Overview of the economy - GDP Growth estimated @ 6.9 in 2011-12. Slowdown in comparison to previous 2 yeas was due to slowing of industrial growth. Inflation expected to moderate further over the next few months. Current Account Deficit @ 3.6% of GDP for 2011-12 and reduced net capital inflow in 2nd and 3rd quarters has put pressure on exchange rate. India’s GDP growth in 2012-13 expected to be 7.6 per cent +/- 0.25 per cent.
Subsidies - Subsidies related to administering the Food Security Act will be provided for. All three public sector Oil Marketing Companies have launched LPG transparency portals to improve customer service and reduce leakage.
Tax reform - DTC bill will be enacted at the earlies after studying the Parlimentary standing committee report. GST network will be set up as a national information utility and to be operational by August 2012.
Disinvestment - Government to expand its approach to disinvestment by allowing a level playing field like buy backs and listing on stock exchanges. For the year 2012-13, the governement plans to raise Rs. 30,000 crores vis disinvestment and keep at least 51% ownership/managemetng control.
FDI in retail - Goverment to make efforst to arrive at a broadbased consensus in consultation with other state goverments to allow FDI in multi brand retail upto 51%
Capital Markets - Deepen reforms in capital markets including simplifying process in IPOs, allowing QFIs to access bond markets etc.
Capitalisation of Banks - Rs. 15,888 crores proposed to be provided for capitalisation. Also to create a financial holding company to raise resources.
Direct Taxes - Exemption limit for general category for individual tax payers enhanced from Rupees 180,000 to 200000. Tax relief is Rs. 2000. Upper limit of 20% tax proposed to be raised from 8 lakhs to 10 lakhs. Exemption from Capital Gains tax on sale of residential property, if it is used for subscription in equity of a manufacturing SME for purchase of new plant and machinery. STT (securities transaction tax) to be reduced by 20 per cent on cash delivery transactions.
Indirect Taxes - Servuce tax rate to be raised from 10% to 12%. Excise duty to be raised from 10% to 12%, merit rate from 5% too 6% and lower merit from 1% to 2% with a few exemptions. Excise duty on large cars to be enhanced.
These are a few highlights. Any in-accuracies in the above narration is regretted and not intentional.
Subsidies - Subsidies related to administering the Food Security Act will be provided for. All three public sector Oil Marketing Companies have launched LPG transparency portals to improve customer service and reduce leakage.
Tax reform - DTC bill will be enacted at the earlies after studying the Parlimentary standing committee report. GST network will be set up as a national information utility and to be operational by August 2012.
Disinvestment - Government to expand its approach to disinvestment by allowing a level playing field like buy backs and listing on stock exchanges. For the year 2012-13, the governement plans to raise Rs. 30,000 crores vis disinvestment and keep at least 51% ownership/managemetng control.
FDI in retail - Goverment to make efforst to arrive at a broadbased consensus in consultation with other state goverments to allow FDI in multi brand retail upto 51%
Capital Markets - Deepen reforms in capital markets including simplifying process in IPOs, allowing QFIs to access bond markets etc.
Capitalisation of Banks - Rs. 15,888 crores proposed to be provided for capitalisation. Also to create a financial holding company to raise resources.
Direct Taxes - Exemption limit for general category for individual tax payers enhanced from Rupees 180,000 to 200000. Tax relief is Rs. 2000. Upper limit of 20% tax proposed to be raised from 8 lakhs to 10 lakhs. Exemption from Capital Gains tax on sale of residential property, if it is used for subscription in equity of a manufacturing SME for purchase of new plant and machinery. STT (securities transaction tax) to be reduced by 20 per cent on cash delivery transactions.
Indirect Taxes - Servuce tax rate to be raised from 10% to 12%. Excise duty to be raised from 10% to 12%, merit rate from 5% too 6% and lower merit from 1% to 2% with a few exemptions. Excise duty on large cars to be enhanced.
These are a few highlights. Any in-accuracies in the above narration is regretted and not intentional.
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