What Is Budget??

A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. It provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out. It enable the actual financial operation of the business to be measured against the forecast.

For Individuals
INCOME (in Rs.) Below 2 lakh From 2 lakh to 5 lakh From 5 lakh to 10 lakh Above 10 lakh Tax Rates No tax 10% 20% 30%

SPECIFIC BENEFITS TO SENIOR CITIZENS

The age for senior citizens has been brought down from 65 years to 60 years for claiming deduction of medi- claim insurance premium and medical treatment expense. Resident senior citizens not having any profits from business/profession would be exempt from payment of advance tax.

G S T WILL REPLACE ALL INDIRECT TAXES

CENTRAL LEVIES Excise duty Service tax Additional customs duty Surcharge and cesses STATE DUTIES VAT CST PURCHASE (In %) 12 12 12 3 (In%) 12.50 2 4

ENTERTAINMENT ENRTY
OCTROI LOTTERY &LUXURY

25 4
5.50 15

CONTI..
STAMP DUTY 5

VEHICLE

ELECTRICITY DUTY

20

IMPACT OF HIGHER EXCISE DUTY ON CONSUMERS

Spend at least 2% more on almost every service you consume . Higher excise duty to raise prices of products ranging from cars to cigarettes. Sharper increase in petrol and diesel prices almost certain.

SALIENT FEATURES
Gross tax revenue will rise to 10.6% of GDP in 2012-13 from 10.1% In current fiscal . Centres debt will drop to 45.5% of GDP in FY 13 against 50.5% target set by 13th finance commission . New indirect taxes will net the govt. Rs.45940cr but it will lose Rs.4500cr on direct taxes. Overall expenditure will rise 13.1%, but the revenue expenditure will grow only 10.7%.

CONTD.
Projects 5.1% of GDP deficit for next fiscal year , which was 5.9% in the 2011-12. Slowdown in industry drags GDP growth to 6.9% in FY 12, seen accelerating to 7.6% in 2012 -13. Flagship MGNREGA employment scheme outlay slashed by 17.5% to Rs.33000 crore for 2012-13. Rural health gets a push with a 34% increase in allocation for NHRM to Rs.28820 crora . Education budget hiked 21.6% to Rs.25555cr. Credit guarantee fund scheme for students proposed .

For software companies & technology

National skill development fund to receive Rs1000 crore to boost vocational training . Plant and equipment for setting up solar projects exempted from special countervailing duty. Full exemption from duty for import of lithiumion cells used in electric ,hybrid vehicles. Weighted deduction for inhouse research & development extended for five years .

Boost for Infrastructure

Financing made easier for power ,aviation, roads and low cost housing with tax cut on foreign borrowings . Cess on domestic crude oil increased 80% to Rs.4500 per tonne from Rs. 2500 per tonne. Award of highway projects to rise 20% to 8800 km, roads ministrys allocation up 14%to Rs.360crore. Withdrawal of customs duty of 5% on liquefied natural gas and coal to reduce energy costs.