Budgets India: Looking back 5 times
2012 : Finance minister: Pranab Mukherjee
Projects a decline in the fiscal deficit to 5.1% of GDP in 2012/13. GDP expected to grow at 7.6%.
Controversial proposal to retrospectively tax cross-border transactions in which the underlying assets are located in India. The move amounts to a push to get foreign companies that have invested millions in India to pay more taxes. Or in India’s words, it’s supposed to “counter aggressive tax avoidance schemes”
Service tax rate raised to 12% from 10%, double basic customs duty on gold
No change in corporate tax rates. Personal taxation: minimum threshold of income not chargeable to tax increased to R200,000.
The 30% tax slab applicable on income above R10,00,000.
Market reaction on Budget day
The Sensex fell 210 points (1.2%) to close at 17,466 as the Budget was seen as too modest for a corporate sector looking for more concessions. During trade, the index fell nearly 250 points.
Rating agency reactions
Standard & Poor’s said the Budget was “mildly negative”
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