Gtc budget

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Budget 2012-13

CA.Sujatha Raghuraman

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Budget is a financial plan of government for a given period.

Used for projection of future income and expenditure

Components of Government Budget – Revenue Receipts and Expenditure & Capital Receipts and Expenditure.

Revenue receipt – Revenue collected from collection of taxes and other receipts.

Other Receipts – Fees, Fines and penalties, Profit from public sector enterprises, Gifts and grants.


How to read Budget

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Revenue Expenditure – Education, consumption of goods and services, agriculture and industrial development, scientific research, health, civil and aviation etc.,

Capital Receipt – Loan and borrowings from public through Bonds, from RBI and other Financial Institutions, Loans from IMF, World Bank, NSC, PF, Recovery of loan from states and union territories.

Capital Expenditure – creation of Infrastructure Project, Irrigation Project, land, Machine, Equipment, Oil exploration, i.e investment in long term Physical and Financial Assets


How to read Budget

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Population of India as on March’12 : 1.225 Billion Population growth rate:1.24% Life Expectancy – 66.08 years (Male) - 68.30 years (Female)

Literacy Rate 74.04%. Per Capita Income – USD 1,525 . Export Growth – 23.5 % Import Growth – 29.4% Fiscal Deficit – 5.9% of GDP GDP -7.6%


Statistics

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DIRECT TAXES

Upto Rs.2 Lacs – NILRs.2 Lacs – Rs.5 Lacs - 10%Rs.5 Lacs – Rs.10 Lacs - 20%Above 10 Lacs - 30%

Education Cess continues at 3%.

Due to reduction in tax rates, direct tax collections reduce by Rs.4,500 crores.


Tax Payer

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Indirect Taxes :

Excise Duty : Luxury Cars -Gone up to 27% from 22% Import Duty : Luxury cars, Gold have gone up.Customs Duty: High purity gold in various forms doubled.Service Tax: Raised from 10.3 % to 12.36%Collections from Indirect Taxes Rs.41,400 crores.


Consumers

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Costlier

Cars, Two wheeler prices go up. Milk products, Ice creams , Chocolates, Biscuits go up. AC and First Class travel covered under Service Tax, cost of

travel goes upto 4%. Refrigerator, Cements Gold and Platinum Jewellery. Travel, Stay in Hotel, Mobile bills, Courier, beauty, health

care. AC, Washing Machine, Laptops, watches, perfumes


Consumers

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Cheaper: Branded apparels. LCD TV Silver Jewellery. Home loans. Mobile Phones


Consumers

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FDI has no clarity in our economy till the next election. – Aviation, Retail, Vodafone etc.,

Indian Investors: TDS at 1% on sale of property Above Rs.50 lacs.TDS on cash purchase of Jewellery or bullion beyond Rs.2lacs. All assets held abroad needs to be declared.Income Tax Assessment can be re-opened upto 16 years on the assets held abroad.


Investors

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Service Tax exemption increased from Rs.15 lacs to Rs.50 lacs.

Alternate Minimum tax now on partner ship,and sole proprietorship.

Corporate tax remain at the same rate.


Businessman

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No requirement of paying Advance Tax if don’t have “Income from Business / Profession”.

Deduction on Medical Insurance premium gone up from Rs.15,000 to Rs.20,000.

Senior Citizen age reduced from 65 to 60 years.


Senior Citizens

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Rs.50,000 investment in Equity market, those who come within Rs.10 lacs of income get 50% tax exemption- tax savings upto Rs.5,000.

Rs.10,00 deduction on interest on savings bank account.

Rs.5,000 exemption on the preventive health checkup under medical insurance premium u/s 80D .

Long term capital gain exempted if invested Equity Shares of SMEs.

STT reduced to 0.1% from 0.125%.


Exemptions and Deductions

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Moderate Budget – Direct Taxes Unreasonable – Consumers FDI –No hopes for future Costlier – Businessman. Happy Budget – Film makers Transparent – Investors. Growth – Banks and FII.


Conclusion

14CA.Sujatha Raghuraman

THANK YOU

Gtc budget

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