UNION BUDGET 2012-13

Presented by

Plan expenditure

Non-plan expenditure

Total expenditure

5,21,025 crore 9,69,900 crore 14,90,925 crore

Budget 2012-13

Impact of budget on Business & effect

Sector wise

Power

Expected

Extension of sunset clause for power

projects

Rationalization of Indirect taxes i.e

merger of Electricity duty

Refund of ED for setting up of

Mega/Ultra Mega projects

Sunset clause for IT exemption

extended by another one year

Additional depreciation of 20%

to power Cos

Import of Coal exempt from

customs for power projects

and CVD at 1%

Effect: On the whole, the removal of customs duty on coal imports

and the availability of ECB for part financing the rupee debt make the Budget

a positive one for the power sector.

Proposed

Infrastructure

Expected

Increase in infrastructure

spending through higher

allocation to various

schemes

Tax Concessions

Increased allocation of

funds marginally

Withholding Tax

reduction from 20% to 5%

on Interest on ECB

Effect: Positive For the infrastructure sector.

Steel demand from Infrastructure sector may

also improve

Proposed

Agriculture

Expected

Reduction in custom duties for

agricultural machinery

Reduction in CD for fertilsers

Reduction in customs

duties for specified

agricultural machinery

Reduction in CD for

fertilizer's

Effect: Positive For Fertilizer Industry and agro based industries

Proposed

Automobiles

Expected

Increase in ED

Concession to fuel

efficient vehicles

Increase in ED

Full exemption from Customs

for parts of hybrid Vehicles

Increase of 60% to 75% in CD

on large cars

Effect: With the hike in budget on excise duty by 2% .

The Car dealers have started charging higher price starting today

from customers quoting hike in excise duty. Even, Car parts

which are been imported has attracted duty of 75% from earlier 60%, this

will force car makers to increase price of cars further going forward

Proposed

Pharma & Healthcare

ExpectedInfrastructure status to Healthcare

Exemption of ED on physician samples

Reduction in duties for imports

Reduction in customs for

specified raw materials for

manufacture of medical Kits

Service tax on Health care

widened

Effect: Overall, the budget did not have anything encouraging for the

pharmaceutical sector.

Proposed

India Income tax slabs 2012-2013 for General tax

payersIncome tax

GDP Growth Rate

0

1

2

3

4

5

6

7

8

9

10

2007-08 2008-09 2009-10 2010-11 2011-12

GDP %

In 2012-13 GDP expectation is

7.6%

Inflation

0

2

4

6

8

10

12

14

2007-08 2008-09 2009-10 2010-11 2011-12

Inflation %

Inflation %

In 2012-13 7.6 per cent expect inflation to be

lower.

Fiscal deficit as a % of GDP

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

2007-08 2008-09 2009-10 2010-11 2011-12

Fiscal Deficit

Fiscal Deficit

Fiscal deficit at 5.1 per cent of GDP in BE 2012-13.

SERVICE TAX

Service Tax is a form

of indirect tax imposed

on specified services

called "taxable

services".

HOW A COMMON CAN BE AFFECTED

WITH HIKE IN SERVICE TAX(10% TO

12%)

Things that increase in Service

Tax will affect

Telephone Bill

Eating Out – Restaurants

Gyms

Car and Maintenance/Service/Rentals

Cable TV

Healthcare

Life Insurance Premium

Jewelry

Holidays & Vacations

Impact of change in Service Tax & Excise

Duty on various Sectors

Healthcare

Life Insurance

Automobiles – Cars

Jewelry

Holidays & Travel

Transportation

Healthcare

Ad that implies common man feels

burden to take health checkups

Due to the hike in service tax

CT SCAN now gets more

costly and a common man

feels difficult to go for health

checkups because the scan

machine cost the

buyer more

Telephone bill

Ad that implies Common man disappointing with

hike in bills

Common man

could be maintain

more mobiles

Man can survive

by managing

time to talk

Man feels difficult

to maintain

mobile with the

hikes in mobile

bills

Jewelry

Ad that implies family feels burden to

purchase gold

Family is

willing to

buy gold

Family facing

problem to

buy gold due

to hike in

gold rates

Before hike in gold

rates

After hike in gold rates

Life insurance

Ad that implies family struggling to get

insurance

A happy family

after paying

insurance low

amount of money

Family struggling

to pay insurance

since money is

increased

Before hike in

insurance After hike in

insurance

Automobile-cars

Ad that implies people feel uncomfortable due to

increase in service tax

People often

give their

cars for

washing

People now

washing their

cars

themselves

Before hike in service tax After hike in service

tax

Monthly Recurring

Expenditures

S.No Expense Description Monthly Expense @ Existing Tax % @ New Tax %

1 Telephone Bills Rs. 2000 Rs. 240 Rs. 288

2 Eating Out Rs. 2000 Rs. 240 Rs. 288

3 Gym Rs. 500 Rs. 60 Rs. 72

4Car Maintenance &

ServiceRs. 2500 Rs. 300 Rs. 360

5 Cable TV Rs. 250 Rs. 25 Rs. 30

Yearly Recurring Expenditures

S.No Expense Description Monthly Expense @ Existing Tax % @ New Tax %

1 Healthcare Rs. 25000 Rs. 2500 Rs. 3000

2Life Insurance

PremiumRs. 6000 Rs. 600 Rs. 720

3 Holidays & Travel Rs. 5000 Rs. 500 Rs. 600

4 Jewelry Rs. 50000 Rs. 1000 Rs. 2000

5

Family Functions

(Catering/Photograph

y etc.)

Rs. 20000 Rs. 2000 Rs. 2400

conclusion

It is not at all correct way to think that a common man can not survive with the new union budget, because with the hikes in service tax we can live by reducing our unnecessary expenses and can survive.

a common man can lead his life confidently even though the prices reached sky, by minimizing his costs and expenses

PRIYANKA

CHOUDHARY

K.SRINIVAS

D.T.S ASHOK REDDY

B.KRANTHI KUMAR

Presented By