Monday, 19 March 2012

Direct Tax Highlights of Budget 2012-13 List

Direct Tax Highlights of Budget 2012-13 List

  • Turnover limit for compulsory tax audit for SMEs raised from Rs.60 lakh to Rs.1 crore
  • Income tax exemption limit raised from Rs.1,80,000 to Rs.2,00,000; upper limit of 20 per cent tax slab raised from Rs.8 lakh to Rs.10 lakh
  • White paper on Black Money to be introduced in the current session of Parliament
  • Interest from savings bank accounts deductible upto Rs.10,000; deduction of upto Rs.5,000 for preventive health check-up
  • General Anti Avoidance Rule being introduced to counter aggressive tax avoidance
  • Withholding tax rate on interest on ECB reduced from 20% to 5% for 3 years for specified sectors
  • TCS on cash purchase of immovable property above specified limit
  • Cascading effect of DDT in a multi-layer corporate structure removed
  • A number of measures proposed to deter generation and use of unaccounted money
  • STT reduced from 0.125% to 0.1%
  • 82 Double Taxation Avoidance Agreements and 19 Tax Information Exchange Agreements finalised: FM
  • Tax @ 30% on unexplained credit or investment (slab rate benefit not available)
  • TCS on cash purchase of bullion and jewellery
  • No change in corporate tax rate and tax structures
  • Senior citizens without business income exempt from advance tax
  • Re-opening of tax assessments upto 16 years in case of overseas assets
  • 15% rate for dividends from foreign companies extended for FY 2012-13

Friday, 16 March 2012

Budget 2012 - 13 Highlights..........

Budget in Detail

Union Budget 2012-13
Budget 2012-13:
• Income up to 2 lakhs - Nil
-- Rs. 2-5 lakhs - - 10 per cent
-- Rs. 5 lakhs -10 lakhs - 20 per cent
-- Rs. 10 lakhs and above - 30 per cent
• GST will be operational by August 2012
• Excise duty hiked from 10 per cent to 12 per cent
• Service Tax hiked from 10 per cent to 12 per cent
• Basis Exemption Limit 2 Lakhs
• STT cut to 0.1%.
• No change in corporate tax,DTC Deferred Further
• Global crude oil prices have crossed $115 per barrel
• Food and fertiliser subsidy largest expenditure.
• Fiscal deficit rose due to subsidy.
• Decided to fully provide for food subsidy in the budget
• FRBM implementation back on track
• Aadhar-enabled payment of select government schemes in 50 districts
• Rs 30,000 cr divestment target in FY 13
• To bring down subsidy to 1.7 % of GDP in the next 3 years
• To roll out computerized scheme for fertilizer subsidy transfer
• The Nandan Nilekani panel recommendation on direct transfer of subsidy accepted
• FY13 subsidy to be under 2% of GDP

• Find ways to expedite implementation of decision, prompt delivery and good governance with transparency, while curbing black money and corruption
• Remove bottlenecks in agriculture, energy, transport, coal, power and national highways
• Ensure rapid rise in private investment
• Frame policies that trigger domestic demand recovery
• Direct cash subsity to LPG, Kerosene
• Efforts to arrive at broadbased consensus with state governments on allowing FDI in multibrand retail up to 51 per cent
• Direct transfer of subsidy for kerosene initiated
• Direct Tax Code (DTC) Bill to be enacted at the earliest
• To introduce Rajiv Gandhi [ Images ] Equity Scheme for retail investors
• Tax incentive for new investors, These make sense when you consider that the share of household savings delpoyed in capital markets has come down sharply.
• Changes in IPO norms to increase participation in small towns
• Plan outlay for agriculture raised by 18% to Rs 20208 crore in FY 13
• Rs 300 crore for intensified irrigation program
• Retail stocks rally as Budget commits to multi-brand FDI
• Telecom towers made eligible for viability gap funding
• Agriculture credit target raised to Rs 5.75 lakh crore in FY13
• Agriculture allocation increased to Rs 5,75,000 crore.
• To allocate Rs 10,000 cr for NABARD to refinance RRBs.
• To allocate Rs 10,000 crore for NABARD for refinancing RRBs
• Government to set up Rs 5,000 crore venture fund for MSME sector
• To allow ECB borrowing to part-finance power projects.
• Agriculture credit target to be raised by Rs 1,00,000 crore to Rs 5,75,000 crore.
• Kisan credit cards can now be used for ATM machines.
• Change in IPO guidleines to promote small town participation
• Will allow external commercial borrowing for power, housing road construction companies
• To make 8,800 km of highways in FY13; outlay raised
• Plan outlay raised 18% to Rs 20,208 cr for agriculture
• Irrigation, dams to be eligible for special funding
• Telecom towers made eligible for viability gap funding
• Fuel supply constraints have hit power supplies nationally
• Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
• Advance Pricing Agreements in DTC to be in Finance Bill
• Corporate market reforms to be initiated.
• Allocation for national highways up 14 per cent. 8,800 km of highways to be developed under National Highway Development Project in 2012-13.
• Encourage small and medium artisans. Powerloom mega clusters to be set up.
• Foreign loans for low-cost housing projects.
• Foreign loan cap raised for airlines.
• To allow ECB funding to finance working capital needs of airlines for 1 year
• External commercial borrowings to the extent of $ 1 billion to be allowed for aviation sector for next year.
• Addressing malnutrition, black money and corruption in public life among five priorities in the year ahead.
• Budget to provide Rs 15,888 crore for recapitalisation of PSU banks, regional rural banks.
• Government examining new ways of providing subsidies for LPG, kerosene.
• Tax exemption on individual share investment below Rs 10 lakh.
• Govt to create Financial Holding company to meet financial needs of PSU banks.
• Income Tax deduction of 50 per cent on investments of up to Rs 50,000 in savings scheme named after Rajiv Gandhi.
• 3-year lock-in period exemption under Rajiv Gandhi scheme.
• Increase in investments in infrastructure through PPP.
• Coal India advised to sign FSA with power plants
• Infrastructure investment in 12th Plan to go up to Rs 50 lakh crore; half of it to come from private sector.
• To allow qualified FII into domestic corporate bonds
• Rs 15890 crore for recapitalisation of PSU banks
• Extend RRB capitalisation for 2 years
• Propose Central KYC depository
• Full exemption from basic customs duty for equipment for road and highway construction
• Full exemption from basic customs duty on natural gas, LNG, uranium for generation of electricity for two years.
• Customs duty on import of parts of aircraft, tyres and testing equipment fully exempted
• Excise duty on handmade and semi-mechanised matches reduced from 10 to 6 per cent
• Increase excise duty on some cigarettes
• Solar energy plants exempted from Customs Duty
• Excise duty on all processed food brought down to merit rate of 6 per cent..

Thursday, 15 March 2012

Changes in ISCA Syllabus ( CA Final)


There are few amendments in ISCA Syllabus .  These were made by CA Institute in January 2012.
Any ways , these amendments are not applicable for May 2012 attempt.

Updated version of "ISCA - Made easy" - a book on this syllabus , authored by me , will be soon available in the market...

Constitution Material

Link to download :   Constitution Slides