Budget 2012-13 and My Investment Plan

Does the budget matter really?

It is a Yes and a No

Yes because it affects my earning capacity, and impacts my Investment decisions.

No if i do not fall in these spaces.


But what makes Budget 2012-13 important for me?

STT reduced from 0.125% to 0.1% No tax return upto Rs 5 lakh
Tax exemption on individual share investments below Rs 10 lakh

Rs 50,000 tax exemption for retail investors under Rajiv Gandhi Equity Savings Scheme.

The scheme would allow for income tax deduction of 50 per cent to new retail investors, with annual income of below Rs 10 lakh, putting in up to Rs 50,000 directly in equities. The scheme will have a lock-in period of 3 years.
Proposed IT- slabs Budget 2012-13

• Upto Rs 2 lakh - Nil
• Rs 2-5 lakh - 10%
• Rs 5–10 lakh – 20%
• Above Rs 10 lakh – 30%

Interest from savings account up to Rs 10,000 to be exempt from tax

In addition to medical insurance, an additional Rs 5000 to be exempted for preventive health check-ups

Senior Citizens exempted from filing advance tax

Compulsory reporting of assets sold abroad

A provision of the Finance Bill has proposed an increased
dividend distribution tax for Liquid and Non Liquid schemes effective June 01,
2011. The proposed DDT is at 30% for recipient other than an individual or
HUF for all Liquid and Non Liquid schemes of Mutual Funds.


Propose to hike service tax rate from 10% to 12%

• Government services, education, entertainment, public transport exempted from service tax

Hope all these hold good and get passed in the parliament.....

Family budget

The Family Budget is something to be given serious time. Prepare a Projection for every quarter. Check it every month for deviations and reasons; Try to remain within budget as far as possible...slowly a descipline will get inmotion.

You may need a handy proforma to work out all that and more..

Start managing your expenses...the budgeting helps.

All the best.