Friday, March 16, 2012

Key take aways from Finance Bill 2012

1.       The slabs in the case of resident individual is raised to Rs 2 lacs. Hence the slabs look like as under: Up to Rs 2 lacs – Nil; From 2 lacs to 5 lacs – 10%; From Rs 5 lacs to 10 lacs – 20% and the income in excess of Rs 10 lacs – Taxed at 30%
2.       In house R&D – Weighted deduction of 200% - The sunset clause is extended up to 31st March 2017 from the current time of 31st March 2012.
3.       GAAR provisions introduced. [General Anti Avoidance Agreements].
4.       The dividend received by Indian companies from their foreign interests will be taxed at a concessional rate of 15%. 
5.       The scope of Sec 35AD has been extended to new sectors. 
6.       The service tax rates have been hiked to 12%. [Effective rate is thus 12.36%] [Operative from 1st April 2012]. 
7.       The Excise is also increased to 12%. [This rate is effective from 17th March 2012].
8.       Peak customs retained at 10%.
9.       Negative list in service tax is introduced with the effect that all services except the services contained in negative and exemption list. [Prominent in the negative list are majority of services rendered by govt / Local Authorities, school education, Entertainment, Some kinds of public transport].
10.   Common registration for service tax and central excise.
11.   Common one page return [EST] for service tax and central excise in lieu of the present 15 pages return.