union budget 2012-13

1. UNION BUDGET 2012-13
Presented by

2. Plan Non-plan Total
expenditure expenditure expenditure
5,21,025 crore 9,69,900 crore 14,90,925 crore
Budget 2012-13

3. Impact of budget on Business & effect
Sector wise

4. Power
Proposed
Expected
 Sunset clause for IT exemption
Extension of sunset clause for power
extended by another one year
projects
Rationalization of Indirect taxes i.e  Additional depreciation of 20%
merger of Electricity duty to power Cos
Refund of ED for setting up of  Import of Coal exempt from
Mega/Ultra Mega projects 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.

5. Infrastructure
Expected Proposed
Increase in infrastructure  Increased allocation of
spending through higher funds marginally
allocation to various  Withholding Tax
schemes reduction from 20% to 5%
Tax Concessions on Interest on ECB
Effect: Positive For the infrastructure sector.
Steel demand from Infrastructure sector may

6. Agriculture
Expected Proposed
Reduction in custom duties for  Reduction in customs
agricultural machinery duties for specified
Reduction in CD for fertilsers agricultural machinery
 Reduction in CD for
fertilizer's
Effect: Positive For Fertilizer Industry and agro based indust

7. Automobiles
Expected Proposed
 Increase in ED
 Increase in ED  Full exemption from Customs
Concession to fuel for parts of hybrid Vehicles
efficient 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

8. Pharma & Healthcare
Expected Proposed
 Infrastructure status to Healthcare  Reduction in customs for
 Exemption of ED on physician samples specified raw materials for
 Reduction in duties for imports manufacture of medical Kits
 Service tax on Health care
widened
Effect: Overall, the budget did not have anything encouraging for the
pharmaceutical sector.

9. India Income tax slabs 2012-2013 for General tax
payersIncome tax

10. GDP %
10
9
8
7
6
5
4
3
2
1
0
2007-08 2008-09 2009-10 2010-11 2011-12
GDP Growth Rate
In 2012-13 GDP expectation is

11. Inflation %
14
12
10
8
6 Inflation %
4
2
0
2007-08 2008-09 2009-10 2010-11 2011-12
Inflation
In 2012-13 7.6 per cent expect inflation to be
lower.

12. Fiscal Deficit
7.00%
6.00%
5.00%
4.00%
3.00% Fiscal Deficit
2.00%
1.00%
0.00%
2007-08 2008-09 2009-10 2010-11 2011-12
Fiscal deficit as a % of GDP
Fiscal deficit at 5.1 per cent of GDP in BE 2012-13.

13. SERVICE TAX
Service Tax is a form
of indirect tax imposed
on specified services
called "taxable
services".

14. HOW A COMMON CAN BE AFFECTED
WITH HIKE IN SERVICE TAX(10% TO
12%)

15. 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

16. Impact of change in Service Tax & Excise
Duty on various Sectors
 Healthcare
 Life Insurance
 Automobiles – Cars
 Jewelry
 Holidays & Travel
 Transportation

17. Healthcare

18. 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

19. Telephone bill

20. Ad that implies Common man disappointing with
hike in bills
Man feels difficult
Common man to maintain Man can survive
could be maintain mobile with the by managing
more mobiles hikes in mobile time to talk
bills

21. Jewelry

22. Ad that implies family feels burden to
purchase gold
Family is Family facing
willing to problem to
buy gold buy gold due
to hike in
gold rates
Before hike in gold After hike in gold rates

23. Life insurance

24. Ad that implies family struggling to get
insurance
A happy family Family struggling
after paying to pay insurance
insurance low since money is
amount of money increased
Before hike in
insurance After hike in

25. Automobile-cars

26. Ad that implies people feel uncomfortable due to
increase in service tax
People often People now
give their washing their
cars for cars
washing themselves
Before hike in service tax After hike in service
tax

27. 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
Car Maintenance &
4 Rs. 2500 Rs. 300 Rs. 360
Service
5 Cable TV Rs. 250 Rs. 25 Rs. 30

28. Yearly Recurring Expenditures
S.No Expense Description Monthly Expense @ Existing Tax % @ New Tax %
1 Healthcare Rs. 25000 Rs. 2500 Rs. 3000
Life Insurance
2 Rs. 6000 Rs. 600 Rs. 720
Premium
3 Holidays & Travel Rs. 5000 Rs. 500 Rs. 600
4 Jewelry Rs. 50000 Rs. 1000 Rs. 2000
Family Functions
5 (Catering/Photograph Rs. 20000 Rs. 2000 Rs. 2400
y etc.)

29. 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

30. Presented By
PRIYANKA
CHOUDHARY
K.SRINIVAS
D.T.S ASHOK REDDY
B.KRANTHI KUMAR