Budget Highlights: Key Points from Budget 2012 | YourBloggingTips

Indian Budget 2012-13 has been provided today (i.e. 16-Mar-2012) by our Finance Minister – Pranab Mukherjee. I have provided Budget 2012 Highlights, its effects, reactions of various communities & final verdict. Also, check out Pranab Mukherjee in Recorded Live Action during his speech in the Parliament.

Key Budget 2012 Highlights

		Budget Paper – Key Highlights – sector by sector in bullet points.

Actual Budget Paper presented in Parliament by Hon. Pranab Mukherjee

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A. New Tax Slabs: The Finance minister has increased the tax slabs and given relief to the common man. Especially for the people in the below 10 lakh slab. Greater news for those earning between 8 Lakh and 10 lakh, they move from a slab of 30% to a new slab of 20%. The minimum tax slab has been increased from Rs.180000/- to Rs. 200000/-.

Tax Slabs Range	% Tax Rate
Upto Rs. 200,000	Exemption
Rs. 200,000 to 500,000	10%
Rs. 500,001 to 10,00,000	20%
Above Rs. 10,00,001	30%

B. Exemption to Homeowners: The homeowners of apartments can enjoy tax exemption of Rs. 5000/. Spent on maintenance.  This exemption level has been increased from Rs.3000/- to Rs. 5000/-.

C. Capital Gains:

• The Capital Gains Tax will not be applicable for people who use the amount generated from the sale of their houses as an equity investment in small and medium businesses.
• Reduction in securities transaction tax by 20% on cash delivery transactions to 0.01%

D. Health Exemption: Exemption permitted upto Rs. 5,000/- for expenses incurred on Preventive Health Check up

E. Income from Other Sources: Exemption of Rs. 10,000 on interest earned from Savings Bank deposits for people with income upto Rs 5 Lakh

F. Invest in Equity and get tax exemption - Rajiv Gandhi Equity Saving Scheme will get 50% income tax deduction. This will be applicable only to the New Retail Investors investing directly into equity up to Rs. 50,000/, with a lock in period of three years. The annual income of the investor should be less than Rs. 10,00,000/-.  Changes have been made in the IPO guidelines in order to ensure the participation from small towns.