The finance minister slashed securities transaction tax (STT) by 20% to from 0.125% to 0.1% which will help bring down transaction cost.
Below are some of the key highlights of the budget:
- GDP growth in 2012-13 pegged at 7.6 per cent.
- Disinvestment target at Rs. 30,000 crore for FY2012-13.
- Fiscal deficit at 5.1 per cent of GDP in FY 2012-13.
- Income tax slab proposed for FY 2012-13
Up to 2 lakhs
2 lakhs- 5 lakhs
5 lakhs- 10 lakhs
More than 10 lakhs
- The exemption limit has been enhanced from
Rs. 1,80,000 to Rs. 2,00,000.
- The upper limit of the 20 per cent tax slab has been escalated from
Rs. 8 lakh to Rs. 10 lakh.
- Securities transaction tax (STT) reduced 20% to 0.1% for delivery transactions in cash market.
- The government is striving to come at a consensus on bringing FDI in multi-brand retail up to 51 per cent.
- Rs. 15,888 crore to be infused to capitalize public sector banks and financial institutions. A financial holding company will be created to raise resources to raise capital requirements of PSU banks.
- A central KYC depository will be created to avoid duplication of registration
- External commercial borrowing (ECB) will be allowed to part finance rupee debt of existing power projects.
- A proposal will be placed for a white paper on black money in the current session of parliament.
- Net market borrowing to finance deficit is set at Rs. 4.79 lakh crore in FY 2012-13.
- Proposal to allow deduction of up to Rs. 5,000 for preventive health check up.
- Senior citizens not having income from business will be exempted from paying advance tax.
- Proposal to raise service tax from 10% to 12%, with exemption of service tax to some sectors.
- Corporate tax remains unchanged.
- Excise duty of 1% on branded precious jewellery to be extended to include unbranded jewellery.
- Branded Silver jewellery exempted from excise duty.
- Proposal to increase basic customs duty on imports of gold and other precious metals.