Key Features of Budget 2012-2013 - Specifically on Direct Taxes.
■
Tax
proposals for 2012-13 mark progress in the direction of movement towards DTC and
GST.
■
DTC
rates proposed to be introduced for personal income tax.
■
Exemption
limit for the general category of individual taxpayers proposed to be enhanced
from Rs.1,80,000 to Rs.2,00,000 giving tax relief of Rs.2,000.
■
Upper
limit of 20 per cent tax slab proposed to be raised from Rs.8 lakh to Rs.10
lakh.
■
Proposal
to allow individual tax payers, a deduction of upto Rs.10,000 for interest from
savings bank accounts.
■
Proposal
to allow deduction of upto Rs.5,000 for preventive health check up.
■
Senior
citizens not having income from business proposed to be exempted from payment
of advance tax.
■
To provide low cost funds to stressed infrastructure sectors, rate of
withholding tax on interest payment on ECBs proposed to be reduced from 20 per
cent to 5 per cent for 3 years for certain sectors.
■
Restriction
on Venture Capital Funds to invest only in 9 specified sectors proposed to be
removed.
■
Proposal
to continue to allow repatriation of dividends from foreign subsidiaries of
Indian companies at a lower tax rate of 15 per cent upto 31.3.2013.
■
Investment
link deduction of capital expenditure for certain businesses proposed to be
provided at the enhanced rate of 150 per cent.
■
New
sectors to be added for the purposes of investment linked deduction.
■
Proposal
to extend weighted deduction of 200 per cent for R&D expenditure in an
in-house facility for a further period of 5 years beyond March 31, 2012.
■
Proposal
to provide weighted deduction of 150 per cent on expenditure incurred for
agri-extension services.
■
Proposal
to extend the sunset date for setting up power sector undertakings by one year
for claiming 100 per cent deduction of profits for 10 years.
■
Turnover
limit for compulsory tax audit of account and presumptive taxation of SMEs to
be raised from Rs.60 lakhs to Rs.1 crore.
■
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.
■
Proposal
to provide weighted deduction at 150 per cent of expenditure incurred on skill
development in manufacturing sector.
■
Reduction
in securities transaction tax by 20 per cent on cash delivery transactions.
■
Proposal
to extend the levy of Alternate Minimum Tax to all persons, other than
companies, claiming profit linked deductions.
■
Proposal
to introduce General Anti Avoidance Rule to counter aggressive tax avoidance
scheme.
■
Measures
proposed to deter the generation and use of unaccounted money.
■
A
net revenue loss of Rs.4,500 crore estimated as a result of Direct Tax
proposals.
No comments:
Post a Comment