Important Features of Finance Bill, 2012
Direct Taxes
1. Tax Slab for Individual below
60 years of age (Male or Female) & HUF Income Tax Rate
- 0 - 2,00,000 Nil
- 2,00,001 - 5,00,000 10%
- 5,00,001 - 10,00,000 20%
- More than 10,00,000 30%
2. DTC deferred further.
3. Proposed to introduce GST from
August 2012
4. Proposal to allow individual
or HUF, a deduction of up to from savings bank account interest.
5. Proposal to allow deduction of up to 5,000 for
preventive health check up.
6. Senior citizens not having
income from business proposed to be exempted from payment of advance tax.
7. Proposal to extend weighted
deduction of 200% for R&D expenditure in an in-house facility for a further
period of 5 years beyond March 31, 2012.
8. Proposal to provide weighted
deduction of 150% on expenditure incurred for agri-extension services. [Sec. 35CCC]
9. Proposal to extend the sunset
date for setting up power sector undertakings by 1 year for claiming 100%
deduction of profits for 10 years.
10. Turnover limit for compulsory
tax audit of account is 1 crore for business assessee and 25 lakh for
professional assessee. [Sec. 44AB]
11. 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.
12. Proposal to provide weighted
deduction at 150% of expenditure (not being expenditure in the nature of cost
of any land & Building) incurred on skill development in manufacturing
sector. [Sec. 35CCD]
13. Reduction in securities
transaction tax by 20% on cash delivery transactions i.e. from 0.125% to
1%.
14. Rajiv Gandhi Equity Saving
Scheme to allow income tax deduction to retail investors on investing in equity
Share. 50% of investment upto ` 50,000 eligible for deduction. 3 years
lock-in-period under the scheme.
15. Presumptive taxation of SMEs
to be raised from 60 lakhs to 1 crore. [Sec. 44AD]
16. Deduction u/s 80C for Life Insurance Premium not in
excess of 10% of actual capital sum assured for Policy issued on or after
1.4.2012.
17. Deduction upto 60,000 in
respect of Medical Treatment of Specified disease incurred in respect of Senior
Citizen (60 years or more age instead of 65 years or more). [Sec. 80DDB]
Indirect Taxes
1. Proposal
to raise service tax rate from 10% to 12%.
2. Proposal
to tax all services except those in the negative list. Negative list to include
pre- school & high school education, entertainment services (Cinema
Industry)
3. Standard
rate of excise duty proposed to be raised from 10% to 12%.
4. Excise
duty on large cars also proposed to be enhanced from 22% to 24%.
5. Full
exemption from basic customs duty for import of equipment for expansion or
setting up of fertilizer projects upto March 31, 2015.
Thank you !
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