been raised from Rs 1.8 lakh to Rs 2 lakh. The DTC was meant to revamp the income tax slabs but that did not get a mention at all.
Here are the income tax slabs :
|Income Tax Slabs|
|Tax Slabs (in Rs)||Income tax|
|New Slabs||0 to 2,00,000||NIL|
|2,00,001 to 5,00,000||10%|
|5,00,001 to 10,00,000||20%|
- Economy to grow at 7.6% in 2012-2013.
- A change in IPO guidleines will be brought in to promote small town participation which is lacking at present.
- Big cars, refrigerators, ACs will be more expensive.
- Savings accounts will now get Rs 10,000 tax deduction for interest earned.
- If your annual income is less than Rs 10 lakh and you invest in a new yet to be introduced equity saving scheme (named after Rajiv Gandhi), then income tax deduction of 50% will be allowed on investments upto Rs 50,000.
- The Securities Transaction Tax (STT) is reduced by 20% on delivery transactions from 0.125% to 0.10%. STT is payable when you buy or sell a share and gets added to the price during the transaction.
- Corporate tax rates are not changed.
- Gold will cost more as customs on gold goes up.
- Service tax rate has been increased to 12% from the present 10%.
- Senior citizens to be exempt from advance tax payments.
- Tax exemption of up to Rs 5,000 for health insurance for annual preventive health checkup.
Next stop – the IPL !