Pains & Gains From Budget 2012-13

[ajay singh]

For Taxpayer:-

NEW TAX SLAB

Income uptoRs. 2 lakh - Nil

Income above Rs. 2 lakh and uptoRs. 5 lakh - 10 per cent

Income above Rs. 5 lakh and upto Rs.10 lakh - 20 per cent

Income above Rs. 10 lak h-  30 per cent

TDS @ 5% (including surcharge & cess) on interest payment made to non resident other than company by specified companies u/s 194 LC 

 School education exempt from service tax

FM announces new equity savings scheme
For Investor:-

TDS @ 1% (including surcharge & cess) is required to be deducted on the consideration paid for the transfer of immovable property to non resident where such consideration exceeds Rs. 50 Lacs in case such property is situated in a specified urban agglomeration or Rs. 20 Lacs for any other area. (Applicable from 01st Oct. 2012)

Scope of Section 194J has been widened to include the payments made to directors not in the nature of salary. (Applicable from 01st July 2012)

TCS @ 1% is applicable on the transaction in bullion and jewellery if sale consideration exceeds Rs. 2 Lacs and the sale is in cash. (Applicable from 01st July 2012)

TCS @ 1% is also applicable on the transaction in Coal; Lignite & Iron Ore.

For Businessmen:-

The Corporate Tax Rate for Domestic Companies and foreign companies remains at 30 per cent and 40 percent respectively.

MAT & AMT remains at 18.5%.

Scope of AMT (Alternate Minimum Tax) has been widened from existing only to LLP to all persons other than Companies who have claimed deduction under chapter VI-A (other than 80P) or u/s 10AA

 Provisions of AMT shall not apply to an individual, HUF, BOI, AOI & Artificial Juridical Person if the adjusted total income of such person does not 20 Lacs.

 Adjusted total income for the purpose of AMT means Total Income as increased by deduction Claimed under chapter VI-A (other than 80P) & Section 10AA.

Automated shuttle looms exempted from customs duty

Mobile phone parts exempted from basic customs duty

Proposes to remove sector-specific restriction on venture capital fund investments

To allow external commercial borrowing to part finance rupee debt in power projects

Cuts customs duty on rail equipment to 7.5% from 10%

Customs duty on some gold and platinum products increased

Import of aircraft parts exempt from basic customs duty

Customs duty on refined gold doubled

Direct Tax Code implementation deferred: Pranab

Service tax up from 10% to 12%

Rs 18660 crores will result from service tax rise

Standard excise duty hiked to 12%

Common tax code for service tax and excise

FY 13 net market borrowing at Rs 4.8 lakh crores

Some infra construction services exempt from service tax

To raise duty on large cars to 27%

Customs duty reduced from 7.5% to 2.5% for iron ore equipment

Government hikes defence spending to Rs 1,93,007 crore

LCD and LED panels exempted from custom duty

12% excise duty imposed on branded retail garments

No change in peak customs duty

Full exemption on customs duty on coal

LNG out of customs duty

5% customs duty exempted on equipment for fertilizer plants

Thermal power companies exempted from customs duty for 2 years

Efforts on for consensus on 51% FDI in multi-brand retail

Govt aims to trim subsidy burden