The Union Budget 201-12 does not have too many radical proposals and it seeks to strike a balance between growth and populism with its proclaimed intent to bring down the fiscal deficit. Overall, it can be said to be a budget for the long-term investor.
In the following analysis, Relax with Tax has tried to squeeze out the useful information -- from the Budget Speech delivered by Finance Minister -- that is relevant to you in terms of personal taxation and finance.
1. Finance minister seems to tell the taxpayer 'Keep the change': Income Tax slab increased (though a very small increase) for Resident Males, Non-Residents and Senior Citizens.
2. FM seemingly sings 'Dil toh Bachha hai ji': Qualifying age limit for Senior Citizen, lowered from 65 years to 60 years.
3. FM's gift to the 'young at heart': Provision of higher exemption limit for very senior citizen's of 80 years or more.
4. FM aims at 'equality for women': No new tax exemptions for women.
5. FM 'means business': New Central Processing Centers to be set up for faster processing of income tax returns and refunds.
6. FM says Khana phir Rona: Air-conditioned hotel accommodation and restaurants to attract levy service tax.
7. FM's taxes fly high: Domestic and international air travel to attract flat amount of service tax. Additionally, higher class travel in the domestic sector to attract 10 per cent service tax.
8. FM's 'bitter pill': Hospitals with 25 beds or more with central air-conditioning to levy service tax on all patients. Diagnostic test centers also to levy service tax.
9. FM believes 'Taxes, life ke saath bhi aur bhaad bhi': Services provided by life insurance companies in the area of investments also to be covered under the levy of service tax.
10. FM's Sugam, hopefully will be good: New simplified Income Tax return form 'Sugam' to be introduced for small businessmen.
11. FM, a little less "Dabaang": Relief from audit for small service taxpayers with turnover lower than Rs 60 lakh (Rs 6 million).
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