- Implementation of DTC deferred.
- Income Tax Sops on the equity investments under Rajiv Gandhi Equity savings scheme on 50K for the individuals having income below Rs 10 lakh.
- Income Tax exemption limit hiked to Rs 2 lakh from the existing Rs 1.8 lakh.
- Income from Rs 2 lakh to Rs 5 lakh to be taxed at 10 per cent, from Rs 5 lakh to Rs 10 lakh at 20%.
- Income above Rs 10 lakh to taxed at 30%.
- Health insurance deduction up to Rs 5,000 for preventive health checkup within the existing limit of Rs. 15,000/-.
- Senior citizens to be exempt from advance tax payments.
- STT (Security Transaction Tax) cut from 0.125% to 0.1%.
- Interest income from banks will be tax-free up to Rs 10,000.
- Service tax net widened; to include most sectors but Govt services, education, entertainment, public transport exempted from service tax.
- Propose to hike service tax rate from 10% to 12%.
- Sale of residential property exempted from capital gains if invested in equity or equipment of an SME.
- Large cars duty raised from 22% to 24%.
- Solar power lamps, LED bulbs to become cheaper.
- Iodised salt, match-boxes, soya products to become cheaper.
- Big cars, ACs, refrigerators, phone bills, restaurant bills set to become more expensive.
- LCD, LED TVs to become cheaper.
- Cigarettes, gold, diamonds to cost more.
Thursday, March 15, 2012
Pranab Mukherjee, the Finance Minister of India, presented the budget 2012 on March 16th, 2012. The main highlights of the budget for the common man are as follows: