Much against expectations that the budget will impose a 19% duty on imported power equipment to check on low-quality gear imports from China, finance minister Pranab Mukherjee chose against introducing any such new duties.
In good news for India’s debt-laden aviation sector, the government has permitted external commercial borrowing (ECB) of up to $1 billion to help the country’s bleeding airlines that are likely to post a combined loss of $2.5 billion (Rs 12,575 crore) this fiscal year, raise cash.
Contrary to expectations, finance minister Pranab Mukherjee did not make any major announcement to boost the sector. Experts pointed out that Mukherjee focussed only on growth and stability, while steering clear of any instant actionable points for the retail sector.
Finance minister Pranab Mukherjee did not give the domestic industry much to cheer about despite strong signs of a crippling industrial slowdown.
In order to increase retail participation in the capital market, finance minister Pranab Mukherjee has proposed a tax exemption scheme for new investors in the budget. HT reports.
Life insurance premiums for unit-linked insurance policies (ULIPs) are set to become expensive as finance minister Pranab Mukherjee announced a change in norms, which would bring a portion of premium under the increased service tax net. Service tax on your first year premium would increase from 1.5% to 3% of the gross premium. HT reports.
Customers are set to get tax-free interest income from their savings bank accounts with the finance minister proposing a tax deduction of up to Rs. 10,000 on interest earned from savings bank accounts.
Imported gold would now be costlier by around R500 per 10 grams, following the budget announcement on Friday that increased the import duty on the yellow metal to 4% from the earlier 2%. HT reports.
In a bid to provide the much-needed push to the cash-starved infrastructure sector, finance minister Pranab Mukherjee has announced raising Rs. 60,000 crore through tax-free bonds in 2012-13, twice the amount announced for 2011-12. HT reports.
The finance minister relaxed borrowing norms for real estate firms and extended the loan subsidy for low-cost affordable houses.
Finance minister Pranab Mukherjee announced infusion of Rs.
15,888 crore into public sector banks as part of the recapitalisation exercise in 2012-13.
Finance minister Pranab Mukherjee on Friday proposed an additional depreciation of 20% in the initial year for new assets acquired by power generation companies, but stopped short of offering a blanket extension of the incentive to the industry in general. HT reports.
The government on Friday proposed setting up of a Rs. 5000 crore India Opportunities Venture Fund with Small Industries Development Bank of India (SIDBI) to enhance the availability of equity to micro, small and medium enterprises (MSMEs).
The $100-billion IT-BPO sector was left deeply disappointed with the budget announcements made by finance minister Pranab Mukherjee.
The increase in the excise duty on cement that followed a hike in railway freight rates, will make the commodity more expensive and impact the domestic housing and construction sector.