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General remarks by the Finance Minister:

1.       Global recession has affected India too
2.       Only china and India has grown at a rate higher than that of India in 2012-13 hopes that by 2013-14, only china would have a growth rate higher than India.
3.       Achieving growth rate not beyond our capacity.
4.       No reason for gloom or pessimism on India’s growth story.
5.       Admits that food inflation is a worry.
6.       Hints at austerity, says no option but to rationalise expenditure.
7.       Core inflation has been brought down to 4%

Tvm: KPMG in association with the Confederation of Indian Industry (CII) and Asian School of Business (ASB) held a Post Budget Analysis session in Trivandrum on March 19, 2012. The tax specialists from KPMG - Sachin Menon, Partner & All India Head - Indirect Tax, and Srinath S, Director - Indirect Tax made detailed presentations on the economic aspects of the Union Budget 2012 and the key direct and indirect tax proposals, regulatory amendments and policy announcements for the year 2012-13.

As part of his Union Budget 2012 proposals, the Finance Minister, Shri Pranab Mukherjee announced a number of amendments to the Income Tax Act. Let us try to understand a few of these amendments and its implications which impact the common man and / or the small scale business men:

Tvm: Group of Technology companies (GTech) representing the IT / ITeS industry in Kerala has expressed the view that Union budget 2012-13 presented by the Finance Minister missed the opportunity to make bold economic reforms. However, GTech welcomes moves like reduction in customs duty on a host of items, larger outlay for agriculture, incentives for the aviation industry and increased emphasis on the usage of IT for effective service delivery.

Direct tax proposals:
 
Income Tax:
1. The basic general exemption limit hiked from INR 1.80 lakhs to INR 2.00 lakhs.
2. The upper limit for the 20% slab increased from INR 8 lakhs to INR 10 lakhs.
3. The proposed general slab for taxation would to Nil% for income up to INR 2 lakhs, 10% for income between INR 2 lakhs to INR 5 lakhs, 20% for income between INR 5 lakhs and INR 10 lakhs and 30% for income above INR 10 lakhs.
4. A deduction of up to INR 10,000 proposed for interest on SB account.

Kochi: KPMG, one of the largest professional services networks in the world and one of the Big Four auditors, has announced the release of KPMG in India’s Union Budget App that will feature highlights on the outcome of the Union Budget in real time on mobile devices. This will enable users to access all budget related analysis prepared by KPMG in India on their iPhones, iPads, Android and Blackberry devices. The India Union Budget is scheduled for March 16, 2012.