Budget 2012: seems a balanced one

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Indian Finance Minister, Parnab Mukherjee presented his 7th budget in the parliament. He needs to take care of various aspects of common man and economy.

Income tax exemption limit is being increased. Income tax exemption limit is being made Rs. 2 Lac and from 2-5 lac, tax will be 10 percent, 5-10 lac will be 20 percent and above 10 lac will be 30 percent. Tax exemption slab will be same for both male and female but women exemption limit should have been increased.


From August 2012, VAT will be replaced by goods and services tax (GST). Efforts will be made to reach on consensus on the issue of foreign direct investment (FDI) in the retail sector. Service tax is being increased from 10 percent to 12 percent.

Upto Rs. 50000 investment in the share market will be exempted from the tax and this investment should be for a minimum of 3 years locking period. The scheme will be called Rajiv Gandhi Equity Saving Scheme.

GDP growth is being expected at 7.6 percent during 2012 to 2013 and Indian economy is reviving from the global economic slow down.

The pension for physically challenged and widowers in being increased from Rs. 200 to Rs. 300.

What will get cheaper:

Ready made silver jewelery may become cheaper.

Cycle, mobile parts, solar light system will be cheaper.Also, Common used salt will be cheaper.

Low cost houses will be easy to purchase and low interest loans will be made available.

HIV and cancer medicine will cost less.

What will get costly:

Air travel will be more costly.

Having food in restaurant and cigarettes will cost more.

TV, fridge, computer, phone bill and luxury cars will cost more.

Gold may become even more costly.

In this way, it seems that growth and development is being kept in mind instead of bringing more popular budget. Although common man will not get huge relief from this budget but in long run, this budget will help economy in long run.



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