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General Budget 2012-13

By sagarmedia on March 16, 2012 | Edit

Finance minister has raised the income-tax exemption limit to Rs 2 lakh from Rs 1,80,000. No tax will be charged for income upto Rs 2 lakh. A tax of 10% will be charged for income between Rs 2-5 lakh, while 20% will be charged for income between 5-10 lakh and 30% will be charged above 10 lakh.
Tax slab levied are as follows _
Up to 2 lakh rupees – NIL
2 lakh – 5 lakh rupees – 10%
5 lakh – 10 lakh rupees – 20%
Above 10 lakh rupees – 30%
Presenting Budget 2012-13, Finance minister Pranab Mukherjee has said that it is time to take hard decisions and reforms. Mukherjee said that he expects inflation to moderate in the next three months. He also said that India’s manufacturing sector is on the path of revival. Mukherjee expects India to grow at 7.6% in 2012-13.
The country’s economic growth estimated at 6.9 per cent in the current fiscal; growth momentum to pick up in next two fiscals to 7.6 per cent 2012-13 and 8.6 per cent in 2013-14.
* RBI expected to lower policy interest rates, as inflationary pressures expected to ease in coming months; A low interest rate regime to encourage investment activity and push forward economic growth.
* Steps required for deepening of domestic financial markets, especially corporate bond market and attracting longer-term inflows from abroad; Efforts at attracting dedicated infrastructure funds have begun.
* The growth rate of investment in the economy is estimated to have declined significantly; borrowing costs up due to a sharp increase in interest rates.
* High borrowing costs and increase in other costs affecting profitability and internal accruals.
* Slowdown in Indian economy largely due to global factors, as also because of domestic factors like tightening of monetary policy, high inflation and slower investment and industrial activities.
* Inflation high, but showing clear signs of slowdown by the year-end; Whole-sale food inflation down to 1.6 per cent in January 2012 from 20.2 per cent in February 2010.
* India remains one of the fastest growing economies of the world; Country’s sovereign credit rating rose by a substantial 2.98 per cent 2007-12.
* Exports grew by 40.5 per cent in the first half of this fiscal and imports grew by 30.4 per cent; Foreign trade performance to remain key driver of growth.
* Forex reserves expanded further, covering almost the entire external debt stock to the country.
* Foodgrains production likely to cross 250.42 million tonnes; largely on back of increase in rice production.
* Agriculture and Services sectors expected to perform well; Industrial growth pegged at 4-5 per cent and improve further as economic recovery resumes.
* Global economy remains fragile and concerted efforts needed to restore stability and renewed growth; Steps needed for sovereign debt crisis, financial regulation, growth and job creation efforts and energy security, globally.
* India much more closely integrated with world economy’ share of trade to GDP of goods and services has tripled between 1990-2010.
* A progressive deregulation of interest rates on savings accounts to help raise financial savings and improve transmission of monetary policy.
* Sustainable development and climate change becoming central areas of global concern and India too is equally concerned and engaged constructively in global negotiations.