BUDGET 2012:Missed opportunity

What can we expect after drama happened after railway budget ? I have never seen so defensive budget in last 10 years. Nothing for common man. Tax benefit which is given by increasing tax slab is nullified by increase in service tax & excise duty. This will help inflation to move upward.

There is no word on banking, insurance reforms. Decision on FDI in retail, aviation sector, DTC, GST implementation will be done after consultation with allies, so there will be delay. No decision on reducing oil & gas subsidy.

There are some positives like reduction in STT on cash delivery transaction. New ELSS tax deduction in the name of Rajiv Gandhi, but details are not yet clear. Duty on energy savings lamp & bicycle is reduced.

I think this was the last chance for Congress to deliver something on economic front before 2014 elections which they have lost. It will be difficult to take tough decisions in 2013 budget.

Market need to wait for next move from RBI's decision on interest rate which is depend upon inflation data. This budget has not anything to worry but it has disappointed by not taking big decisions.

Tax exemption limit raised to Rs 2 lakh

he Finance Minister raising the tax exemption limit from the curent level of Rs 1.8 lakh to Rs 2 lakh. For income upto Rs 2 lakh, the tax deduction will now be nill. For those with an income between Rs 2-5 lakh the tax deduction would be 10%. For income between Rs 5-10 lakh the tax bracket will be 20%. Income above Rs 10 lakh will now come under the 30% tax bracket.

FM introduces tax exemption scheme

The scheme, named Rajiv Gandhi Equity Savings Scheme will allow 50% tax deduction for those whose annual income is below Rs 10 lakh and who invest up to Rs 50,000 in stocks subject to a three -year lock in.